Labour Law update

Myanmar Labour Laws


RECRUITMENT

  • Report vacancy list with form (3) to Labour Exchange Office
  • Announce vacancies in Newspaper, Journal, Websites, etc…
  • Labour Exchange Office will send job seeker list with Form (6) in 7 days
  • Screening and Interviewing
  • Send appointment letter with original labour registration card of worker to Labour Exchange Office
  • Get Form (7) for each appointment

EMPLOYMENT

  • Training period (not more than 3 months, not less than 50% of Minimum Wage)
  • Probation period (not more than 3 months, not less than 75% of Minimum Wage)
  • Appointment (pay not less than 100% of Minimum Wage)
  • Employment Contract shall be made within 30 days
  • If pre training period and probation period are stipulated before appointment, Employment Contract does not need to be made compulsorily

MINIMUM WAGE

  • 4800 MMK per day (8 working hours), 600 MMK per hour (Notification No. 2/2018, 2018-05-14)
  • Employer with at least 10 employees shall pay not less than Minimum Wage rate
  • Can pay more than Minimum Wage but not less than
  • If wage in Employment Contract is less than Minimum Wage rate, it is void

PAYMENT OF WAGES

  • If there are 100 workers and above, pay must not be administered later than 5 days after the end of the payment period
  • Upon termination, wages must be paid within 2 working days
  • If a resignation letter is submitted, wages must be paid at the end of the payment period
  • If employee die, wages must be paid to the legally recognized heir within 2 working
    days
  • All wages must be paid during the working day

DEDUCTIONS

  • Employer can deduct from wages for absences except when such absence is during a public holiday or entitled leave, according to the- law
  • Accommodation charges, transportation charges, meal allowances, charges for water, electricity, taxes and errors in payments shall be allowed for deduction
  • Employers can deduct from wages for prepaid, expenses and saved or contributed amount according to the law
  • Employer can deduct from wages with the judgment of the court of arbitration
  • Total amount of deduction above, except when employee fails to perform his/her duties, shall not be more than 50% of the employee’s wages
  • Get permission from the Department concerning “why” and “how” prior to making deduction from wages for fines and compensation
  • Display the permission document on notification board
  • Fines must not exceed the value of damage caused by the action or cost of performance failure of the employee
  • Do not deduct without allowing an appeal from the employee
  • Do not deduct more than 5% of the monthly wages for fines and compensation
  • Every deduction must be well documented and submitted monthly report to the Department
  • Fines must be spent for the social welfare of employees
  • No deduction of fines is allowed from a worker under 16 years old

WORKING HOUR

  • 8 hours per day, 44 hours per week, 48 hours per week for continuous work
  • Working hour at a stretch must not exceed 5 hours without at least 30 minutes interval for rest
  • Total periods of working hours and intervals for rest must not exceed 10 hours
  • There must be one rest day a week

OVERTIME

  • Two times of basic wages
  • Shall not exceed total 20 hours per week (maximum 3 hours each for Monday to Friday and 5 hours for Saturday)
  • Directive No. 615/2/AhLaYa-Law 2/12(1584) (2012-12-11)
  • Get permission from Department, with agreement of worker, prior to overtime

WEEKLY REST DAY

  • orker is entitled to one paid rest day for a week after completion of working hours per week
  • If working is required on weekly rest day, alternative rest day must be provided within 3 days before/after the weekly rest day
  • If alternative rest day is provided, worker is not entitled to overtime rate for working on regular weekly rest day
  • If alternative rest day is not provided, worker is entitled to overtime rate for working on regular weekly rest day
  • If weekly rest day falls between 2 leave days, the weekly rest day must be counted as leave day

2018-10-05


PUBLIC HOLIDAY

  • Worker is entitled to paid holiday on public holiday
  • If working is required on public holiday, two times of basic salary and cost-of-living allowance
  • Overtime rate must be paid for hours beyond 8 normal working hours┬áPublic holiday that falls on a rest day or other holiday may not be taken on another day
  • If public holiday falls between 2 leave days, the public holiday must be counted as leave day

EARNED LEAVE

  • After 12 continuous months of work, worker is entitled to 10 days of paid leave in the following year
  • 1 day can be deducted from 10 earned leave days for each month with under 20 working days
  • If employer and worker agree, unused leave days can be accumulated for up to 3 years
  • Worker must be paid average wages or average pay for leave days before taking leave
  • Worker who resigns or is terminated before taking leave must be paid for unused leavebased on average daily earning over the last 30 days
  • If weekly rest day or public holiday falls within earned leave days, the weekly rest day or holiday must be counted as the leave day

CASUAL LEAVE

  • Worker is entitled to 6 days of paid casual leave per year
  • Worker may use up to three days of casual leave at one time (if submit concrete reason, it may be allowed more than 3 days)
  • Can not combine casual leave with other kinds of leave
  • Unused casual leave in a given year is void

MEDICAL LEAVE

  • Workers may take paid medical leave up to 30 days per year
  • 6 months of work must be completed, if not completed, unpaid leave can be taken
  • Can combine medical leave with earned leave
  • Unused medical leave in a given year is void

MATERNITY LEAVE

  • Pregnant mother is entitled to 6 weeks of parental leave and 8 weeks of postnatal leave
  • Paid leave by cash benefit for maternity and confinement or basic salary
  • Can combine maternity leave with medical leave
  • Father is entitle to 15 days of paid leave for paternity leave

SOCIAL SECURITY

  • All companies with five workers or more must register
  • 5% of workers salary (employer 3% + employee 2%)
  • Total contribution shall not be more than 15,000 MMK
  • Currently implemented Social Security Benefits are:
  • Health and Social Care (medical care, funeral grant, sickness cash benefit, maternity cash benefit, paternity cash benefit)
  • Employment Injury (accidence, injury in workplace)

DISMISSAL

  • Employer shall dismiss worker for sound reason by official letter signed by employer or employer’s representative
  • Employer can dismiss worker by giving 1 month notice in advance and payment of severance pay
  • If not giving 1 month notice in advance, one month salary shall be paid
  • Violating prescribed rules (Annex-A)
      • 1st time (give warning letter and get worker signs it as received)
      • 2nd time (give warning letter and get worker signs it as received)
      • 3rd time (get worker signs undertaking letter)
      • 4th time (dismiss worker immediately without payments of severance pay and 1 month notice)
      • If interval between the times each other takes longer than 12 months, reset and restart from 1st time
  • Violating grave offenses (Annex-B)
  • Dismiss worker immediately without payment of severance pay
  • Severance pay (Notification No. 84/2015 dated 3rd July 2015)
Service Severance Pay
6 months – 1 year 0.5 salary
1 – 2 years 1 month salary
2 – 3 years 1.5 months salary
3 – 4 years 3 months salary
4 – 6 years 4 months salary
6 – 8 years 5 months salary
8 – 10 years 6 months salary
10 – 20 years 8 months salary
20 – 25 years 10 months salary
25 years and above 13 months salary

References –
Employment and Skills Development Law (2013), Minimum Wage Law (2013), Payment of Wages Law (2016), The Factories Act (1951), Leave and Holidays Act (1951), Leave and Holidays Rules (2018), Social Security Law (2012), Social Security Rules (2012), Employment Contract, relevant notifications, orders, directives

Myanmar’s Labour Law(Myanmar)

DOs & DONT’s


Worker Legal Requirements according to Myanmar’s Labour Law MGMA’s Recomendation
DOs DON’Ts
Child Worker
14 to 15 Years of Age (who completed 14th year and not yet completed 16th year from date of birth)
  • get medical certificate of fitness for work
  • keep the medical certificate ready to shwo while the worker is working
  • let the worker work for only 4 hours per day
  • let the worker work only during the day (from 6:00AM to 6:00PM)
  • display notification of work shift details (times, during,etc…)
  • make log book for each worker with the information of
  • parent’s names
  • kind of word
  • group the worker is in
  • work shift assignment of group, if so
  • medical certificate’s signature number
  • other related matters
  • keep the log book ready to show while the worker is working
  • do not let the worker work for over 4 hours per day
  • do not let the worker work at night (from 6:00PM to 6:00AM)
  • do not let the worker work in another factory after having completed word in one factory on the same day
  • do not claim changes for medical certificate from the worker
  • do not let the worker work in ways of>
  • being hazardous
  • damaging healthy
  • hindering any opportunity to continue education
  • being harmful to morality & dignity
  • Apply MGMA’s Code of Conduct
  • commit to work towards the effective remediation
  • minimum acceptable working age is not less than 15 years
  • effective age-verification during recruitment
  • have child labour policy
  • have recruitment policy
  • standard operation procedures for age-verification
  • if you have child worker
  • do not dismiss immediately
  • inform MGMA
  • inform relevant labour office
Adolescent Worker
16 to 17 Years of Age (who completed 16th year and not yet completed 18th year from date of birth)
  • get medical certificate of fitness for working as a adult
  • keep the medical certificate ready to shwo while the worker is working
  • if so, let the worker work as a adult worker
  • unless, let the worker work as a child worker(see DOs & DON’Ts in row above
  • do not claim changes for medical certificate from the worker
  • do not let the worker work in ways of
  • being hazardous
  • damaging healthy
  • hindering any opportunity to continue education
  • damaging morality

**Note: the term of medical certificate for fitness for work is only 12 months(1 year).**