The Payment of Wages Act, 2016 (replaces the 1936 Payment of Wages Act)
Aim/objective…

Receipt of wages is made regularly. Unlawful deductions are not to be made.

Provision Period of Payments…

• The payment period may not exceed 1 month.
• Wages payments must be made within 5 days after the succeeding month for companies with 100 or more employees; –
• For factories employing fewer than 100 persons, payment must be maid on the last day of the payment period
• Wages must be paid during the working days (not during off days)
  If an employee is terminated, wages must be paid within 2 days from the date of termination

Prohibition for illegal deductions…

No deductions shall be made except for the following:

According to Chapter 3, Section 7, the employer can deduct:

(a) Can deduct from wages for absences except when such absence is during a public holiday or entitled leave, according to the law.
(b) Accommodation charges and transportation charges, meal allowances, charges for water and electricity, taxes and errors in payment shall be allowed for deduction.
(c) Can deduct from pre-issued, expensed and saved (or) contributed amount according to the law upon the employee contract.
(d) The Employer can deduct with the judgment of the Court of Arbitrator Jury Council.

According to Chapter 3, Section 11, the employer can also deduct for:

(a) Direct damage which is either intentional or due to negligence or due to the failure of the employee concerned with company property to take proper care.
(b) A breach of the employment contract or breech of any rules for which a fine had been previously set.

No other deductions are allowed, except those covered above by Sections 7 and 11 of Chapter 3.

Furthermore, according to Chapter 3, Section 10, no deductions shall ever be allowed for any workers under the age of 16.

The maximum amount which can be deducted…

• Total deductions cannot exceed 50% of wages entitled.

Penalty for violation…

• Up to 2 years imprisonment.

Full English language text of the 2016 Payment of Wages Act is available for download as a PDF here:

2016 Payment of Wages Act (English)

The Minimum Wages Law, 2013 and The Minimum Wages Rules, 2013
Aim/objective…

To fulfill the basic needs of the workers and their families who are working in commercial establishments, production and servicing establishments, agriculture and livestock. And, to develop the work performance and competitiveness of workers.

The minimum wage law was passed by parliament in late 2013 and amounts were specified/finalized by a National Tri-partite Committee in mid-2015. Implementation of the new wage rates began on September 1st, 2015. During 2017 the National Tri-Paritite Committee began a review process and eventually recommended 4,800 MMK per day as the new wage. This new amount was accepted and made effective by the Myanmar government from May, 2018.

Duties of the Employer…

• 4800 kyats per 8-hour working day (600 kyat/hour) shall be the minimum wage paid to skilled employees of companies with more than 15 employees in all industries, throughout all of Myanmar.
• 50% of the minimum – 2,400 kyats per 8-hour working day (300 kyats/hour) – may be paid to completely unskilled newly hired workers engaged in a training/induction program up to a maximum of 3 months.
• 75% of the minimum – 3,600 kyats per 8-hour working day (450 kyats/hour) – may be paid to newly hired employees during their 2nd 3 month period of employment, regarded as a ‘probationary period’.

Penalty for violation…

• If anybody violates the law they may be punished with a maximum of one year imprisonment or with a maximum of five hundred thousand kyats fine or with both
• If anybody violates the rules and orders they may be punished with a maximum of three months imprisonment or with a fine or with both.

Public notifications on the new minimum wage:

Official notification on the new minimum wage, May, 2018 (Myanmar language document)

Employment and Skill Development Law, 2013 (came into force in late 2013)
Aim/objective…

• To facilitate employment which is appropriate to the age and ability of the job seeker
• To help workers obtain employment and to provide stability of employment and skills development for employees
• To help employers obtain appropriate employees

Please note, as of July, 2018 factories are required to use this Employment Contract template (PDF link) as standard practice. Amendments can be added to this contract template with approval of the Ministry of Labour, Immigration and Population.

The facts required to be included & specified in the employment agreement are…

1. Type of employment
2. Probation period
3. Wage, salary
4. Location of establishment
5. Term of agreement;
6. Working hours
7. Days-off, holidays and leave
8. Working overtime
9. Meal arrangements within working hour
10. Accommodation
11. Medical treatment
12. Travel arrangements to/from work
13. Regulations to be followed by the employee
14. If the employee is sent to attend training, limitation agreed by the employee to continue his duty after the training
15. Employee resignation and termination of establishment
16. Termination of agreement
17. Obligations under the conditions of agreement
18. Termination of employment agreement by the mutual understanding of employer and employee
19. Any other matters
20. Specifying, amending and adding the conditions of agreement
21. Miscellaneous

• Aforesaid specifications shall not be less than the benefits of existing laws
• The employer shall send a copy of the employment agreement entered into by the employer and employee to the relevant employment exchange office within the stipulated period and shall obtain its approval
• An employment agreement concluded before the entering into force of this law shall continue to be valid until the end of the term of the original agreement.

Penalty for not following the law…

May be punished with a fine and/or imprisonment of up to 7 years.

(The Employment and Training Act, 1950 is repealed under this Law)

The Labour Organization Law, 2011 and The Labour Organization Rules, 2012
Aim/objective…

• To protect the rights of the workers in accordance with section 24 of the Constitution
• To promote good relations between the employer and the worker
• To enable to workers to form and carry out the labour organizations systematically and independently.

Rights and Responsibilities of the Labour Organization…

• The labour organizations shall have the right to carry out freely in drawing up their constitution and rules, in electing their representatives, in organizing their administration and activities or in formulating their programmes
• The labour organizations have the right to negotiate and settle with the employer if the workers are unable to obtain and enjoy the rights of the workers contained in the labour laws and to submit demands to the employer and claim in accord with the relevant law if the agreement cannot be reached
• The labour organization has the right to demand the relevant employer to re-appoint a worker if such worker is dismissed by the employer and if there is cause to believe that the reasons of such dismissal were based on labour organization membership or activities, or were not in conformity with the labour laws
• The labour organizations have the right to send representatives to the Conciliation Body in settling a dispute between the employer and the worker
• In discussions with the Government between the employer and the complaining workers, the representatives of the labour organization also have the right to participate and discuss
• Have the right to participate in solving the collective bargaining of the workers.
• Shall carry out peacefully the holding of meetings, strikes and the carrying out any other collective activities.
• Shall assist in making agreements between the employer and the workers.

Duties of the Employer…

The employer shall:

• Recognize the labour organizations
• Allow the member of executive committee assigned by the labour organization to perform their duty not exceeding two days per month
• Shall assist as much as possible if the labour organizations requests help which is in the interest of the factory’s workers.

Prohibitions…

No employer shall:

• Lock-out any service without the permission of relevant conciliation body
• Lock-out any work during the settlement of dispute period
• Carry out an illegal lock-out, dismiss a worker for his membership in a labour organization or for the exercise of organizational activities or participating in a strike.

No worker shall

• Go on strike without informing in advance the relevant employer or the relevant conciliation body
• Go on strike during the settlement of dispute period
• Go on an illegal strike

Penalties…

Prison time, fines or both may be assessed but any fine shall not exceed one hundred thousand kyats. Imprisonment may not exceed one year maximum.

(The Trade Union Act, 1926 is repealed under this Law.)

The Settlement of Labour Disputes Law, 2012
Aim/objective…

• For safeguarding the rights of workers
• Promoting a good relationship between employer and workers and creating a peaceful workplace
• Obtaining the rights fairly, rightfully and quickly by settling disputes between employer and worker justly

Forming Workplace Coordinating Committee…

The employer shall, in an establishment which has 30 employees and above and if there is a labour organization:

• Allow 2 nominated workers for each labour organization
• Assign employer representatives who are the same number as the representatives of the workers.

If there is no labour organization,

• Organize election of 2 representatives of the workers
• Appoint 2 representatives of the employer

The term of such committees is one year.

Settlement of Dispute…

• A party, employer or worker, may complain to the conciliation body.
• If he is not satisfied with the conciliation of Conciliation Body, may apply to the court.
• The Conciliation Body shall refer the collective dispute which does not reach settlement to the relevant Arbitration Body
• No party shall be barred to proceed with the right to institute criminal or civil proceedings in respect of such dispute during conciliation or arbitration.
• As a strike suspends the employment agreement temporarily, the employer shall not be liable to pay salary or allowance during such period to the workers who go on strike.

(The Trade Disputes Act, 1992 is revoked under this Law. The Trade Dispute Rules, 1963 and the Damages for Delay in Cash Benefit Relating to Trade Dispute of People’s Workers Rules, 1971 are repealed by this Rules.)