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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.

A probationary period allows the employer to determine the professional aptitude level of the employee and for the employee to better understand the conditions of employment. The maximum probationary period depends on the type of employee:

• Permanent employee - 3 months
• Specialized fixed-term employee - 2 months
• Non-specialized employee - 1 month

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.

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.

Visas

All visitors, except citizens of Brunei, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, need a visa to enter Cambodia. Visas may be obtained at Cambodian embassies or consulates, and are also available upon arrival.

• Tourist visa (T-Visa) - issued to foreign nationals who visit Cambodia as tourists. It is valid for 90 days, and grants stay up to 30 days. A tourist visa can be extended for 1 month at a time.
• Ordinary/business visa (E-Visa) - granted to foreign nationals who visit Cambodia for business/study or work purposes. It is issued for 30 days and can be extended for 1, 3, 6, or 12 months.
• Khmer visa (K-Visa) - issued to people of Cambodian descent who have foreign passports.
• Official visa (B-Visa) - issued to government employees of organizations in Cambodia on invitation from the Government of Cambodia.
• Diplomatic visa (A-Visa) - granted to diplomats and other foreign government officials traveling to Cambodia.
• Courtesy visa (C-Visa) - issued to employees of international NGOs that have a memorandum of understanding (MoU) with the Ministry of Foreign Affairs.

Work Permits

Employers who wish to hire foreign employees must first get approval from the Department of Employment and Manpower. After receiving written permission to use a foreign workforce, the employer must apply for a work permit and an employment card for the foreign employees no later than March of each year.

Foreigners nationals who want to work in Cambodia must hold the following documents:

• A work permit that is issued by the Ministry of Labour (valid for 1 calendar year and renewable indefinitely); the approved employee also receives a workbook and an employment card.
• A valid passport, visa, and a residence permit (obtained at the employee’s local Sangkat office)
• A health certificate issued by the Ministry of Labour or Health Department, verifying that the individual does not have any contagious diseases and is physically fit for a particular job

The use of a foreign workforce may not exceed 10% of the total number of employees. In special cases, where the employer requires more than 10%, specific reasons must be indicated in the application letter.