News

24th - February, 2024

Increase in Penalties for Labour Law Violations (Foreign Worker Permit Non-Co...
Penalties for labour law violations, particularly related to foreign worker permits, have been substantially increased since 2022. Notably, directors listed as registered tax representatives (holding a Patent Tax Registration Certificate) are required to obtain foreign worker permits, regardless of their residency status. Non-compliance can result in hefty fines of approximately USD 12,600. Traditionally, the Ministry of Labour and Vocational Training (MLVT) has not been proactive in imposing penalties. However, recent cases indicate an increasing trend in enforcing fines, necessitating vigilance. 1. Increase in Base Fine Amounts As per the Joint Prakas No. 346 issued by the Ministry of Justice and MLVT on 25th November 2022, the base daily wage rate used for calculating fines has doubled from 40,000 Riels (approximately ...

27th - January, 2024

Overtime System in Cambodia
In the rapidly evolving economic landscape of Cambodia, the legal framework governing labor practices, particularly overtime work, plays a pivotal role in balancing the dynamics between employer expectations and employee rights. As businesses strive for growth and adaptability, understanding the intricacies of Cambodia’s overtime work regulations becomes crucial. This column aims to shed light on the legal system of overtime work in Cambodia, offering insights into how the law shapes the working hours beyond the standard workweek. By delving into the specifics of the Labour Law of the Kingdom of Cambodia (the “LL”) and its application in today’s corporate environment, we embark on a comprehensive exploration of a system designed to harmonize productivity with the well-being of the workforce. 1. ...

13th - January, 2024

Sub-decree on Peace Day in Cambodia
The Royal Government promulgated the Sub-decree on Peace Day in Cambodia on 1st January 2024. The Sub-decree establishes 29th December of each year as a national holiday to commemorate the complete end of the civil war on 29th December 29 1998. With the promulgation of the Sub-decree, the Ministry of Labor and Vocational Training also issued Prakas No. 1 on Public Holiday on Peace Day in Cambodia dated 5th January 2024.

06th - October, 2023

Sub-Decree on the Implementation of the Cambodian Investment Law: An Overview
With the new Investment Law coming into effect on 15th October 2021, aimed at fostering and enhancing investment in Cambodia, the Sub-Decree on the Implementation of the Law on Investment was subsequently enacted on 26th June 2023. 1. Key Highlights of the Decree The Sub-Decree primarily outlines the prerequisites and sequence for investment project registration and execution (Chapter II), elaborates on the specifics of investment incentives (Chapter III), enumerates the diverse services rendered by the CDC (Council for the Development of Cambodia) and MPISC (Municipal-Provincial Investment Sub-Committees) to investors (Chapter IV), and delineates the protocols for the transfer and amalgamation of investment projects (Chapter V) as well as the suspension of such projects (Chapter VI). 2. Investment Activities Qualifying for ...

29th - September, 2023

Prakas on Decision of Minimum Wage for Workers in Garment and Textile etc. In...
The Ministry of Labour and Vocational Training issued the Prakas on Determination of Minimum Wage for Workers/ Employees in the Textile, Garment, Footwear, Travel Goods and Bag Industry for 2024 No. 283 on 29th September 2023. The Prakas states that the minimum monthly wage for workers and employees in such industries in 2024 will be as follows: – Regular worker: USD 204 – Worker under probation: USD 202

10th - September, 2023

Som Ratana Appointed to Council of Jurists: A Recognition of Expertise
We are delighted to announce that one of our dedicated team members Som Ratana has been appointed to the Council of Jurists of the Office of the Council of Minister. This appointment is a testament to their expertise and commitment to excellence in their field. Serving on the counsel is not only an honor for our staff member but also a reflection of the high regard in which our company is held. We are proud to have such a talented individual as part of our team, and we look forward to seeing the positive impact he will make in this new role.

08th - June, 2023

Notification on Early Leaving for Disabled Workers
The Ministry of Labour and Vocational Training issued the Notification No. 017 on 6th June 2023. This notification states that employers shall allow workers/employees with disabilities to leave work at least 15 minutes earlier to make it easy for them to leave from work and protect the welfare of them.

05th - June, 2023

Instruction on days-off for the parliamentary election on 23rd July 2023
The Ministry of Labour and Vocational Training issued the Instruction No. 045 on 3rd June 2023. This instruction states that to make it easy for employees to join the parliamentary election on 23rd July 2023, all employer shall allow employees to have days off on 22nd, 23rd and 24th July by maintaining their wages and benefits. In addition, the instruction states that employers shall try to pay salary to employees before 22nd July and that if it’s unable to pay by then, employers are asked to allow employees to borrow a portion of their salary (advance payment).

28th - March, 2023

Sub-decree on Requirements and Procedures for Business Combinations
The Sub-decree No. 60 on Requirements and Procedures for Business Combinations was promulgated on 6th March 2023 and effective immediately. – Purpose of the Sub-decree. The purpose of the Sub-decree is to review, monitor and evaluate the impact on competition, and the Sub-decrees establishes requirements and procedures for business combinations (Article 2). – Pre-Notification and Review If the criteria set forth in the Sub-decree are satisfied, a notification must be made to the CCC (Consumer Protection, Competition and Fraud Repression Directorate General) prior to the completion of the business combination, and the business combination cannot be completed unless the CCC gives its permission (Article 4). A proposed business combination that has been notified to the CCC is subject to a ...

20th - March, 2023

Sub-decree on Management of Commercial Advertising on Products and Services
The Royal Government promulgated the Sub-decree on Management of Commercial Advertising on Products and Services on 4th November 2022. – Application of the Sub-decree The Sub-decree states that advertisements for products and services are forms and manners including audio-visual media, audio broadcasting, LED screen, website, email, newspapers, magazines flyers, packaging etc. (Article 8), and that the Sub-decree shall apply to such advertisements of products or services (Article 2). – Regulations on Description and Content of Advertisements According to the Sub-Decree, the Khmer language expressed in the Khmer language and letters. If a foreign language is used, the Khmer language shall be written above the foreign language and its font size shall be at least twice the size of the foreign ...