What Myanmar law says
Under the Employment & Skills Development Law (ESDL) 2013, employer-initiated termination must be on a lawful ground that is documented in the employee's file. The Myanmar legal idiom is "termination without lawful grounds" — the common-law equivalent of wrongful termination. Six grounds are routinely accepted by township labour offices and the Conciliation Body. For each, severance and notice obligations differ slightly.
The six recognised grounds
| Ground | Documentation required | Severance owed? |
|---|---|---|
| Poor performance (after warnings) | Performance reviews + written warnings | Yes |
| Redundancy / restructure | Business case + role-elimination memo | Yes |
| Gross misconduct | Investigation file + written evidence | No |
| Breach of contract | Specific clause cited + evidence | Depends on severity |
| Prolonged unauthorised absence | Attendance log + show-cause letter | May be considered abandonment — typically no |
| Fixed-term contract expiry | Original contract showing the end date | No |
Performance termination — the standard sequence
- Performance Improvement Plan (PIP) for typically 30–60 days.
- Written warning(s) — first, second, final.
- Documented review meetings.
- Termination letter citing the unsatisfactory PIP outcome.
- Notice or pay in lieu per the tenure schedule.
- Severance per Notification 84/2015.
What if there's a dispute
- Township labour office first — the employee challenges the cited ground; the office requires documentation.
- Conciliation Body — formal conciliation under the Settlement of Labour Disputes Law.
- Arbitration Council — final binding step. Statute of limitations: typically 6 months.
Employer takeaway
Pick a recognised ground and document it before issuing the termination letter. Performance terminations need PIP and written warnings; redundancy needs a business case; gross misconduct needs an investigation file. Pair the right ground with the right notice and severance. Run final settlement (wages + leave encashment + notice + severance where applicable) within 7 days of last working day. Deregister from SSB within 30 days. Keep the file for at least 7 years.
Edge cases and unenforceable clauses
- "At-will" termination — not enforceable under ESDL.
- Termination during maternity leave — strong constructive-dismissal grounds; avoid.
- Termination during medical certification — risk of unlawful-grounds finding.
- See termination without lawful grounds and termination without cause.
Common termination-grounds mistakes
- Citing "performance" with no PIP or warnings on file.
- Calling a redundancy "misconduct" to skip severance.
- Issuing the letter in English only — risks unenforceability.
- Skipping the SSB deregistration within 30 days.
We publish practical, legally-grounded HR guidance for Myanmar employers. Each piece is reviewed by our compliance team against current MLIP and Labor Law requirements.