Foreword

With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance in Cambodia.

01 Overview of the Labor Law System

1. Legal System 

Cambodia operated under a civil law system.

2.Resources and Agencies 

The main statutes and regulations in Cambodia that relate to employment are the Labour Law, the Law on Social Security Schemes, the Law on Minimum Wages, and the Law on Trade Unions. These primary laws are supported by detailed implementing rules issued through Prakas and Sub-decrees.

02 Employment Qualifications and Classification

1. Employment Age 

An employee/worker, including those working in air transportation, maritime transportation, and as domestic workers, must be at least 15 years old to be hired in a normal job.

Work which is dangerous for health, safety or psychological well-being is not allowed for employees/workers under 18 years old.

2.Qualifications for Foreign Employers 

A foreign business cannot hire locally without a permanent establishment. A foreign business would be deemed to have a permanent establishment when hiring locally.

In addition, Cambodian Labor Law requires employers to declare the opening of enterprise to the Ministry in charge of labor.

3.Classification of Employment

Under the Cambodian Labor Law, employment relationships are categorized as follows:

• Employee/Workers

• Domestics or Household Servants

• Employees or Helpers

• Labourers

• Artisans

• Apprentices

The concept of Employer of Record (EOR) does not exist under Cambodian law.

4.Foreign Workers

The Labour Law sets some conditions on the use of foreign workforce:

• All enterprises shall give priority to Cambodian nationals.

• The use of foreign workforce shall not compete with Cambodian employees.

• Employers must respect the quota in the use of foreign workforce.

According to Prakas No. 196 on the Use of Foreign Workforce dated 20 August 2014, enterprises may hire foreign workers up to 10% of their total workforce.

03 Recruitment and Employment Contracts

1.Background Examination

Cambodian law does not contain any provision prohibiting an employer from conducting a background check on an applicant or employee.

2.Contract Types

Cambodia’s labor law primarily defines four types of employment contracts:

• Fixed Duration Contract

• Undetermined Duration Contract

• Apprenticeship Contract

• Full-time or part-time contract

3.Probationary Period

According to Article 68 of the Labour Law, the probationary period is subject to the following rules:

It must not be longer than the time necessary for the employer to evaluate the worker’s professional skills and for the worker to understand the working conditions.

In any case, the maximum duration depends on the type of worker:

• 3 months for regular employees

• 2 months for specialized workers

• 1 month for non-specialized workers

04 Working Standards

1.Remuneration 

According to Article 103 of the Labour Law, wage may include:

• actual wage or remuneration

• overtime payments

• commissions

• bonuses and indemnities

• profit sharing

• gratuities

• the value of benefits in kind

• family allowance in excess of the legally prescribed amount

• holiday pay or compensatory holiday pay

• amounts of money paid by the employer to workers during disability and maternity leave

2.Statutory Benefits and Social Security

The below provides a summary of the statutory benefits in Cambodia:

• Paid leave: Public holiday, Annual leave, Sick leave, Maternity leave, Special leave

• Weekly rest day

• overtime payments

• Seniority indemnity for UDC

• Severance payment for FDC

3.Working Hours

There is no fixed standard schedule such as 8:00 a.m. to 5:00 p.m. The actual start and end times are subject to agreement between the employer and the employee, provided that the daily and weekly maximums are respected. Employees are also entitled to a daily unpaid meal break of at least one hour.

4.Rest and Leave 

Weekly day off: Employee must have at least one full day off per week, which should be taken on Sunday.

05 Occupational Health and Special Protection

1.Occupational Health and Security 

In Cambodia, employers are obligated to provide a safe and healthy work environment for their employees by addressing various aspects of workplace conditions. These requirements include:

(1) Care: Hygiene & Safety

According to Article 229 of the Labor Law, this duty includes maintaining the quality of the premises, ensuring regular cleaning, providing hygienic facilities, and offering beverages and meals. Where necessary, the employer must also provide appropriate lodging for employees.

(2) Free protection

Provide Protective Equipment (PPE) in hazardous work

2.Special Protection 

06 Personal Information and Privacy

1.General Rules

The Constitution of Cambodia cherishes the right to privacy. However, Cambodia does not yet have a specific law on privacy or on the management of employee personal data. The Penal Code criminalizes certain acts that violate privacy, such as recording private communications without consent or taking a picture of a person in a private space, but it says little about the protection of employee information in the workplace.

2.Transnational Transfer

At present, no Cambodian law specifically regulates the transnational transfer of personal information. In this situation, the employee’s consent is required before any personal information may be transferred outside the country.

07 Anti-Discrimination and Anti-Harassment

1.General Rules 

The Cambodian Constitution establishes the principle that all individuals are equal before the law without distinction based on race, colour, sex, language, beliefs, religion, political tendencies, birth origin, social status, or wealth. The Labour Law applies this principle in the workplace by explicitly prohibiting employers from making decisions on hiring, training, advancement, promotion, remuneration, social benefits, or termination based on these characteristics.

2.Protective Characteristics 

In Cambodia, the protective characteristics under anti-discrimination rules are primarily defined in the Labour Law, which prohibits discrimination in various aspects of employment based on ethnicity, skin colour, sex, belief, religion, political ideology, race, nationality, social origin, or union membership.

08 Internal Policies

1.Applicability

It is common for an employment relationship to be managed through an internal rule.

2.Validity

Internal regulations cannot take effect solely by the employer’s unilateral decision. The employer must first consult with workers’ representatives or the shop steward. After consultation, the draft must be submitted to the Labor Inspector, and the regulation becomes effective only upon the inspector’s approval.

3.Whistleblowing 

There is currently no specific whistleblowing rule in Cambodian labor law. However, workers can raise complaints through their union, shop steward, or directly to the Labor Inspector.

09 Transactions

1.Employment Relationship

Employees’ employment contracts (covering positions, remuneration, contract term, etc.) must continue after a merger, acquisition, equity transfer, or asset transfer.

2.Compensation 

Employees are not automatically entitled to compensation solely because of a merger, acquisition, or transfer.

10 Termination of Employment

1.Termination Grounds 

Termination rules are different depending on the type of contract.

（1）Fixed Duration Contract (FDC): Termination before the expiry of the contract may occur only in three cases:

• By mutual consent of the parties, which must be made before the labour inspector

• Serious misconduct of the employee

• Force majeure

（2）Undetermined Duration Contract (UDC): Termination must be based on a valid reason, which may relate to:

• The aptitude of the employee

• The behaviour of the employee (including serious misconduct)

• The necessities of the enterprise

2.Termination Procedure

Employers must provide prior notice of termination. The specific requirements depend on the type of contract and the circumstances of the dismissal.

3.Termination Protection

Beyond this general rule, the Labour Law provides specific protections against dismissal in the following circumstances:

• During leave

• During pregnancy and post-birth

• Union representatives

• Discrimination

• Retaliation

4.Severance and Compensation 

According to the Notification on the Compensation for Terminating an Employment Contract in 2024, the differences and requirements differ depending on the nature of the termination.

5.Wrongful Termination

The Labour Law does not provide for the reinstatement of an employee to the workplace.

6.Mass termination and Layoffs

A collective dismissal (also called a mass layoff) refers to the termination of a large number of employees for economic, technical, or structural reasons. These may include company restructuring, decline in business, or change in production methods.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality 

Cambodian law does not impose a general requirement to sign confidentiality agreements with workers. However, Article 72 of the Labour Law provides that even when an employment contract is suspended, the employee remains bound by obligations of loyalty and confidentiality. This shows that confidentiality is a legal duty under Cambodian law.

2.Non-Compete and Non-Solicitation

Under Article 70 of the Labor Law, “any clause of a contract that prohibits the worker from engaging in any activity after the expiration of the contract is null and void.”

The Labour Law does not expressly regulate non-solicitation. However, the broad wording of Article 70, which refers to “any activity”, means that restrictions on soliciting clients, customers, or staff after termination would also be treated as invalid.

12 Work Representation and Trade Unions

1.Work Representation 

Cambodian law requires that in every enterprise or establishment employing at least eight workers, the employees must elect shop stewards as their representatives.

2.Trade Unions 

Based on the Law on Trade Union, the following are different form of union in Cambodia:

• Local worker union

• Federation of worker unions

• Confederation of worker unions (or coalition of federations of worker unions)

• Council of national worker unions

13 Dispute Resolution

1.Procedures & Enforcement

（1）Individual Disputes

Stage: Conciliation before Labour Inspector 

• Either party refers the dispute to the competent labour inspector.

• Inspector investigates and holds a hearing within 3 weeks.

• Parties may be represented.

• Any agreement is recorded in an official report.

（2）Collective Disputes

Stage: Conciliation  

• Dispute reported to the labour inspector (or inspector may act on own initiative).

• Minister of Labour appoints a conciliator within 48 hours.

• Conciliation held within 15 days (renewable by joint request).

• Parties must refrain from strikes/lockouts and attend all meetings.

• Agreement signed by the parties and visaed by the conciliator.

Stage: Arbitration 

If conciliation fails → case referred to arbitration (per collective agreement, mutual agreement, or by default to the Council of Arbitration).

2.Waiver & Enforcement 

In principle, under the Cambodian Labour Law, any contractual arrangement that provides less favourable terms than the law grants to employees shall be considered null and void.

14 Others

1.Latest Development & Trends

Aside from what has been mentioned in this guide, we are not aware of any new plans in labour regulation.

2.Cultural and Religious Considerations

Cambodia values its traditional and religious events. Major national holidays such as Khmer New Year and Pchum Ben are already provided for as official public holidays under the Labour Law.

In addition to these, employees are entitled to seven days of special leave per year.

* To avoid ambiguity, this article should not be regarded as legal advice.