Labour Laws in Myanmar

The following information provides an overview of the most relevant environmental laws and regulations for clothing, textile, footwear and fashion accessories factories. It serves as general guidance and cannot be understood as legal advice. Labour disputes are generally referred to a labour tribunal (composed of three members appointed by the Board of Arbitration under the Labour Disputes Resolution Act) for decision. Labour Court decisions are usually published on the Ministry of Labour website. However, we are not aware of any significant or historic labour court decisions in 2021. In practice, labour courts may draw on other common law jurisdictions in determining the relevant factors to be taken into account in distinguishing an independent contractor from an employee, and may also tend to consider the content of the formal agreement (i.e. the express terms of the contract). Myanmar`s labour laws generally do not distinguish between the protection of workers who are citizens of Myanmar and the protection of foreign workers. In practice, however, employment agencies generally protect the rights of domestic workers more than those of foreign workers. There are also certain requirements, such as the registration of employment contracts (with the obligation to follow the MEC model) and social security registration, which are strictly enforced and made mandatory with regard to local workers, but remain optional for foreign workers. The ETL also introduces the concept of personal data controller, which is defined as “a person or employee authorized by a government agency or organization to be responsible for the collection, storage and use of personal data in accordance with this law or existing laws.” There is currently no explicit obligation for private companies to designate a controller for the management of personal data under ETL, although such a requirement may be introduced at a later stage in the form of further amendments to ETL or subsidiary laws or regulations as the data protection framework evolves. Apart from this, labour legislation does not prescribe specific rules on the circumstances that would give entitlement to leave of absence, the maximum duration of such leave and the amount of wages an employee would receive during that period. Apart from this, local employment offices in municipalities may also insist on certain employee protection measures, such as transferring the mandate of employees from the previous employer to the new employer, in order to protect the severance pay to which employees are entitled.

The WCC`s main mandate is to promote good relations between workers and employers. It also serves as a means of negotiation and coordination on terms and conditions of employment and other issues related to safety, health, welfare and productivity at work. The WCC is also the first point of contact for any inquiries or complaints from workers or employers. In practice, a WCC will generally endeavour to facilitate the negotiation and settlement of labour disputes in order to avoid having to refer them to the appropriate conciliation body of congregations for resolution. Each term of a WCC lasts one year. Although the Employment and Skills Development Act recognises the practice of providing for probationary periods in an employment contract,10 it does not impose any restrictions on the length of a probationary period. However, the MEC stipulates that the probationary period cannot exceed three months. It is therefore unlikely that municipal employment offices will approve an employment contract providing for a probationary period of more than three months. Myanmar`s labour policies and practices are generally favourable to workers. With this in mind, labour authorities respect the principle of non-reduction of benefits, as changes to the MEC model that result in the cancellation or reduction of existing MEC benefits (or, in the case of existing employment contracts, any changes to eliminate existing benefits for employees) are likely to be rejected by the relevant municipal employment offices. A collective dispute is defined as a dispute between one or more employers or employers` organizations and one or more workers` organizations concerning working conditions, the recognition of their organizations in the workplace, the exercise of the recognized rights of their organizations and the relations between the employer and the workers that could jeopardize the professional activity.

Employees of a shop or commercial establishment are not required to work (during their normal working hours) more than eight hours per day or 48 hours per week, unless they agree otherwise.22 To this end, Myanmar`s labour laws do not distinguish between daytime and night working time. The Labour Organization Act (LOL) provides for the formation of a basic work organization at the factory level if at least 30 workers and at least 10 per cent of all workers in the factory agree to the formation of the union. Umbrella organisations can be established at municipal, regional, national and trade union levels. There is currently no cross-sectoral data protection law in Myanmar. The only legislation that briefly deals with data protection requirements is the Electronic Transactions Act, revised by the Act amending the Electronic Transactions Act (Act No. 7/2021) (ETL). In practice, if an employee is dismissed for cause (whether for a minor offence or serious misconduct), the employer must inform the competent municipal employment office. Employers should ensure that they maintain a well-documented record of disciplinary measures that led to dismissal for cause and the commission of criminal offences by the employee in order to prevent subsequent allegations of unfair dismissal or unfair dismissal by an injured former employee. For more information on environmental laws and regulations, please download this summary compiled by Luther Law Firm: In both of the above cases, the employer must notify the relevant municipal employment office of the employee`s dismissal. No, there are currently no prerequisites for a labor market test as a precursor to a short- or long-term business visa. Myanmar courts and labour tribunals generally accept documents as evidence, whether written in Myanmar or in English.

Employers can therefore choose to draft their internal labour regulations in English. However, some labour managers may need a translation into the Myanmar language to be prepared for their review during the approval process. Is a labour market test required as a prerequisite for obtaining a short-term or long-term visa? There is no specific legislation to protect workers in the event of a transfer of an undertaking.