Халагдсны мэдэгдэл

Дуусгавар болох үндэслэл

An employment agreement may be terminated at the employee’s initiative or at the employer’s initiative. A contract of employment may be terminated on the following grounds: mutual agreement between the parties; death of either party; expiry of the contract term; on the order of an authority under law; reinstatement of another employee to previous job after being wrongly dismissed; called to active military service; court judgment awarding punishment to the worker thus preventing him from performing the job duties; and any other cases as provided under legislation, collective agreement or employment contract.

A worker may terminate an employment contract by serving 30-day notice. For valid reason or by mutual agreement, a contract of employment may be terminated prior to the 30-day notice requirement. The required notice period varies between 30-45 days depending on the scope of termination. The required notice is 30 days in the case of economic redundancy or in cases where employer fails to meet the job requirements due to lack of qualifications and skill or health reasons. A 45-day contract termination notice is required to be given to the employee representatives in cases of termination of employment of all workers.

In the following cases, no notice is required: on attaining the pensionable age of 60 years; repeated violation of disciplinary rules or commission of one serious breach; lost of trust on employee having financial responsibilities; election or appointment of worker to another salaried work; and on the basis of grounds set forth in the contract.

Other than above referred grounds, an employer may terminate the employment contract if the employer finds that employee did not work adequately as required under the contract; if the worker with financial authority concludes a simultaneous contract with another employer; employer has transferred the right of ownership to another person; or if it is established that employee has squandered assets or if he has exceeded authority afforded by the employer.

In such case of termination, the employer must notify the employee at least two months prior to such termination and pay an allowance in the amount equal to at least his or her average salary for a three month period.

Source: §37-41 of the Mongolian Labour Code, 1999

Ажлаас халагдсаны тэтгэмж

Severance pay is regulated under the Labour Code. It is equal to one month’s average salary irrespective of the length of service. Severance pay is provided in the following cases:

  • the employee has been called to active duty in the army;
  • the employer's business entity (or a branch or unit) has been dissolved, or the job or position within it has been discontinued or the number of employees has been reduced;
  • the employee fails to meet the job's requirements due to the lack of professional qualifications or skill, or health reason; and
  • the employee has reached 60 years of age and is eligible to receive a pension.

An employee dismissed for conduct-related reasons is not entitled to severance pay.

In the case of a mass redundancy of employees, an employer must agree on the amount of the severance pay to be paid through negotiations with the employee representatives.

No provisions could be identified within the law which mandate increase in the severance pay based on the period of service by the employee

Source: §42 of the Mongolian Labour Code, 1999

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