Mongolia Employment Guide

Mongolia Employment Guide

Mongolia, located between Russia and China, is known for its vast steppes and nomadic heritage, with a population of around 3.4 million. Its economy relies heavily on mining, agriculture, and livestock, with growing sectors in services and infrastructure. Employment in Mongolia is regulated by the Labor Law, which sets standards for contracts, working hours, minimum wage, paid leave, and termination. Both local and foreign employees are protected under these regulations. Employers must ensure contributions to social insurance and pensions, and labor practices emphasize employee rights alongside economic flexibility.

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Currency

Mongolian Tögrög (MNT)

Capital

Ulaanbaatar

Official language

Mongolian

Salary Cycle

Monthly

Our Guide in Mongolia

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Crafting Compliant International Employment Contracts

As an HR professional managing a global workforce, ensuring employment contracts are legally sound and clearly understood is paramount. Contracts must be drafted in English, though bilingual versions are acceptable for clarity. Crucially, all agreements must be formalized in writing and signed by both the employer and the employee to be legally binding.

A comprehensive contract should explicitly detail the following essential elements:

  • Full legal names of the employer and employee
  • Official employment commencement date
  • Duration of the employment term (e.g., permanent, fixed-term)
  • A clear and detailed job description outlining roles and responsibilities
  • Conditions and procedures for contract termination
  • Complete payment terms, including salary, frequency, and method

For instance, a company like SailGlobal successfully navigated a complex hiring process in Southeast Asia by ensuring every contract contained these non-negotiable clauses, preventing future disputes.

Navigating the Probationary Period

The probationary period serves as a critical evaluation phase for both parties. Legally, the minimum duration is 30 days, while the maximum allowable period is 90 days (three months). It is important to note that this period can be extended once, but only upon mutual written agreement between the employer and the employee. This flexibility allows for a more thorough assessment in roles requiring a longer ramp-up time.

Consider a case where a European tech firm used a 90-day probation period to assess a senior developer's fit for a remote team. The structured evaluation during this time provided clear metrics for a final hiring decision, showcasing the period's practical value beyond mere compliance.

Disclaimer
The information and opinions provided are for reference only and do not constitute legal, tax, or other professional advice. Sailglobal strives to ensure the accuracy and timeliness of the content; however, due to potential changes in industry standards and legal regulations, Sailglobal cannot guarantee that the information is always fully up-to-date or accurate. Please carefully evaluate before making any decisions. Sailglobal shall not be held liable for any direct or indirect losses arising from the use of this content.

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