Myanmar: Compliance check - New standard contract template

On 28 August 2017, Myanmar’s Ministry of Labour announced a new version of the Standard Employment Contract (SEC) template that must be used when registering employment agreements with local labour offices. Is your company compliant?

Using the SEC template

Myanmar’s Employment and Skill Development Law 2013 requires all employers in the private sector to execute employment agreements with employees within 30 days of their engagement. Additionally, employment agreements must also be registered with the local labour offices within 30 days of execution. In order to achieve registration, each employment agreement must generally be in the form of the SEC template issued by the authorities.

The Myanmar authorities previously issued a number of SEC templates, the latest of which was the version issued in August 2015. On 28 August 2017, a new SEC template was announced. This new template will replace the 2015 template and will need to be used going forward to achieve the required registrations. Existing employment agreements will however remain valid until they expire in accordance with their terms.

Compliance

Employers in Myanmar will need to ensure that employment agreements:

1. are executed with employees within 30 days of their engagement;
2. are registered with the local labour offices within 30 days of execution; and
3. take the form of the new SEC template going forward.

Herbert Smith Freehills can assist you with achieving compliance. To discuss how, please email Fatim Jumabhoy.