What is the Shops & Establishments Act provision for leave in Myanmar?

What Myanmar law says

The Shops and Establishments Act applies to office, retail, restaurant, and hospitality workers in Myanmar — essentially everyone working in non-factory commercial premises. It incorporates the same statutory leave floor as the Leave and Holidays Act: 10 days annual leave (after 12 months), 6 days casual, 30 days sick (after 6 months), 14 weeks maternity, and ~21 paid public holidays. The Act does not create separate leave entitlements; it adds shop-establishment-specific record-keeping duties and a 44-hour weekly cap (compared to the 48-hour cap under the Factories Act 1951).

Township labour office inspectors visit shops and establishments under this Act and demand the leave register, attendance log, and wage records on inspection. Records must be retained for at least 7 years.

Office and retail worker leave entitlements

Shop and establishment-specific working-time rules

• 44-hour weekly cap. Standard week capped at 44 hours.
• 8-hour daily cap. Plus a maximum break.
• Weekly rest day. 1 day mandatory rest.
• Lunch break. Similar to Factories Act provision.
• OT rate. 2× basic for weekday/weekend OT; 3× for public holiday work.
• Sector exceptions. Hotels and 24-hour restaurants commonly use shift rosters with weekly rest spread differently; codify in the contract.

Shop-establishment record-keeping

• Leave register. Per-employee log of all leave types, dates, and balances.
• Attendance / hours register. Daily attendance and hours-worked log.
• OT authorisation log. Each OT instance recorded with manager authorisation.
• Wage register / payslip copies. Showing leave pay and OT pay components.
• Medical certificates. Filed for sick leave over 3 days.
• Retention. All records ≥ 7 years.

Differences from the Factories Act 1951

Where a workforce contains both factory and office-style roles (e.g., a manufacturing company with a head office), maintain separate registers and apply the correct sub-statute to each role.

Edge cases and exceptions

• Hotels and 24/7 establishments. Shift rosters with weekly rest distributed across the week; codify in the contract.
• Retail Sunday opening. Permitted with weekly rest assigned to a different day.
• Restaurants on public holidays. 3× holiday rate applies; cover rosters carefully.
• Daily-wage office workers. Same statutory leave once continuously engaged; pay at the daily wage.
• Foreign workers. Same entitlements when employed by a Myanmar-registered employer.
• Probationary employees. Annual leave gated to 12 months; casual and public holidays from day one.
• Mixed factory + office. Apply the relevant sub-statute per role; separate registers.

Frequently asked questions

Does this entitlement apply to employees on fixed-term contracts?

Yes. Fixed-term contract employees in Myanmar receive the same statutory leave floor as permanent employees once they meet the relevant service-tenure thresholds. The Leave and Holidays Act, the Factories Act 1951, and the Shops and Establishments Act do not distinguish between fixed-term and indefinite contracts for leave purposes — eligibility is set by months of continuous service. Contract expiry is not termination, so unused annual-leave balance is encashed at the end of the contract using (monthly salary ÷ 30) × unused-days. See the bucket E pages on fixed-term contracts for the contract-side rules.

How does this interact with payroll and SSB?

All paid leave is treated as ordinary salary income for Myanmar payroll purposes. PIT is withheld through PAYE on every payslip that includes leave pay. SSB contributions (2% employee + 3% employer, capped on a wage base of MMK 300,000/month) continue during paid leave because the employee is still earning wages. SSB contributions pause only during unpaid leave. Encashment of accrued annual leave at exit is part of taxable salary for PIT but practitioners differ on SSB treatment of the lump sum — confirm with the township SSB office on filing.

What records does the township labour office expect?

Inspectors typically request the leave register for the past 12 months, medical certificates for sick leave over 3 days, maternity / paternity SSB filings, final settlement worksheets for recent leavers, and the public-holiday gazette for the current year. Records must be retained for at least 7 years under both the Factories Act 1951 and the Shops and Establishments Act. Keeping a clean per-employee leave file with tagged entries makes inspections quick and defensible. Digital records from a payroll system are acceptable provided they can be printed on demand.

Common leave-law mistakes

• Applying the 48-hour Factories Act cap to office workers. Use the 44-hour Shops and Establishments Act cap.
• Treating the Act as adding more leave types. Same Leave and Holidays Act floor; only the workplace rules differ.
• Skipping OT authorisation in offices. Required under both Acts.
• Letting hospitality weekly-rest slip. 1 day mandatory; codify in the shift roster.
• Not separating factory and office registers. Different sub-statutes; maintain distinct registers.