Upload
asok-kumar
View
33
Download
6
Tags:
Embed Size (px)
DESCRIPTION
Employment in Myanmar - AFMA - 20 Sep 2013
Citation preview
Inassociationwith
UMyint Lwin LawOffice
an association of independentlaw firms in 60 countries
AFMABreakfastTalkEmploymentinMyanmar
20September2013
Siri LerdsirisoponSeniorAssociate
1Vovan&Associes UMyint Lwin LawOffice
.Overview Myanmarworkforce:33.41million(2012) Employment
Agriculture
Industrial
Construction
Salary(2012):Services
Typeofworkforce Average MonthlySalary(USD)Unskilled 100Semiskilled 150Supervisors/TeamLeaders 200300U i i d i h k l d 300 00 d di i
2Vovan&Associes UMyintLwinLawOffice
UniversitygraduateswithknowledgeofcomputerandEnglish
300500 dependingonexperience
.LegalFramework Thereisnoonecomprehensivelabour lawinMyanmar Currentlabour laws:
Employment Restriction Act (1959)EmploymentRestrictionAct(1959)EmploymentStatisticsAct(1948)EmploymentandSkillDevelopmentLaw(30Aug2013replacingEmploymentand Training Act (1950))andTrainingAct(1950))FactoriesAct(1951)LaborOrganizationLaw(11Oct2011replacingTradeUnionsAct)LeaveandHolidaysAct(1951)yLawonMinimumWages(March2013replacingMinimumWagesAct(1949))OilfieldsLaborandWelfareAct(1951)PaymentofWagesAct(1936)ShopsandEstablishmentAct(1951)WorkmensCompensationAct(1923)LaborDisputeSettlementLaw(28Mar2012replacing1929version)SocialSecurityAct(1954)
3Vovan&Associes UMyintLwinLawOffice
.GovernmentSocialSecurityBoard
DepartmentBoardofLabour
MinistryofLabour FactoriesandGeneralCentral General
Labour LawsInspection
InlandFreightHandling
C t l T d InspectionDepartmentCommittee
CentralTradeDisputeC itt
4Vovan&Associes UMyintLwinLawOffice
Committee
.RecruitmentTownshipLabour Office*NewEmployment&Labour ExchangeOfficetobesetup
EmploymentAgency
AdvertisementAdvertisement
5Vovan&Associes UMyintLwinLawOffice
.EmploymentContract Generally must be approved by Ministry of Labour for foreign companiesGenerallymustbeapprovedbyMinistryofLabour forforeigncompanies
hiringMyanmarnationalstoensurecompliance NewEmployment&Labour ExchangeOfficetobesetupandtakeoverthe
approvalprocess Department of Labour publishes an employment law booklet that contains a DepartmentofLabour publishesanemploymentlawbookletthatcontainsa
samplecontract Basicterms:
Scopeofwork Locationofwork Salary Overtime
E l i d Employmentperiod Workinghours Holidays LeaveLeave Termination
Violationofemploymentcontract:imprisonmentnotexceeding3months,orfine,orboth
6Vovan&Associes UMyintLwinLawOffice
.Wages MustcomplywithLawonMinimumWages(2013) Previouslegalminimumwage:USD15permonth Marketrate:USD7080permonth Underthenewlaw,aNationalCommittee,comprising
t ti f th t th lrepresentativesfromthegovernment,theemployers,andthelabour organisations,wouldbesetuptodeterminethenewminimumwagesg
Theminimumwagewillbebasedonsectors Employersmustinformemployeesofthenew
minimumwageandhaveitprominentlyposted Paydiscriminationbasedongenderisprohibited
7Vovan&Associes UMyintLwinLawOffice
.SocialSecurityM t l ith S i l S it A t (1954) MustcomplywithSocialSecurityAct(1954)
Employerwith5ormoreemployeesmustentertheSocialSecurityInsuranceScheme
Employers duty to deduct and deliver the payment Employer sdutytodeductanddeliverthepayment Contributions:
Payer Contribution MaximumContributionEmployer 2.5% USD 5Employee 1.5% USD 3
Benefits:Freemedicalcare,freematernitycare,sicknesscashbenefit,maternitycashbenefit,funeralgrant,disabilitybenefit(duetoworkrelatedaccidents),survivorpension
New Social Security Law of 2012 not yet in force NewSocialSecurityLawof2012notyetinforce WorkmensCompensationAct(1923):stipulatescompensationthat
EmployermustpayifworkersufferingfromdisabilityordeathduetoworkplaceinjuryisnotcoveredunderSocialSecurityActp j y y
8Vovan&Associes UMyintLwinLawOffice
.Trainingg MustcomplywithEmployment&SkillDevelopment
Law(30Aug2013) tobecomeeffectivein3months Employersobligations:
makemonthlycontributionintheamountequivalenttoatleast0.5%ofemployeessalarytotheEmployeeSkillDevelopmentFund(cannotbedeductedfromemployeessalary)
providetrainingtoemployeesinlinewithpolicyoftheSkillDevelopmentTeam(onthejobtraining,systematictrainingprogram outside training and/or computerized training)program,outsidetraining,and/orcomputerizedtraining)
9Vovan&Associes UMyintLwinLawOffice
.LeaveandHolidaysy MustcomplywithLeaveandHolidaysAct(1951) Employeesentitlements:
PaidAnnualLeave NumberofDaysAllowedCasual leave 6 daysCasualleave 6daysEarnedleave 10daysMedical leave 30daysPublicholidays 21daysonaverage
10Vovan&Associes UMyintLwinLawOffice
.WorkingHours Applicablelaws:FactoryAct(1951);ShopsandEstablishmentAct
(1951) Working hours:Workinghours:
Industry MaximumWorkingHours
MinimumRestPeriod
MaximumOvertimeHours Period OvertimeHoursperweek
Hoursper
Hoursper
k
Daysper
kDay Week WeekFactoryandindustrialwork
8 44 630mins after5
12
Overtime rate is double that of ordinary wage
hoursofworkOffice andshops 8 48 6 16
Overtimerateisdoublethatofordinarywage
11Vovan&Associes UMyintLwinLawOffice
.TerminationofEmployment EmploymentinMyanmarisnotatwill. Employermustpayseverancetoterminatedemployees Severance payment amount: Severancepaymentamount:
LengthofService Severance PayLess than 3 months 1 months salaryLess than3months 1month ssalary3months 1year 2monthssalary13 years 3monthssalary
Exception:ifemployeewillfullyresigns,orifemployeeengagedin
y yMorethan3years 5monthssalary
p p y y g , p y g gactionthatdamagesemployersreputation
MinistryofLabour toannouncenewseverancepayinaccordancewith Employment and Skill Development LawwithEmploymentandSkillDevelopmentLaw
12Vovan&Associes UMyintLwinLawOffice
.WorkplaceHealthandSafetyp y Moreapplicabletofactoriesandindustrialwork Requirements depend on the industry involvedRequirementsdependontheindustryinvolved Oil&Gas:MICdirectivesonenvironmentalprotection Mining: Mining Law on working conditions, safety,Mining:MiningLawonworkingconditions,safety,
health Factories:FactoriesActonhealthandsafetystandardsy Newworkplacesafetylawisexpectedin2013
accordingtothegovernment
13Vovan&Associes UMyintLwinLawOffice
.Labour Disputesp Labour DisputeSettlementLaw(2012)applies:
Resolution Body DescriptionWorkplaceCoordinatingCommittee
Requiredforemployerofmorethan30employees Promotegoodrelationship Grievancesnegotiatedandsettledwithin5days
ConciliationBody Townshiplevel(formedbyregionorstategovernment) To conciliateadisputewithin3days Withoutsettlement,individualdisputescanmovetocourt, p
DisputeSettlementArbitrationBody
Region/State/Divisionlevel(formedbyMinistryofLabour) Tomakeadecisionwithin7days Withoutsettlement,strike/lockoutispossible(except
disputesinvolvingessentialservices)
DisputeSettlement Nationallevel(formedbyMinistryofLabour)Co ncil to nominate a Trib nal to resol e disp tes
14Vovan&Associes UMyintLwinLawOffice
Arbitration Council/Tribunal
CounciltonominateaTribunaltoresolvedisputes To issueadecisionwithin14daysfornonessentialservices
or7daysforessentialservices.
.LockoutsandStrikes Labour Organisation Law(2011)applies Conditions:
Type ofstrike/lockout ConditionsEmployerlockingoutpublicutility
i th i kNotifyemployeesandconciliationbodyatl t 14 d i d R iserviceorother serviceworkers least14dayin advance;Receivepermissionfromconciliationbody
Labour organisation strikeinpublic Notifyemployerandconciliationbodyatg putilityservice
y p y yleast 14daysinadvance;Reachanagreementwithemployeronprovisionofservices during strikeservicesduringstrike
Labour organisation strikeinotherservices
Notifyemployerandconciliation bodyatleast3daysinadvance
15Vovan&Associes UMyintLwinLawOffice
Strike/Lockoutinessentialservices Notpermitted
.Labour Organisationsg Labour Organisation Law(2011)applies Labour organisations canberegisteredwithTownshipRegistraror
ChiefRegistrar Employeehasarighttojoinorresignfromalabour organisation
Type CriteriaType Criteria
BasicLabour Organisation Atleast30members;recommendedbyatleast10%ofworkersinthesametrade
Township Labour Organisation Recommended by at least 10% of all basic labourTownshipLabour Organisation Recommended byatleast10%ofallbasiclabourorganisations inthesametrade/township
RegionorStateLabour Organisation Recommendedbyat least10%ofalltownshiplabourorgnisations in the same trade/stateorgnisations inthesametrade/state
Labour Federation Recommendedbyatleast10%ofallregion/state labourorganisations inthesametrade
M L b C f d ti R d d b t l t 20% f ll M l b
16Vovan&Associes UMyintLwinLawOffice
Myanmar Labour Confederation Recommneded byatleast20%ofallMyanmarlabourfederationsinthesametrade
.ForeignInvestmentLawU kill d f i k ll d Unskilledforeignworkersnotallowed
Proportionofskilledworkforce:Period Proportion of MyanmarPeriod Proportion ofMyanmar
employeesFirst2years 25%Second2years 50%Third2years 75%
Mustsignemploymentcontractwithin30daysfromthedateofemployment
Employment contract must be approved by Ministry ofEmploymentcontractmustbeapprovedbyMinistryofLabour
Foreignemployeesmustobtainworkpermitandstaypermitpermit
17Vovan&Associes UMyintLwinLawOffice
.VisaType offoreignemployees Initial entry Otherdocuments
Foreignemployee stayingfor Business visa lessthan70dayseachtimeForeign employeestayinglongtime
Businessvisa Staypermit,Multiple JourneyReentry Visa Foreignertime ReentryVisa,ForeignerRegistrationCertificate
ForeignemployeeinanFIL Businessvisa Staypermit,MultipleJourneycompany ReentryVisa,Foreigner
RegistrationCertificate
RecommendationletterfromrelevantministryandMinistryofImmigrationandPopulationisneededtoobtainstaypermitandmultiplejourneyreentryvisa
Registration with the township immigration office is recommended Registrationwiththetownshipimmigrationofficeisrecommended
18Vovan&Associes UMyintLwinLawOffice
.WorkPermitType offoreignemployees Need work
permit?permit?
ForeignemployeeinnonFILcompany N/A(maychangeinthefuture)
ForeignemployeeinanFILcompany Yes
19Vovan&Associes UMyintLwinLawOffice
.Tax Employerhasthedutytodeductincometaxatthetimeofsalary
paymentbasedonannualincometax Taxrateisbasedonresidency:
Type foreignemployee ResidencyStatus
TaxRateStatus Rate
ForeignersworkingforanFILcompany Resident 120%Foreigners working for a nonFIL company staying Resident 120%Foreigners workingfora non FILcompanystayinginMyanmarforatleast183daysinafiscalyear
Resident 1 20%
Foreigners workingfora nonFIL companystayingf l h d f l
Nonresident 35%
Nonresidentforeignersworkinginastateprojectistaxedat20%
inMyanmarforlessthan183daysinafiscalyear
20Vovan&Associes UMyintLwinLawOffice
.IncomeTaxRatesforResidentsTaxableIncome Rate
From(Kyat) To(Kyat)
1 500,000 1%
500,001 1,000,000 2%
1,000,001 1,500,000 3%
1 500 001 2 000 000 4%1,500,001 2,000,000 4%
2,000,001 3,000,000 5%
3,000,001 4,000,000 6%, , , ,
4,000,001 6,000,000 7%
6,000,001 8,000,000 9%
8,000,001 10,000,000 11%
10,000,001 15,000,000 13%
21Vovan&Associes UMyintLwinLawOffice
15,000,001 20,000,000 15%
20,000,001 20%
.Contractor Withholdingtaxforcontractorapplies:
Type of Income Resident Rates Non resident RatesType ofIncome Resident Rates NonresidentRates
Paymentsforservices 2% 3.5%
Note:DoubleTaxTreatymayapply MyanmarhasDTAwithy
India,SouthKorea,Malaysia,Singapore,Thailand,UnitedKingdom,Vietnam,Indonesia,Bangladesh,Laos
22Vovan&Associes UMyintLwinLawOffice
Thankyou.
Inassociationwith
UMyint Lwin Law Office
an association of independent
UMyint Lwin LawOffice
an association of independentlaw firms in 60 countries
Siri LerdsirisoponSeniorAssociateVovan&AssociesOceanTower1,14th Floor No.162,FirstFloor,35th Street170/42NewRatchadapisek Road Kyauktada TownshipKlongtoey,Bangkok10110Thailand Yangon,P.O.Box1126,MyanmarTel:+66(0)22613138 Tel:+95(0)[email protected]
23Vovan&Associes UMyint Lwin LawOffice