During its regular session on November 20, 2024, the Cabinet decided to submit the draft amendment to the Law on Labor Force Migration to the State Great Khural.

The revised Law on Labor Force Migration came into effect on July 1, 2022. To address the labor shortage in the labor market, a flexible policy is being observed for the employment of foreigners in Mongolia. The Government deemed it necessary to set a limit on the number and percentage of foreign workers in the highly productive sectors of the economy, including mining, information and communications, finance and insurance, and real estate, and encourage the employment of Mongolian citizens in these sectors. However, the Government believes it should determine the number and percentage of foreign workers employed in the construction, energy, manufacturing, and processing sectors, as well as the reduction and exemption of workplace fees.

The Law on Labor Force Migration states that “The employer shall have the right to request an invitation to hire a foreign employee in the event of failing to employ a domestic employee within 14 business days after placing a job advertisement in the employment registry and database and starting an active search for an employee. The 14 business day period specified in the law is considered a hindrance to enterprises and companies engaged in seasonal construction work when inviting foreign employees. Therefore, the Government intends to resolve this issue through the amendment.

The amendment will provide several benefits to enterprises and investors operating in sectors other than mineral and oil, including saving expenses through reduction or exemption from workplace fee concession to the Employment Support Fund, swiftly overcoming labor shortages, improving economic efficiency, and increasing the number of businesses. It would also play an important role in intensifying the implementation of strategically important infrastructure, processing, and development projects in Mongolia.