Labour Migration Law effective from 01 July 2022

Mongolia • No. 03/2022 • April 2022

On 24 December 2021, the Parliament of Mongolia passed the Labour Migration Law (the “LML”) effective from 01 July 2022. The LML, once effective, its preceding law, the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists From Abroad (12 April, 2001) shall no longer be in force.

In accordance with the concept of “Private Employment Agencies” Convention, No.181 of the International Labour Organisation, to which Mongolia is a party, the legal basis for employment agency service of Mongolian citizens abroad, has been updated. In this tax and legal alert, we highlight the key aspects of the LML.

Application of the law

This law shall apply to the following: 

• relations concerning employment or apprenticeship of Mongolian citizens abroad, protection of their rights and legitimate interests;
• procedure for granting work permits to foreign citizens and stateless persons to work in Mongolia.  

Foreign nationals who work in Mongolia with employment visas are required to obtain work permits and are bound by the LML. 

Some new definitions

• Who is a foreign employee?
• What is a labour agency?
• What is labour supply services?
• Who is an agency worker?

Job positions for foreign employees in Mongolia are classified into, of management, executive and assistant categories for the first time 

• Management position
• Executive position
• Assistant position

Inviting foreign employees to work in Mongolia

• For management and executive positions numbered 1-8 as above, an employer submits a request a permit to invite a foreign employee, to the General Agency for Labour and Social Welfare Services (“Labour Authority”).
• For job positions numbered 9-12 as above, an employer is entitled to request a permit to invite a foreign employee if the employer assumes that there is no suitable local candidate after 14 working days of posting a job advertisement in the employment registry database for recruitment. 
• The permit to invite a foreign employee confirms that the employer is entitled to employ a foreign employee for the advertised role. 
• Labour Authority issues a permit to invite a foreign employee, to the employer, for a period of 3 months if there is no grounds for rejection. The permit can be extended once for up to 3 months subject to conditions specified in the LML. 
• Labour Authority may use the electronic system to provide services related to granting a permit to invite foreign citizens and work permits for foreign nationals working in Mongolia. 

Restricting employers to invite foreign employees

Work permit of a foreign employee 

• Granting work permits to foreign employees:  Employers are required to submit an application for a work permit of a foreign employee on behalf of the employee to the Labour Authority after they are permitted to invite the foreign employee. The Labour Authority issues a work permit to the foreign employee for up to a year subject to the job position and term of the employment agreement. Detailed procedure for granting work permits shall be approved by the Ministry of Labour and Social Protection. 
• Work permit shall specify full name and nationality of the foreign employee, name of the employer, the workplace location and validity period of the work permit. 
• Extension of a work permit of a foreign employee:  A work permit granted to a foreign employee can be extended subject to applicable regulations. The continuous employment of a foreign employee in an assistant position in Mongolia shall not exceed a period of 5 years. 

Revocation of a work permit granted to a foreign employee

Monitoring the implementation of the LML

Labour Authority: authorised to inspect employers engaging with foreign employees at lease once a year to ensure implementation of the LML, the employment status and working conditions of foreign employees and to provide necessary advice.

Ministry of Labour and Social Protection: provide advice, approve guidelines and directions for joint inspections, take measures to remedy violations identified during inspections and notify the relevant authorities.

Non-governmental organisations: may exercise independent monitoring on the implementation of the LML within certain activities. Upon request of the non-government organisation to exercise an independent monitoring, the Labour Authority is required to register and cooperate.