In Mongolia, the Labor Law of 1999, revised in January 2022, stipulates various types of employment agreements that can be established between employers and employees. These agreements vary in their duration, purpose, and specific details.

Standard Indefinite Employment Agreement

The most common type of employment agreement in Mongolia is the standard indefinite employment agreement. This agreement is for an indefinite term and applies to most employment situations. It does not have a pre-defined end date. The agreement outlines the core aspects of the employment relationship, such as the employee's job title and responsibilities, the employer's expectations, the work schedule and location, and the compensation and benefits package.

Fixed-Term Employment Agreements

Fixed-term employment agreements are also permitted under the Mongolian Labor Law. These agreements have a pre-defined end date and are typically used in specific circumstances. For instance, apprenticeship agreements are designed to provide work experience and skills to new employees. These agreements can last up to three months for general positions and two years for specialized professions. Temporary employment agreements are used for short-term projects or to fill in for absent employees on maternity/paternity leave. Seasonal work agreements are applicable for jobs with specific seasonal demands, where employment only lasts for a particular season.

Specialised Employment Agreements

The revised Labor Law recognizes the need for tailored agreements for specific situations. These agreements address the unique working conditions associated with these roles. Part-time employment agreements are for employees working less than the standard full-time workweek. Work-from-home agreements outline the terms of remote work arrangements. Agreements for special working conditions are applicable to employees in executive positions or those working under demanding circumstances. Domestic worker agreements are established between individual employers and domestic staff, assistant herders, and similar roles.

In Mongolia, the Labor Law mandates specific clauses in all written employment agreements. These clauses establish the core framework of the employer-employee relationship and ensure clarity and protection for both parties.

Identification and Basic Details

The agreement should clearly identify the employer and the employee, including their full names, titles, and contact information. A clear description of the employee's job title and a detailed outline of their responsibilities and duties should also be included.

Remuneration and Benefits

The agreement should clearly state the agreed-upon base salary amount, along with any additional allowances or bonuses. The frequency and method of salary payment should be specified. A breakdown of any benefits offered by the employer, such as health insurance, paid leave, or pension contributions, should also be included.

Work Schedule and Location

The standard workweek hours and any overtime arrangements should be outlined in the agreement. The primary place of work should be specified.

Leave and Termination

If a probationary period is included, its duration and expectations should be clearly defined. The entitlement to annual paid leave and any additional leave allowances should be outlined according to Mongolian labor law. The agreement should detail the grounds and procedures for termination by either party, following Mongolian labor law regulations.

Employers may choose to include additional clauses specific to their business needs. It is crucial to ensure all agreements comply with Mongolian labor laws and best practices.

The Mongolian Labor Law of 1999, revised in January 2022, permits employers to incorporate a probationary period in employment agreements. This initial phase is designed to evaluate an employee's aptitude for the role, enabling the employer to assess their skills and performance before entering into a long-term employment relationship.

Duration of Probationary Period

The Labor Law explicitly defines the maximum duration of the probationary period:

• Three Months: This is the standard maximum probationary period for most positions.
• Two Years: This extended probationary period is only applicable to specialized professions that necessitate extensive training or skill development.

It's important to note that the probationary period cannot exceed these legal limits, irrespective of any agreement between the employer and employee.

Probationary Period Clauses in the Agreement

If an employment agreement includes a probationary period, it should clearly specify the following elements:

• Specific Duration: The exact length of the probationary period, within the legal limits, should be stated.
• Performance Expectations: The agreement can detail the key performance indicators or benchmarks against which the employee will be evaluated during the probation period.
• Termination During Probation: Both the employer and the employee have the right to terminate the employment relationship during the probation period with a shorter notice period than a standard employment agreement.

Considerations During Probation

During the probationary period, both employers and employees have specific rights and responsibilities:

• Employer's Responsibilities: The employer should provide the employee with sufficient training, support, and clear performance feedback throughout the probation.
• Employee's Responsibilities: The employee has a responsibility to demonstrate their skills, meet performance expectations, and actively engage in the evaluation process.

The probationary period should be a fair and transparent process that allows both parties to assess suitability for the long term. Consulting with a legal professional can ensure the probationary period clauses in your agreement comply with Mongolian labor laws.

The Mongolian Labor Law, revised in 2022, acknowledges the necessity for employers to secure their confidential information and business interests. This is achievable through the inclusion of two crucial clauses in employment agreements: confidentiality clauses and non-compete clauses.

Confidentiality Clauses

Confidentiality clauses are designed to protect the employer's sensitive or proprietary information from unauthorized disclosure. These clauses typically detail the following:

• Definition of Confidential Information: This includes a clear definition of what is considered confidential information, such as trade secrets, client lists, or technical data.
• Employee Obligations: This outlines the employee's responsibilities regarding maintaining confidentiality, including restrictions on the use and disclosure of such information during and after employment.
• Exceptions: These are possible exceptions to confidentiality obligations, such as disclosures required by law or for legal proceedings.

Employers have the legal right to include confidentiality clauses in employment agreements with special conditions. These agreements can be established for executive-level positions or roles with access to sensitive information.

Non-Compete Clauses

Non-compete clauses limit an employee's ability to work for a competitor or engage in similar activities after leaving the company. These clauses can be particularly relevant for employees with specialized knowledge or access to client relationships.

The introduction of non-compete clauses in Mongolia is a relatively new concept introduced by the revised Labor Law. Here's a breakdown of the key aspects:

• Limited Scope: Non-compete clauses can only be included in employment agreements with special conditions or through a separate agreement.
• Maximum Duration: The maximum duration of a non-compete clause is one year after the termination of employment.
• Compensation Requirement: During the non-compete period, the employer must pay the employee at least 50% of their last monthly salary.

Non-compete clauses cannot be applied to all employees. Mongolian law prohibits them for minor workers, those with probationary contracts, or apprentices.

The enforceability of non-compete clauses depends on whether they comply with the legal requirements outlined above. Courts may rule them invalid if deemed excessively restrictive or unfair to the employee.