How to Terminate an Employee in Myanmar — The 2026 Legal Checklist

The four scenarios — choose the right one first

Every Myanmar termination fits one of these:

1. Resignation (employee-initiated).
2. Probation end / termination during probation.
3. Termination without cause (redundancy, restructuring, no fault).
4. Termination with cause (misconduct, serious offence).

Each scenario has a different procedure, notice requirement, and severance outcome. Mixing them up is the #1 reason companies lose labor disputes.

Scenario 1 — Resignation (employee-initiated)

What the law requires

Under the standard EC Template, an employee must give 30 days written notice of resignation.

What the employer owes

• Full wages up to the last working day
• Payment for any accrued but unused annual leave (typically 10 working days/year accrued)
• Final PIT and SSB calculated correctly for the partial month
• Return of any employee deposits (laptop, uniform if deductible, etc.)

No severance required

Severance under Notification 84/2015 is for employer-initiated termination, not resignation.

Documentation to keep

• Signed resignation letter (with date of resignation and date of last working day)
• Handover document
• Acceptance letter from HR
• Final payslip showing all components

Scenario 2 — Probation end / Termination during probation

The rules

• Maximum probation: 3 months (EC Template mandatory)
• Termination during probation: 30 days written notice, OR one month's salary in lieu of notice
• No severance required
• The employee can also resign during probation with 30 days notice

When does "probation" actually end?

If you take no action on day 91, the employee is automatically confirmed. You cannot retroactively extend probation. Decide before day 90.

Documentation to keep

• Signed probation assessment (performance review)
• 30-day termination notice (dated, in both languages)
• Final pay calculation (full wages, unused annual leave pro-rated, no severance)
• Return of company property record

Scenario 3 — Termination without cause (redundancy, restructuring)

This is where most labor disputes happen — get the severance calculation wrong or skip the notice period, and you'll be in the Conciliation Body within 60 days.

Notice period

• 30 days written notice, OR
• 1 month salary in lieu of notice (many employers use the in-lieu option to let the employee leave immediately)

Severance per Notification 84/2015

Salary base for severance

Last monthly salary, excluding overtime. Regular allowances that form part of compensation are typically included. Confirm with your lawyer for the specific case.

Documentation to keep

• Reason for termination (redundancy, restructuring — documented business rationale)
• 30-day written notice OR salary-in-lieu payment record
• Severance calculation sheet showing service years and formula
• Final payslip including severance, unused leave pay-out, and statutory deductions
• Settlement agreement signed by both parties
• SSB deregistration

Scenario 4 — Termination with cause (misconduct, serious offence)

The 3-warning rule (for non-serious misconduct)

Myanmar practice requires a documented warning trail:

1. 1st warning — verbal (but documented in the employee file with date and witness).
2. 2nd warning — written (delivered to employee, signed acknowledgment).
3. 3rd warning — written (final warning, explicitly states dismissal risk).

Dismissal is only allowed after a further violation within 12 months of the 3rd warning. No notice required in this case. No severance required.

Serious offences (immediate dismissal)

Under the standard EC Template, certain serious offences allow immediate dismissal without warnings, notice, or severance. Examples:

• Theft, fraud, or misappropriation
• Violence at the workplace
• Gross insubordination
• Willful damage to company property
• Conviction of a criminal offence
• Disclosing confidential information

The EC Template defines serious offences — any dismissal on these grounds must clearly cite the specific clause.

Documentation for dismissal with cause

• All warning letters (verbal documented + written warnings), with dates and signatures
• Investigation report (for serious offences)
• Final dismissal letter specifying the grounds and referencing the EC Template clause
• Final payslip (wages up to dismissal date, unused annual leave pro-rated, no severance)
• SSB deregistration
• Retain records for minimum 7 years

The Conciliation Body / Arbitration pathway — what happens if an employee disputes

Under the Settlement of Labour Disputes Law 2012:

1. Conciliation Body — first stop. Must be convened within a short period of the complaint. Most disputes settle here.
2. Arbitration Body — if conciliation fails.
3. Arbitration Council — the final domestic appeal.
4. Supreme Court — rare, for specific legal questions.

Reinstatement is a real risk. If the Conciliation Body finds the dismissal was procedurally wrong, it can order reinstatement with back pay OR compensation equivalent to statutory severance plus additional damages.

7 mistakes that lose Myanmar termination disputes

1. Verbal-only warnings. If the warning is not documented, it does not exist in the Conciliation Body's view.
2. Skipping the 3-warning sequence for non-serious issues. Dismissing on the first incident, where no serious offence was committed, is procedurally wrong.
3. Paying no severance on a no-fault termination. This is the most common mistake. No-fault = severance.
4. Probation extension past 3 months. Courts treat the employee as confirmed on day 91 regardless of what your paperwork says.
5. Bilingual notice missing. A dismissal notice only in English is vulnerable.
6. Miscalculating severance using a wrong salary base. Using basic salary when the EC includes regular allowances, or vice versa.
7. No handover / property return. If the employee does not return company property and you have not documented it, recovery through civil court is hard.

The 10-point termination checklist

Before the employee leaves on the last working day, HR must complete:

• Termination reason documented + signed by both manager and employee
• 30-day written notice (or salary-in-lieu receipt)
• Severance calculated per Notification 84/2015 (if applicable) and paid
• All warning letters in file (if misconduct termination)
• Unused annual leave paid out
• Final PIT and SSB calculated correctly
• SSB deregistration filed with township SSB office
• Company property (laptop, ID card, phone, uniform) returned
• Handover document signed by replacement or manager
• Exit interview documented (optional but recommended)
• Final settlement signed by both parties
• All records filed for minimum 7 years

How QHRM handles terminations

• Termination workflow with step-by-step checklist enforced before payroll close
• Auto-calculated severance per Notification 84/2015 schedule (configurable if your labor counsel advises different bands)
• Warning-letter tracking with 12-month lookback for misconduct cases
• Final payslip generation including severance, unused leave, pro-rated PIT and SSB
• SSB deregistration alert to HR
• Audit-ready export of complete termination file

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Frequently asked questions

Q: Can we offer "voluntary separation" instead of termination? Yes — a mutual separation agreement with an agreed settlement is common and usually cleaner than a formal termination. Document clearly that the separation is voluntary.

Q: Do we have to give a reason in writing? In practice, yes — a written reason makes the termination defensible if challenged. Vague "business needs" is weaker than a documented restructuring decision.

Q: How long does the Conciliation Body process take? Variable. Simple cases can settle in 2–4 weeks. Complex cases can run several months.

Q: If the employee refuses to sign the termination notice? Still valid. Deliver with a witness or by registered mail. Keep the delivery proof.

Q: Can we waive the 30-day notice by mutual agreement? Yes — with a signed mutual waiver. Best practice is to pay salary-in-lieu to reduce dispute risk.

Next steps

Sources

• ILO — Employment Termination in Myanmar: Rules and Payments on Separationilo.org
• Rivermate — Myanmar Termination Guiderivermate.com
• Playroll — Severance Pay Regulations in Myanmarplayroll.com
• Luther Memo — Myanmar Employment Lawluther-lawfirm.com
• Lexology — Termination of Employment in Myanmarlexology.com