Learn about the legal processes for employee termination and severance in Mongolia
In Mongolia, the Labour Law of 1999 governs the notice periods required during employment termination. The length of the notice period depends on who initiates the termination and the circumstances surrounding it.
When the employer initiates the termination, the Labour Law stipulates specific notice periods based on the reason for termination:
Exceptions:
The Labour Law permits immediate dismissal without notice in certain situations, such as employee misconduct.
The Labour Law grants employees the right to terminate their employment with 30 days' written notice to the employer.
It's crucial to remember that the Labour Law serves as a minimum standard. The employment contract can override these provisions and set different notice periods, as long as they are more beneficial to the employee.
In Mongolia, the Labour Law stipulates specific severance pay entitlements for employees whose employment is terminated under certain circumstances.
Severance pay is entitled to employees in Mongolia under the following situations:
The severance pay package for employees is equivalent to one month of their average salary.
There are certain exceptions where severance pay is not mandated:
The termination process for employees in Mongolia is governed by the Labour Law. This process varies depending on whether the termination is initiated by the employee or the employer.
When an employee decides to terminate their employment, they must submit a written resignation letter to the employer, indicating their intention to terminate the employment relationship. The notice period may be modified by the employment contract, but it cannot be shorter than the 30-day minimum set by the Labour Law.
The process for employer-initiated termination is more detailed. The employer must have a valid reason for termination based on the Labour Law. This could include reasons like workforce reduction, position abolition, employee incompetence, or disciplinary breach. The employer must provide the employee with a written notice of termination stating the grounds for termination and the effective termination date. The employer must also inform the employee of their right to work during the notice period or be paid their usual salary. The termination process is completed by finalizing required documentation and keeping proper records.
Employers and employees can mutually agree to terminate the employment contract at any time, with terms negotiated by both parties. In cases of severe employee misconduct, the employer may be able to dismiss the employee without notice under specific provisions of the Labour Law. Termination disputes may be referred to labour dispute resolution bodies or the courts.
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