At a glance: termination of employment in Myanmar

Termination of employment

May an employer dismiss an employee for any reason or must there be ‘cause’? How is cause defined under the applicable statute or regulation?

The standard employment contract stipulates the circumstances and the mode of termination of employment. An employer can terminate the employment of an employee for misconduct without making severance payment provided it has provided three warnings (one verbal warning and two written warnings) to the employee. An employee can only be dismissed after a further violation is made within 12 months of the third warning.

In the event that an employee commits a serious offence as set out in Annex B of the standard employment contract, an employer can immediately dismiss the employee without any severance payment.

Notwithstanding the above, an employer can terminate the employment of an employee without any misconduct by giving at least one month’s prior notice and making the necessary severance payment prescribed under Notification No. 84/2015 (Notification 84).

In addition to the above, the standard employment contract also provides that the contract may be terminated for the following reasons:

• the winding-up of the business of the employer;
• the suspension of business owing to unforeseeable events; and
• the death of the employee.

Must notice of termination be given prior to dismissal? May an employer provide pay in lieu of notice?

In an employee is terminated without any misconduct on his or her part, the employer must provide at least one month’s prior notice and make payment of the severance amount pursuant to Notification 84.

If the employer wishes to terminate the employment of the employee during the probationary period, it must provide at least 30 days’ advance notice in writing to the employee. Alternatively, it can provide one month’s salary in lieu of notice (this option is only available if the employee is still under probation).

In which circumstances may an employer dismiss an employee without notice or payment in lieu of notice?

An employer can terminate the employment of an employee for misconduct without making severance payment provided that it has provided three warnings (one verbal warning and two written warnings) to the employee. An employee can only be dismissed only after a further violation is made within 12 months of the third warning, and no notice period is required for the dismissal. In the case of serious offences (as defined in the standard employment contract), an employer can immediately dismiss the employee without any severance payment.

Is there any legislation establishing the right to severance pay upon termination of employment? How is severance pay calculated?

The right to receive severance pay upon termination of employment (subject to certain exceptions) is prescribed in Notification 84. The amount of severance pay an employee is entitled to depends on his or her length of service prior to the termination of employment, as follows.

Are there any procedural requirements for dismissing an employee?

The standard employment contract stipulates the circumstances and the mode of termination of employment. An employer can terminate the employment of an employee for misconduct without making severance payment provided that it has provided three warnings (one verbal warning and two written warnings) to the employee. An employee can only be dismissed only after a further violation is made within 12 months of the third warning. In the case of serious offences (as defined in the standard employment contract), an employer can immediately dismiss the employee without any severance payment.

In both of the above-mentioned cases, the employer must notify the relevant township labour office of the dismissal of the employee.

In what circumstances are employees protected from dismissal?

Generally, an employee cannot be dismissed without severance payment unless he or she commits a serious offence. Employees cannot be dismissed without following the procedure set out in the standard employment contract in the event of a violation of a normal offence.

Are there special rules for mass terminations or collective dismissals?

There is no specific legislation covering mass terminations or collective dismissals in the enacted labour laws. The standard employment contract provides that terminations owing to redundancy should be coordinated with a representative of the labour organisation and a representative of the workplace coordination committee, or, in the absence of a labour organisation, directly with the workplace coordination committee.

Are class or collective actions allowed or may employees only assert labour and employment claims on an individual basis?

Both individual and collective (including class) actions are allowed with respect to employment claims.

The Settlement of Labour Disputes Law defines an individual dispute as a rights dispute between the employer and one or more workers relating to the existing law, rules, regulations and by-laws, collective agreement or employment agreement.

A collective dispute is defined as a dispute between one or more employers or employer organisations and one or more labour organisations over working conditions, the recognition of their organisations within the workplace, the exercise of the recognised rights of their organisations and relations between the employer and the workers, where the dispute could jeopardise the work operation.

Does the law in your jurisdiction allow employers to impose a mandatory retirement age? If so, at what age and under what limitations?

There are no statutory or legal restrictions against employers imposing a mandatory retirement age.