Global HR Compliance in Mongolia
Hiring local or international talent in Mongolia can be a strategic step for expanding operations, especially in mining, infrastructure, or regional trade. But businesses entering the Mongolian market face legal obligations that differ significantly from Western employment norms. Whether you’re establishing a local presence or exploring the market with remote teams, understanding labour contracts, leave entitlements, and dismissal rules is essential to staying compliant.
This guide walks you through employment contracts, statutory benefits, termination rules, and how a Global Employer of Record (EOR) like Acumen International can help you simplify and fully comply with Mongolian labour law.
Employment Contracts in Mongolia
Mongolian law recognises both permanent and fixed-term employment contracts. These must be agreed in writing, and verbal agreements are not recommended, especially for foreign employers.
Types of contracts include:
- Indefinite-term contracts – Standard for ongoing roles.
- Fixed-term contracts – Permitted for seasonal work, replacement of absent employees, apprenticeships, and probationary employment. Must state clear start and end dates.
- Probationary agreements – Often used during training or assessment, with a maximum term of six months.
Statutory Employment Regulations
Working Hours
The standard working week is 40 hours (8 hours per day). A rest period of at least 12 consecutive hours is required between shifts. Overtime must meet strict conditions and be compensated accordingly.
Overtime Rules
Overtime is only permitted under specific circumstances (e.g. public emergencies or business continuity needs). Workers cannot be compelled to work back-to-back shifts.
Probation Period
Probationary periods may be agreed for up to 6 months. During this period, employment can be terminated with reduced notice.
Paid Leave in Mongolia
Annual Leave
Employees are entitled to 15 working days of paid leave per year. This increases with years of service:
- 6–10 years: +3 days
- 11–15 years: +5 days
- 16–20 years: +7 days
- 21–25 years: +9 days
- 26–31 years: +11 days
- 32+ years: +14 days.
Sick Leave
Sick leave is available based on certified incapacity from illness or injury. The employee must provide documentation from a medical authority.
Maternity and Parental Leave
- Maternity leave: 120 calendar days paid leave.
- Parental leave: Extended unpaid leave is available to mothers for child care until the child reaches age three.
Minimum Wage in Mongolia
As of 2023, the minimum wage in Mongolia is MNT 550,000 per month (approximately USD 160). This applies across both public and private sectors. The rate is reviewed periodically by the National Tripartite Committee on Labour and Social Consensus.
Termination of Employment in Mongolia
Employment can be terminated:
- By mutual agreement
- On expiration of a fixed-term contract
- Due to employee misconduct or inability to work
- Due to business liquidation, redundancy, or restructuring
- Upon death or criminal sentencing of the employee
Notice Periods
Employees must typically give 30 days’ notice unless otherwise agreed. Employers must formally document reasons for termination and provide the employee with:
- Written notice
- Final wages and unused leave payout
- Reference letters, if requested.
How Acumen International Can Help You Hire in Mongolia
Direct Employment Without a Local Entity
Hire local or foreign staff in Mongolia without setting up a local entity. Acumen becomes the legal employer of record, managing compliance and employment obligations on your behalf.
Local Compliance, Centrally Managed
We handle employment contracts, monthly payroll, taxes, and statutory contributions while ensuring full compliance with Mongolian labour legislation.
Custom Support for Complex Hiring
We support hybrid workforce models — whether you’re employing long-term professionals, project-based staff, or roles that fall outside standard job classifications. We help you align employment terms with your global policies.
Global Mobility Support
Need to engage foreign staff in Mongolia? We provide work permit sponsorship to ensure your talent is legally employed and authorised to work.
Global Payroll Calculator
Use our Global Payroll Calculator to estimate salary costs, statutory benefits, and employer contributions when planning headcount in Mongolia or comparing global hiring options.
One Partner Across 190+ Countries
From Mongolia to over 190 jurisdictions, Acumen International offers unified EOR solutions that scale with your global expansion strategy.