What HR policies are mandatory for Myanmar companies?

What this looks like in practice

Several HR policies are statutorily mandatory for Myanmar companies — ESDL appointment letters, leave policy, working-hours/OT policy, OSH manual at 50+, payslip policy, disciplinary procedure. Others (anti-harassment, IT, travel/expense, code of conduct) are strongly recommended best practice but not strictly mandated by statute. Inspectors at the township labour office check the mandatory set; brand audits and investors check the broader set.

The mandatory policies

1. ESDL appointment letter — written, signed, within 30 days of joining. Required for every employee under ESDL 2013.
2. Leave policy — annual 10, casual 6, sick 30 (post-6 months), maternity 14 weeks, paternity, public holidays per Leave & Holidays Act.
3. Working hours and OT policy — 48-hour Factories Act or 44-hour S&E Act, OT 2x/3x, weekly rest, OT authorisation log.
4. Payslip and pay-cycle policy — wages by 7th, payslip with itemised deductions, retention 7 years, per Payment of Wages Law.
5. Disciplinary procedure — written grounds, warnings, hearing, signed records; ESDL-defensible.
6. OSH manual at 50+ employees — safety committee, PPE, accident reporting under OSH Law 2019.
7. Probation, notice and severance per ESDL Notification 84/2015 — usually inside the appointment letter.

Strongly recommended (not strictly mandatory)

• Code of conduct, anti-harassment, anti-bribery.
• IT, data and confidentiality — especially for client-facing or BPO sectors.
• Travel, expense and allowance with PIT treatment clarified.
• Performance review rubric and cadence.
• Grievance procedure beyond the disciplinary procedure.
• Exit and final settlement SOP.

Common gap analysis

Most Myanmar SMEs have ESDL letters and a leave policy but lack a documented disciplinary procedure — which is exactly what bites at the township labour office when terminations are challenged. Second most-common gap: OSH manual at 50+ employees, often started but not maintained. Third: working-hours policy that mirrors S&E Act when Factories Act 1951 actually applies.

Pitfalls to avoid

• No disciplinary procedure — terminations reversed at Conciliation Body.
• No OSH manual at 50+ — fine plus remediation.
• S&E Act policy at a factory — Factories Act 1951 overrides.
• English-only policies — unenforceable at township office.
• Probation longer than 3 months in the appointment letter — ESDL caps it.

Related: writing compliant policies, factory compliance, and performance reviews.