2. The republic of the union of
Myanmar (labor profile)
Population 52.8 millions
Labor force 37 millions
Labor force participation rate 78.60 % (Dec 2013)
Public holiday per year22-27 Days
Membership of ILO since 1948
Employment by sectors
Agriculture 56.4%
Trade (Include Hotel & Tourism) 15.8%
Manufacturing14.4%
Public and social service 7.7%
Construction service 2.7% 2
3. Existing Myanmar labor
laws
1) The Employment and Skill Development Law, 2013
2) The Employment Restriction Act, 1959 (amending)
3) The Dock Workers (Regulation of Employment) Act, 1948
(amending)
4) The Dock Labourers Act, 1934 (amending)
5) The Oilfields (Labourers and Welfare)Act, 1951(amending)
6) The Factories Act, 1951(amending)
7) The Payments of Wages Act, 1936 (amending)
8) Minimum Wages Law, 2013
9) The Leave and Holiday Act, 1951(amending)
10) The Employment Statistics Act, 1948 (amending)
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4. Existing Myanmar labor laws
11) The Shops and Establishments Act, 1951(drafting new law)
12) The Workmen’s Compensation Act, 1923 (drafting new law)
13) Oversea Employment Act, 1999 (drafting new law)
14) The Social Security Act, 2012
15) The Law Relating to Overseas Employment,1999
16) The Labour Organization Law (11.10.2011)
17) The Settlement of Labour Dispute Law (28.3.2012)
18) Foreign Worker Act (upcoming new law)
19) Health and Safety at Workplace Act (upcoming new law)
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5. Drafting & Promulgation Process for a Labour Law
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Ratified by Parliament(Pyidaungsu Hluttaw)
Office of the President
Discussion and Debate by Bill Committees
in Parliament
Submission to the Parliament
Cabinet of the Union Government
Request the Legal Advise of the
Office of Attorney General
Consultation Meetings:
-Other Ministries
-Domestic Legal experts and ILO legal Experts
-Employers’ Organization / Labour Organization
Concerned Ministry
The President signed the
Law
Promulgation of the
Law
6. Ministry of labour, employment
and social security
• The Ministry is focal center regarding all labour relating matters
and is formally called as Ministry of Labour.
• There are five main departments under the Ministry as follow;
- Department of Labour
- Social Security Board
- Central Inland Freight Handling Committee
- Factories General Labour Laws Inspection Department
- Department of Labour Relations
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7. Department of Labour
• The Department of Labour ensures that workers enjoy their
legal rights and privileges and at the same time encourage fair
labour practices with a view to establishing cordial relations
between employers and workers to maintain industrial peace.
• The duty and function of the Department are as follow;
Industrial Peace.
Registration and placement for job seekers both inland and
overseas.
Conducting Vocational Training Courses for workers
Research for Labour Affairs and collection of labour and
employment statistics
To ensure the legitimate rights of workers.
Matters pertaining to international and regional affairs. 7
8. Social Security Board & Social
Security Act 2012
• The objective of the Board are;
- To improve the health of the insured workers, to enhance
their working ability and to boost productivity;
To provide effective benefits in times of Social
contingencies such as sickness, maternity, employment
injury, unemployment, old-age and death etc;
To support the insured workers and family members for
living when the former are unable to work;
To make the Social Security Sccheme concern the entire
people
• According to the Social Security Act, the entities and
organizations which have at lease 5 workers must have social
security contribution system.
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9. 9
employer employeetotal
1
Health and Social Care Insurance +
2
Family Support Insurance
(Education and Natural Disaster)
3 Pension 3% 3% 6%
4 Out of Job (Jobless) 1% 1% 2%
5 Others (eg. Housing) 25%
6 Enployment Injury Benefit Insurance 1% 0% 1%
Contribution (estimate)
Type of Security
2% 2% 4%
Social Security System and
ContributionContribution
10. Central Inland Freight Handling
Committee
• In 1988, the Central Inland Freight Handling Committee was
formed for the following purposes. There are four zonal offices
and 65 township offices under CIFHC.
(a) To speed up the freight handling activities correctly;
(b) To utilize the labour force of the laborers systematically and
beneficially;
(c) To ensure fair and regular wages in line with the labour
exercised;
(d) To provide laborers with welfare facilities; and
(e) To improve the working conditions of the laborers.
The employer and employees who wants to do as freight handers
in above mentioned four zones are required to be registered at
township office.
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11. Factories General Labour Laws Inspection
Department
• The main function of this Department is enforcement of labour
laws, provision of occupational safety and health training and
advisory services.
• The officers of the Department will visit to the factories and
work place occasionally to inspect the working conditions and
whether the workers are enjoying their rights under the labour
laws.
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12. Department of Labour Relations
• The main objectives of this Department are as follow;
- to make the employer and workers manage and work in
good discipline for the respective factory and establishment
- to make peaceful work place
- to obtain the legitimate right of the workers
- to ensure fair workplace relationship among employer,
workers and their respective organizations
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13. 13
Features of Labour Organization Law (2011)
Formation
Myanmar Labour
Confederation
Labour Federation
Region /State Labour
Organization
Township Labour
Organization
Basic Labour Organization
Support by not less
than (10) percent of all
workers
30 workers
and more
10% TLOs
10% , 2 BLOs
10% R/S LOs
20% LFs
14. Relevant Counterparts
14
Section 8 The employers may organize in parallel
structure under this law.
Labour Federation Employers’ Federation
Labour Organization Employers’ Organization
workers Employers
Region/State/
Township
Basic
Myanmar Labour
Confederation
Myanmar Employers’
confederation
15. Rights of Labour Organization
Section 19 The labour organizations have the right to
send representatives to the Conciliation Body in
settling a dispute between the employer and the worker.
Similarly, they have the right to send representatives
to the Conciliation Tribunals formed with the
representatives from the various levels of labour
organizations.
Section 20 In discussing with the Government, the
employer and the complaining workers in respect of
worker's rights or interests contained in the labour laws,
the representatives of the labour organization also
have the right to participate and discuss.
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16. • Section 21 The labour organizations have the
right to participate in solving the collective bargains of
the workers in accord with the labour laws.
• Section 29 The employer shall recognize the labour
organizations of his trade as the organizations representing
the workers.
• Section 37,38,39 Right to Lock-out and Right to
Strike
• The workers organization (Labour Organization) has
the right to strike but it must be done with the
stipulations.
• The employer has also the right to proceed lock-out.
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Right to Collective Bargaining
17. Services Industrial Action
Lock-out Strike
Public Utility Services 14 days 14 days
Services other than 14 days 3 days
Public Utility Services
Essential Services X X
(ex. Electricity, Health Care, Telecom etc.)
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Advance Notification Period for Lock-
out & Strike
18. Section 41 Illegal Lock-out or illegal Strike
- Essential services
- Without permission of the relevant
labour federation
- Failing to inform in advance
- Not being relevant to labour affair
- Not in conformity with submission in
advance (date, place, time, period,
number
of participants)
Section 42 If it is an illegal lock-out or illegal
strike, it may be prohibited in accord with the existing
law. (Especially when it is likely that threat to the
law and order or acute national crisis can happen).
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19. As of 28.08.2014, the registered labour
organization and employers’ organization are as
follows;
- No. of labour organizations (1260)
[One Myanmar Seamen’s
Federation + 34 township labour
organizations + 1,225 basic
labour organizations.]
- No. of Employers’ Organizations
(25) [One Myanmar Seamen’s
Federation + one township employer
organization + 23 basic employer
organizations] 19
20. The Settlement of Labour
Dispute Law 2012
• The President of the Republic of the Union
of Myanmar signed the Law on 28th ,
March 2012.
• The Trade Disputes Act, 1929 was also
repealed.
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21. Types of labour disputes
Individual Dispute (Rights Dispute)
Parties - The employer and worker or some
workers.
Subject - The employment contract
- The collective Agreement
- Existing Labour Laws & Rules,
Regulations, Notification, ..etc.
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22. Subject
Parties
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Collective Dispute
(rights dispute or interest dispute)
The employer or
employers or
employer’s
organization
(Collective Labour)
workers or worker’s
organization
working conditions
the recognition of organizations
the exercise of the recognized
right of their organizations
relations between employer and
workers
23. • Section 3 In any trade in which more than 30
workers are employed, the employer shall
establish the Workplace Coordinating
Committee.
• The Committee will comprise of 2
representatives of workers and 2
representatives of the employer.
• If the dispute has not been settled in The
Committee, he employer or worker may
complain to the relevant Conciliation Body.
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Workplace Conflict Management
24. 24
Labour Dispute Resolution System
(Flowchart)
Labour Dispute
Individual Dispute Collective Dispute
Township Conciliation
Body
Region/State Arbitration
Body
AG
3 days
Industrial Action
(strike& lock out)
Arbitration Council
7 days
Tribunal
7 days14days
Township Conciliation
Body
Competent Court
Essential
Services
7 days
Decision
25. • Township level
• Tripartite structure (11 Persons)
• The secretary is the Township Labour Officer (TLO).
• Time to conciliate 3 days.
• Extension is also possible if both parties agree.
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Section 10 Formation of Conciliation
Body
26. Rules
• Rule10. The member of a Conciliation Body:
• (a) shall have attained 21 years of age;
• (b) shall have experience in labour affairs;
• (c) shall have good character.
• Section 14 Township Special Conciliation Body can
be established for Special Economic Zones (SEZ).
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Qualification of members of
Conciliation Body
27. Tripartite Formation ( 11 person )
- Government Representatives/ Public Interest
- 3 Employers’ Representatives
- 3 Workers’ Representatives
Self- administered Division
Self- administered Zone
27
Region/ State Dispute Settlement
Arbitration Body
28. 15 qualified person of Good Standing from legal
experts and experts in labour affairs (Section 19)
3 PANELS
(a) The first panel submitted by the Ministry
of Labour (5 persons)
(b) The second panel submitted by the
Employers’ Organizations (5 persons)
(c) The third panel submitted by the Labour
Organizations (5 persons)
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Arbitration Council
29. Requirements in Employment
Contract
• Employment and Skill Development Law 2013 provides with the following
facts which are required to be mentioned in the employment contract.
• (1) Type of Work (2) Probation Period
• (3) Salary (4) Place of Work
• (5) Term of Contract (6) Working Hours
• (7) Leave and Holiday (8) Overtime
• (9) Meal Arrangement (10) accommodation
• (11) Medication (12) Ferry
• (13) Discipline for Workers (14) Training
• (15) Resignation/Dismissal (16) Termination
• (17) Liabilities (18) Amendment
• (19) Other Conditions (20) Miscellaneous
• Employment Contract must be made within 30 Days of employment.
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30. Employment Requirement
under Foreign Investment Law
• Chapter 11 of Foreign Investment Law and Chapter 13 of
Foreign Investment Rules mention the employment
provisions for the investors.
• Section 24 (a) In appointing skilled citizen workers,
technicians and staff for skilled jobs, citizens shall have been
appointed at least 25 percent within the first two‐year, at
least 50 percent within the second two‐year and at least 75
percent within the third two‐year from the year of
commencement of the business. However, for the
knowledge based entities, the Investment Commission can
adjust the appropriate timeframe for employment.
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31. Minimum Wages
• Minimum Wages Law is enacted at 22 March 2013.
• Wage mean the fees, wage or salary which are entitled to obtain by
the worker for carrying out of hourly, daily, weekly, monthly or any
other part time work or any piece work of the employer. Overtime
fees, bonus and any other remuneration are included.
• The following fees are not included in the meaning of wage.
• (1) travelling allowance
• (2) pension salary and gratuity for service
• (3) social security cash benefit
• (4) allowance for accommodation and meal, electricity charges,
water service charges and duty and taxes
• (5) medical treatment allowances and recreation allowances
• (6) damages for dismal from work and gratuities
• (7) other fees stipulated by the Ministry that does not apply to the
wages
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32. Minimum Wages
• Under this law, National Committee will be the central
authority to determine minimum wages and, Union
Government will form this Committee with the
representatives of relevant government organization, labor
organization and employer organization and other persons
who are experts in minimum wage matters. In practice,
minimum wages has not been decided yet facing with lot of
conflicts.
• As a MIC permitted company, MIC used to ask the investors
to pay around US 60 to 80 as the minimum wages.
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33. Working Hours
• Factories Act 1951 (Amending), Shop and Establishment Act
1951 (drafting new) and The Oilfield Act 1951 (Amending)
provide working hours as follow.
• ‐ 44 hours per week
• ‐ 48 hours per week for special nature work (non‐stop work)
• ‐ 6 working days per week
• ‐ at least 30 minutes rest time for 5 working hours
• ‐ prior approval from respective labor office or monthly
report to the labor office for over time work.
• ‐ 2 times payment of base wage for overtime work
• Child labour under 13 can’t be employed at work. Child labour
above 13 can work with the recommendation of the doctor
for 4 hours per day. However, this 4 hours must not be within
6 Am to 6 Pm of the day.
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