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Employment Agreement (Draft)

Agreement No. XXX Company/Factory / EMP-CON/ 0XX-2015


In accordance with the Employment and Skill Development Law 2013 (section 5),
THIS AGREEMENT has been made and signed as of the ----- day of ---------------------, 20 ------, at the
place of ---------------------- Factory/Workshop/Business establishment/Company
Between
U/Daw --------------, holder of N.R.C. / Passport No. -----------------------------, living in -------------------Country, ---------------------, representing -------------------------------- Co., Ltd., having the principal place
of business at No. ----, --------------- Street, -------------- Ward/Village/Industrial Zone, ----------------City, ----------Region/State of the Republic of the Union of Myanmar, (hereinafter referred to as Employer)
And
U/Daw ------------------ (fathers name U ------------------), holder of N.R.C. No. ---------------------------- or
Passport No. --------------------------------, living in ------------------------ Country, ---------------------, having
----------------------------- skill, working at ------------------------------ Business establishment (hereinafter
referred to as Employee).
1.

Type of Employment
(a) Business type

-----------------------------------------------

(b) Employment type

-----------------------------------------------

(This means the Job type the Employee has to work.)


(c) Designation/Position
2.

-----------------------------------------------

Probation Period
(a) The probation period, not longer than 3 months, shall be from --------------- to ----------------.
(b) During probation period, wage/salary which is not less than 75 % of the basic pay shall be
provided.
(c) On the expiry of the probation period, the Employer shall keep appointing the Employee at
that specific position, if the Employees performance and skill meet the standard/criteria set by
the Employee.
(d) During the probation period, the Employer may terminate or dismiss the Employee with the
adequate reason, by providing notification at least ONE month (notice) in advance. (If the
Employer fails to provide ONE month advance notice or the time remaining to notify the
Employee is less than ONE month, the employment may be terminated by providing ONE
months salary which the Employee received during the probation period.
(e) If the Employee wishes to resign during the probation period, the resignation letter shall be
notified at least 7 days in advance to the concerning Employer or Manager or Administrator.
Only then the Employer shall pay the remaining wage/salary on the day of resignation. If the
Employee fails to provide resignation notice 7 day in advance, the remaining wage/salary shall
be given only on the next working day after the resignation day.
(f) Employees appointed as Apprentice shall not have the probation period. During the
apprenticeship, wages which is not less than 50 % of the basic pay, salary shall be provided.
The Employee shall set the duration of apprenticeship.
(g) Concerning the termination and dismissal of Apprentice during the apprenticeship shall be
carried out as stated above in the sub-paragraph (d) and (e).

3.

Pay/Wage/Salary
(a) Wage-earner (Kyat/Foreign Currency) --------------------------------------

Note:

(b) Piece work (Kyat/Foreign Currency)

--------------------------------------

(c) Salary (Kyat/Foreign Currency)

--------------------------------------

(d) Payroll/Wage-period

--------------------------------------

(1) Regarding the payment of wages and salary, Employer and Employee shall follow the
procedures in compliance with all existing Labour Laws and Regulations.
(2) Daily wage-earner or wage-earner with salary shall clearly be expressed concerning
payment of wages and salary.
(3) Wages/Salary will include, overtime pay and allowance, if any, in addition to the basic
pay the Employee received for what has worked. Moreover, the amount of basic pay/ wage
the Employee is entitled for his monthly work shall be expressed exactly.

4.

Location of establishment and Business Type


-------------------------------- Co., Ltd., is the factory/workshop/establishment having the principal
place of business at No. ----, -------------- Street, -------------- Ward/Village/Industrial Zone, ---------------City, -----------Region/State, being available to contact at telephone no. ---------------, fax no. --------------,
and email --------------------------------------.
5.

The term of Agreement


(a) The term of this Agreement is ( ) year ( ) month and ( ) day, extending from (xx xx xxxx)
to (xx xx xxxx).
(b) If the Employee does not breach any clause of this Agreement, the Employer and the
Employee may renew or make new Agreement or make amendment(s) after negotiation and
mutual agreement, at least ONE month in advance before the expiry of this Agreement.

6.

Working Hour
Normal working hour is set at 8 hours per day and shall not exceed 44 hours per week. Because of
the nature of work, for continuously running business operations, working hours shall not exceed
48 hours per week. Normal working hour shall be as follow:
(a) Normal/Shift

------------------------

(b) Start Time

------------------------ End Time ------------------------

(c) Break Time from (-----------------------)

to

(-----------------------)

(d) Lunch Time from (-----------------------) to

(-----------------------)

Note: In case of changes in working hour, concerning Township/District Directorate of Factories and
General Labour Laws Inspection shall be notified in advance.
7.

Day off, Holiday and Leave


(a) Day off:
Normally, Sunday in each week shall be OFF day; or according to the
nature of business and custom of locality, ONE day in each week may be fixed as OFF day

with the mutual agreement between the Employer and the Employee. On OFF day, the
Employee is entitled to enjoy wage/salary in accordance with the existing Labor Laws.
(b) Public Holiday
(1) Public Holidays (statutory holidays) set by the yearly notification of the Union
Government shall be Day Off with full payment of wage/salary.
(2) If Public Holiday coincides with weekly OFF day, that day shall be determined as Public
Holiday.
(c) Leave days
If the Employee requests leave in accordance with Law, he/she is entitled to enjoy the
following(1) Casual Leave:
Starting from the first working day up to 12 months, 6 days of
casual leave is entitled with full payment of wage/salary. Casual Leave not taken in the
concerning year shall be null and void. Except for religious, social or funeral affairs, and
special matters, more than 3 days of Casual Leave shall not be entitled on each time. This
leave cannot be enjoyed with any other type of leave. For urgent matters, report shall be
made by letter or by phone, and the Employer or the Manager or the Administrator shall
duly record. On the day the Employee returns to work, leave request shall be submitted.
(2) Earned Leave:
If the Employee has 12 months of service continuously and has
worked at least TWENTY days in each month, 10 days of leave with basic wage/salary per
year is entitled to enjoy continuously or separately. ONE day each shall be deducted from
Earned Leave for every month the Employee did not work for 20 days.
(3) Medical Leave:
(aa) The Employee is entitled to enjoy this leave according to one of the law; the Social
Security Law 2012 or the Leave and Holidays Act 1951.
(bb) For workers/employees ineligible for Social Security Law, after having 6 months in
service, 30 days of Medical Leave per year is entitled to enjoy, with basic pay.
(cc) For workers/employees ineligible for Social Security Law, not having 6 months in
service, 30 days of Medical Leave per year is entitled to enjoy, without pay.
(dd) If the Employee is injured by accident while serving duty in work, the Employee is
entitled to enjoy Medical Leave in accordance with the relevant law.
(4) Maternity Leave
(aa) Employees eligible for the Social Security Law are entitled to enjoy this leave in
conformity with one of the law; the Social Security Law 2012 or the Leave and
Holidays Act 1951.
(bb) Employees ineligible for Social Security Law, are entitled to enjoy in accordance
ONLY with the Leave and Holidays Act 1951.
(5) Absence Without Leave
(aa) Enjoying more leave than approved and being absent from duty without reporting
shall be determined as Absence Without Leave.
(bb) For Absence Without Leave days, wage/salary shall not be entitled to enjoy.
(cc) Without any approval from the Employer or the Manager or the Administrator,
THREE consecutive days of Absence Without Leave, the Employee shall be taken
necessary action or be terminated from work. Any compensation shall not be
entitled to enjoy for the termination of work.

8.

Overtime
(a) With the mutual agreement between the Employer and the Employee, overtime may be
allowed to work in line with the specifications of law.
(b) Overtime pay shall be calculated by formula as specified by the relevant law.

9.

Meal arrangement during the Work Hour

10.

(a) Breakfast (AVL / NA)

-------------------------

(b) Lunch (AVL / NA)

-------------------------

(c) Dinner (AVL / NA)

-------------------------

Accommodation and Uniform


(a) the Employer provides Accommodation (AVL / NA )

---------------------

(b) Uniform supplied by the Employer in a year (AVL / NA )


--------------------( if any, ------------- set )
(c) Safety dress supplied by the Employer in a year (AVL / NA ) --------------------( if any, ------------- set )
11.

Medical Treatment
(a) The Employer shall arrange and bear the expense of the following medical treatment for the
Employees who are not eligible for the Social Security Law 2012:
(1) Employment/Occupational injury
(2) Employment/Occupational disease
(3) Employment/Occupational illness
(b) The Employees eligible for the Social Security Law 2012 are entitled to enjoy medical
treatment in accordance with the relevant law.

12.

Ferry arrangement to Worksite/place and Travelling


(a) Ferry arrangement to Workplace
(1) The Employers arrangement

--------------------------

(2) Ferry Provision / Travel Allowance -------------------------(3) Own arrangement

--------------------------

(b) Travelling
For domestic and foreign travelling on duty, the Employer shall incur for the following:
(1) Suite expense (only for foreign trip) --------------------------(2) Living allowance

---------------------------

(3) Meal allowance

---------------------------

(4) Travelling allowance (including Life Insurance) -----------------(5) Daily allowance

---------------------------

(6) Other allowance

---------------------------

13.

Training
(a) The Employer shall take responsibility for Employees to attend eligible trainings on
employment/occupational skill development.
(b) Concerning the attendance of the employment skill development training, agreement shall be
made separately in accordance with law.

14.

Resignation and Termination of Service


(a) Resignation
(1) If the confirmed Employee wants to resign after the expiry of Employment Agreement,
Resignation Letter shall be notified at least ONE month in advance to the Employer or
the Manager or the Administrator via officer-in-charge of concerning department.
(2) In approval of official resignation, the Employee shall return all items provided such as
Payroll card, Identity card, workplace equipments and accessories; and moreover,
accounts, moneys, and materials undertaken by the Employee shall be handed over
systematically.
(3) If the Employee wants to resign before the expiry of the Employment Agreement,
notice shall be provided ONE month in advance; and not being liable to pay
compensation for termination, the Employer shall allow the resignation after granting
the Employee to enjoy the remaining (if any) entitled earned leave.
(4) In allowing the resignation as prescribed above sub paragraph (3), for the Employees
who have attended skill development trainings with expenses of the Employer, the
resignation shall be granted only after the Employee compensates the expenses
incurred. The Employee does not need to compensate the training expenses if he/she
has worked for THREE and more years of service after getting back from the training.
(b) Termination of service/ Dismissal
(1) The Employees violating the workplace rules shall be taken action for minor offences
by giving THREE times of reprimand verbal warning for the first time; written
warning as the second time; and the third time, getting Employees signed admission
not to violate anymore. After giving THREE reprimands, either the Employees violate
the rules again or commit major offence (material violation) ONE time; the Employer
may dismiss these Employees without paying dismissal compensation.
(2) Exception to the above sub-paragraph (1), the Employer may terminate the
employment with ONE month notice in advance by giving the specified compensation
(notice allowance), in accordance with the existing laws, rules, and regulations.
However, the Employee shall not be dismissed without any sufficient reason.

15.

Termination of Agreement
The Employment Agreement may be terminated for the following cases:
(a) Expiry of the term of Agreement;
(b) Factory closure;

(c) Closing/cessation of business/operation due to unforeseeable events arising not because of the
Employer;
(d) Non-compliance with the regulations specified in the Employment Agreement, either party the Employer or the Employee;
(e) Death the Employee; and
(f) Employee being convicted for committing crime.
16.

Obligations of the Employer


(a) The Employees shall be provided compensation in accordance with relevant laws for the
breach of Agreement by the Employer, outright closure, transferring & selling, cessation, and
downsizing of the business.
(b) If the business is suspended temporarily for sufficient reason, mutually negotiated and agreed
rate of wage or salary shall be provided during the suspended period;
(c) For personal injury, permanent partial disablement, occupational disease, and death arising
from work, the injured / deceased Employee or the beneficiary/heir shall be provided the
entitled compensation.
(d) If the total employee is less than one thousand persons, wages/salary shall be paid within
seven days after the expiry of wage-period; or for business/factory with more than one
thousand employees, wages/salary shall be paid within 10 days after the expiry of wageperiod. If payday coincides with OFF DAY, payment of wages/salary shall be made one day
ahead of that day. No wage-period shall exceed ONE month.
(e) The Employee shall not be discriminated on the grounds of being the member of Labour
Organisation, differences in race, religion, gender, age, etc.
(f) Foreigners who come to work in Myanmar as employers, supervisors, professionals and their
family members shall respect and obey existing Laws, culture and custom of Myanmar.
Furthermore, the Employer shall take responsibility for these foreigners not involving in the
internal affairs of Myanmar.
(g) The Employer shall respect and obey existing laws concerning labour affairs.
(h) The Employer is liable to sue or be sued in accordance with law.

17.

Obligations of the Employee


(a) The Employee shall work with the aim of improvement in productivity, faithfully on ones job.
(b) The Employee shall preserve and protect workplace materials from loss and/or damage arising
from lack of due care, negligence and/or misappropriation.
(c) Facts and figures, statistical information, material information and secrets of the business shall
be protected from leaking to outside.
(d) The Employee shall not do taking extract and using, copying, removing, destroying, or
bringing outside the departmental memos, documents, accounts and records without any
permission.
(e) The Employee shall take full compliance with rules and regulations, stipulated according to the
nature of company/factory/business type, to be followed by the Employees for working hour,
for work performance, and for workplace manner & behavior.

(f) The Employee shall avoid any act, behavior, or way of speaking that can deteriorate workplace
peace & order and workplace security.
(i) The Employee shall respect and obey existing laws concerning labour affairs.
(j) The Employee is liable to sue or be sued in accordance with law.
(k) Foreigners who come to work in Myanmar as employees and their family members shall
respect and obey existing Laws, culture and custom of Myanmar. Furthermore, they shall not
involve in the internal affairs of Myanmar.
(g) The Employee shall not interfere with the Employers duty and management affairs done in
fair and procedural way.
(h) The Employee shall obey rules and regulations, stipulated by the Employer according to the
nature of company/factory/business type, with the scrutiny and approval of the Department of
Labour.
18.

Cancellation / Renewal of Employment Agreement mutually


(a) Whether the term of Agreement comes to an end or not, the original Employment Agreement
may be cancelled with the mutual agreement between the Employer and the Employee.
(b) If the new Employment Agreement is to be made, the renewal shall be made within 30 days
before the expiry of the original agreement term.

19.

Dispute resolution mechanism


(a) If there is any dispute between the Employer and the Employee, the parties shall (attempt in
good faith to) resolve through mutual negotiation and reconciliation.
(b) If dispute cannot be resolved as stated in the above sub-paragraph (a), other relevant existing
laws including the Settlement of Labour Dispute Law 2012 shall be applied to get resolution.

20.

Amendment and Supplement to the Regulations of the Agreement


(a) If the Employer and the Employee want to amend and add supplement to the approved and
signed Employment Agreement in accordance with the existing labour laws, the new
Employment Agreement shall be submitted to the concerning Township Employment and
Labour Exchange Office after negotiation, discussion, making amendments and supplements
mutually done by the parties.
(b) The concerning Township Employment and Labour Exchange Office shall, after accepting and
scrutinizing that submission, then proceed to submit to the Department of Labour and only
after getting approval, make the amendment and supplement to the Agreement.

21.

Effective date of the Agreement


(a) This Employment Agreement shall come into effect upon the approval date of the concerning
Township Employment and Labour Exchange Office, after the Employer and the Employee
signed legally on the Agreement.
(b) The concerning Township Employment and Labour Exchange Office shall sign approval
signature after accepting and scrutinizing the Employment Agreement.

22.

Obligations
(a) The Employer and the Employee shall be accountable to follow and perform their obligations
absolutely; and the parties shall enter a bond and obey in strict compliance with the regulations
stipulated in this Employment Agreement.
(b) This Employment Agreement shall be prepared in THREE original sets, and distribute ONE
set each for the Department of Labour, the Employer and the Employee.

23.

Miscellaneous
(a) Arrangements for localized fanfares, sports activities, and social & welfare programs shall be
performed with the negotiated agreement between the Employer and the Employee.
(b) The Employer shall undertake to pay taxes and contributions liable for the Employer and the
Employee according to the existing laws.
(c) Rules and regulations to be followed, minor offences, major offences issued by the Employer
in accordance with the nature of the workplace, shall be inserted and provided as APPEDIX of
this Employment Agreement.
(d) When there is occurrence of natural disaster and/or unexpected dangers (force majeure), the
Employer shall provide necessary evacuation arrangements and required assistance for the
Employees.
(e) For workplace safety and sanitation, the Employer shall manage to provide the required safety
measures and hygiene education.

Having thoroughly read the above provisions and being well understood, the Employer and the
Employee, with their respective free consent and genuine intention, agree to sign this Employment
Agreement at the present of the following witnesses representing each party.

Employees Signature
(OR)
Left-hand Thumb Imprint

Employer (OR) Manager


(OR)
Administrators Signature

Signature -----------------------

Signature ---------------------------

Name ---------------------------

Name -------------------------------

Designation/Position ---------------------------

Designation/Position ---------------------------

N.R.C. Card No.


(OR) Passport No. -----------------------------

N.R.C. Card No.


(OR) Passport No. ----------------------------

Business/Department --------------------------

Business/Department --------------------------

Date ----------------------------------------------

Date ----------------------------------------------

Witness of Employee

Witness of Employer

Signature -----------------------

Signature ---------------------------

Name ---------------------------

Name -------------------------------

Designation/Position ---------------------------

Designation/Position ---------------------------

N.R.C. Card No.


(OR) Passport No. -----------------------------

N.R.C. Card No.


(OR) Passport No. ----------------------------

Business/Department --------------------------

Business/Department --------------------------

Date ----------------------------------------------

Date ----------------------------------------------

Hereby sign the approval signature.

Office
Seal

Name -------------------------------------------District/Township Staff Officer,


Department of Labour
---------------------------------------- District/Township
---------------------------------------- Region/State
Date: ---------------------------------