In Mongolia, the Labour Law of 1999 governs the notice periods required during employment termination. The length of the notice period depends on who initiates the termination and the circumstances surrounding it.

Employer-Initiated Termination

When the employer initiates the termination, the Labour Law stipulates specific notice periods based on the reason for termination:

• Standard Termination: Unless otherwise stated in the employment contract or there are valid reasons for immediate dismissal, the employer must give the employee at least one month's notice before termination.
• Mass Dismissal: If the employer is conducting a mass dismissal due to business closure, branch or unit closure, job position abolition, or workforce reduction, they must provide at least 45 days' notice to the relevant employee representatives.

Exceptions:

The Labour Law permits immediate dismissal without notice in certain situations, such as employee misconduct.

Employee-Initiated Termination

The Labour Law grants employees the right to terminate their employment with 30 days' written notice to the employer.

Employment Contract Overrides

It's crucial to remember that the Labour Law serves as a minimum standard. The employment contract can override these provisions and set different notice periods, as long as they are more beneficial to the employee.

In Mongolia, the Labour Law stipulates specific severance pay entitlements for employees whose employment is terminated under certain circumstances.

Circumstances of Entitlement

Severance pay is entitled to employees in Mongolia under the following situations:

• Layoff: If an employee's contract is terminated due to workforce reduction, business or branch closure, or position elimination.
• Military Service: If an employee is called to fulfill mandatory military service.
• Retirement: If employees reach the legal retirement age of 60.

Calculation of Severance Pay

The severance pay package for employees is equivalent to one month of their average salary.

Exceptions

There are certain exceptions where severance pay is not mandated:

• Employee Misconduct: If employees are dismissed due to misconduct or breach of contract.
• Mutual Agreement: Employers and employees can reach a mutual agreement regarding severance pay, which may differ from the statutory requirements.

Additional Points

• Mass Dismissals: In the event of mass dismissals, the employer negotiates the severance pay amount with employee representatives.
• Contractual Agreements: Employment contracts may establish severance pay entitlements that exceed the minimum requirements of the Labour Law.

The termination process for employees in Mongolia is governed by the Labour Law. This process varies depending on whether the termination is initiated by the employee or the employer.

Employee-Initiated Termination

When an employee decides to terminate their employment, they must submit a written resignation letter to the employer, indicating their intention to terminate the employment relationship. The notice period may be modified by the employment contract, but it cannot be shorter than the 30-day minimum set by the Labour Law.

Employer-Initiated Termination

The process for employer-initiated termination is more detailed. The employer must have a valid reason for termination based on the Labour Law. This could include reasons like workforce reduction, position abolition, employee incompetence, or disciplinary breach. The employer must provide the employee with a written notice of termination stating the grounds for termination and the effective termination date. The employer must also inform the employee of their right to work during the notice period or be paid their usual salary. The termination process is completed by finalizing required documentation and keeping proper records.

Additional Considerations

Employers and employees can mutually agree to terminate the employment contract at any time, with terms negotiated by both parties. In cases of severe employee misconduct, the employer may be able to dismiss the employee without notice under specific provisions of the Labour Law. Termination disputes may be referred to labour dispute resolution bodies or the courts.