As of the first quarter of 2022, 5463 citizens from 92 foreign countries are working under labor contracts in Mongolia. The number of foreigners working under labor contracts increased by 1,030 or 23.2 percent from the same period last year. 4,752 (87.0 percent) out of the foreign nationals employed under contract are men and 711 (13.0 percent) are women. 36.6 percent of foreigners working under labor contracts live in Ulaanbaatar, 5.8 percent in the West region, 5.3 percent in the Khangai region, 36.7 percent in the Central region, and 15.6 percent in the East region.
There are 5 steps to get a workforce and specialists from abroad. It includes:
- Getting pre-approval or invitation for a work permit;
- Visa application;
- Foreign labor force entering Mongolia;
- Obtaining a work permit;
- Getting a residence permit.
Enterprises, organizations and citizens may enter into an agreement with foreign legal entities on the acquisition of Labor and specialists from abroad for works or professions requiring high professional skills for the purpose of scientific, educational and advanced manufacturing technologies, conducting new production and services, assembling and repairing equipment, and carrying out projects.
The agreement on hiring foreign workers and specialists shall include the following general conditions1:
- foreigner's work organization and work duties;
- profession of a foreigner, job title, the number of foreigners to be employed;
- health requirements for foreign nationals;
- conditions for mutual acceptance of documents confirming the level of profession and education;
- the term of the agreement, the conditions for the termination of the agreement and its cancellation;
- amount of salary;
- occupational safety and health, working conditions, work and rest hours;
- issues of housing and household supplies;
- social insurance issues;
- methods of resolving disputes arising out of the implementation of the agreement and labor disputes.
Determining the Number and Percentage of Foreign Employees
The Government issues a resolution on the number and percentage of foreign workers to be employed in Mongolia by the economic activity sector by October 1 of each year and determines the percentage.
The calculation of the ratio of foreign citizens determined by the Government is based on the reference on Social Insurance Premium paid by Mongolian employees. In order to accurately and objectively determine the number of employees, the reference shall be obtained from the Social Insurance Department of the district. A work permit is issued by the state authorities, based on the ratio of foreign citizens and professionals working in the field of economic activity and foreign citizens to the total number of employees in Mongolia determined in accordance with the above reference.
Pursuant to the Resolution No. 231 of the Government of Mongolia on labor force and specialists to be recruited from abroad in 2022, it has been determined that enterprises and organizations operating in Mongolia in 2022 will not be limited in terms of the percentage of labor and specialists to be recruited from abroad.
In 2021, according to the Government Resolution No. 123 of 2021, enterprises and organizations with 5-20 Mongolian employees were able to employ 1 foreign employee regardless of the economic sector. Since the decree is updated every year, it should be noted that there may be some changes in the regulations of personnel and experts hired from abroad in 2023.
Based on the reference from the state administrative organization in charge of investment matters, up to 3 representatives of the management team of a foreign investor legal entity, 1 foreign investor of a foreign-invested enterprise or organization can work without having to obtain a work permit, regardless of the percentage and number specified in this resolution.
The duration of the work permit for a foreign citizen in Mongolia is up to 1 year, and the permit period can be extended based on the request of the employer organization, the results of the work performed and the service, and the reason for further employment. The duration of the work permit issued to a foreign citizen shall be counted from the date of the written request of the employer organization.
A citizen with a visa-free travel passport has the right to travel for 30 days, thus, it is necessary to obtain a work invitation before arrival.
Pre-approval or Invitation for Work Per
The enterprise invites the foreign employee, sends the visa invitation letter to the applicant or employee, and pre-approves the work permit as the preliminary action. The following documents are required:
- Application form;
- State stamp duty (25000 MNT ~ 7.9 USD per person);
- A copy of the State Registration Certificate of enterprise, organization;
- A copy of the license certificate and its attachments;
- If exempted from the quota under a Government Decree, a copy of the decree (If required). The quota for foreign employees is set annually by the Government of Mongolia for domestic and foreign enterprises operating in Mongolia;
- Forms ND-7 and ND-8 of the last month of social insurance verifying the number of employees who pay the social insurance premium in the organization;
- Reference from ministries and agencies in the field of employment economy;
- The proposal of the Department of Labor and Welfare Services of the respective province or district;
- Employment agreement concluded with a foreign legal entity, along with its Mongolian translation (with a stamp of a certified translation bureau);
- A copy of a foreigner's passport;
- A copy of a professional ID card or diploma (with a stamp by a certified translation bureau) showing that the employee has graduated from a university in the field of his/her employment;
- Other materials as needed.
Foreigners must apply for a preliminary permit one month before coming to Mongolia. The request will be resolved within ten working days after receiving it.
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Footnote
1. https://mlsp.gov.mn/content/detail/1054
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
