The termination of employment in Laos is regulated by the Amended Labour Law No. 43/NA dated 24 December 2013.

Lawful Grounds for Dismissal

Employers in Laos can terminate an employment contract for the following justified reasons:

• Employee Misconduct: This includes serious violations of company regulations, repeated offenses despite warnings, negligence resulting in significant damages, and criminal conviction related to work.
• Economic Reasons: These include company bankruptcy or significant losses, and inability to find suitable alternative work.
• Force Majeure: This refers to natural disasters or events beyond the employer's control.

Notice Requirements

For indefinite term contracts, unskilled labor requires a minimum of 30 days' notice, while skilled labor requires a minimum of 45 days' notice. For fixed-term contracts, at least 15 days' notice is required before the expiration of the contract. It's important to note that the employer must obtain prior approval from the district labor office before terminating an employee’s contract in certain cases, such as pregnancy or undergoing medical treatment.

Severance Pay

In the case of justified termination, the severance pay is 10% of the final salary multiplied by the number of months worked. For unjustified termination, it's 15% of the final salary multiplied by the number of months worked. For example, if an employee with 5 years of service is terminated for a justified reason and has a final salary of 5,000,000 LAK, the severance pay would be 3,000,000 LAK.

Additional Considerations

Both the employer and employee may agree to a termination, waiving notice periods and potentially negotiating additional benefits. Notice periods are shorter during probationary periods, depending on the skill level of the position.

The Constitution and the Labor Law are the primary sources of anti-discrimination law in Laos.

Protected Characteristics

National Origin, Race, and Ethnicity

The Laotian Constitution guarantees equality for all citizens, regardless of these factors. However, discrimination against ethnic minorities, particularly groups like the Hmong, remains a concern.

Gender

Laotian law prohibits discrimination on the grounds of gender, particularly in the workplace. This is outlined in the Labor Law of 2013. Further, Article 177 of the Lao PDR Penal Law (2005) addresses discrimination against women.

Religion

The Laotian Constitution guarantees the right to freedom of religion. While this offers a basis for protection against religious discrimination, some religious minorities reportedly experience restrictions or discrimination.

Disability

Disability discrimination is prohibited, with protections outlined in the Law on Disabled Persons. However, societal discrimination and lack of accessibility for those with disabilities remain concerns.

Sexual Orientation and Gender Identity

No specific laws in Laos explicitly prohibit discrimination based on sexual orientation or gender identity. Societal discrimination in this respect is reported.

Redress Mechanisms

Complaints to the Labor Inspectorate

Employees can file discrimination complaints with the Labor Inspectorate within the Ministry of Labor and Social Welfare.

Labor Dispute Resolution Bodies

Labor disputes related to discrimination can be resolved through labor mediation committees or the courts.

International Mechanisms

In cases where domestic remedies prove insufficient, individuals may potentially seek redress through international human rights bodies. Laos can be reviewed by the UN Committee on the Elimination of Racial Discrimination (CERD).

Employer Responsibilities

Non-discrimination policies

Employers are expected to maintain policies and practices that prohibit workplace discrimination based on protected characteristics.

Equal Treatment

Employers must ensure equal treatment in terms of hiring, promotions, compensation, benefits, and all aspects of employment.

Awareness and Training

Employers hold a responsibility to educate their staff on anti-discrimination laws and foster an inclusive work environment.

Complaint Handling

Employers must put in place procedures for reviewing and addressing discrimination complaints fairly and promptly.

Enforcement of anti-discrimination laws in Laos can be inconsistent due to societal discrimination and limited resources. Individuals facing discrimination should seek legal advice to understand their best options for redress.

The Labor Law of 2013 establishes the minimum requirements for working conditions in Laos, including work hours, rest periods, and ergonomic considerations.

Work Hours

The maximum legal workweek is 48 hours. This translates to eight hours per day, with a maximum of six working days a week. Work exceeding 48 hours per week is considered overtime and must be compensated at a higher rate. Specific overtime pay rates are outlined in the Ministry of Labor and Social Welfare announcements.

Rest Periods

The law mandates a minimum rest break of one hour during an eight-hour workday. Workers are legally entitled to at least one rest day per week, typically on Sundays. Employees accrue paid annual leave, with a minimum of 15 days after one year of service. This increases to 30 days after working for an employer for at least five years.

Ergonomic Requirements

While there aren't extensive regulations regarding ergonomics in Laos, the Labor Law includes a general provision for a safe and healthy work environment. This can be interpreted to include employers' responsibility to minimize ergonomic risks through proper workstation setup and training on safe lifting practices.

Enforcement of labor laws can be uneven in Laos, particularly in informal sectors. Workers who feel their rest periods or work hours are violated should seek advice from the Ministry of Labor and Social Welfare.

Laos prioritizes creating a safe and healthy work environment for employees. The Law on Occupational Safety and Health (OSH), enacted in 2006, serves as the cornerstone of these regulations. This guide explores employer obligations, employee rights, and enforcement agencies within this framework.

Employer Obligations

The Law on OSH outlines several responsibilities employers must fulfill to ensure workplace safety:

• Risk Assessments and Safe Work Systems: Employers are required to conduct regular risk assessments to identify potential hazards in the workplace. Based on these assessments, they must implement safe work systems to minimize risks.
• Training and Awareness: Employers have a duty to provide employees with comprehensive health and safety training. This training should cover hazard identification, safe work practices, and emergency procedures.
• Personal Protective Equipment (PPE): Employers must furnish employees with appropriate PPE based on the specific job role and potential risks encountered.

Employee Rights

Employees in Laos have fundamental rights concerning workplace safety and health:

• Safe Work Environment: Employees have the right to work in an environment free from foreseeable risks to their health and safety.
• Training and Information: Employees have the right to receive proper training and information on workplace hazards, safe work practices, and emergency procedures.
• Refusal of Unsafe Work: Employees have the right to refuse work they believe is unsafe or poses a health risk.

Enforcement Agencies

The Ministry of Labor and Social Welfare (MoLSW) is the primary agency responsible for enforcing the OSH Law. This enforcement includes:

• Workplace Inspections: MoLSW inspectors conduct regular inspections of workplaces to ensure compliance with health and safety regulations.
• Investigation of Accidents: The MoLSW investigates workplace accidents to determine causes and identify areas for improvement.