What Myanmar law says
Under the Employment & Skills Development Law (ESDL) 2013, the maximum initial probation period is 3 months. Probation must be set out in the written contract — both the duration and the notice rule. During probation, either the employer or the employee can terminate with 2 weeks notice (or pay in lieu of notice). No severance is owed for probation-period termination. If the employer wants to keep the new hire on probation longer, the parties must agree in writing to an extension; this is typically capped at one additional 3-month block, never indefinite.
Probation rules at a glance
| Rule | ESDL position |
|---|---|
| Maximum initial probation | 3 months |
| Notice during probation (either side) | 2 weeks (or pay in lieu) |
| Severance during probation | None |
| Extension | Once, in writing, typically up to 3 more months |
| Probation must be in the contract | Yes — required clause |
| Confirmation letter on completion | Best practice; not strictly statutory |
Process steps
- State the probation period in the offer letter and signed contract.
- Conduct mid-probation feedback (best practice — protects the employer if termination is needed).
- Issue confirmation, extension, or termination decision before day 90.
- If extending: issue a written addendum signed by both parties before the original probation ends.
- If terminating during probation: issue 2-week notice (or pay in lieu) and run final settlement within 7 days of the last working day.
What if there's a dispute
- Township labour office first — a probationer can complain that probation was extended unilaterally or that the 2-week notice was not given.
- Conciliation Body — formal conciliation under the Settlement of Labour Disputes Law.
- Arbitration Council — final binding step. Statute of limitations: typically 6 months.
Employer takeaway
Set probation at no more than 3 months in the written contract. Decide before day 90 — confirm, extend in writing, or terminate with 2-week notice. Pay in lieu is allowed if mutually agreed. No severance is owed during probation, but unused leave must still be encashed at exit and the final settlement issued within 7 days. Keep the signed contract and the confirmation/termination letter for at least 7 years.
Edge cases and unenforceable clauses
- "6-month probation" — only enforceable as 3 months + a written extension.
- Termination during probation without notice — see termination during probation without notice.
- No probation clause in the contract — employee is treated as confirmed from day one; full notice and severance schedule applies.
- Extending probation more than once — risks deemed confirmation; see probation extension rules.
Common probation mistakes
- Setting probation at 6 months in the contract — unenforceable beyond month 3 unless extended in writing.
- Terminating on day 89 without the 2-week notice.
- Forgetting to issue a confirmation letter on day 91 — leading to unclear status.
- Withholding final wages pending exit clearance — illegal under the Payment of Wages Law.
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