Unemployment benefits and employment services in Mongolia Bangkok, Thailand 10 October, Ministry of Labour of Mongolia

Contents I.Facts about Mongolia II.Institutions involved in employment protection and unemployment benefits payments. III.Existing protection for termination of employment IV.Active Labour Market Policies V.Vocational trainings VI.One-Stop-Shop implementation experience. 2www.mol.gov.mn

The country and its people

Economy Currency – Tugrug (1 USD = 1660 Tugrug) GDP per capita = US$ 3342 Growth in 2012 = 12.6 percent – Agriculture = 21.6 % – Construction = 38.9% – Wholesale and retail trade = 24.6% – Entertainment = 48.2% Economic share: – Agriculture = 14.2% – Mining = 20.2% – Wholesale and retail trade = 17.7%

Labour market Economically active population/EAP/ thous. person /602.5 thous. Person – Female/ – Employed thous. Person or 92.7 percent of EAP. – Unemployed thous. Person or 7.3 percent of EAP Major sectors of employment: – Agriculture 370 thous. person – Manufacture 64.9 thous. person – Wholesale and retail trade thous. person – Education 86.3 thous. person

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Institutions involved Ministry of Labour Employment Service Centre Labour Exchange Office Vocational Training Centres Labour divisions in Aimags and Districts of Ulaanbaatar Ministry of Population Development and Social Welfare Social insurance offices in Aimags and Districts of Ulaanbaatar National Tripartite Committee on Social Dialogue National Counsel on Social Insurance

Institutions involved Employment Service Centre Provide information to job seekers about employment and labour market, vocational and skill upgrading trainings. Elect, register and certify the private training provider centres, Implement employment encouragement programmes/8 programmes as stated in law/ Labour Exchange Central Office Create an advanced labour market information portal using last technologies. Provide registration and job matching services for unemployed people. – Advises for selection of job and profession, provide information about labour market.

Institutions involved Vocational Education and Training Policy Coordination Department, and Vocational Training Centres – Aims to improve employability of workers, help them upgrade their skills to get better positions or return to work. Sets standards and curriculums for training course. Pursues a policy to meet workers and employers needs. – 79 /50 - government, 29- private/ vocational training organizations provide training in about 45 skills. Labour divisions in Districts of Ulaanbaatar and Aimags. – Provide information about employment, vocational training, implement encouragement programmes, register unemployed people. Social insurance offices in Aimags and Districts of Ulaanbaatar. – Provide unemployment benefits payment services.

Existing protection for termination of employment The Constitution of Mongolia / Approved in 1992/ – The Citizen of Mongolia has the right: to choose their profession and job, to be provided by decent working conditions, to be paid for their labour, to have holidays. No one can force to work any one. to receive benefits when retired, losing ability to work, taking maternity leave and in other circumstances stated in a law. The Labour law /Approved in 1999/ – Employer shall pay allowance to employee who dismissed from job by employer’s initiatives.

Existing protection for termination of employment Law of Encouragement of Employment / First approved Revision / – Activities of encouragement of employment shall be implemented through following projects and programmes: Prepare to work; Organization of employment trainings Encouragement of herders and self-employed people, to encourage people willing to establish cooperatives. Encouragement of employers; Organization of public work; Encouragement of employment of disabled people;

Unemployment insurance law Unemployment insurance law/ Approved Amendments in 2002/ – Insured employee who dismissed from job has a responsibility to be registered in Employment service offices by his or her address after the completion of any work related issues with employer. – An insurant gain the right to receive unemployment benefits if he or she paid unemployment commission for at least 24 months from which 9 months without any breaks before the dismissal.

Unemployment insurance law The Amount of the unemployment benefits depends on the duration of commission payment and is calculated as average of last 3 months' wages or equal revenues as specified in the table. Duration of commission payment /by years/ The percent to calculate the amount of benefits. /%/ 1.Up to to to and more 70

Unemployment insurance law Unemployment benefits are paid for insured employee from the next day of registration for 76 working days. In following circumstances unemployment benefits are paid for insured employee only for 36 working days: – If employee terminated labour contract on own initiative. – If employee dismissed from job due to breaking the labor discipline many times or severely.

Unemployment insurance law In following circumstances unemployment benefits payment are terminated: – If insured employee denied 2 times from jobs that are suitable for his or her education and qualification, suggested by employment service offices. – If an insured employee did not participate without excuses in temporary public paid jobs that organized by employment service offices, social insurance organizations and employers. – If insured employee did not participate in occupational trainings organized and paid by social insurance organizations. – If a judicial decision on offence was entered into force.

Unemployment insurance law When employer and an insured employee did not take unemployment benefits from Unemployment insurance fund for 5 years consistently, the unemployment insurance commission is decreased by 10 percent in the next year. In every case of meeting above mentioned requirements allowance is increased by 10 percent even though its maximum percentage cannot be exceed 50 percent of annual commission amount. Taking into account the will of insured employees who satisfied the requirements of unemployment benefits payments, Employment service office provides them with occupational trainings and rehabilitation in the 6 months after leaving from job. If insured employees who took above mentioned trainings did not find a job for the next 2 years, they can be involved in trainings again.

Active Labour Market Policies According to the Law of Encouragement of Employment, three main activities are provided for the encouragement of employment: 1.Common employment services: advises for selection of job and profession, provide information about labour market, labour exchanges, payments of unemployment benefits, register job searching unemployed people, provide information on vacancies and assist in writing resume and taking interviews. 2.Training: training on preparation for jobs/labour regulations and labour discipline/, help unemployed people improve their vocational skills. 3.Directly creating jobs for the unemployed, organizing public work.

8 Programmes of Active Labour Market Policy 1.Preparation for work programme 2.Organization of employment training programme 3.Encouragement of stockholders employment programme 4.Encouragement of self-employed people programme 5.Encouragement of employer programme 6.Encouragement of employment of people with disabilities programme 7.Encouragement of employment of 40 and older people programme 8.“Inhabited Mongolia” programme

Facts on employment services/2012/ Unemployed people/ by the beginning of the year/ – people; Newly registered as unemployed – people/58%- women/; New vacancies received by companies: /54695 – via / Went out from unemployment status – people; Found jobs through labour exchange: Took vocational training: Worked in public work: Received unemployment benefits:

Facts on employment services/2012/ Small business loans million USD for : – 4701 self-employed people – 2584 herders – 198 cooperatives – 124 unemployed persons – 23 small-scale companies Funded projects on encouragement of employment of people with disabilities : 1253 projects with 1500 workplaces/about 1 million/

Background Access to administrative service is often cumbersome in Mongolia To get permission of license have to visit number of offices to get approval and signature This bureaucratic procedures make people frustrated and fed up Administrative services therefore need to be changed into easily accessible, faster and streamlined services One stop shop service

To involve all relevant stakeholders, verify its feasibility adapting the relevant legislations and regulation To develop concept for streamlining administrative services more accessible, transparent and effective Purpose and objective

Ministry of Industry and Commerce, Mongolia implemented in partnership with donors and stakeholders. SDC and other donors worked closely Social insurance and policies Civil registration and information services Tax services State Fund Services Services included

Police services Land Administration Affairs Construction affairs Specialized Inspection Services Natural Resource and Environmental Services The main institutional stakeholders of the project are the relevant service providing agencies and the citizens Services included

Implementation of the project By the end of Oct 2011, more than 3,8 million clients, more than two-thirds of whom were women, visited One-Stop Shops (OSS) to access administrative services. This means customers are saving time up to 70 percent, and more than 90 percent expressed satisfaction with them. The first mobile OSS was launched in Bagakhangai district along the railroad near Ulaanbaatar in 2011, more than 600 people used. Herders and railroad junction employees are now able to have government services, including social welfare, social insurance and civil registration.

One stop shop service office

Implementation of the project Due to lack of information, customers come to the service center more than one time. So OSS to provide open and transparent information on documentation required and time of service delivery. To improve this, the project published an “Customer Guide to Services” of the services offered through OSS and operates a hot-line for customers.

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