What is the difference between fixed-term and permanent employment in Myanmar?

Updated May 3, 2026·3 min read
Direct answer

In Myanmar, fixed-term contracts run for a defined period (typically up to 2 years per contract, max 2 renewals) and end automatically at expiry without severance, while permanent contracts run indefinitely and require ESDL notice and severance on employer-initiated termination. Both carry full statutory rights — wages, leave, SSB, OSH — under the Employment & Skills Development Law (ESDL) 2013.

What Myanmar law says

Under the Employment & Skills Development Law (ESDL) 2013, employment can be on a fixed-term or permanent (indefinite) basis. Both forms require a written bilingual contract within 30 days of the start date covering the nine ESDL clauses. Both carry full statutory rights — wages, leave, sick pay, maternity, SSB, OSH protection. The two main differences are end of contract (fixed-term ends at expiry; permanent only ends on termination) and severance on expiry (none for fixed-term; full ESDL severance for permanent on employer termination).

Side-by-side comparison

FeatureFixed-termPermanent
Term lengthDefined; typically up to 2 yearsIndefinite
Renewal limitUp to 2 renewals before deemed permanentN/A
End of contractAutomatic at expiryOnly on termination or resignation
Severance on expiryNoneN/A — applies only on termination
Notice for mid-term terminationESDL tenure-based noticeESDL tenure-based notice
Severance on mid-term terminationPer Notification 84/2015Per Notification 84/2015
Wages, leave, SSB, OSHFullFull
Probation allowedYes (max 3 months)Yes (max 3 months)
Restrictive covenantsAllowed; reasonableness test appliesAllowed; reasonableness test applies

When to choose which

  • Fixed-term: defined project, leave cover, seasonal work, pilot programme, specialist hire for a specific assignment.
  • Permanent: ongoing operational roles, leadership positions, customer-service roles, anything you expect to keep filled indefinitely.
  • Avoid using fixed-term as a workaround to permanent severance — repeated renewals are deemed permanent.
Download the QHRM contract-type decision tool Walks the role through the ESDL test and recommends fixed-term vs permanent — with the right template.
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What if there's a dispute

  • Township labour office first — common claim is misuse of fixed-term to avoid permanent severance.
  • 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 the contract type that matches the role's true nature. Use fixed-term for genuinely time-bounded or project work; use permanent for ongoing operational roles. Document the term clearly, run all statutory obligations during the contract, and run final settlement (wages + leave encashment + severance where applicable) within 7 days of the last working day. Deregister from SSB within 30 days. Keep records for at least 7 years.

For HR teams running terminations across regions
Run a clean exit, every time. QHRM picks the right contract template by role, tracks term and renewal limits, and runs the right exit workflow — used by 350+ Myanmar employers.

Edge cases and unenforceable clauses

  • Misuse of fixed-term for ongoing roles — risk of being treated as permanent.
  • Conversion from fixed-term to permanent — typically by signing a new contract before expiry.
  • Tenure on conversion — runs from the original fixed-term start date.
  • See fixed-term allowed and max duration.

Common contract-type mistakes

  • Putting all new hires on fixed-term to avoid severance — backfires after 2 renewals.
  • Failing to issue a written contract within 30 days — applies to both forms.
  • Skipping the ESDL clauses in fixed-term contracts assuming they don't matter.
  • Treating fixed-term employees as not entitled to leave or SSB — illegal.
Sources
  1. Employment & Skills Development Law (ESDL) 2013 — fixed-term and permanent provisions
  2. Notification 84/2015 (or current) — notice and severance
  3. Settlement of Labour Disputes Law — process

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