Abstract: This study analyzes the legal framework regulating redundancy payments and employment termination in Myanmar, specifically concerning Micro, Small, and Medium Enterprises (MSMEs). Redundancy transpires when an employer diminishes the staff owing to business cessation, relocation, or a decline in operational needs. While redundancy is often acknowledged in work practices, Myanmar legislation lacks a specific definition of the term, with its regulation mostly sourced from the Standard work Contract and Ministry of Labour Notification No. 84/2015. This study used a doctrinal legal research technique to examine pertinent labour legislation, employment contract stipulations, and international labour standards, especially those established by the International Labour Organization (ILO). The data indicate that redundancy payments serve as the primary means of income security for workers in Myanmar, given the nation has yet to implement an unemployment insurance system. The requirement to provide severance compensation imposes financial difficulties for MSMEs, resulting in conflicts around termination processes and compensation assessments. The report suggests that Myanmar must enhance procedural safeguards for redundancy, incorporating consultative processes, transparent compensation regulations, and more precise legal definitions. Moreover, the incremental establishment of a contributory unemployment protection system aligned with international labor norms will facilitate the equilibrium between employee income security and corporate viability.
Sunday, August 23, 2026