Legal and Tax Updates

Based on Prakas of the Ministry of Labour and Vocational Training, all enterprises and establishments shall apply for quota no later than the end of November each year in order to use of foreign employee. For year 2021, the application period is extended to 31^st January 2020. Being close to the deadline, we would like to remind all companies employing or intending to employe foreign worker to apply for this approval before the deadline to avoid any possible penalty.

Application Deadline

31^st January 2021.

Description

By law, any enterprise wishing to employ foreign work force shall obtain permission from the Ministry of Labour and Vocational Training. The request shall specify clearly about the current number of Cambodia worker and foreign worker, and the reason to use foreign worker. Generally, this request shall be made no later than the end of November each year, but the Ministry may extend the application period. The use of foreign worker is limited to 10% of Cambodia workers:

• Office personnel: 3%
• Specialized personnel: 6%
• Non-specialized personnel: 1%

In case there is the need to use foreign worker more than 10%, the employer shall clearly mention each foreign worker’s qualification and the actual nature of work to perform.

We hope that the above legal update is helpful for your investment and help you to invest more confidently.

Disclaimer

The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

	SON Sokeng, Partner,  Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870	Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
	NOEUM Sokvichhai, Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785	Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.

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