Myanmar labor laws do not distinguish between the terms “employee” and “worker,” and do not discriminate between “temporary” and “permanent” workers. Temporary workers are included under the definition of “workers” under local legislation. “Workers” have also been defined under various labor-related legislation. Please see the table below for further information: 

As such, regardless of the nature of employment (i.e. whether permanent or temporary) employees in Myanmar are entitled to the same set of statutory rights and benefits.

The mandatory Employment Contract Template ("ECT") issued by the Department of Labor ("DOL") of the Ministry of Labor ("MOL") on August 28, 2017, is to be used and applied for all types of employment in Myanmar.

The ECF contains the following important points:

• Type of work;
• Probation period or appointment/joining date;
• Wages/salary;
• Location of work; 
• Term of contract;
• Working hours;
• Rest days/off days and leaves;
  • Rest days;
  • Days off;
  • Leave;
    • Casual leave;
    • Earned leave;
    • Medical leave;
    • Maternity leave;
    • Funeral leave;
• Overtime;
• Provision of meals during working hours; 
• Accommodation; 
• Medical treatment;
• Transportation to and from the workplace and traveling; 
• Discipline rules to be abided by employees;
• The bond period after training provided by the employer;
• Resignation and dismissal from work; 
• Termination of an employment contract;        
• Obligations under the employment contract;
• Termination of employment contract by mutual agreement of employer and employee;
• Other issues (dispute settlement between employer and employee);
• Amendment and modification of the employment contract; and
• Miscellaneous.

Not all the points mentioned in the ECF can be amended. However, the additional terms and conditions based on the company rules and policies of each company can be provided as an annexure to the ECF. If it has been prepared in English, that annexure is required to be translated into the Myanmar language and approved by the relevant township labor office.

Currently, there are no clear regulations and guidelines for part-time employees. The minimum wage, as announced by the National Minimum Wage Committee via its Notification No. 2/2018, sets the national minimum wage at an hourly rate of MMK 600, and MMK 4,800 for an 8-hour workday. On October 9, 2023, Notification No. 2/2023 from the National Committee outlined changes to the minimum wage, requiring employers to provide an additional daily allowance of 1,000 kyats. Despite this adjustment, the Ministry of Labour ("MOL"), as confirmed by the Global New Light of Myanmar, has upheld the minimum daily wage for employees at 4,800 MMK for an eight-hour workday. Additionally, employees are entitled to an extra 1,000 MMK in allowances, while overtime pay remains calculated based on the 4,800 MMK rate.

The minimum wage applies to all employees regardless of age, industry, experience, type of employment and region, except small and family-run businesses with fewer than 10 employees. Under Myanmar laws, all employees, including temporary workers, agency workers, and part-time workers, have the same rights. There are no relevant qualifying periods for employers unless there is a probationary period. The position or status of employees depends on the employment contract made for that type of hire. All employees are to be treated equally regardless of whether they are part-time or permanent.

Under Myanmar labor laws and practices, employment contracts cannot be assigned or transferred. Myanmar labor authorities require the employer and employee to make a new employment contract if employees are assigned or transferred, with the consent of employees, to a new employer. However, in the case of the transfer of a juristic entity, employee contracts may be carried forward to the new employer. 

The employer has to ask employees through their Workplace Coordinating Committee whether they wish to be transferred or end their contractual agreement. If the new employer is unable to accommodate staff in the new entity and desires to dismiss or terminate the employment, he or she is liable to pay severance pay.

Section 15(b)(iii) of the ECT requires employers to pay severance in the event of termination, in accordance with the applicable severance rates. 

The severance payment rates are listed in the Ministry of Labor, Immigration, and Population’s Notification No. 84/2015, effective from July 3, 2015. Please note that employers cannot alter any of the severance payment rates and must comply accordingly. The rates are as follows:
 

There is no obligation for the employer to consult with employees or union representatives prior to management decisions, including a change of control of an employer. Employees can negotiate their conditions of employment and general welfare through their Workplace Coordinating Committee ("WCC"). However, employers have to explain and inform in case of business transfer, disposal, or acquisition.

Under the current practice and requirements of the DOL, if either party desires to amend and modify the terms of the employment contract, the employer and employee must negotiate and reach a mutual agreement. This also requires approval by the respective labor office. More than 50 percent of employees in a workplace have to agree on the change of the terms.  

Generally, Myanmar is considered to be employment-at-will, but not termination-at-will. The ECT places the burden of proof on the employer for any termination, though no labor laws in Myanmar provide for employment termination.  

Section 15(b) of ECF states that when the employer terminates the employment of the employee, the employer (or an authorized representative) must record the valid reasons for termination and provide an official signed notice. The employer has the sole responsibility for all matters of termination and dismissal of an employee.

The employer may terminate the employee without any severance payment if the employee has committed additional misconduct within 12 months after three warnings have been made—the first two by written letter, and the third by having the employee sign an acknowledgment of wrongdoing. All previously committed violations will be discounted if the employee does not commit any further misconduct within 12 months of the original ordinary misconduct or 12 months of committing ordinary misconduct for the third time.

The employer may terminate the employee’s employment, in accordance with existing law, rules and regulations, with at least one month’s prior notification, by paying the stipulated severance payment, except in the event of immediate dismissal for grave misconduct. However, the employee must not be dismissed in contravention of relevant legal procedures.

For redundancies and termination of employment, the employer should cooperate and negotiate with the Workplace Coordinating Committee ("WCC") where there is no labor organization.
For ease of understanding, please see the table below on the applicability of payment of severance rates:

If the employer and the employee mutually agree to cancel employment, the employment contract may be canceled.

Employees can lodge claims with respective Labor Disputes Conciliation Body for the first instance. If no acceptable deal is reached, they can submit further claims to the Labor Disputes Arbitration Body and Labor Disputes Arbitration Council. 

At present, there are no relevant labor law provisions protecting whistleblowers. 

Section 17(v) of the ECT requires the employer to notify employees regarding all rights and benefits of employment. 

In Myanmar, basic communications privacy and security guarantees are provided in section 357 of the Constitution, which states, “The Union shall protect the privacy and security of home, property, correspondence and other communications of citizens under the law subject to the provisions of this Constitution.”

Section 8 of the Law Protecting the Privacy and Security of Citizens (2017) contains provisions regarding communications, telecommunications, and private correspondence. This prohibits the interception of or interference with personal communications and communications equipment. It also makes it a crime to demand or obtain personal telephonic and electronic communications data from telecommunication operators, or to open, search, seize or destroy another person’s private correspondence. Violators can face up to three years imprisonment and a fine between MMK 300,000–1,500,000.

Myanmar’s labor laws do not discriminate between male and female employees on employment. The Minimum Wage Law stipulates equal pay to all employees irrespective of gender. Section 17(i) of the ECT stipulates that the employer must not discriminate or allow unequal treatment of employees on the basis of union membership, or based on factors of race, religion, gender, or age.

Under the Leave and Holidays Act, employees are entitled to the following types of leave:

• Casual Leave;
• Earned Leave;
• Medical Leave;
• Maternity Leave;
• Paternity Leave and
• Unpaid leave. 

Section 27 of the Contracts Act states that every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. However, provisions that are reasonable in scope in terms of territory and duration would be permitted. Post-contractual terms should be carefully drafted to avoid being held void and should be drafted reasonably. 

No, employees cannot be terminated for refusing to sign a restrictive covenant. Noncompliance with the provisions of the Contract Act on restraint of trade by an employer can be considered a restrictive covenant, and terminating on refusing to sign a restrictive covenant may lead to charges of unfair dismissal.

There is no statutory retirement age for employees working in the private sector. Therefore, at present, there is no requirement for contribution to a pension or retirement scheme in Myanmar.

Employee benefits are stated in the Social Security Law 2012 ("SSL 2012") and the Social Security Rules 2014 ("SSR 2014"). In accordance with the SSL 2012, the employer is required to withhold 2 percent of an employee’s total monthly wages and contribute 3 percent of the employee’s monthly wages to the Social Security Fund. The social security contribution is currently capped at MMK 15,000, based on a salary cap of MMK 300,000. Therefore, employers have to contribute up to MMK 9,000 (3%) per employee, while withholding up to MMK 6,000 (2%) from each employee every month. Please also note that all social security benefits are based on the MMK 300,000 salary cap.

There is no statutory retirement age for employees working in the private sector. For civil servants, the statutory retirement age set under Rule 230 of the Civil Service Rules 2014 which was amended on April 1, 2022, is 62 years old. While an employer is not prohibited from setting its mandatory retirement age, severance payment is applicable when an employer terminates the employment of an employee on the basis that such an employee has reached the mandatory retirement age set by the employer.

Under the current regulations, it will depend on the consideration of the employer to require or cease pension or insurance benefits to the employees. The company can consider issuing company work rules to announce and comply with all requirements and benefits between employers and employees in Myanmar.

There is no legal requirement requiring an employer to make the COVID-19 vaccine mandatory for its employees or to force its employees to get the vaccine.

Under current regulations, an employer is only required to comply with the Occupational Safety and Health Law 2019, which governs all aspects of health and safety and lays out employers’ duties and responsibilities. These include arranging medical check-ups for employees to ensure that they are not suffering from any occupational ailment, providing employees with sufficient personal protective clothing, materials, and facilities (and seeing that they make use of them), and distributing occupational safety manuals, health manuals, and guidelines to raise employees' awareness of health and safety measures.

Given the circumstances, an employer is unable to terminate an employee’s employment on the basis that the employee refuses to get the COVID-19 vaccine.

According to current Department of Labor ("DOL") practices, if an employee is absent for three consecutive days without leave and without sufficient cause, or is frequently absent for five days within a month without permission from the employer, the employer reserves the right to terminate the employee without providing any severance payment, as it is considered serious misconduct.

In general, yes, an employer can require employees to return to work in the office if there is no government order to shut down. However, if there is a government order to shut down, the employer cannot require employees to return to work in the office, and employment cannot be terminated as a result.

Additionally, according to section 27(d) of the Occupational Safety and Health Law, employers are prohibited from terminating employees if the employee is unable to come to work due to an imminent danger situation at the workplace or the risk of contracting an occupational disease. Therefore, if an employee refuses to come to work due to safety concerns, such as inadequate COVID-19 precautions or other crises in the jurisdiction of the workplace, the employer cannot terminate the employee.