What this looks like in practice
Performance reviews in Myanmar SMEs swing between "we don't do them formally" and "annual ratings tied to bonus". The right answer for ESDL-defensible HR is a written rubric, half-yearly cadence, signed by employee and manager. Reviews are not just career-development tools — they are the evidentiary base for any future disciplinary action, performance-based termination or refusal of promotion under ESDL.
Step-by-step setup
- Publish the rubric — 4–6 objectives + 4–6 behaviours, with a 3- or 5-point rating scale.
- Run mid-year review — 30-minute 1:1, written form signed by both, file in personnel record.
- Run year-end review alongside compensation review — same rubric, same signature, plus salary recommendation.
- Issue a Performance Improvement Plan (PIP) for under-performance — written, time-bound (typically 30–90 days), specific targets, signed.
- Document any termination linked to performance — final review + PIP + improvement evidence + ESDL severance per Notification 84/2015.
- Tie bonus to ratings if applicable — bonus is wages for PIT (apply PAYE in the month of payment).
- Retain personnel files for 7 years post-exit.
Tools, templates and costs
- Cloud HRMS performance module: typically included in mid-tier; MMK 100,000–400,000/month incremental.
- HR officer time: 1–2 days per cycle for a 30-employee SME; longer for larger.
- Manager training: 1–2 hours per cycle, especially on rating consistency and PIP language.
- Templates: review rubric, half-yearly form, year-end form, PIP template, performance-related termination letter.
Performance terminations under ESDL
Terminating for under-performance is permissible under ESDL but the township labour office will want evidence: written reviews, PIP issuance, improvement opportunity, monitoring records. Without this trail, the termination is challenged as wrongful and severance is awarded above the Notification 84/2015 schedule. With the trail, the standard severance schedule applies.
Employer takeaway
Run Myanmar performance reviews half-yearly with written rubric, signed by manager and employee. Documentation is the ESDL defence for any future action. Issue PIPs for under-performance with time-bound targets. Retain personnel files 7 years. The single most-failed move is verbal feedback only — undefensible at the township labour office.
Pitfalls to avoid
- Verbal-only feedback — undefensible at township labour office.
- Annual review as a single touch — half-yearly is the minimum cadence.
- PIP without time-bound targets — toothless and unenforceable.
- Bonus paid without PAYE — bonus is wages for PIT.
- Personnel files destroyed before 7 years — retention violation.
Related: compensation reviews, HR KPIs, and mandatory HR policies.
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