The basic legal framework regarding foreign and local employees is prescribed in the Myanmar Companies Law, though new rules and regulations for large-scale employers have been outlined in the recent Myanmar Investment Law.
UNDER THESE LAWS, ALL EMPLOYERS ARE OBLIGED TO:
- Ensure equal rights for local workers and avoid salary bias, i.e. ensure that local and foreign workers have the same salary at the same level
- Ensure that all foreign employees apply for the proper work permit via Ministry of Labour, Employment and Social Security and visa through the Myanmar Investment Commission (MIC)
- Provide rights and benefits - including but not limited to, leave, holidays, overtime pay, compensation and social security
- Settle disputes between workers, employers, consulting experts or any other personnel involved in the business operation, in accordance with the existing laws
Most legal requirements are concerned with who investors, employ not how they employ them. Employers may find new workers through local employment agencies, state or private recruitment centres - or their own methods.
The investor may appoint any citizen who is a qualified person as a senior manager, technical and operational expert, or advisor in his investment within the Union - in accordance with the laws.
The investor shall appoint skilled citizens and foreign workers, technicians, and staff by signing an employment contract between employer and employee in accordance with the labour laws and rules. However, please note that prospective employees in a pre-hiring period for training or probation are exempt from this requirement. The agreement must be thorough and detailed, clearly describing:
- The type of employment and workplace conditions, such as - worksite transportation, accommodation, and meal arrangements
- Payment structure, including rate and salary, working hours, overtime policy, holidays and leave employer-provided benefits, such as insurance and travel and meal vouchers
- Workplace requirements and regulations
- Any training or probation periods and terms of resignation or termination of employment
