In Laos, both employees and employers can terminate an employment contract by giving a minimum of 30 days' notice for employees undertaking physical labor or 45 days' notice for employees undertaking mental labor. Notice must be provided in writing. Employers must provide a reason for termination. During the notice period, an employer must provide an employee with 1 paid workday per week to seek new employment.
During the probationary period, each party has the right to terminate the probation at any time, but must give the other party at least 3 days' advance notice for non-skilled work and 5 days' advance notice for skilled work.
If an employer experiences a work injury or becomes sick and cannot perform their duties, the notice period is tolled until treatment is concluded.
Foreigners who wish to work in the Lao PDR must obtain a work permit from the Ministry of Labor and Social Welfare. Work permits can be renewed for 12-month intervals. The employee's total work period may not exceed 5 years. Work permits are issued simultaneously with the work visa and expire with the employment contract. The employer must register the permit application within 1 month of authorization.
Foreign workers must meet the following requirements to work in Laos:
The following documents are required when applying for a work permit:
Employees with an employment contract for over 1 year and have worked for at least 1 full year or those with an indefinite employment contract are entitled to 15 days of annual leave.
Employees who work in dangerous conditions are entitled to 18 days of paid annual leave at their normal wage.
If an employee is unable to take annual leave because of a reason stemming from their employer, the employer must pay an extra wage to the employee equal to 100% of the normal wage for the days that the employee was unable to take leave.
The standard workweek is 6 days, and work should be at most 8 hours per day or 48 hours per week. Employees who work in dangerous conditions may not exceed 6 hours per day or 36 hours weekly.
Employers must provide a working schedule that allows a 1-hour lunch break and a minimum of 1 day of rest each week.
Under Lao labor laws, women employees are entitled to a minimum of 105 days of maternity leave, 42 of which must be taken following birth. In the case of multiple births, maternity leave is extended to up to 120 days. Employees are entitled to an allowance of 100% of their normal wage during maternity leave.
Women are entitled to 1 hour per day to rest or care for their child for up to 12 months after birth.
An employee is entitled to a period of leave determined by a doctor in the case of a miscarriage and a maternity allowance as determined by the Law on Social Security.
Since October 1, 2024, and continuing into 2026, the minimum monthly wage in Laos for non-professional workers without formal educational qualifications is structured as follows: a base minimum wage of LAK 1,600,000 per month, plus a cost-of-living subsistence allowance of up to LAK 900,000 per month. Together, the combined minimum remuneration is LAK 2,500,000 per month. Employees who already receive a monthly wage of LAK 2,500,000 or above are not entitled to the allowance. The minimum wage does not include overtime pay, social security contributions, annual allowances, or other agreed benefits.
The labor law requires employers to pay wages at least once a month at a fixed time. Employees paid per unit or hourly must be paid at least twice a month or in periods no more than 16 days apart.
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