Approved by President’s Order No. 284 on December 05, 2007.

INTERNAL LABOR REGULATION OF MONGOLIAN UNIVERSITY OF LIFE SCIENCES

One. General provision

1.1. The Internal labor regulation of Mongolian University of Life Sciences (hereinafter referred to as the Internal labor regulation of MULS) is the main document to be complied in order to regulate a labor relation between the Administration and lecturers, employee / employees / which is compatible with the specific conditions of the university's academic, research and experimental work and governed within the Law on Labor, the Law on Education, the Law on Science and Technology, the Public Sector Management and Finance Law and other relevant laws and regulations. 1.2. The purpose of the Internal labor regulation shall rationalize teaching, research, production, business, services and their interrelationships, define the rights, obligations and responsibilities of employees, and regulate relations between the administration and employees. 1.3. In accordance with the Internal labor regulation of MULS, other rules, regulations and instructions can be adopted. 1.4. The president shall implement activities to fulfill the university's mission and conduct dayto-day operations through divisions. The structure of the divisions, position, job description, and line of duty shall be approved by the president in his sole discretion. 1.5. In accordance with the Internal regulations of MULS, the university's schools, affiliated institutions, unit and laboratories may adopt and enforce internal labor regulations based on their specialty. /Amended by President’s Order No. 352 on December 31, 2010/ 1.6. The administration and labor unions shall monitor the implementation of the Internal labor regulation within their respective jurisdictions. 1.7. This Internal labor regulation shall be followed by all employees. 1.8. The Internal labor regulation of MULS shall be valid from the date of approval. Two. Recruiting, Employment, Termination of employment contract 2.1. Employment of citizens 2.1.1 Application of citizen applying to open job position shall be reviewed by the person responsible for human resources and shall be presented to the President together with recommendation of the relevant departments and units.

2.1.2 Pursuant to Article 3.1.3 of the Internal labor regulation, when recruiting a citizen for work, the University administration shall negotiate with the citizen by agreeing the basic and other terms of the contract and conclude it in writing form / Modified by the President’s order No. 352 on Dec. 31, 2010/ 2.1.3. The President of university shall conclude employment and performance contracts with the vice-presidents, directors of institutes, deans of schools, and subordinate schools. A supporting document of the employment contract is a job description and annual plan. / Modified by the President’s order No. 352 on Dec. 31, 2010/ 2.1.4. According to the authorization granted by the President, the vice-presidents, deans and directors shall conclude employment contact with all the staff of the affiliated Schools and Institutes and have responsibility of employer. / Modified by the President’s order No. 352 on Dec. 31, 2010/ 2.1.5 When concluding an employment contract, the duration of the contract shall be determined in accordance with Article 23 of the Labor Law. / Modified by the President’s order No. 352 on Dec. 31, 2010/ 2.2. Citizens wishing to work for MULS shall submit the following documents to the Human Resources Officer. Citizen identity card, Employment and Social insurance book, Certificate of Coordination of Local Employment Regulations, for Citizens' Identification,, Health card, Professional Diploma, Certificate, Reference of previous employer and if unemployed Reference of the local employment regulatory agency, Personal statement and Forms (Form-1) 2.3. Profession, education, employment ability (health), personal interest, culture, business, integrity, and work skills shall be the main criteria of recruiting the citizen. The qualification criteria are set by the MULS's Bylaw and job description by approved the President's order. / Amended by the President’s order No. 352 on Dec. 31, 2010/ 2.4. Departments and units shall review in advance and discussed at the school in case of recruiting a citizen. 2.4.1. Lecturers and academic staff of all rank shall be confirmed in accordance with approved regulation.. 2.4.2. The program coordinator of the school, the academic secretary, the heads department and laboratory shall be selected according to the job descriptions and discussed within the Board of Director of the School. The proposal of the Board shall be finalized by the order of the President. / Amended by the President’s order No. 352 on Dec. 31, 2010/ 2.4.3. Other faculty members shall be selected by the Head’s of departments and Directors of units and introduced to their dean and then finalized by the order of the President. 2.4.4. Newly employed lecturer, administrator and staff. In charge of asset, shall attend at the Meeting in person and decision is made. 2.5. The President’ order shall determine changes on MULS activities, list of job status and job descriptions. 2.6. If an employment contract has not been concluded in writing forms and the president’s order has not been issued yet, the employee shall be prohibited to work. The work requiring special talents shall be performed based on a contract agreement and shall be resolved by the President's

order. When hiring a seasonal worker on a civil contract, there should be a tender for contractors and after getting approval from the Governing Board, authorized official shall conclude the contract and to be approved by the President. 2.7. The employer shall undertake the following obligations in the employment contract and recruiting a citizen. 2.7.1. An employee's status, job description or job assignment, working conditions, basic and incentive wage shall be introduced and the rights and obligations shall be explained. 2.7.2. "MULS Bylaw", "Internal Labor Regulation of MULS", other regulations and collective agreements shall be introduced. 2.7.3. Guidelines on occupational safety, hygiene and fire prevention guidance shall be provided and related regulations, labor regulations are introduced. 2.7.4. Health checks are required when recruiting for abnormal working conditions. 2.8. The policy shall be pursued for lecturer, administrators and personnel, who have shown proficiency and have the knowledge of foreign languages, is promoted to higher post, raised status and trained in foreign universities and colleges. A working group appointed by the President's order shall propose the opinion on promoting or demoting status, professional skill bonus of the professors and teaching staff. The working group's references, their comments and conclusions shall be discussed and concluded by the President's Council. 2.9. If the parties have not proposed to terminate the contract and the employee is still in the process of completion of the contract, the contract shall be seen as extended for another 1 year. 2.10. The new lecturers and staff shall be recruited by the board of dean and the president's board meeting and will be temporarily employed for probationary period of one-year. /Amended by President’s Order No. 352 on December 31, 2010/ 2.11. During the probationary period, the board of deans and the President's board will discuss the temporary staff be employed as a full-time lecturer and staff and it will be proved with more than 75% of the members vote. /Amended by President’s Order No. 352 on December 31, 2010/ 2.12. An employee who fails to fulfill his or her responsibilities and to perform his / her duties at the required level specified in an employment contract shall be subjected to the action specified in Article 131.1 of the Labor Law or the contract shall be terminated according to specified in Article 40 of the Labor Law. /Modified by President’s Order No. 352 on December 31, 2010/ 2.13. An article 39.40 of the Labor Law shall be the basis when at the initiative of the employee and the administration to terminate the employment contract. 2.14. It is forbidden to fire an employee or salary will not be paid or issue remuneration and bonus wages if order has not been issued on dismiss is taken place. 2.15. If an employee is dismissed or transferred to another institution, a slip shall be filled and complete his / her final record of financial statements before the date of his / her assignment then notation shall be marked on the social insurance book. 2.16. The lecturer who is retiring will receive benefits according to the Law on Education. The administrative staff / officers, librarians, accountants, assistants / beneficiaries will be concluded according to the collective agreement with the Labor Union of University. /Modified by President’s Order No. 352 on December 31, 2010/ 2.17. Lecturers and employees who have the right to retire pensions shall be exempt from employment. /Modified by President’s Order No. 352 on December 31, 2010/

Three. Rights and obligations of university administration and employees 3.1. The university administration has the following rights and obligations under the university's bylaw: 3.1.1. Provide proper management of workforce, provide them with professionalism, provide hygiene and safety conditions, continuously improve their knowledge and skills, maintain the machinery, technique and equipment in good working condition, and fully supply necessary materials: 3.1.2. Pay attention on social issues of employees to increase labor productivity and quality of services, improve working conditions, facilitate heavy work and improve cultural development by implementing systematic measures based on collective agreements: 3.1.3. Employment wages shall be determined in accordance with the employee's performance and quality and shall be set out in time: 3.1.4. Coordinate fully coherence of all levels of training and research works of agricultural sector, to introduce innovative techniques, to provide professional management, to optimize workforce and asset on order to improve information supply and to strengthen the facilities required. 3.1.5. Enhance the results of training, research and production, improve labor and social activity of the community, improve the quality of work, research and service and effectively evaluate the work: 3.1.6. Strengthen labor discipline and upgrade methods on efficiently using work-hours, improve control on activities: 3.1.7. Prevent training-industrial accidents, acute poisoning, and occupational diseases, organize medical check-ups, underlie on abnormal working conditions, provide special work clothes and protective equipment; 3.2. The employee shall have the following rights and obligations. 3.2.1. In addition to the rights and obligations provided by bylaw of MULS, he/she shall comply with the Internal labor regulation and fulfill his/her obligations under labor contracts and job duties. 3.2.2. Follow procedure of training, production, service and technology and improve the quality of training and service. /Amended by President’s Order No. 352 on December 31, 2010/ 3.2.3. In order to fulfill the mission of MULS, attain with power, knowledge and talent to work with the customers for receiving gratitude not complain. 3.2.4. Labor safety regulations shall be strictly observed and he/she is responsible for preventing from industrial accidents. 3.2.5. Regularly upgrading their knowledge, profession, and work skills and participate into regular accreditation. The period shall be decided in accordance with related regulations on accreditation. /Amended by President’s Order No. 352 on December 31, 2010/ 3.2.6. Attend courses, training without the hassle of quality of work, training technology or normal working conditions. It has to be approved by the dean of school, vice president and president.

3.3. Vice presidents, directors, deans, human resources officers, president's assistant and principle of archives and records are in direct supervision of the president and work to implement decisions, instructions of superior organizations, president's orders, and decisions of the board and report the results to the President. 3.4. Employers will operate within the scope of their official rights and obligations established by the Bylaw of MULS and the Labor Code. It is prohibited to carry out any activities that are contrary to the regulations of the University. 3.5. MULS staff member is responsible for keeping the unity with other staff members of departments, units and university and is forbidden to engage in any activities that may have a negative impact on the dignity and reputation of the community. 3.6. Lecturers and employees are entitled to express and protect their rights through the public organization, such as labor unions and teachers’ associations, in accordance with their respective rules and regulations. /Modified by President’s Order No. 352 on December 31, 2010/ 4.0 (Four) 4 Working hour 4.1 Working hours per week are set by university administration based on the article 70th of labor code (5 working days). 4.2 Regular working hour per day must be 8 hours. 4.3 University administration must set the starting and finishing time for the working days and lunch time duration is set by administration based on staff’s opinion. 4.3.3. Teaching or class hours must start at 08.40 up until 17.40. The lunch period may start 12.40-13.40. 4.3.4. Service staff must start work at 0.800-12.00Hrs and from 14.00-18.00Hrs. However, the Marketing and Service Division may change working hours for service staff if it does violate articles of labor the code. 4.4 Each academic hour must continue for 90 minutes class-break between classes is 10 minutes and tea-break must be 30Min. (11.50-12.20Hrs). 4.5 Lecturers must work in their departments not less than 6 hours per day and working period in the library or research institute shall be registered by head of departments. 4.6 The scope of work in the institution is flexible and dynamic, but individuals must fulfill the working hours per week. 4.7 Every staff must inform the head of department or division, through individual staff-mates when coming to work, taking a break and leaving during working hours; end of working day and it cannot come to work with excuse. 4.8 The Head of Department or Division must summarize time worked by the staff; verify it through relevant responsible administrators for submission due to the financial office by the 15th and 30th of every month. 4.9 University administration may reduce working hour based on the decision of the professional organization about anormal working condition. 4.10 Need to provide cafeteria within building must be continuously due to the feature of work. One with continuous task must not leave before next tour service provider is available. If not yet available, report immediately to the relevant head of division for replacement appointment.

4.11 Overtime related issues must be regulated by article 74.2th of labor code or by order number 352 renewed by the President’s 31st December, 2016. 4.12 Business trips must be approved by the President for Dean of schools and Vice president. The Dean of schools for lecturers, the Head of departments and other workers. Business trip report must be submitted within 3 days from ending date. 5.0 Paid and unpaid leave 5.1 Paid or unpaid leave must be provided based on article 80th of labor code. 5.2 Individuals requiring leave must submit a detailed statement and supporting documents to the Head of Departments or Division. 5.3 The Head of Department or Division must present the statement to related administrator and the leave must be granted by order of the Dean of schools or President. 5.4 Unpaid leave up to one year can be given based on case and leave must be decided based on the following: i. For 1-5 days by the head of Department ii. For 5-30 days by the Vice Presidents or Dean of schools iii. For 3-90 days by the President and 90 days to one year by the President’s Board. iv. In case of the Department Assistant or other lower position 30-90 days unpaid leave or hiring permanent replacement, worker must be decided by order of Dean of School. v. Leave must be granted based on the length of service from date of work resumption, for more than 3 months, 6 months, to one-year. 5.5 Paid leave up to 14 days must be given in case of newborn, death of family member or face natural disaster, accident. Up to 3 months leave must be given in case of taking extramural graduation examination or taking 3 months specialized course abroad, and final decision must be made following the President’s order. 5.6 Maternity leave must be assumed by President’s order and will be counted in working years as indicated in labor code. 6.0 Vacation, salary and allowance 6.1 Individuals shall have 2 consistent days off during weekend. 6.2 Annual long-term vacation schedule must be announced in the beginning of the year and have to resemble condition to have vacation personally. Additional days of vacation must be calculated according to working years by the President for the Vice presidents, Head of Divisions and Dean of Research institutes for their workers, Dean of schools for lecturers and must be submitted for revision with Human Resource Manager. 6.3 Length of vacation must be calculated according to article 79th of labor code and the 43.1.2of the Education code.

6.4 Salary must be flexible depending on results of work. The University administration must decide position classifications; extra skills payment, based on job position and salary fund, but special guidelines required. 6.5 Salary must be given twice a month for contract staff, after prior job evaluation. 6.6 Salary must be increased depending on living cost. 6.7 Head of Departments or Division, Dean must consult with general- accountant about giving support for deprivation by President’s order. 6.7.1 500 000 Tugrik must be given, if worker/staff dies, suffer from serious illness, lose working ability and 200 000 Tugrik with one-way trip cost, if one of family member die. (Renewed by the President’s 31st December, 2010 order number 352). 6.7.2 President board must decide whether to provide discount for worker to study domestically, to up-grading job performance. A special regulation required. 6.7.3 Depending on income, there must be some extra payment made available for meal, transportation, textbook and milk. The raise must be confirmed by the President Board and approved by the President’s order. 6.7.4 Academic degree incentives will be provided according to relevant regulation. • Skills incentives will be given based on high work efficiency and method. /Renewed by president’s 31st December, 2010 order number 352/. 7.0 Honor 7.1 University administration must award workers/staff for their industrious performance, mode of honor for following: 7.1.1 Monetary/fiscal terms 7.1.2 PhD or ScD degree (staff/worker), awarded with 100 000 Tugrik 7.1.3 Present goods or treasure 7.1.4 Honor scholarship 7.1.5 Inscribe oneself name in Honorary Book of Glory 7.1.6 Award university’s special titles or consecration 7.1.7 Give right to go university paid resort 7.1.8 Recommend to government’s special title 7.1.9 Based on co-worker’s suggestion, provide an opportunity to study at specialized course abroad or domestically. 7.2 Honor announced to colleagues on time by administration 8.0 Code of Conduct (Discipline) 8.1 Penalty for misconduct must be executed in accordance to articles 40.1.4, 40.1.5, 131.1.1, 131.1.2, 131.1.3 8.2 of labor code” or may be renewed and endorsed by “the President’s 31st December, 2010 order number 352”. 8.3 The following matters must be considered as serious misconduct:

8.3.1 Drunkenness or use of drugs in or nearby working place and dormitory, during official ceremonies and affray or make gossip on not officially decided matters. “Renewed by president’s 31st December, 2010 order number 352” 8.3.2 Mischief and corruption. 8.3.3 Use university’s property for personal arrays/desires without permission. 8.3.4 Damage organization’s or personal goods, criminal acts recorded and defined by juridical bodies and lost responsibility. “Renewed by the President’s 31st December, 2010 order number 352” 8.3.5 Offence MULS lecturers, “Professional code of ethics. Renewed by the President’s 31st December, 2010 order number 352.” 8.3.6 Violation of basic concepts against the reputation of Mongolian University of Life Sciences. 8.3.7 Repetitive violation of training technology. “Renewed by president’s 31st December, 2010 order number 352” 8.3.8 Unsigned labor contract or acted against duties of labor contract article. “Renewed by president’s 31st December, 2010 order number 352”. 8.3.9 Irresponsible Act against labor contract articles. 8.3.10 Excess the vacation or leave days without excuses. 8.3.11 Deliver or attempt fake documents on behalf of university. 8.3.12 Act against examination rule 8.4 Labor/work misconduct 8.3.1 Absent at work with no excuse or be late at work. 8.3.2 Misinform and purposeful, against, for or explain, advertise wrongly the administration’s decision. 8.4. An employee’s misconduct must be discussed by relevant department or division’s meeting and termination of the labor contract must be initiated by the responsible or relevant employer 8.5 One-day salary must be deducted from an individual lecturer if absent from classes. 8.6 Dean of schools will solve all punishments except terminating work contract. 8.7 An employee must not be honored when the one has disciplinary punishment 9.0 Communication of university with its research institutes. 9.1 Directors of research institutes must be appointed by the university President and must sign a labor contract. 9.2 Communication of university with its research institutes must be regulated by the University Scientific Affairs Regulation. 9.3 University must monitor and coordinate research institutes’ progress of scientific and innovation project. 9.4 University must provide its assistance on choosing scientific and technological projects and propose about funding to relevant organizations.

9.5 Summarize and make recommendation to institute based on its annual report. 9.6 When the Directors of research institutes have business trips or have vacation, they must provide information about the duration of their vacation and the acting individual to the President. 9.7 MULS President signs labor contract, provide responsibilities and duties of the director and a plan for strategic vision of research institutes and job descriptions plan must be submitted at the MULS. 9.8 Directors of research institutes must present their report to the Academic meeting of Mongolian University of Life Science. 10. Others. 10.1 MULS administration and labor union must sign a cooperation contract. 10.2 Matters which not mentioned on this labor regulation must be managed by sub regulations derived from this regulation. 10.3 Administration must run Supernumerary commission which will evaluate an on the job accident. 10.4 Issues which must be discussed by the University Board must be discussed prior by President’s Board. 10.5 “Labor debate cut off commission” must consist of 3 members and shall decide labor debates, except legal issues for reference to court decision. The 3 members of the commission shall be chosen by the University Administration and Labor Union.