Luther Employment Law in Myanmar
Luther Employment Law in Myanmar
Employment Law
II. Payroll
X. Labour Inspection
6 August 2018
I. Legal Framework
6 August 2018
I. Legal Framework.
Relevant Acts and Laws
Workman’s Compensation Act (1923) Labour Organization Law (2011)
as amended 2005 Social Security Law (2012)
Leave and Holidays Act (1951) Settlement of Labour Dispute Law (2012)
as amended 2014 as amended 2014
Factories Act (1951) Employment and Skill Development Law
as amended 2016 (2013)
Oilfields (Labour and Welfare) Act (1951) Minimum Wage Law (2013)
Employment Restriction Act (1959) Payment of Wages Law (2016)
Income Tax Law (1974) Shops and Establishment Law (2016)
as amended by Union Tax Law 2016
Various sector-specific laws which contain
Law Relating to Overseas Employment (1999) labour regulations
6 August 2018
I. Legal Framework.
Relevant Regulations, Rules and Policies of the Ministry of Labour
Settlement of Labour Dispute Rules
Minimum Wage Rules as amended 2016
Labour Organization Rules
Instructions of the Factories and General Labour Law Inspection Department
Instructions of the Attorney Generals Office on Taxation of Housing Benefits
Ministry of Labour Notifications on Employment Contracts
Ministry of Labour Notification on Minimum Wage
Ministry of Labour – Template Employment Contract
Ministry of Labour – Template Work Rules
Ministry of Labour – Template Pay Slip
6 August 2018
I. Legal Framework.
Current Drafts
Workplace Safety and Health Law
Employment and Skill Development Rules
Current Discussions
Labour Organizations Law
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II. Payroll
6 August 2018
II. Payroll.
More than 1,000 employees: within 10 days of the end of the month
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II. Payroll.
Minimum Wage
Minimum Wage Law came into force in 2013
Wage: “fee, wage or salary entitled to be obtained by an employee for carrying out hourly
work, daily work, weekly work, monthly work or any other part‐time work with an
employer”
In practice, overtime payment not accounted for calculation of the minimum wage
(different interpretation by the respective township possible)
6 August 2018
II. Payroll.
Minimum Wage
Specifically not included:
Travel allowances;
Allowances for accommodation and meals, electricity charges, water service charges and duties and taxes;
Other fees not considered wage in accordance with Minimum Wage Law (2013) as stipulated by notification of the
Ministry of Labour, Immigration and Population with the approval of the Union Government
Law provides for a salaried employee‘s right to enjoy 1 paid rest day a week
6 August 2018
II. Payroll.
Minimum Wage
Reduced minimum wage for workers during 3 months of training period and during
probation period of 50% respectively 75%
Notification No. 2/2015 was repealed and replaced by Notification No. 2/2018
6 August 2018
II. Payroll.
6 August 2018
II. Payroll.
Repayment of advances
With the exception of absence from work without leave, deductions may in total not exceed 50% of the salary
Violations of workplace rules specified in the employment contract as liable for a fine
Fines shall be approved by the Labour Department and must be affixed in public locations at the workplace
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III. Social Security
6 August 2018
III. Social Security.
Registration must be submitted within ten (10) days from the appointment of the fifth
employee
The relevant township office will issue a registration certificate for the employer
Non-Compliance
An employer who fails to comply with the responsibility to register will, on conviction,
be punished with imprisonment for a term not exceeding one (1) year or with a fine
or with both
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III. Social Security.
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III. Social Security.
Employers must withhold employees’ social security contributions from the salaries
Non-Compliance
Employers in default may be punished with imprisonment, a fine, or both
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IV. Personal Income Tax
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IV. Personal Income Tax.
Taxable Income
Any income received by an employee from the employer is taxable:
Exempted from income tax is only housing provided by the employer (i.e. employee
occupies residential premises of the employer)
Tax Rate
Personal income tax is levied at progressive rates of 0–25%
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IV. Personal Income Tax.
Residents
Locals and resident foreigners (staying in Myanmar for a period of 183 days or more
during any year of assessment) are taxed on their worldwide income
Locals and resident foreigners are eligible for deductions and allowances, such as basic
relief, co-resident parent relief, spouse relief, child relief and other reliefs, such as life
insurance contributions and employee contributions towards the Social Security Fund
Non-Residents
Foreigners staying in Myanmar for a period of less than 183 days during any year of
assessment are taxed only on income derived from sources within Myanmar
Tax exemptions may be available pursuant to the existing Double Tax Treaties (e.g. with
Singapore or Thailand)
6 August 2018
IV. Personal Income Tax.
The tax to be paid must be estimated based on the expected annual, guaranteed income,
filed by the employer with the relevant authorities and paid to the Myanmar Economic
Bank within seven (7) days from the date of salary payment; In practice, many tax offices
currently prefer a quarterly filing and payment of the withheld personal income tax
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IV. Personal Income Tax.
For all employees employed by the employer in the previous income year (including
employees who resigned)
Non-Compliance
Employers failing to withhold and pay their employees’ personal income tax are deemed
to be at default and liable for such payments
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V. Hiring of Employees &
Registration of
Employment Contracts
6 August 2018
V. Hiring of Employees.
Juvenile Workers
Child Law states that children have the right to engage voluntarily in work permitted
by the law, as well as the rights permitted to hours of employment, rest, and leisure
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V. Hiring of Employees.
Foreign Investments
Foreign investors must hire Myanmar citizens for work that does not require special expertise
Employers must provide relevant training in order to improve the skills of Myanmar citizens
Previously for MIC Companies, Myanmar citizens must represent at least 25% of the total
number of skilled workers, technicians, and staff during the first two years of operations. This
percentage had to increase to at least 50% during the 2-4 years of operation, and to at least
75% in years 4-6; with the enactment of the new Myanmar Investment Law 2016, this quota-
system was abolished (appointment of foreign workers must however be approved).
Employers may hire a larger percentage of foreign employees for technological and managerial
work with the approval of the SEZ’s management committee
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V. Registration of Employment Contracts.
Employment Contract
Any enterprise must enter into written employment contracts with its employees within 30
days of employment (sec. 5 (a) Employment and Skills Development Law (2013))
Employment contract must be approved by and registered with the relevant township
office of the Labour Department
Non-Compliance
An employer convicted of failing to sign an employment agreement may be punished with
imprisonment for up to six (6) months or with a fine or with both
Employment contracts not registered with the Labour Department may be declared void
6 August 2018
V. Registration of Employment Contracts.
The Ministry of Labour, Immigration and Population has issued a Standard Employment
Contract, the terms of which are in practice applied to all employees
By Notification of the Ministry of Labour, Employment and Social Security, employers are
required to use the official template contract
Numerous international organizations, UMFCCI and employers have filed petitions against
the template contract
Amendments of the official template are possible by preparing an Annex to the template
which may include additional/deviating provisions; the Annex has to be approved by the
Department of Labour at the time of filing
6 August 2018
VI. Official Employment
Contract and Employment
Law
6 August 2018
VI. Official Employment Contract and Employment Law.
Employment Contract
Pursuant to sec. 5 (a) Employment and Skills Development Law (2013), an enterprise must enter into
written employment contracts with its employees within 30 days of employment
The employment contract must then be submitted to the relevant Township Labour Office for
registration
Non-Compliance
An employer convicted of failing to sign an employment agreement shall be punished with
imprisonment for up to six (6) months or with a fine or with both (sec. 38 Employment and Skills
Development Law (2013))
Employment contracts not registered with the Labour Department may be declared void
Comment Luther
No employment contract is required during a pre-employment probation or training period, but we would
recommend to at least sign an appointment letter with most important terms of employment
While the law does not allow for any kind of exemptions, this requirement is enforced only for
employers with five (5) or more employees; this practice of the Township Labour Offices is further
provided for in rule 12 (a) Draft Rules to the Employment and Skill Development Law (2013)
6 August 2018
VI. Official Employment Contract and Employment Law.
Old Template
In August 2015, the Department of Labour of the Ministry of Labour, Immigration and Population
(Ministry of Labour) issued Notification 1/2015, announcing that with effect from September 2015, all
employees in Myanmar must be employed under a prescribed employment contract template
While the requirement of having a written employment contract had been in place since the enactment
of the Employment and Skills Development Law (2013), the instructions relating to a “prescribed
employment contract template” came as a surprise
Unfortunately, the official employment contract template was drafted for factory workers and not
suitable for most businesses, and the UMFCCI, labour unions, but also international organizations and
other stakeholders, filed petitions to withdraw or at least amend Notification 1/2015
6 August 2018
VI. Official Employment Contract and Employment Law.
New Template
On 31 January 2017, the Ministry of Labour convened a tripartite meeting, in which it was resolved that
representatives of employers and employees would jointly work on a new employment contract
template. In subsequent bipartite meetings, UMFCCI and labour unions negotiated a draft, which was
eventually presented to the National Tripartite Dialogue Forum (NTDF)
After a final bipartite meeting on 28 February 2017, the UMFCCI and labour unions resolved
outstanding issues at the NTDF meeting on 27 May 2017 and submitted their final draft to the Ministry
of Labour for review and approval
On 28 August 2017, the new Employment Contract Template was officially announced
(Notification 140/2017)
Comment Luther
As before, amendments of the official template are possible by preparing an annex to the template
which may include additional/deviating provisions; the annex has to be approved by the Township
Labour Office at the time of filing
6 August 2018
VI. Official Employment Contract and Employment Law.
Practice (Examples)
NO registration of employment contracts
Drafting an individual employment contract based on the official template and annex and submission to
the Township Labour Office for review, approval and registration
Filing an employment contract and signing another agreement for internal use only
Providing foreigners working in Myanmar with an employment contract with the offshore headquarter
governed by foreign law
Comment Luther:
As non-compliance did not have any immediate effects, many employers did not bother to register their
employee‘s employment contracts
Myanmar authorities focused on labour intensive industries (e.g. garment sector)
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VI. Official Employment Contract and Employment Law.
6 August 2018
VI. Official Employment Contract and Employment Law.
The written employment contract shall contain the following minimum terms:
1. Type of employment 12. Transportation (if any)
2. Probation period 13. Obligations of the employee
3. Wage/salary 14. Training of the employee (if any)
4. Location of establishment 15. Resignation by employee
5. Term of employment 16. Termination/dismissal by employer
6. Working hours 17. Contractual obligations
7. Days-off, holidays and leave 18. Mutual termination agreement
8. Overtime 19. Other matters
9. Meal arrangments (if any) 20. Amendments/supplements to employment contract
10. Accommodation (if any) 21. Miscellaneous
11. Medical treatment (if any)
6 August 2018
VI. Official Employment Contract and Employment Law.
Comment Luther
While the former Employment Contract Template contained some more provisions regarding
probation period (e.g. the employee shall not be paid less than 75 % of the basic wage during his
probation period), the new Employment Contract Template lacks specific information on the
payment of wages/salaries, employment after probation period and termination and resignation
during probation period
In absence of any further provisions, the new Employment Contract Template does not actually
distinguish between employees on probation and employees who have completed their probation
period, since rules on termination and other terms are identical
The only difference is, that the requirement to sign and register an employment contract does only
apply after completion of the probation period
6 August 2018
VI. Official Employment Contract and Employment Law.
1. Type of Job
The new Employment Contract Template contains information on the type of business, the
employee’s designation/level, department and a summary of duties
2. Probation Period
While the Employment and Skills Development Law (2013) provides for the possibility to agree on a
probation period, no further details are stipulated under the law
Pursuant to both the former and the new Employment Contract Template, the probation period shall,
however, not exceed three (3) months
If the employer deems a probation period to be unnecessary, he may appoint the employee without
probation period
6 August 2018
VI. Official Employment Contract and Employment Law.
3. Wage/Salary
The new Employment Contract Template provides for the options to agree on daily wage, piece-rate
or monthly salary in either Myanmar Kyat or foreign currency (e.g. US Dollar)
Depending on the employee’s performance and subject to the prescribed minimum wage, the
wage/piece-rate/salary may be amended from time to time by mutual agreement between the
employer and employee
Minimum Wage
Minimum wage has been prescribed in Notification 2/2015 for all enterprises with more than
15 employees at MMK 3,600 per day for eight (8) hours of work (excluding break time)
The Minimum Wage Law (2013) defines wage as the basic salary excluding pension and
gratuity payments, social security cash benefits, allowances (for travel, accommodation,
meals, electricity charges, water service charges and duties, taxes, medical treatment and
recreational purposes) and severance payments
Per definition, wage also includes bonuses and overtime compensation, but in practice,
overtime payment is not considered for the calculation of the minimum wage
6 August 2018
VI. Official Employment Contract and Employment Law.
Payment of Salary
Sec. 4 Payment of Wages Law (2016) provides, that an employer shall, in case of hourly,
daily, weekly job or a job of any other time interval, or temporary job or piece-job, disburse
remuneration for such job to the employee upon completion of the job or at any time period
agreed with the employee; the period of time agreed between the employer and employee
shall, however, not exceed one (1) month
Salaries for permanent employees shall be disbursed monthly:
If the workforce does not exceed 100 employees, remuneration shall be disbursed on
the end date of the period of remuneration:
If the workforce exceeds 100 employees, remuneration shall be disbursed within five
(5) days of the end of the period of remuneration
In case of termination by the employer, the remuneration payable shall be paid within two (2)
business days from the termination date
In case of voluntary resignation by the employee, payment shall be made on the end date of
the period of remuneration
In case of death of an employee, the remuneration shall be paid to the legal inheritor within
two (2) business days from the date of such decease
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VI. Official Employment Contract and Employment Law.
4. Location
The location of the workplace of the employee shall be stated in detail (i.e. number, street/road,
ward/village/industrial-zone, township and region/state in Myanmar)
Comment Luther
This requirement can result in difficulties in the event of a move of the employer’s operation, e.g. to
a new address
If the employer requires an employee to work at different locations (e.g. offices in Yangon and
Mandalay), we would recommend to list all locations in the employment contract
6 August 2018
VI. Official Employment Contract and Employment Law.
5. Term of Employment
The term of employment is not regulated under the applicable laws
Upon expiry of a fixed term employment, and provided that there was no breach of the terms of the
employment by the employee, termination or change of work and/or payment conditions, the employment
contract shall be extended
The new Employment Contract Template explicitly provides, that the employer shall not refuse to extend
the contract term without valid reasons (i.e. the extension of the employment contract shall be the norm).
Further, the new Employment Contract Template provides, that an employee’s length of service shall be
calculated from the date of joining the factory/workshop/enterprise/company until the termination (i.e. the
accumulated length of all renewed fixed terms)
Comment Luther
Pursuant to the former practice of the Department of Labour, an employment contract could not exceed two
(2) years (it could, however, subsequently be renewed for further term(s)), which was neither in line with
Myanmar employment laws and the principle of freedom of contract, nor with the needs of many of
employees and seemed to contradict Notification 84/2015 of the Ministry of Labour concerning severance
payments for the termination of employment contracts by the employer based on the duration of an
employee’s employment
6 August 2018
VI. Official Employment Contract and Employment Law.
6. Working Hours
Pursuant to the new Employment Contract Template, the regular working hours, meal and rest times
shall be stated in detail
If required due to the nature of the enterprise, this provision may, however, upon mutual agreement
between the employer and employee be amended in accordance with the applicable laws
Comment Luther
This may imply that (e.g.) employers in the hospitality sector may enjoy greater freedom to agree on
flexible working hours
It remains, however, to be seen, how the Department of Labour will interpret this provision, as any
amendment of the working hours shall be submitted to the relevant authorities for approval
6 August 2018
VI. Official Employment Contract and Employment Law.
6. Working Hours
Working hours (per day/week) - „Regular Working hours (per day/week): not more than
worker“: not more than eight (8) hours per day eight (8) hours per day and 48 hours per week
and 44 hours per week
Working hours (per day/week) - Worker
carrying out work that must be done
continuously: not more than eight (8) hours
per day and 48 hours per week
Days per week: shall not exceed six (6) days Days per week: shall not exceed six (6) days
per week, i.e. one weekly rest day (ordinarily per week, i.e. one weekly rest day (ordinarily
Sunday) Sunday)
Minimum rest period: 30 minutes after five (5) Minimum rest period: 30 minutes after four (4)
hours of work hours of work
The combined working hours and rest break The combined working hours and rest break
shall not exceed ten (10) hours per day shall not exceed eleven (11) hours per day
6 August 2018
VI. Official Employment Contract and Employment Law.
6. Working Hours - Factories Act (1951)
Child (14-15 years) Adolescent (16-17 years) Young Person (14-17 years)
6 August 2018
VI. Official Employment Contract and Employment Law.
6. Working Hours - Shops and Establishment Law (2016)
Not more than 4 hours/day working time, with Prohibited from working unless in possession
30 minutes rest each day of a medical certificate proving fitness to do so
No work between 6:00 PM and 6:00 AM Not allowed to work in hazardous conditions
At least one rest day/week of work, which are specifically identified
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VI. Official Employment Contract and Employment Law.
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VI. Official Employment Contract and Employment Law.
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VI. Official Employment Contract and Employment Law.
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VI. Official Employment Contract and Employment Law.
7. Public Holidays
Under the Leave and Holidays Act (1951), every employee shall be granted paid public holidays as
announced by the Government in the Myanmar Gazette; on average, Myanmar has 25 public holidays
per year, depending on the date of the variable holidays:
New Year’s Holidays 1 1 January
Independence Day 1 4 January
Union Day 1 12 February
Peasants Day 1 2 March
Full Moon Day of Tabaung 1 variable
Armed Forces Day 1 27 March
Maha Thingyan (Water Festival) 5 13–17 April
May Day 1 1 May
Full Moon Day of Kasong 1 variable
Full Moon Day of Waso (beginning of Buddhist Lent) 1 variable
Martyr’s Day 1 19 July
Full Moon Day of Thadingyut (end of Buddhist Lent) 3 variable
Eid al-Adha 1 variable
Deepavali 1 variable
Full Moon of Tazaungmone 2 variable
National Day 1 variable
Kayin New Year Day 1 variable
Christmas Day 1 25 December
6 August 2018
VI. Official Employment Contract and Employment Law.
7. Leave Days
Myanmar law recognizes various types of leave
In general, leave is governed by the Leave and Holidays Act (1951), but additional rules may apply in
accordance with other laws, such as the Social Security Law (2012) for employees contributing to the
Social Security Fund
Casual Leave
Every employee is entitled to six (6) days of paid casual leave per year of employment
Casual leave may not be carried forward to the subsequent year and may not be spent for more
than three (3) consecutive days at a time, except in the case of religious or compulsory social
events (e.g. weddings, funerals)
Casual leave may not be enjoyed in conjunction with any other type of leave
6 August 2018
VI. Official Employment Contract and Employment Law.
Earned Leave
Earned leave may be enjoyed for a minimum of ten (10) days consecutively or separately per
year of employment, provided the employee has completed twelve (12) consecutive months of
service with a minimum of 20 working days per month
For each month with less than the minimum of 20 full days of work, one day may be deducted
from the minimum earned leave entitlement
Earned leave may be carried forward and can be accumulated up to three (3) years, unless
otherwise agreed between employer and employee
6 August 2018
VI. Official Employment Contract and Employment Law.
Medical Leave
Medical leave is governed by the by the Leave and Holidays Act (1951) and, for employees
contributing to the Social Security Fund, further by the Social Security Law (2012)
Under the Leave and Holidays Act (1951), employees are entitled to 30 days of paid medical
leave per year, provided that they have completed six (6) months of service
Employees covered by the Social Security Law (2012) are also entitled to 30 days of medical
leave (if they have completed six (6) months of service), but may enjoy additional leave in case
of certain work injuries and illnesses
Theoretically, employees covered by the Social Security Law (2012) may receive part of their
salary from the Social Security Fund, but in practice, such medical leave is often also granted as
paid leave
6 August 2018
VI. Official Employment Contract and Employment Law.
6 August 2018
VI. Official Employment Contract and Employment Law.
Funeral Leave
The new Employment Contract Template introduces the additional category of funeral leave
Employees shall be entitled to leave in accordance with the law without deduction from their
minimum wage in case of death of a parent or family member
If the statutory leave entitlement has been exhausted, unpaid leave may be granted upon mutual
agreement between employer and employee
Comment Luther
Myanmar labour law does not provide for separate funeral leave
Since the new Employment Contract Template provides that such leave shall be granted in
accordance with the law, and explicitly refers to the option to grant unpaid leave, it may be the
intention that Funeral Leave be deducted from casual or earned leave
6 August 2018
VI. Official Employment Contract and Employment Law.
8. Overtime
Every work in excess of eight (8) hours per day or 44/48 hours per week is considered overtime
Even if employees work only 40 hours per week, the ninth (9th) hour on a working day would be
considered overtime (even if weekly working hours do not exceed 44/48 hours)
Overtime shall be calculated as {(monthly salary x 12 months)/52 weeks/44 (or 48) hrs} x 2
Comment Luther
Overtime pay shall only be paid if the employer instructs the employee/gives permission to work
overtime.
Any implementation of a constant overtime policy requires the permission of the relevant authorities
(e.g. the Factories and General Labour Law Inspection Department); for any regular overtime in
factories and workshops, a proposal with the signatures of all proposed employees shall be submitted
to the Factories and General Laws Inspection Department
It should further be noted, that the new Shops and Establishment Law (2016) no longer provides for an
exception for managers; accordingly, all employees are entitled to overtime compensation
6 August 2018
VI. Official Employment Contract and Employment Law.
8. Overtime
„Regular“ worker: not more than 16 hours Overtime per week: Not more than 16
(Factories Act)
overtime per week
(Shops and Establishment Act)
hours overtime per week
Worker in a position who must work
continuously: not more than 12 hours
overtime per week
The overtime wage/salary is double the The overtime wage / salary is double the
normal wage/salary normal wage/salary
No set-off of overtime No set-off of overtime
Overtime on the weekly rest day: substitute Overtime on the weekly rest day: substitute
rest day rest day
6 August 2018
VI. Official Employment Contract and Employment Law.
9. Meal Arrangements
Under Myanmar law, employers are not required to provide meals to their employees
Whether employers provide their employees with meals shall, however, be clearly stated in the
employment contract
10. Accommodation
Under Myanmar law, employers are not required to provide accommodation to their employees
Whether employers provide their employees with accommodation shall, however, be clearly stated in
the employment contract
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VI. Official Employment Contract and Employment Law.
6 August 2018
VI. Official Employment Contract and Employment Law.
Comment Luther
The new Employment Contract Template provides, that rules specifying categories of ordinary/grave
misconduct and levels of disciplinary action shall be attached to Employment Contracts as annexures
While no further information is provided, we understand, that such categories/levels of disciplinary
action shall be submitted to the relevant authorities for approval
6 August 2018
VI. Official Employment Contract and Employment Law.
14. Training
The employer and employee may mutually agree upon a training in accordance with the Employment
and Skills Development Law (2013)
A separate agreement shall be executed in accordance with the law concerning the attendance of
occupational skills training courses
Comment Luther
In contrast to the former Employment Contract Template, no further information on training is contained
in the new Employment Contract Template
If training is provided prior to employment, no employment contract has to be registered until the
employment is confirmed
The Employment and Skills Development Law (2013) does not contain specific provisions on training at
the employer’s expenditure, e.g. the consequences in the event of a resignation of employee
We would recommend to agree on clear reimbursement obligations with any employee receiving
training
6 August 2018
VI. Official Employment Contract and Employment Law.
15. Resignation
Currently not regulated by law
The conditions and requirements are primarily governed by the policies of the Ministry of Labour, most
importantly the contract template
The new Employment Contract Template provides for the possibilities for the employee’s resignation,
by giving the employer a minimum of one (1) month’s prior notice of resignation
Comment Luther
While the new Employment Contract Template provides for the employer’s permission for the
resignation of an employee, we would submit that the resignation is a unilateral act not requiring
permission, unless a minimum fixed term of employment was agreed
6 August 2018
VI. Official Employment Contract and Employment Law.
16. Termination
Currently not regulated by law
The conditions and requirements are primarily governed by the policies of the Ministry of Labour, most
importantly the contract template
Pursuant to the new Employment Contract Template, the termination of an employee shall be done in
writing and signed, and the employer shall keep records of the reason for termination
Dismissal
An employee who violates the prescribed rules shall – for ordinary misconduct – be given written
warnings for the first (1.) and second (2.) violation and sign an undertaking for the third (3.)
violation
In case of any further violation within twelve (12) months from the undertaking, the employer
shall be entitled to terminate the employment contract without payment of compensation
If no further violation is committed within twelve (12) months from the undertaking or a case of
ordinary misconduct, all previous offences of the employee shall be cancelled
Comment Luther
Since the Employment Contract Template is silent on the consequences of grave misconduct, it
can be assumed that an immediate, summary dismissal is permitted
6 August 2018
VI. Official Employment Contract and Employment Law.
Termination by notice
Other than for a reason as set out above, the employer may terminate the employment of an
employee with at least one (1) months’ notice in advance and payment of severance pay,
provided that such termination does no violate any applicable law
Redundancy
The new Employment Contract Template recognizes redundancy as a reason for termination
Employers shall coordinate with labour organizations in respect of redundancies and termination
of employees
If no labour organization has been formed, the employer shall coordinate with the Workplace
Coordination Committee (if any)
6 August 2018
VI. Official Employment Contract and Employment Law.
Severance Pay
Severance pay was formally introduced by Notification 84/2015
During Probation, only outstanding payments at the time of termination are payable
In case of a dismissal with reason or resignation of the employee, no severance payment is
payable
In case of a termination by notice, or for insufficient reason, severance is payable as follows:
6 August 2018
VI. Official Employment Contract and Employment Law.
Ordinary
Grave Misconduct Other Reasons
Misconduct
Written Warning
Written Warning
Severance
No Severance Payment
Payment
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VI. Official Employment Contract and Employment Law.
6 August 2018
VI. Official Employment Contract and Employment Law.
Employee
The employee shall comply with instructions concerning workplace safety, issued in accordance
with the needs of the enterprise
The employee shall wear such workplace safety equipment prescribed in accordance with
operational needs when entering the workplace
The employee shall, at the workplace and during work hours, refrain from consuming
intoxicants, causing harassment, danger or physical harm to colleagues
The employee shall keep confidential information disclosed as such by the employer and shall
refrain from extracting, using, copying, removing or deleting documents, accounts or records
related to the business without order or permission
The employee shall abide by the rules and regulations issued from time to time in agreement
subsequent to negotiation between the employer and employee representatives
The employee shall pay taxes and fees required to be contributed or paid by prevailing laws at
the prescribed rates
The employee shall respect and abide by the prevailing labour laws
The employee shall be able to sue and be sued in accordance with law
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VI. Official Employment Contract and Employment Law.
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VI. Official Employment Contract and Employment Law.
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VI. Official Employment Contract and Employment Law.
21. Miscellaneous
The employee shall be entitled to enjoy all rights, protections and benefits provided in labour laws and
related laws
Additional rights and duties may be prescribed by the employee manual of the employer, which shall be
deemed a part of the employment contract
Comment Luther:
It should be noted, that post-contractual non-compete obligations for employees are not permitted and
void in accordance with the Myanmar Contract Act (1872)
Non-solicitation obligations should, however, be valid under Myanmar law
It is further recommended to include very clear confidentiality and compliance obligations, including
restrictions on bribery, acceptance of gifts, etc.
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VII. Factories Act 1951
(as amended in 2016)
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VII. Factories Act – Summary.
Provisions on
Health (Chapter III, sec. 13-22)
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VII. Factories Act – Provisions on Health.
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VII. Factories Act – Provisions on Health.
Examples
Cleanliness
“Every factory and the compound there of shall be kept clean and kept free from
effluvia arising from any drain, privy or other nuisance, (…)” (sec. 13 (1) Factories
Act)
6 August 2018
VII. Factories Act – Provisions on Safety.
Work on a near machinery in motion (sec. 24) Floors, passages, stairs and means of access
(sec. 34)
Employment of young persons on dangerous
machinery (sec. 25) Pits, sumps, openings in floors, etc (sec. 35)
Devices for cutting off power (sec. 26) Excessive weights (sec. 36)
Casing of new machinery (sec. 28) Precautions against dangerous fumes (sec. 38)
Prohibition of employment of women and Explosive of inflammable dust, fume, etc (sec. 39)
children near cotton openers (sec. 29) Arrangement to be made against cases of fire
Hoists and lifts (sec. 30) (sec. 40)
Cranes and such other lifting and hoisting Power to require specifications of defective parts
machinery (sec. 31) or tests of stability (sec. 41)
Revolving machinery (sec. 32) Safety of buildings and machinery (Sec. 42)
6 August 2018
VII. Factories Act – Provisions on Safety (Ex.).
Overcrowding
“No room in a factory shall be overcrowded to such an extent as to be injurious to
the health of the workers employed therein.” (Sec. 18 (1) Factories Act)
Lightning
“In every part of a factory where workers are working or passing, there shall be
provided and maintained sufficient and suitable lighting natural or artificial.”
(sec. 19 (1) Factories Act)
Drinking Water
“In every factory, effective arrangements shall be made to provide at points
conveniently situated for all workers employed therein a sufficient supply of
wholesome drinking water.” (sec. 20 (1) Factories Act)
6 August 2018
VII. Factories Act – Provisions on Welfare.
Welfare (Chapter V)
Washing facilities (sec. 44)
6 August 2018
VII. Factories Act – Provisions on Welfare (Ex.).
Day-Care
“Factories having 100 or more married female workers with offspring under five
years of age shall provide day-care centres for each factory or collection of factories
as prescribed by the Ministry of Social Welfare, Relief and Resettlement. In case of
factories having less than 200 married women, the employer may provide other
appropriate arrangements for their offspring under six years of age.” (sec. 50 (1)
Factories Act)
6 August 2018
VII. Factories Act – Provisions on Working Hours.
Working hours (per day / week) - Worker in a position who must work continuously:
not more than eight (8) hours per day and 48 hours per week
Minimum rest period: at least 30 minutes after five (5) hours of work
The combined working hours and rest break shall not exceed ten (10) hours per day
Overtime
„Regular“ worker: not more than 16 hours overtime per week
Worker in a position who must work continuously: not more than 12 hours overtime
per week
6 August 2018
VII. Factories Act – Provisions on Working Hours.
Exception:
Worker has had or will have a full holiday on one of the three days immediately before or
after that Sunday;
the manager of the factory has, before that Sunday or the day substituted therefore,
whichever is earlier, delivered at the office of the Inspector a notice of his intention to
require the worker to work on the Sunday and of the day to be substituted therefore, and
displayed in the factory a notice to that effect for not less than 24 hours before any of such
two days which ever is earlier and until the expiry of such two days whichever is later
Provided that no substitution shall be made, which will cause any worker to work for
more than ten (10) consecutive days without a full holiday
6 August 2018
VII. Factories Act – Provisions on Working Hours.
Substituted Holiday
Whereas a result of the passing of an order or the making of a rule under the
provisions of this Act exempting a factory or the workers therein from the provisions
of section 60, a worker is deprived of any of the weekly holidays for which provision
is made in subsection (1) of that section, he shall be allowed, within the calendar
month in which the holidays were due to him or within the two calendar months next
after that month, substituted holidays equal to the number of holidays equal to the
number of holidays so lost.
6 August 2018
VII. Factories Act – Registers.
Kind of work;
The register shall be maintained to enable the inspector to inspect the same at all
times during working hours or while any work is being carried on in the factory
6 August 2018
VII. Factories Act – Registers.
Kind of work;
In case of shift work, the relay to which the juvenile worker is assigned.
Where his group working in shifts, the relay to which he is assigned; and
The register shall be maintained to enable the inspector to inspect the same at all
times during working hours or while any work is being carried on in the factory
6 August 2018
VII. Factories Act – Punishments and Procedures.
Punishments
1st Offence
“If in or in respect of any factory or place prescribed or declared under this Act to be a factory,
the manager and the occupier thereof contravened any provisions of this Act or any rule or order
made there under, they shall, on conviction, be punishable with imprisonment for a term which
may extend to three months or with fine not less than Kyats twenty lakhs, or with both; and if,
after such punishment, they continue to contravene, each of them shall be punishable for each
day that they continue so to offend with fine not exceeding Kyats one lakh.” (sec. 85 Factories
Act)
2nd Offence
“If any person who has been convicted under section 85 is again convicted of contravening of
the same provision, he shall be punishable on such subsequent conviction with imprisonment for
a term which may extend to six months or with a fine of minimum Kyats thirty lakhs to maximum
Kyats fifty lakhs, or with both.“(sec. 86 Factories Act)
6 August 2018
VII. Factories Act – Punishments and Procedures.
6 August 2018
VII. Factories Act – Punishments and Procedures.
6 August 2018
VIII. Dispute Resolution
System
6 August 2018
VIII. Dispute Resolution System – Overview.
6 August 2018
VIII. Dispute Resolution System – Overview.
The law outlines a multilevel process for disputes that begins at the enterprise with a
Workplace Coordinating Committee
If no agreement is reached, the following bodies may be called upon for resolution
Township Conciliation Body
Competent Court (in case of an individual dispute, for any party which is not satisfied with the
decision of the Conciliation Body)
Regional/State Arbitration Body
Union Dispute Settlement Arbitration Council
Supreme Court (in case of an individual/collective dispute, for any party which is not satisfied with
the decision of the Arbitration Council)
6 August 2018
VIII. Dispute Resolution System – Overview.
The goal is to provide an alternative to litigation, with a process that is fair and quick,
minimizing the financial impact that could result from a strike or lockout:
Conciliation (Procedure which assists the parties to the dispute to reach a mutually agreed
settlement, through neutral third-party intervention; conciliator assists the parties to settle the
dispute and is not empowered to impose a settlement)
6 August 2018
VIII. Dispute Resolution System – Overview.
Workplace Coordinating
Committee
Regional/State
Competent Court
Arbitration Body
(Supreme Court)
6 August 2018
Workplace Coordinating Committee
6 August 2018
VIII. Dispute Resolution System – Coordinating Committee.
6 August 2018
VIII. Dispute Resolution System – Coordinating Committee.
Duties
Employment conditions;
Welfare/productivity
6 August 2018
VIII. Dispute Resolution System – Coordinating Committee.
The Workplace Coordinating Committee shall keep records of the settlement and shall
send a report to the relevant Conciliation Body
6 August 2018
VIII. Dispute Resolution System – Coordinating Committee.
The employer shall keep records of the settlement and shall send a report to the relevant
Conciliation Body
6 August 2018
VIII. Dispute Resolution System – Coordinating Committee.
Non-Settlement
Individual Disputes
Collective Disputes
If desirous to continue to carry out the conciliation in respect of the non-settled dispute,
the employer or employees/workers may complain to the Township Conciliation Body
6 August 2018
Township Conciliation Body
6 August 2018
VIII. Dispute Resolution System – Township Conciliation Body.
Formation
Three (3) workers‘ members (three representatives elected by workers or Member the labour
organizations)
Two (2) distinguished persons trusted and accepted by both the employer‘s and workers‘ members
6 August 2018
VIII. Dispute Resolution System – Township Conciliation Body.
Procedure
The Conciliation Body shall determine the type of dispute (i.e. individual or collective) and
conciliate / settle the dispute within three (3) days
The dispute of interest that cannot be settled by negotiating and coordination between employer
and the labour organizations, the employer may appoint the representative of the employer or
the labour organizations may appoint the representatives of the workers before the period of
conciliation
Where no labour organization exists, the workers shall elect their representatives
In case of an individual dispute, any party which is not satisfied with the conciliation may apply
to the competent court
Special Economic Zones
If there is no particular provision for a special economic zone, the relevant Region/State
Government shall form the special Conciliation Bodies
6 August 2018
VIII. Dispute Resolution System – Townsip Conciliation Body.
Procedure
It does not issue a decision, but shall support the parties to reach a mutual agreement
and resolve their dispute
Non-Settlement
6 August 2018
Regional/State Arbitration Body
6 August 2018
VIII. Dispute Resolution System – Arbitration Body.
One (1) person assigned by the relevant Region Chairperson or State Government;
Three (3) persons selected from the nomination list Member submitted by the employer organizations;
Three (3) persons selected from the nomination list Member submitted by the labour organizations;
One (1) departmental representative selected by the relevant Member Region or State Government;
Two (2) distinguished persons trusted and accepted by the Member employers or relevant employer
organizations and the labour organizations; and
6 August 2018
VIII. Dispute Resolution System – Arbitration Body.
Procedure
If either party is not satisfied with the decision of the Arbitration Body (except for
a decision in respect of essential services), the following options may be
exercised:
Application by both parties to the Arbitration Council for its decision within seven
(7) days (not including official holidays) from the day of receipt of the decision of the
Arbitration Body; or
Carrying out a Lock-Out/Strike in accordance with the relevant law
6 August 2018
Dispute Settlement Arbitration Council
6 August 2018
VIII. Dispute Resolution System – Arbitration Council.
The Ministry of Labour shall form the Dispute Settlement Arbitration Council with 15
qualified persons of good standing from legal experts and experts in labour affairs as
follows:
five (5) persons selected from the nomination list submitted by the employer
organizations;
five (5) persons selected from the nomination list submitted by the labour organizations
Vacancies in the Arbitration Council shall be filled as required by the concerned party
6 August 2018
VIII. Dispute Resolution System – Arbitration Council.
Procedure:
Make a decision on a lock-out/strike seven (7) days (excluding official public holidays) from the
day of receipt of such dispute and send the decision to the relevant parties within two (2) days.
The Arbitration Council shall send the copy of decision passed by the Tribunal to the
Minister and the relevant Regional/State Governments
6 August 2018
Confirmation, Amendment and
Effectiveness of Decision
6 August 2018
VIII. Dispute Resolution System – Confirmation, Amendment
and Effectiveness of Decision.
Upon agreement of both parties, the decision of the Arbitration Body shall come into force
on the day of decision making
The decision of the Tribunal shall be deemed as the decision of the Arbitration Council;
such decision shall come into force on the day of its decision
If the relevant parties (i.e. employer and employees) agree to amend the decision within
three (3) months from the day of coming into force, the new agreement shall supersede
the relevant part of the Arbitration decision
6 August 2018
VIII. Dispute Resolution System – Confirmation, Amendment
and Effectiveness of Decision.
More than 1,200 cases were officially received by Township Conciliation Bodies in
2016, successfully resolving 85% of them through conciliation
Arbitration Bodies received more than 150 cases in 2016, resolving 32%
(Source: Ediger, Laura and Chris Fletcher. 2017. “Labor Disputes in Myanmar: From the
Workplace to the Arbitration Council.” Report. BSR, San Francisco)
6 August 2018
Judicial System
6 August 2018
VIII. Dispute Resolution System – Judicial System.
Individual Disputes
If either party is not satisfied with the outcome at the Township Conciliation Body, they may take the
case to court (rather than to an Arbitration Body)
Collective Disputes
Collective disputes not resolved by the Township Conciliation Body must go to the Arbitration Body
In addition, either party can appeal an Arbitration Body or Arbitration Council decision to the Supreme
Court
Practice
Distinction between individual and collective disputes is not always clear
The law describes an individual dispute as between an employer and one or more worker, while a
collective dispute is between an employer (or employer organization) and a labor organization, but it
can be hard to determine whether the dispute is with the worker(s) or with a labor organization, and
individual disputes often go through the arbitration system as well, in part because this is viewed as a
more effective mechanism than the courts and a way to help protect worker rights
6 August 2018
Prohibitions
6 August 2018
VIII. Dispute Resolution System – Prohibitions.
Employer
No employer shall fail to negotiate and coordinate in respect of the complaint within the
prescribed period without sufficient cause
No employer shall alter the conditions of service relating to workers concerned in such
dispute at the consecutive period before commencing the dispute within the period under
investigation of the dispute before the Arbitration Body or Tribunal, to affect the interest of
such workers immediately
6 August 2018
VIII. Dispute Resolution System – Prohibitions.
No party shall carry out a lock-out/strike to amend a decision or agreement of an arbitration body
No party shall fail to abide by or carry out any condition contained in an agreement concluded before
an arbitration body
No party shall fail to provide the arbitration body with the necessary documents to examine the dispute
Upon notice, no party shall fail without sufficient cause to appear before the Arbitration Body or Tribunal
Non-Compliance
6 August 2018
IX. Trade Unions, Strike &
Lock-Out
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Promote good relations among workers and between the employer and workers; and
The law applies to workers in these sectors and enterprises, both private and state-owned
6 August 2018
Labour Organization
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
With very limited exceptions (e.g. defence service personnel, policemen), every worker has the right to
join a labour organization and the right to resign from such if they choose
This includes daily wage earners, temporary workers, apprentices and trainees, migrant workers,
agricultural workers, teachers, and other government employees
Workers in civilian production operations owned by the Myanmar Economic Corporation have the right
to form and join labour organizations
No one may force, threaten, or use undue influence on any worker to participate or not participate in a
labour organization (this prohibition does not extend to normal, lawful efforts to convince workers as
part of an organizing campaign)
Workers are restricted to joining labour organizations that operate within their profession, trade, or
activity
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Rights
Draw up own constitutions and rules; Collective bargaining/dispute resolution;
Duties
Assist in making work-rules, individual employment contracts, bonds, and other individual agreements
between the employer and workers;
Conduct meetings, strikes, and other collective activities peacefully and following the law, as well as
their own rules
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Processes for granting membership, issuing membership certificates and resigning from
membership;
Processes for electing, assigning duties, removal, and resignation of Executive Committee
members;
Processes for establishment, maintenance, and use of the Labour Organization’s funds;
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Confederations and Federations must submit their constitutions and a letter confirming
that Executive Committee members have agreed to the constitution to the Chief Registrar
Labour Organizations in the same sector or activity can join together (or split apart again)
if their rules permit it and a majority of their Executive Committees approves. Labour
Organizations must apply to the Township Registrar when merging or separating
Labour Organizations should be registered, or provided with precise reasons for which
their registrations were rejected, within 60 days from receipt of the original application
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Executive Committee:
Executive Committees shall have odd numbers of members, and they shall be elected:
Basic Organizations shall have five (5) or more (but always an odd number) members;
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Basic Labour Organizations must share monthly membership dues to the Township, Regional/State, Federation, and Confederation that they are
members of as directed by each Labour Organization’s Federation.
In practice, union membership dues are often fixed and do not fluctuate according to monthly wages
Labour Organizations may create their own funds for admission fees, monthly membership dues, income from Labour Organization cultural or
sport activities, donations from employers, grants from the Government
Labour Organization funds may only be used for the matters listed in their constitutions and rules such as social welfare, education, health,
culture, sports, skills training, and other matters agreed by a majority of the members at a general meeting of the Labour Organization
Any person convicted of violating this provision will be fined and/or imprisoned for up to one year
Labour Organizations must open a bank account in Myanmar for their funds and must follow the Control of Money Laundering Law in
administering their funds
The Executive Committee must show each month’s income from membership dues and other sources, as well as spending
An annual statement of the Labour Organization’s accounts must be sent at the end of the financial year to the Township registrar (Basic,
Township, and Regional/State) or Chief Registrar (Confederation and Federations)
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Employers Duties:
Shall not impede their workers’ participation in a union
Shall grant, upon recommendation of the executive committee, up to two (2) days leave
for activities in the union
Shall recognize the labour organizations of their enterprises and sectors as the
organizations representing the workers
Shall not take any actions to create Labour Organizations or bring Labour Organizations
under their control by financial or other means
Shall assist as much as possible if Labour Organizations request the employers' help in
the interest of the employers' workers
6 August 2018
Strike
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Strike
Employees organized in a labour union may, under certain conditions, go on strike if the
general dispute resolution mechanisms failed (e.g. arbitration)
Definition
Collective action taken by decision of some or all workers resulting in a suspension of
work, a refusal to work or to continue to work, or a slow-down or other collective actions
that are designed to limit production or services relating to social or occupational matters
in any dispute (sec. 2 (i) Settlement of Labour Dispute Law 2012)
This expression does not include workers' exercise of their right to remove themselves,
having reasonable justification to believe that the work situation presents a sudden and
serious danger to their life or health
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Strike Requirements
Strike demands must be within the scope of competence of the union (e.g. higher wages,
reinstitution of terminated workers, adequate overtime payment, etc.);
But: Workers in essential sectors are not permitted to strike (e.g. water supply
services, electricity services)
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
6 August 2018
Lock-Out
6 August 2018
IX. Trade Unions, Strikes & Lock-Out.
Lock-out
The Employer may, under certain conditions, carry out a lock-out if the general dispute
resolution mechanisms failed (e.g. arbitration)
Definition
Temporary closing of the workplace of any trade, suspension of work or refusal by the
employer to allow the workers at the work site to continue to work in consequence of the
situation of any dispute of the employer and workers which remains in dispute (sec. 2 (h)
Settlement of Labour Dispute Law 2012)
6 August 2018
X. Labour Inspection
6 August 2018
X. Labour Inspection.
Enterprises must be registered and licensed by the Ministry of Labour, Immigration and Population
At least 15 days before beginning operations, employers must submit the following information:
Notice of period of work (referred to as the NPW), which must then be displayed in a highly visible area in the workplace;
Enterprise owners must submit plans for enterprise sites, construction, and expansion to the Chief Inspector for approval. If the Ministry
does not respond to plans within three months, the plans are approved (rejection by the Chief Inspector of plans may be appealed to the
MOLIP within 60 days)
Enterprises that intend to close or suspend operations must notify the Chief Inspector one month before work stops, or as early as
possible; another 15-day notice must be submitted before resuming operations
6 August 2018
X. Labour Inspection.
6 August 2018
X. Labour Inspection.
Enforcing Health and Safety Standards (FA Sec. 15, 18, 38-42, 52-56, 99)
The inspectors have the following powers for protecting and improving worker health and safety:
Prohibit the use of enterprises or parts of enterprises if danger to human safety is imminent;
Require employers to make plans, carry out safety tests, and/or make changes on a deadline if any party of an enterprise
creates a danger to human life or safety
Prohibit work in a chamber, tank, or confined space until certified as free from dangerous fumes and is fit for use by people;
Prohibit or restrict the employment of young women and young workers in enterprises or classes of enterprises determined to
be dangerous
Require employers to display additional information for workers relating to their health, safety, and welfare including the
maximum number of workers allowed in each area
Investigate causes of accidents or diseases among workers, and take samples of any substance used in the factory, keeping
results confidential
6 August 2018
X. Labour Inspection.
Under the under the Minimum Wage Law (2013), inspectors may enforce wage and compensation standards by:
Enter and inspect any workplace in order to determine that it complies with the law;
Review and copy all payroll, lists of workers, schedules and other wage documents relating to workers at the workplace;
Review and copy all payroll, lists of workers, schedules and other wage documents relating to outside contract workers
from other employers;
Require employers to post an easy-to-see notice showing wage rates for workers in the enterprise, pay days, and
processes for fines against workers and deductions from pay;
Set averages, in consultation with employer and worker representatives, for piece-rate workers in order to calculate their
overtime pay
Inspectors must report their wage findings to the relevant Ministry department, and the department shares the findings with
the relevant Wage Committee
Non-compliance
Employers face imprisonment of up to one year and/or fines if convicted of making false records or deceitful reports in their
payroll documents
6 August 2018
XI. Labour Law Updates
6 August 2018
XI. Labour Law Update
On 30 August 2013, the Myanmar parliament enacted the Employment and Skill Development Law; by-laws to
implement the Employment and Skills Development Law 2013 have been discussed, but were never issued
In August 2015, the Ministry of Labour published Notification 1/2015 on the preparation and execution of employment
contracts; employers and employees were required to execute employment contracts using the prescribed employment
contract template of the Ministry of Labour; the template – drafted for factory workers, and not suitable for most
businesses – was heavily criticized for not meeting requirements of both employers and employees for limiting the
principle of freedom of contract
In February 2017, updated Draft Rules to the Employment and Skill Development Law 2013, including provisions on the
execution of employment contracts and a new employment contract template, were discussed between the Ministry,
labour unions and UMFCCI; while not yet issued, the Draft Rules provide some insights on future changes
Further, the Ministry of Labour published the Draft Workplace Safety and Health Law, containing – inter alia – provisions
for the prevention of workplace hazards and diseases and establishment of safe and healthy workplaces
Once enacted, the Workplace Safety and Health Law will complement the Factories Act 1951 (as amended in May 2016)
and other prevailing laws, rules and regulations governing workplace safety and health
6 August 2018
Draft Rules to the Employment and Skill
Development Law 2013
6 August 2018
XI. Draft Employment and Skill Development Rules.
The latest draft of the Employment and Skill Development Rules varies significantly from the
previous versions published in 2013 and 2015, containing provisions on:
Employer Obligations
Employment Contracts (The draft of the Employment and Skill Development Rules provides for
a new employment contract template; We do however understand, that this contract is currently
undergoing further review in coordination with the UMFCCI and the Myanmar Labour Unions)
6 August 2018
XI. Draft Employment and Skill Development Rules.
Employer Obligations
Pursuant to the Draft Employment and Skill Development Rules, the employer has the following duties:
• Enter into employment contracts with the appointed workers;
• Communicate with employment and labour exchange offices, licensed companies or job fairs in order to appoint
workers;
• Send completed CVs of the hired workers to the relevant employment and labour exchange office;
• Send the number of hired workers, the number of vacant workers and the total number of workers to the relevant
employment and labour exchange office every three (3) months; and
• Inform and request the vacant job positions or the job positions which will be vacant from the relevant employment
and labour exchange office in accordance with the existing law
Private enterprises and organizations shall further nominate a resident director or management person
as representative for employment matters, and communicate his/her details (i.e. name, position,
Passport/NRC number, phone number, fax, e-mail address, company and residential address) to the
relevant employment and labour exchange office
6 August 2018
XI. Draft Employment and Skill Development Rules.
Employment Contracts
The draft of the Employment and Skill Development Rules provides for a new employment contract
template; we do however understand, that this contract is currently undergoing further review in
coordination with the UMFCCI and the Myanmar Labour Unions
Restriction to Employer to five or more Employees:
• While the Employment and Skill Development Law 2013 provides that any employment contract is to be registered,
this requirement is currently only enforced for employers with five (5) or more employees
• This existing practice of the employment and labour exchange offices seems to be confirmed in the Draft
Employment and Skill Development Rules, which stipulate that Chapter 3 (Execution of Employment Contracts)
applies only to employers of five (5) or more employees
Review, Approval and Registration of the Employment Contract:
• Upon mutual agreement between the employer and employee, the draft employment contract shall be submitted to
the relevant employment and labour exchange office, which shall review the draft and approve it within 30 days;
should any changes be required under Myanmar labour law, the employment and labour exchange office shall send
the draft back to the employer, who shall re-submit it upon amendment
• After approval/revision of the employment contract, the employment contract shall be signed by both the employer
and employee in the presence of the employment and labour exchange officer; the employment and labour
exchange office shall validate and record the employment contract, one original of which is to be kept by the
employer, and one original of which is to be given to the employee
6 August 2018
XI. Draft Employment and Skill Development Rules.
6 August 2018
XI. Draft Employment and Skill Development Rules.
Working Hours
• Pursuant to the Draft Employment and Skill Development Rules, working hours, meal and rest times shall be stated
precisely in the employment contract in accordance with labour laws; the draft does however explicitly allow for the
working hours may however be agreed between the employer and employee depending on the nature of the
workplace
Overtime
• Pursuant to the Draft Employment and Skill Development Rules, overtime may be carried out upon agreement
between the employer and employee and shall be paid for in accordance with Myanmar labour law
Medical Care
• In case of work-related sickness, accidents or injuries, diseases or death at the workplace, the employer shall be
liable in accordance with relevant labour laws
By-Laws to be complied with by Employees
• For factories, workshops, workplaces and enterprises, employers shall formulate by-laws to be complied with by the
employees in accordance with laws; employees staying in quarters provided by the employer shall abide by hostel
by-laws prescribed by the employer
6 August 2018
XI. Draft Employment and Skill Development Rules.
6 August 2018
XI. Draft Employment and Skill Development Rules.
6 August 2018
Draft Workplace Safety and Health Law
6 August 2018
XI. Draft Workplace Safety and Health Law
Relevant Enterprises
Factories, workshops and warehouses;
Construction enterprises;
Engineering enterprises;
Mineral extraction and processing, gems extraction and processing enterprises;
Petroleum and natural gas enterprises;
Chemical industry enterprises;
Port enterprises and regular loading/unloading enterprises;
Agricultural enterprises and livestock breeding enterprises;
Educational service enterprises and healthcare enterprises;
Communication and transportation enterprises; and
Enterprises and workplaces thereof as prescribed from time to time through notification
6 August 2018
XI. Draft Workplace Safety and Health Law
6 August 2018
XI. Draft Workplace Safety and Health Law
Duties of Employers
Employers shall evaluate the level of hazard of machinery and equipment, process materials, organic
materials and chemical substances utilized in the workplace to avoid detrimental health effects, provide
their employees with the appropriate body protection and gear to avoid workplace accidents and
occupational diseases and implement protective, preventive and emergency response measures
Employers shall form Workplace Safety and Health Committee and appoint Workplace Safety and
Health Officers
Employers shall be obliged to notify, investigate and report workplace accidents to the Factory and
General Labour Laws Inspection Department:
In case of death of an employee, such notification shall be done not later than one (1) hour after occurrence or, in
remote areas, not later than 24 hours after the occurrence;
If an employee is unable to return to work for 48 hours or more after being involved in a workplace accident, such
shall be reported within 72 hours
Employers shall not dismiss or demote any employee for any of the following reasons:
• workplace accident or occupational disease, before receiving a medical certificate from an accredited physician;
• lodging a complaint concerning a safety or health hazard issue;
• carrying out a function of the Workplace Safety and Health Committee; or
• discontinuation of work due to an imminent workplace accident or occupational disease
Employers shall bear the costs of medical check-ups for employees who have suffered a workplace
accident or occupational disease and are not covered under the Social Security Law 2012 (sec. 30
Draft Workplace Safety and Health Law
6 August 2018
XI. Draft Workplace Safety and Health Law
6 August 2018
Q&A
6 August 2018
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6 August 2018
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6 August 2018
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6 August 2018