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Feb 23, 2017

Employment Policies Under Cambodian Labor Laws


By Vanarith Vo

The Cambodia labor law of 1997 outlines employment relations resulting from employment contracts performed in the Kingdom of Cambodia. The law applies to contracts for employment in Kingdom of Cambodia regardless of the place of contracting, the nationality of the parties, or the residence of the parties.

A number of related regulations promulgated by the Ministry of Labor seek to promote change in the employment scheme from a labor-intensive orientation to one focused on skill-intensive industries in order to improve Cambodia’s competitiveness and productivity.

To ensure that equal employment opportunity, employers are prohibited from discriminating based on race, color, sex, language, religious belief, political tendency, birth origin, social status, wealth or other status from the hiring process through during the term of employment. Employers are permitted to discriminate, however, in cases where the job requires specific skills.

Employers should be aware of the following recruiting procedures:

  • Minimum age: the minimum age for wage employment is 15 years old and extendable to 18 years old for work, which, by its nature, could be hazardous to the health, safety or morality of the adolescent. In specific circumstances, children from 12 to 15 years old can be hired to do light work provided that the work is not hazardous to their health or mental development and will not affect their school attendance or participation in vocational training.
  • Equal pay for equal work: the wage will be the same for all workers having the same skills and output.
  • Minimum wage: there is no set minimum wage for private sector employers with the exception of the Garment and Footwear Industry; however, by law, salaries for private sector employees must be at least equal to the minimum guaranteed minimum wage: the salary must ensure the employee a decent standard of living compatible with human dignity.

Employers are permitted to recruit employees by their own devices directly; however, they must first notify the Placement Office of the Ministry in charge of Labor or the provincial or municipal Employment Office of any vacancies or any new need for personnel. Employers may use the National Employment Agency (NEA), a special Operating Agency under the jurisdiction of National Training Board, to look for personnel. The NEA plays a vital role in providing Cambodian citizens with employment and labor market services by matching job seekers with potential employers.

In line with labor market demands, the Ministry of Labor has outlined its strategic plan seeks to improve employability, adjust the minimum wage, and continue executing agreements with companies regarding working conditions. As a result, 106 technical and vocational training centers have been established, 39 of which are under the direct supervision of the Ministry of Labor, with 80,000 persons undergoing training each year. 

Sciaroni & Associates' Labor Practice Group has demonstrated expertise advising our clients in all aspects of labor and human resource law in the Kingdom of Cambodia.

Our team of expatriate and national advisors and paralegals can help by drafting and reviewing employment policies and agreements and assisting in document registration with the Ministry of Labor and Vocational Training in the Kingdom of Cambodia.

Sciaroni & Associates advises across a broad range of labor and corporate compliance issues while advising on corporate structures that are in keeping with international best practices and prevailing law in Cambodia.

Sciaroni & Associates, one of Southeast Asia’s leading professional services and investment advisory firms, has been providing skilled counsel and knowledgeable business insights for over two decades. Based in Cambodia with legal offices in  Laos and Myanmar, our experienced team of advisors brings considerable general and sector-specific expertise to the challenges confronting companies doing business in emerging markets.  We are proud that our clients comprise many of the world’s premier companies, banks, financial institutions, governments and global development organizations.

For more information please visit www.sa-asia.com or contact us at info@sa-asia.com


 
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Sciaroni & Associates is a leading professional and investment advisory firm doing business in Southeast Asia since 1993. Based in Cambodia with legal offices in Laos and Myanmar, we provide experienced advice and business insights to many of the world’s leading companies, governments, economic think tanks, global development funds, international NGOs and the Royal Government of Cambodia in accordance with strict international standards.
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