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How to hire remote employees in
Hiring in Mongolia can be confusing, but it’s easier when you know what you’re doing. If you want to hire remote talent in Mongolia, you have two options: Hire people as contractors, or hire them as employees.
If you want to successfully hire in
Mongolia
, you have two options:
Laws about hiring contractors are significantly more simple in
Mongolia
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Mongolia
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Mongolia
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Mongolia
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Mongolia
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mongolia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mongolia.
Employees are generally entitled to 15 days of annual paid leave. Additional leave is granted, considering the length of their record of service, and their working conditions as follows:
There are 15 public holidays.
Employees are generally eligible for sick leave for as long as needed.
Female employees are generally entitled to 120 days of maternity leave at 70% of pay.
Male employees do not receive paternity leave; however, single fathers are entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.
Childcare leave is granted to mothers and single fathers with children under three years old. During this leave, the employer is responsible for making social insurance payments on the employee’s behalf.
Baby Care leave - Female employees are entitled to have this leave with children under the age of three.
Adoption Leave -mother is entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.
Military Leave - Employers are required to pay severance pay to employees who have terminated their employment due to military service.
Not specified by law.
Not specified by law.
An employee shall have the right to leave his or her workplace upon the expiration of 30 days after submitting his or her request of resignation to the employer, in which case the employment agreement shall be considered as terminated.
An employment agreement may be terminated prior to the above mentioned time limit due to a valid reason or by an agreement with respect to the time of resignation with the employer.
Employees may terminate the employment contract with 30 days’ notice.
Employees are generally entitled to between 30 days and two month’s notice, dependent on the reason for dismissal. In general employees are entitled to at least one month’s wages on dismissal.
Severance pay is one month's wages if the termination is due to the employee's military duty, liquidation of the business, or an employee reaches retirement age
Probation period is 6 months.
The working week in Mongolia is Monday to Friday.
The working day for commercial offices is usually eight hours. Lunch breaks are usually one hour.
Employee who has worked overtime or on the weekly rest days has not been compensated with other rest days, he shall be paid one and half times or more of his average remuneration.
It is prohibited to require a minor employee to perform overtime work or to work on public holidays or weekends.
If an employer has forced women or minors to perform a labour prohibited by law, or to lift or carry the load exceeding the prescribed limits, or has forced an employee under 18 years age to work in a working place harmful to his mental development and health or under abnormal or special conditions, or to perform overtime work or to work on public holidays or weekends, or has violated Section 74 of this law -i.e. an employee was compelled to work overtime - the state labour inspector shall fine that employer 15,000-30,000 to grogs;
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