Employment law in Cambodia
Employment Law in Cambodia is governed by a combination of labor legislation, including the Labor Law of 1997, amendments, regulations, and international treaties that Cambodia is a party to. The primary legal framework for labor relations in Cambodia is the Labor Law, which provides comprehensive regulation regarding employment contracts, working conditions, wages, termination, employee rights, and dispute resolution.
1. Key Legislation Governing Employment in Cambodia
The Labor Law of 1997
The Labor Law of 1997 is the cornerstone of Cambodian employment law. It covers a wide range of topics related to employment and labor relations, including working hours, wages, safety, termination, social security, and labor disputes. It has been amended several times since its enactment to adapt to evolving economic conditions and international standards.
The Labor Law governs both private and public sector employees, though public employees are subject to additional regulations.
The Cambodian Constitution
The Constitution of Cambodia of 1993 guarantees a range of labor rights, including the right to organize, the right to fair wages, and the right to equal treatment in the workplace. These constitutional provisions provide a foundation for the labor rights protected by the Labor Law.
The Social Security Law of 2002
The Social Security Law establishes the National Social Security Fund (NSSF), which provides benefits to workers in the form of medical care, pensions, and compensation for work-related injuries or deaths. Employers are required to contribute to the NSSF for eligible employees.
Other Relevant Laws and Regulations
The Law on Trade Unions (2016): This law regulates the formation, operation, and activities of trade unions in Cambodia. It sets out workers' rights to form unions and engage in collective bargaining.
The Law on Employment of Children and Young People (1999): This law prohibits child labor and sets limits on the employment of young workers, ensuring their rights to education and safety.
The Law on the Minimum Wage: This law sets a minimum wage in certain sectors (such as the garment sector) and allows the government to adjust the wage in response to economic conditions.
2. Employee Rights and Protections
Employment Contracts
Written Contracts: The Labor Law of 1997 requires employers to provide a written employment contract for employees, particularly for contracts that last more than 3 months. The contract must outline key terms, such as job duties, wages, work hours, and duration.
Types of Contracts: There are two main types of contracts:
Fixed-Term Contracts: Used for specific tasks or projects, and they automatically end when the task or project is completed.
Indefinite-Term Contracts: More common, these contracts do not have a predetermined end date and can be terminated by either party according to the provisions of the Labor Law.
Working Hours and Overtime
Standard Working Hours: The standard working week in Cambodia is 48 hours, typically 8 hours per day for 6 days a week. However, some industries or sectors may have different arrangements, with 5-day work weeks being common in certain sectors.
Overtime: Employees who work more than the standard hours are entitled to overtime pay, which is generally calculated at 1.5 times the regular hourly wage for work on regular days and 2 times for work on holidays or rest days.
Rest Periods and Holidays
Weekly Rest: Employees are entitled to at least 1 full day of rest per week, typically Sunday.
Public Holidays: Cambodia has several national public holidays, including New Year’s Day, Labor Day (May 1st), Independence Day (November 9th), and King’s Birthday. Employees are generally entitled to take these holidays off with pay, and overtime pay applies if they work on these days.
Annual Leave: Employees are entitled to 18 days of paid annual leave per year after completing 1 year of continuous service with the employer.
Sick Leave and Health Care
Sick Leave: Employees are entitled to paid sick leave for a period of up to 6 months if they provide medical documentation. After 6 months of illness, employees may be entitled to unpaid leave or other forms of assistance, depending on the employer’s policy.
Health Care: Employers are required to contribute to the National Social Security Fund (NSSF), which provides health care benefits to workers for injuries or illnesses incurred during employment. This coverage includes medical expenses, treatment, and compensation for work-related accidents.
Maternity and Paternity Leave
Maternity Leave: Female employees are entitled to 90 days of paid maternity leave. This includes 45 days before and 45 days after childbirth, with payment at 100% of the employee’s regular salary.
Paternity Leave: Male employees are entitled to 3 days of paid paternity leave for the birth of a child.
3. Wages and Compensation
Minimum Wage
Cambodia has a minimum wage that is set by the government, with specific minimum wage rates applicable to different industries, particularly the garment sector, which has the largest share of the workforce.
The minimum wage is periodically reviewed and adjusted to reflect inflation and the cost of living. In addition to the minimum wage, employers must provide other benefits such as bonuses or allowances, depending on the employment contract.
Payment of Wages
Frequency of Payment: Wages are generally paid monthly, and the employer must provide a pay slip detailing the salary and any deductions (e.g., taxes, social security contributions).
Overtime Pay: Overtime is compensated at higher rates, and it is mandatory for employers to pay for any work done beyond the normal working hours.
4. Termination of Employment
Grounds for Termination
Dismissal with Cause: Employers may dismiss employees for just cause, which includes gross misconduct, failure to perform duties, or violation of workplace policies. In such cases, the employee may not be entitled to severance pay.
Dismissal without Cause: If an employer terminates an employee without just cause, the employer is required to provide severance pay and may also be required to provide compensation for any unpaid benefits.
Employee Resignation: Employees can also voluntarily resign from their employment, but they are typically required to provide a notice period, usually 30 days or as stipulated in the employment contract.
Severance Pay
Employees who are terminated without just cause are entitled to severance pay. Severance pay is generally calculated as 1 month of salary for each year of service, with a minimum of 3 months' pay for employees who have been with the company for 3 years or more.
5. Dispute Resolution and Labor Courts
Labor Disputes: Disputes between employers and employees are typically resolved through mediation, and the Ministry of Labor and Vocational Training plays a key role in labor dispute resolution. If mediation fails, disputes can be taken to the Labor Arbitration Council or, in some cases, the Court of First Instance.
Labor Unions: Employees have the right to join and form labor unions, and unions play a key role in representing workers’ interests in disputes with employers. Unions are also involved in collective bargaining for wages and working conditions.
6. Health and Safety
Employers are responsible for ensuring a safe working environment and complying with workplace safety regulations. This includes providing necessary protective equipment and ensuring that the workplace is free from hazards that could cause injury or illness.
Workplace Inspections: The Ministry of Labor and Vocational Training regularly conducts workplace inspections to enforce health and safety standards.
Employees who are injured on the job are entitled to compensation under the National Social Security Fund.
7. Social Security and Benefits
Employers are required to contribute to the National Social Security Fund (NSSF), which provides various benefits to employees, including:
Pension benefits (for retirement)
Work-related injury compensation
Medical benefits for work-related accidents or illnesses
Maternity benefits
Death benefits (in case of a fatal workplace accident)
Conclusion
Employment law in Cambodia provides a solid framework for protecting workers' rights, particularly in areas such as working hours, wages, termination, and social security benefits. The Labor Law of 1997, along with the Social Security Law and other related regulations, ensures that employees are entitled to various protections, including minimum wage standards, health and safety measures, and paid leave.
While there have been significant improvements in Cambodia’s labor laws, enforcement of these laws can be challenging, particularly in the informal sector. Labor unions and government agencies like the Ministry of Labor and Vocational Training play key roles in addressing disputes and improving labor conditions. The legal system continues to evolve, particularly in the areas of wage regulation, labor conditions in the garment industry, and workers' rights.
RELATED Blog
0 comments