Mongolia Employment Guide

Navigating Employment Termination in Mongolia: A Professional Guide

Terminating employment relationships in Mongolia requires careful adherence to complex legal frameworks and country-specific regulations. The separation process must be handled collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on the termination circumstances.

Valid Grounds for Employment Termination

Following the probation period, Mongolian labor law does not permit arbitrary termination. Employers must establish legitimate grounds or obtain mutual agreement. Acceptable termination scenarios include:

• Employee-initiated resignation
• Mutual separation agreement
• Employer-initiated termination based on:
  • Unsatisfactory probation evaluation
  • Objective business reasons
  • Disciplinary violations
  • Persistent performance issues
  • Natural expiration of employment contract

Notice Period Requirements

Mongolian legislation mandates a minimum 30-day notice period, with extensions required based on employment duration. For instance, SailGlobal's case studies show that employees with over five years of service typically require 45-60 days' notice, ensuring adequate transition time.

Severance Pay Eligibility and Calculation

Employees become eligible for severance compensation under specific circumstances:

• Military conscription requirements
• Organizational dissolution
• Position elimination due to restructuring
• Qualification or health-related incapacity
• Retirement at pension eligibility age (typically 60)

Employees with over six months of service who fall under these categories receive minimum one month's base salary compensation. However, probationary terminations exclude severance entitlements. SailGlobal's Mongolia compliance database indicates that proper documentation is critical—recent tribunal cases have emphasized the need for detailed records supporting termination rationale.

Practical Considerations for International Employers

Foreign companies operating in Mongolia should establish clear termination protocols. SailGlobal's advisory services recommend implementing performance improvement plans before initiating performance-based terminations and conducting exit interviews to mitigate legal risks. Remember that Mongolian labor courts often favor employee protection, making procedural compliance essential.