What Employers Need to Know About the Cambodian Labor Law (Sep 2010)

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What Employers Need to Know About the Cambodian Labor Law

What Employers Need to Know About the Cambodian Labor Law

Recent entrants to the world of business in Cambodia often find it difficult to navigate the sometimes murky waters of the Cambodian Labor Law. Even if an employment contract was negotiated and signed abroad, if the work is performed in Cambodia, the Cambodian Labor Law must be followed. It serves as both a guarantor of minimum rights for employees, and enforcer of regulations for employers. This is not a comprehensive summary of the Labor Law, but it does highlight important areas that may differ from practices in other countries.

Opening Your Organization

There are procedures that must be followed in order to be compliant with the Cambodian Labor Law, and avoid future obstacles. If you are opening a business, a declaration must be made to the Ministry of Labor. The timeframe to make the declaration will depend on the number of workers employed by the organization. It is important to be proactive in making your declaration, as the Labor Inspector can make surprise visits and give you a fine for failure to properly make the declaration.