The mid-sized Southeast Asian country of Myanmar is populated by more than 55.18 million people. This country has a young population, so fewer than half of the population, or around 22.74 million people, are part of its labor force.

Around 49% of these workers are employed in agricultural pursuits, while 17% work in industries like mining and garment manufacturing, and the remaining 34% work in services like tourism, trade, finance, transportation, and construction. While the country’s GDP more than quintupled in the past 20 years, Myanmar is still classed as a lower-middle-income country, and its workers are highly affordable.

Connecting with the right workers in this country, however, can be challenging. Aside from the cultural and language differences employers need to overcome, they still have to deal with the difficulty of employee selection. Without seeing workers in action, they can’t be sure that they’ll be the right fit for their organizations.

On the other hand, workers can also find it hard to choose the jobs to take without knowing how they’ll be treated by their employers. Probation periods can help both sides be assured that they’ve made the right employment choices.

This guide will discuss what a probation period in Myanmar is and how it can be useful for both employees and employers.

Definition of a Probation Period in Myanmar

The beginning of a worker’s employment can be used as a probation period within which the worker and their employer assess their fit with each other. Both sides have the chance to decide if they think the employment arrangement will work out long-term, or if they will need to terminate it and move on. While probation periods often provide relaxation of the legal protections for employers and employees, this is not the case in Myanmar.

Employees can use their probation periods to improve their skills and prove themselves to their new employers. However, they also decide whether they can perform their tasks well and be successful in their roles. They also observe how well they can work with their new colleagues and fit into the corporate structures of their new organizations.

Employees make assessments of whether they’ll enjoy their new jobs and if they are provided with the benefits and working conditions that the employer promised during the recruitment process. While these decisions are taking place, employers make their own assessments. They observe their new employees on the job to see if their capabilities line up with the claims they made in their applications and interviews.

The employer also evaluates how well their new workers can get along with their teammates and whether or not they’re a good match for the company’s culture. Many employers also take this time to train their new employees closely so they can quickly become as productive as the other members of their staff.

A probation period in Myanmar starts when a new employee first starts working. It will continue until the point when one of the two parties decides the employment relationship won’t work out and chooses to terminate it. If this doesn’t happen, however, the period will end when it reaches its specified duration. If the worker has proven their ability to perform their role to the employer’s satisfaction, the employer can then choose to hire them as a full employee.

Lengths of Probationary Periods in Myanmar

The law in Myanmar doesn’t require that employers use probationary periods. Instead, they can be used at the discretion of the employer, but their details and conditions must be included in the contracts they enter into with their employees. However, the law does allow for employers to put their employees on probation for a maximum of three months.

This limit is for workers in all kinds of positions, and on both permanent and fixed-term contracts. Probationary periods cannot be renewed or extended in Myanmar. However, employers have the right to choose not to use them at all, or to shorten their durations as they see fit.

Legal Considerations for the Probation Period in Myanmar

As a previously British possession, Myanmar law is a mixture of British common law and local customary law. The rules that govern probation periods can be found in several pieces of legislation, including the Employment Contract Template 2017 and the Employment and Skill Development Law 2013. Some of the most important rules to be aware of include:

Pay and Working Conditions

Myanmar last updated its minimum wage on 1 August 2024. Workers have to be paid at least 600 MMK (Myanmar kyat) per hour (around 0.29 USD), or 4,800 MMK per day with a 2,000 MMK additional allowance, for a total of at least 6,800 MMK per day (around 3.24 USD). There is no allowance in the law for employers to pay probationary workers less than this minimum wage.

Employees in Myanmar normally work 44 regular hours per week, though some workers who manage continuous processes (in mining, oilfield work, or factories) work up to 48 hours per week.

Employees cannot work more than 10 hours per day, including their overtime hours. When they work more than their regular hours, employees must be paid at least 200% of their normal wages. These rules apply to probationary and full employees equally.

Termination and Notice

Unlike in other locations, probation periods in Myanmar do not relax most of the protections afforded to workers or their employers. If an employee wants to resign during a probation period, they must provide their employer with at least one week’s notice. After probation, however, they must provide one month’s notice. 

The employer, however, must provide one month’s notice to any employee who will be dismissed, or may choose to pay wages in lieu of this notice. Employers must also provide justifications for terminating their employees, except in cases of gross misconduct.

In cases of minor misconduct (absenteeism, lateness, etc.), the worker must be given a verbal warning, then a formal written warning, and a third warning that the employee must sign. If another occurrence of misconduct happens, the employee can be dismissed without notice or severance pay.

Otherwise, severance pay is usually required after a worker has worked for six months. It can range from 15 days’ salary to 13 months’ salary, depending on the length of service they have provided.

Vacation / Holidays

There are normally 24 public holidays in Myanmar, including ten days for New Year’s celebrations. Workers are entitled to these days off, but employers are not required to pay them. If they must work on these public holidays, workers have to be paid 200% of their normal wages.

Probationary employees are entitled to any public holidays that may fall during their probation period. All workers in Myanmar are entitled to at least ten continuous days of annual leave once they have completed 12 months of service to their employer, working at least 20 days per month.

If they work less than 24 days per month, their leave is reduced to nine days. Employees must be paid for these days before their leave periods begin. Because they won’t have worked for 2 months, probationary workers are not yet entitled to annual leave.

Benefits of Probation Periods in Myanmar

Probation periods are not mandatory in Myanmar, but they are widely used at the discretion of employers because of the benefits they can provide, including:

  • For Employees

Opportunities to test out new roles to see if they have the skills to succeed in them, and if they’ll be enjoyable.

Chances to see how well they can get along with their coworkers.

The ability to check that the benefits and working conditions provided match what the employer promised.

A shorter notice period of one week (versus one month) if they choose to resign.

  • For Employers

Time to work closely with new employees to bring them up to full productivity quickly.

Opportunities to see if employees have the skills to perform their roles properly.

Chances to observe how well new employees integrate with their teams and the company culture.

Ability to refine interview and selection processes by measuring probation period pass rates.

Conclusion

While probation periods in Myanmar aren’t legally very different from regular employment, they’re still useful for both employers and employees. New workers can try out their roles and resign more easily when they’re on probation, while employers can take this time to train and upskill their new employees so they’ll work to their full capacity.

This makes probation periods valuable for both sides in starting new employment relationships.

Frequently Asked Questions

No, probation isn’t required by law. Employers can choose to institute these periods at their discretion.

Probation periods are limited to three months and can’t be extended or renewed.

No, employers need to justify dismissing workers during probation and must give workers at least one month’s notice of termination.