Based on the standard employment contract (see above under Employment Contract and Policies), termination is possible in the following circumstances:
- Liquidation of the factory/company
- Winding up the employer's business due to force majeure or
- Death of employee
All employers must ensure their employment contract/an annex to it provides a list of misconduct offences. Although not an exclusive list, typical grounds for termination for cause are listed in the "work rules" annex to the standard issue government employment contract. These are:
- Stealing, accepting stolen goods, misusing, or helping to misuse, work-related property
- Intentionally destroying, or helping to destroy, the property of the factory/company
- Quarrelling among employees, injuring another employee or causing conflicts
- Committing morality-related crimes in the workplace
- Bringing alcohol to, or selling or drinking alcohol at, the workplace
- Gambling at the workplace
- Keeping, distributing, selling or using narcotic drugs
- Smoking or using fire at the work place
- Bringing prohibited materials or explosives
- Entering restricted areas of the factory/company
- Breaking secrets, revealing confidential information, formulae, statistics or technologies of the company to others, or taking photos thereof
- Being arrested and sentenced in criminal cases
- Failing to come to work for 3 days continuously or for 5 days during a month without permission from the employer or manager
If an employee is not in compliance with work obligations, then the employee must have received 3 written prior warnings, with an undertaking given by the employee on the third warning, of poor performance and have been provided with the opportunity to rectify his or her conduct prior to termination of employment.
Employees subject to termination laws
Restricted or prohibited terminations
An employer is not permitted to terminate an employee who did not breach the existing laws, rules or the employment contract.
Third-party approval for termination/termination documents
Mass layoff rules
An employer may terminate the employment of an employee as a result of closure, or a necessary change or restructuring of the business. In any cases of making changes to employment conditions such as changes of employer or changes of work place or changes of work nature, the employer must report these to the TLO within 10 days with the prescribed Form. Workforce reductions or termination of employment, must be effected in coordination with a workplace union and the WCC, if no union exists in the workplace, coordination should be directly with the WCC.
Either party may terminate the relationship by giving 1 months' notice, but the employer must have a basis for termination.
Statutory right to pay in lieu of notice or garden leave
Myanmar laws do not provide payment in lieu of notice or garden leave, but it is often written into employment contracts or internal policies, or agreed upon at the time of termination.
The employer shall, in respect of the termination of an employment contract of an employee having worked continuously, make severance payments on the basis of his/her last salary (without over‐time premium) as follows:
|Periods of service||Severance (Monthly Salary)|
|6 months to less than 1 year||½|
|1 year to less than 2 years||1|
|2 years to less than 3 years||1½|
|3 years to less than 4 years||3|
|4 years to less than 6 years||4|
|6 years to less than 8 years||5|
|8 years to less than 10 years||6|
|10 years to less than 20 years||8|
|20 years to less than 25 years||10|
|From the completion of and more than 25 years||13|