Publication: Reforming Labor Law for the Changing Nature of Work: Evidence from Mongolia
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2024-07-02
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2024-07-02
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This paper examines labor market regulations in Mongolia, particularly focusing on the new Labor Law enacted in January 2022. The review of the labor and minimum wage regulations suggests that the Mongolian Labor Law is largely in line with international standards and practices in other comparator countries. The new Labor Law added more protections for workers, which increased its alignment with international standards. These include some limits on the use of fixed-term contracts, protections for non-standard forms of employment, limits on working hours, the provision of paternity leave, additional rules governing mass dismissals, and increased severance benefits. The analysis reveals that while the new law aligns more closely with global practices, challenges remain in unemployment income protection and law enforcement and compliance. First, some of the parameters of the unemployment insurance scheme including eligibility requirements could be updated based on rigorous actuarial projections that can assess the impact on costs as well as the adequacy of benefits. Second, compliance with the legal requirements is limited. Strengthening the labor inspection system needs to be prioritized by allowing more frequent inspections and increasing administrative capacities and financial allocations for enforcement.
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“Hatayama, Maho; Batchuluun, Altantsetseg. 2024. Reforming Labor Law for the Changing Nature of Work: Evidence from Mongolia. Jobs Working Paper; Issue No. 80. © World Bank. http://hdl.handle.net/10986/41810 License: CC BY 3.0 IGO.”
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