COUNTRY

Written Agreements

An employment contract may be written or oral. For fixed-term contracts, it is mandatory to form contracts in writing, whereas contracts for an undefined duration can be written or verbal. Any contractual clauses that prohibit employees from pursuing any activities after the contract expiry date are null.

A written agreement must include the remuneration and other benefits available to employees. Any written or verbal agreement that would remunerate the employee at a rate less than the guaranteed minimum wage is null and void.

The Labor Code of Cambodia prohibits restrictive covenants in employment contracts. Any clause of a contract that prohibits an employee from engaging in any activity after the expiration of the contract is null and void.

Oral Agreements

An oral or verbal contract is considered to be a tacit agreement between the employer and the employee under the conditions laid down by the labor regulations, even if it is not expressly defined. Such contracts can only be formed for employment for an indefinite duration.

Implied Agreements

In Cambodia, the Labor Code does not have provisions regarding implied contracts. The law only recognizes written or oral employment agreements.

Employees are required to work for a maximum of 8 hours per day, 48 hours per week, with 1 rest day per week. It is prohibited to employ a person for more than 6 days in a week. Working hours cannot exceed 10 hours per day in case of overtime.

Employers can divide a work schedule into 3 shifts (morning, afternoon, and night) with each shift not exceeding the maximum of 8 hours daily. An employee can work for more than 1 shift per day provided that the duration of all daily work shifts does not exceed the total mandated number of working hours per day.

International New Year Day - January 1

7-Jan Victory over Genocidal Regime Day;

11-Feb Meak Bochea Day; 8-Mar International Women's Day; April 14, 15, 16 Khmer New Year Day; 1-May International Labor Day; 10-May Visak Bochea Day; May 13, 14, 15 King's Birthday, Norodom Sihamoni; 14-May Royal Plowing Ceremony; 1-Jun International Children's Day; 18-Jun King's Mother Birthday, Norodom Monineath Sihanouk; September 19, 20, 21 Pchum Ben Day; 24-Sep Constitutional Day; 15-Oct Commemoration Day of King's Father, Norodom Sihanouk; 23-Oct Paris Peace Agreements Day; 29-Oct King's Coronation Day, Norodom Sihamoni; November 02, 03, 04 Water Festival; 9-Nov Independence Day; 10-Dec International Human Rights Day.

Employees must receive paid annual leave of 1.5 days per month, for a total of 18 days per year (increasing by 1 additional day for every 3 years of continuous service). The entitlement to annual leave becomes effective after 1 year of service. Paid holidays and sick leave do not count as paid annual leave.

Any collective agreement providing compensation in place of paid leave, or waiving the right to paid annual leave, is void. Acceptance by the employee to postpone all or part of their rights to paid leave until the termination of the employment agreement is not considered as renunciation. Postponement of this leave cannot exceed 3 consecutive years and can only apply to leave exceeding 12 days per year.

Employees are entitled to sick leave for up to 6 months if the sickness is certified by a licensed doctor. The employer may dismiss the employee if sick leave extends beyond 6 months. The Labor Code does not have regulations on paid sick leave; however, employers may provide paid sick leave through internal work regulations. An example of sick leave pay is as follows:

• 100% of wages during the first month of sick leave
• 60% of salary during month 2 and 3 of sick leave
• Unpaid leave during month 4, 5 and 6

Female employees in Cambodia are entitled to a maternity leave of 90 days, with 50% of their wages paid by their employer. There is no restriction on whether the leave must start before or after childbirth.

It is prohibited to lay off women in the workforce during their maternity leave or at a date when the end of the notice period would coincide with the maternity leave. During leave, female employees are entitled to 50% of their wages, including perquisites, paid by the employer, as well as any other benefits in kind they were entitled to.

The law does not have regulations explicitly related to paternity leave; however, it offers a provision for special paid leave of up to 7 days for events that directly affect an employee's immediate family. This leave is deducted from the annual leave. If the employee has used the entire annual leave for the year, the employer cannot deduct the special leave from the employee's annual leave for the next year.

Minimum Wage

According to the Cambodian Labor Code, all employees are entitled to receive wages that are at least equal to the guaranteed minimum wage. Effective January 1, 2024, the Government of Cambodia has set a minimum monthly salary for the country's textile, garment and footwear and travel products and travel products industries at USD 208 per month, and for probationary employees at USD 206 per month.

The Labor Code requires employers to pay wages to laborers at least twice a month and to employees at least once a month. Any commissions due to sale agents or commercial representatives must be paid at least every 3 months. Payment shall not be made on a day-off. If payday falls on such a day-off, the payment of wages shall be made a day earlier.

Overtime, Holiday & Vacation Pay

Employees in Cambodia are paid 150% of their regular wages for overtime work. For overtime hours that occur either at night (from 10:00 PM to 5:00 AM), during the employee's weekly time off, or during a public holiday, the rate is 200% of regular wages. Employers may allow workers to work overtime as long as the total working hours do not exceed ten hours a day, with some extraordinary exceptions.

Holiday time off cannot be a reason for reducing wages. Employees paid by the hour, the day, or by their output are entitled to an indemnity equal to the wage lost as a result of holidays, paid by the employer.

Notice Period

For permanent employment contracts, the minimum notice period ranges from 7 days to 3 months, depending on the length of service. Notice period is not required for termination during probation or due to gross misconduct. During notice period, employees have a right to 2 fully paid days, at regular rates, per week to look for a new job.

For fixed-term contracts between 6 months and 1 year, the employer must give notice at least 10 days prior to the expiration date. If a fixed-term agreement is over 1 year, the organization must give notice at least 15 days before the expiration date. Failure to provide prior notice to the employee will result in the renewal of the fixed-term agreement for a duration equal to the original contract.

Severance Benefits

Seniority payment is calculated as 15 days' wages and benefits per year of service, paid in 2 installments every year, limited to a maximum of 6 months' wages and benefits. In case of termination, the employer must pay at least 7 days' wages and benefits per year of service for the remaining year. Persons dismissed due to gross misconduct are not eligible to receive any severance pay.

Employees under fixed duration contracts are entitled to severance pay of at least 5% of the total wages during the term of the contract.

Pension

In Cambodia, the National Social Security Fund (NSSF) provides for retirement pensions for insured employees. There are different provisions for public sector employees and private sector employees, including benefits and contributions.

For public sector employees, the mandatory contributions are paid by the government and employees. The retirement age is 60 years. To be eligible for retirement pension, employees must have be registered in the pension scheme and paid at least 12 months' contributions.

For private sector employees, the contributions are paid by the employees and their employers. The retirement age is 60 and they must have paid contributions for at least 12 months to be eligible for pension. The amount of pension depends on the average wage and accrual rate based on the years of contributions. The maximum accrual rate of old-age pension is equivalent to 1.75% per year of contribution.

Both public and private sector employees can contribute in a voluntary pension scheme.

Dependents/Survivors Benefits

The law in Cambodia provides survivors benefits for dependents, including widows, widowers, and children. Insured employees (both public and private sectors) must have paid at least 60 contributions for their survivors to receive the pension. The minimum rate of Survivors’ Pension is 45% of old-age pensions or invalidity pensions of the person concerned.The pension for survivors is calculated as follows:

• Surviving spouse - 50%
• Children - 50%

In case the beneficiary is only spouse or children shall be entitled to enjoy 100% pension.

If requirements are not fulfilled, the survivors are entitled to the survivors allowance, provided as a lump sum in the amount of not less than the monthly old-age pension of the deceased person.

Invalidity Benefits

In Cambodia, NSSF provides invalidity pension for public and private sector employees. an NSSF member is entitled to invalidity benefit before the age of 60 years and with payment of contribution for 60 months prior to the disability. The maximum accrual rate of old-age pension is equivalent to 1.75% per year of contribution. The minimum rate of invalidity pension is equivalent to 45% percent of the average contributory wage of the person concerned.