Overview of Cambodia's Labor Laws and Employment Policies

Employment Law Overview

• Key Legislation:
  • Labor Law (1997)
  • Social Security Law (2003)
  • Minimum Wage Law (2019)
• Legal Characteristics:
  • Aims to protect workers' rights and promote employment opportunities.
  • Stipulates minimum wages, working hours, leave entitlements, and severance pay.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (maximum 2 years)
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include details of job description, remuneration, working hours, leave entitlements, and termination conditions.
  • Must be written in both Khmer and English.
• Language and Currency:
  • Khmer and English
  • Cambodian Riel (KHR)

Working Time Regulations

• Standard Working Hours: 48 hours per week
• Rest Days and Overtime: Minimum of 1 rest day per week, maximum of 2 hours overtime per day.

Leave Policies

• Annual Leave:
  • 18 days per year, increasing by 1 day for every 3 years of service.
• Public Holidays: 15
• Special Leave:
  • Sick leave: Up to 6 months
  • Maternity leave: 90 days at 50% of regular salary
  • Paternity leave: 1 day
  • Bereavement leave: 7 days unpaid leave for immediate family members
  • Marriage leave: 7 days unpaid leave

Employee Severance and Contract Termination

• Notice Period:
  • Fixed-term contracts: No notice period
  • Indefinite-term contracts:
    • Less than 6 months of service: 7 days
    • 6 months to 2 years of service: 15 days
    • 2 to 5 years of service: 1 month
    • 5 to 10 years of service: 2 months
    • Over 10 years of service: 3 months
• Severance Pay:
  • Fixed-term contracts: 5% of total contract value
  • Indefinite-term contracts:
    • 6 months to 1 year of service: 7 days' salary
    • Over 1 year of service: 15 days' salary, capped at 6 months' salary

Tax Laws

• Personal Income Tax:

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• Social Security Contributions:

  • Employer: 0.8% (capped at 1,200,000 KHR)
  • Employee: Nil

Health Insurance

• Insurance Policy: Employers are required to provide health insurance for employees.
• Coverage: Includes basic medical services.

Compensation and Benefits

• Minimum Wage: Approximately 700,000 KHR
• Salary Structure: Typically includes base salary, allowances, and bonuses.

Work Permits and Visas

• Permit Requirement: Foreign workers require work permits.
• Application Process: Apply through the Ministry of Labor.

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable.
• Common Provisions: Restricting engagement in competitive activities for a period after the end of employment.

Training and Development

• Legal Requirements: None
• Government Support: Government-funded training programs available.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on gender, race, religion, or disability.
• Enforcement: Enforced by the Ministry of Labor.

Remote Work Policies

• Legal Framework: No specific legal framework.
• Tax and Insurance Implications: Remote work may impact tax and social security obligations.

Authoritative Website Addresses

• Ministry of Labor: https://www.mol.gov.kh/