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Mongolia - Compensation & Benefit Legislation

CAPITAL

Ulaanbaatar

 

CLIMATE

Desert climate; continental area has large daily and seasonal temperature ranges.

 

LANGUAGES

Tibetan Buddhist Lamaism 96%, Muslim (primarily in the southwest), Shamanism, and Christian 4%.

 

LEGAL SYSTEM

Mongolia’s legal system is a blend of Russian, Chinese, Turkish, and Western systems of law that combines aspects of a parliamentary system with some aspects of a presidential system. Mongolia’s constitution is ambiguous on judicial review of legislative acts. Mongolia has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Mongolian Togrog/Tugrik (1 USD = 1,097.48 MNT as of May 15, 2002).

 

MONGOLIA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

MONGOLIA - EMBASSY/CONSULATES

U.S. Embassy at Ulannbaatar

Northeast part of Ikh Toiruu (Big Ring) Road - near the Tuul River

Ulannbaatar, Mongolia

P.O. Box 1021

Ulaanbaatar-13

Mongolia

Telephone: [976] (11) 329095

Fax: [976] (11) 320776

Email: info@us-mongolia.com

http://us-mongolia.com/

 

Embassy of Mongolia at Washington D.C.

2833 M Street N.W.

Washington D.C. 20007

Telephone: (202) 333-7117

Fax: (202) 298-9227

 

MONGOLIA - HOLIDAYS

 

Per the constitution, the length of working day on the eve of a holiday shall not exceed 6 hours.

 

MONGOLIA - MINIMUM AGE

The law in general prohibits children under the age of 16 from working, although those who are 14 or 15 years of age may work up to 30 hours per week with parental consent. Those under 18 years of age may not work at night, engage in arduous work, or work in hazardous occupations such as mining and construction.

 

(Section 6.d. Acceptable Conditions of Work, Mongolia – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

MONGOLIA - MINIMUM REMUNERATION

The legal minimum wage established for the year is under 25,000 tugrik per month (approximately $25). Virtually all civil servants earn more than this amount, and many in private businesses earn considerably more. Some employees receive housing benefits.

 

(Section 6.e. Acceptable Conditions of Work, Mongolia – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

MONGOLIA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

MONGOLIA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Constitution entitles all workers to form or join unions and professional organizations of their choosing. Union officials estimate that union membership remained constant at approximately 400,000, which represents less than half of the workforce. Workers who are self-employed or work at small, nonunionized firms generally do not belong to unions. No arbitrary restrictions exist on who may be a union official; officers are elected by secret ballot.

 

Union members have the right to strike. Those employed in essential services, which the Government defines as occupations critical for national defense and safety, including police, utility, and transportation workers, do not have the right to strike. During the year, there were approximately 58 strikes involving 5,419 workers.

 

Most union members are affiliated with the Mongolian Trade Unions Confederation, but some are affiliated with the newer Association of Free Trades Unions. Both organizations have ties with international labor organizations and confederations in other countries.

 

b. The Right to Organize and Bargain Collectively

 

The law defines conditions and regulates relations between employers, employees, the trade unions, and the Government, making adjustments for the changes in the structure of the economy. The Government's role is limited to ensuring that a contract meets legal requirements as to hours and conditions of work. Wages and other employment issues are set between the employer, whether state or private, and the employee, with trade union input, if appropriate. The law also streamlines the process for dealing with labor conflicts. The Labor Dispute Settlement Commission resolves disputes involving an individual; disputes involving groups are referred to intermediaries and arbitrators for reconciliation. If an employer fails to comply with a recommendation, employees may exercise their right to strike. The law protects workers' right to participate in trade union activities without discrimination.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law specifically prohibits forced or compulsory labor, including forced and bonded labor by children; however, enforcement is intermittent (See Section 6.d). In 2000 a foreign-owned garment factory was discovered to be requiring employees to work 14-hour shifts 7 days a week, deducting unreasonable sums from paychecks for miscellaneous expenses, and requiring 16- to 18-year-old workers to work excessive hours. Some members of the military forces in rural areas are required to help with the fall harvest. In many cases, prisoners work to support the detention facility or prison in which they are held, and detained alcohol abusers and petty criminals sometimes are required, as part of their sentences, to perform menial tasks such as street sweeping. Detainees are compensated financially for their work; prisoners are not, but receive credit toward time off of their sentences. There are reports that some women and teens work in the sex trade in Asia and Eastern Europe; an unknown number of them may have been trafficked (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The law in general prohibits children under the age of 16 from working, although those who are 14 or 15 years of age may work up to 30 hours per week with parental consent. Those under 18 years of age may not work at night, engage in arduous work, or work in hazardous occupations such as mining and construction. Enforcement of these prohibitions, as well as all other labor regulations, is the responsibility of state labor inspectors assigned to regional and local offices. These inspectors have the authority to compel immediate compliance with labor legislation, but enforcement is limited due to the small number of labor inspectors and the growing number of independent enterprises. In 2000 a foreign-owned garment factory was found to be employing 16- to 18-year-old workers for periods in excess of the legal limits (see Section 6.c.).

 

Children work informally in petty trade, scavenging in dumpsites, scavenging coal from abandoned mines and herding animals. Increasing alcoholism and parental abandonment make it necessary for many children to have an income in order to support themselves, their siblings, and sometimes their parents. Figures vary as to the number of children in the labor force, but estimates are as high as 58,000.

 

Also, due to increasing economic pressures, fewer children are staying in school until age 18, especially teenage boys in the countryside (see Section 5). These children most often herd family animals, but reports of such children working in factories or coalmines have increased.

 

Although evidence is limited, there are reports that female street children sometimes face sexual abuse (see Section 5). The Government is aware of this development, and has established a National Committee for Children to address this and other child welfare issues.

 

In 2000 the International Labor Organization (ILO) established a national office for the International Program on the Elimination of Child Labor. There are reports that some women and teens work in the sex trade in Asia and Eastern Europe; an unknown number of them may have been trafficked (see Section 6.f.).

 

The Government prohibits forced and bonded labor by children, and generally attempts to enforce this prohibition (see Section 6.c.). Forced labor by children does exist in a few circumstances.

 

e. Acceptable Conditions of Work

 

The legal minimum wage established for the year is under $25 (25,000 tugrik) per month. The minimum wage alone is insufficient to provide a decent standard of living for a worker and family. This level applies to both public and private sector workers and is enforced by the Ministry of Social Welfare and Labor. Virtually all civil servants earn more than this amount, and many in private businesses earn considerably more. Some employees receive housing benefits.

 

The standard legal workweek is 40 hours, and there is a minimum rest period of 48 hours between workweeks. Overtime work is compensated at either double the standard hourly rate or by giving time off equal to the number of hours of overtime worked. Pregnant women and nursing mothers are prohibited by law from working overtime. For those under 18 years of age, the workweek is 36 hours, and overtime work is not allowed.

 

Laws on labor, cooperatives, and enterprises set occupational health and safety standards, and the Ministry of Social Welfare and Labor provides enforcement. The near-total reliance on outmoded machinery and problems with maintenance and management lead to frequent industrial accidents, particularly in the mining, power, and construction sectors. Effective enforcement of occupational health and safety standards is inadequate; the labor monitoring unit's 70 inspectors must inspect a growing number of enterprises throughout the country. However, over the past year, 42 additional, volunteer inspectors from NGO's assisted the labor monitoring unit. According to the law, workers have the right to remove themselves from dangerous work situations and still retain their jobs. There are a small number of foreign workers in the country. In general, they enjoy the same protections as citizens.

 

f. Trafficking in Persons

 

The law does not specifically prohibit trafficking in persons, and there is evidence that women and teenagers are working in the sex trade in Asia and Eastern Europe and may have been the victims of trafficking rings. The country is both a source and transit point for trafficking.

 

Although most officials and NGO's find it difficult to estimate the extent of the trafficking, increasing attention is being focused on the issue. It is believed that the primary targets of trafficking schemes are young women, ranging in age from 14 years to the mid-20s, who come from the middle class. These girls and women are lured abroad by offers to study or work. It is not difficult to traffic persons across the country's borders. Some NGO experts believe that members of the police sometimes are involved in trafficking young women and helping facilitate their movement across the border. During the year, an NGO began providing training and education with respect to trafficking for police officials.

 

MONGOLIA - STANDARD WORKWEEK

The standard legal workweek is 40 hours, and there is a minimum rest period of 48 hours between workweeks. Overtime work is compensated at either double the standard hourly rate or by giving time off equal to the number of hours of overtime worked. Pregnant women and nursing mothers are prohibited by law from working overtime. For those under 18 years of age, the workweek is 36 hours, and overtime work is not allowed.

 

(Section 6.e. Acceptable Conditions of Work, Mongolia – Report of Human Rights Practices, 2001, U.S. Department of State.)