Cambodia

Cambodia

Capital: Phnom Penh
Currency: - KHR
KHR

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:

    • Salary RangeTax Rate
      0 - 1,500,000 KHR0%
      1,500,000 - 2,000,000 KHR10%
      2,000,000 - 8,500,000 KHR10%
      8,500,000 - 12,500,000 KHR15%
      12,500,000 KHR and above20%
  • 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

1.Overview of Cambodia's Labor Laws and Employment Policies
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Time Regulations
1.4Leave Policies
1.5Employee Severance and Contract Termination
1.6Tax Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policies
1.14Authoritative Website Addresses