International Labour Organization (ILO) publishes guide on Myanmar laws for labour and employment
19 Oct

International Labour Organization (ILO) publishes guide on Myanmar laws for labour and employment

Considerable work amalgamating many documents is now complete within a publication by the ILO for companies, employees and Government departments, offering guidance on regulations relating to employment law in Myanmar

The ILO is a United Nations agency, with funding from the European Union, Norway, Switzerland and The United States. The agency deals with labour problems, particularly international labour standards, social protection, and work opportunities for all. In 1969, the organisation received the Nobel Peace Prize for improving peace among classes, pursuing decent work and justice for workers, and providing technical assistance to other developing nations. The ILO also registers complaints against entities that are violating international rules. However, it does not impose sanctions on governments.

There have been many recent changes in Myanmar, including revised laws offering new opportunities for foreign investors wishing to enter Myanmar. If you have been following our blogs or the press since 2014 you will have read of these changes.

The ILO has published their guide which can be downloaded in full here:

As with any guide you should consult experts to validate changes for your business. There will also be updates.

You will doubtless have read of the leading global growth figures here, now both on record and still forecast for the economy in Myanmar. The Government has opened the country to international investment. These changes on labour laws are another reflection of these changes.

It was in 2011 that the Government requested assistance from the ILO, so that the process for legal reforms could be accelerated and put in place with external expertise. The guide is for employers, workers, and other relevant stakeholders. There had already been the appointment in 2002 of an ILO Liaison Officer in Myanmar. We understand that Mr Rory Mungoven is the current ILO liaison officer.

It is recognised that awareness of labour guidelines and laws is sometimes not understood in Myanmar. This publication provides valuable source documentation for both national and international parties.

The guide has included work to cover existing laws including; Minimum Wages Act (2013), Foreign Investment Law (2013) and Special Economic Zone Law (2014). Payment of Wages Act (2016), Factories Act (amended in 2016), Shops and Establishments Act (amended in 2016), Leave and Holidays Act (amended in 2006), Penal Code (1974), Child Law (1993), Overseas Employment Act (1999), Anti-Trafficking in Persons Act (2005), Labour Organisation Law (2011), Settlement of Labour Disputes Law (2012).

In summary some of the key points include:-

Minimum wages – minimum wage is K450 per hour, 3,600 Kyat per day.
Working hours – For example, factory workers, maximum 44 hours per week.
Overtime work – Maximum 16 hours per week.

Public holidays – Workers Pay at double the normal rate plus a cost-of-living allowance.
There are also guidelines for medical, maternity / paternity leave, termination of employment
(30 days notice), also child workers and working hours.

Please refer to the source document and or call us or your advisors. FocusCore opened its offices in Myanmar in 2014. We have seen such promising and consistent growth and expansion in Myanmar and these changes further endorse and strengthen the forecasts for ongoing new prosperity in Myanmar. Contact us today for guidance to create your company in this expanding economic area

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