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Cambodia issues new rules on contracts and compensation
Published on 07/07/2019
» In 2019, Cambodia’s Ministry of Labour and Vocational Training (MLVT) has been active in amending the Labour Law and revising long-standing practices. These amendments and revisions have brought much-welcome clarity to employers on requirements of the MLVT and interpretations of the Labour Law, and have further provided meaningful benefits to employees.
Cambodian Labour Law gets an overdue update: Employee seniority payment benefits enforced
Published on 04/03/2019
» Since its initial enactment in 1997, Cambodian Labour Law has remained largely untouched. However, with recent amendments introduced by the government in the past year, Cambodia's Labour Law is now witnessing the most significant changes in its 22-year history. Starting in mid-2018, a number of pro-employee initiatives were introduced in an attempt to bolster and improve Cambodian Labour Law and the benefits provided to the workforce. In brief, employers are now required to pay ongoing seniority payments to employees with open-ended employment contracts (referred to as "undetermined duration contracts"). In addition, those seniority payments must also be back-paid for time worked prior to 2019. These payments can be substantial--employees with fixed term contracts are entitled to five percent of the total wages earned during the duration of their contracts--and are accompanied by other major changes including a requirement to pay all employees twice a month, and the enactment of a pension scheme that is expected to be launched by the end of 2019.