Legal Update: Labour Law Amendment: Comparison on the Changes.
Issue: No. 032P/21-25 October 2021
The Royal Government of Cambodia and Ministry of Labour and Vocational Training (“MLVT”) has recently release the Law on Amendment of Articles 123, 138, 162, 300, 343, 350, 363 & 367 of Labor Law which was enacted by the Royal Kram NS/RKM/1021/011 dated 05 October 2021 (“Labour Law Amendment 2021”).
Pursuant to the Labour Law Amendment 2021, Sithisak would like to note the key changes as following:
| Article | Previous Law | The Amendment |
| 123 | Prioritized claims provided for in Article 122 above, are opposable to all other general and special priority, including the priority of the National Treasury.
Amounts deducted by the National Treasury from the money order of the employer after the date when payment of debt was stopped, shall be returned to debtors (sub-creditors). |
Prioritized claims provided for in Article 122 (new) above, are opposable to all other general and special priority, including the priority of the National Treasury.
Amounts deducted by the National Treasury from the money order of the employer after the date when payment of debt was stopped, shall be returned to debtors (sub-creditors). |
| 138 | The work schedule is set by each enterprise for different jobs based on the nature of their activities and organization of work.
When the work schedule consists of split shifts, the enterprise’s management can normally set up only two shifts, one in the morning and the other in the afternoon. |
The work schedule is set by each enterprise for different jobs based on the nature of their activities and organization of work, and which can be more than 1 (one) shift per day. In case there is 3 (three) shifts, it can be morning shift, afternoon shift and night shift but the working hour for each shift shall not exceed the full working hour per day as required under article 137 of labour law.
When the work schedule consists of split shifts, the enterprise’s management can normally set up only two shifts. , one in the morning and the other in the afternoon. |
| 162 | In case the public holiday coincides with a Sunday, workers will have the following day off.
Time off for holidays cannot be the reason for reducing monthly, bi-monthly, or weekly wages. |
In case the public holiday coincides with a Sunday, workers will have the following day off.
Work during paid public holidays shall be under the control of labour inspector. The formality and procedure for work during paid public holidays shall be determined in the Prakas of Minister in charge of labour. Time off for holidays cannot be the reason for reducing monthly, bi-monthly, or weekly wages. |
| 300 | An individual dispute is one that arises between the employer and one or more workers or apprentices individually, and relates to the interpretation or enforcement of the terms of a labor contract or apprenticeship contract, or the provisions of a collective agreement as well as regulations or laws in effect.
Prior to any judicial action, an individual dispute can be referred for a preliminary conciliation, at the initiative of one of the parties, to the Labor Inspector of his province or municipality. |
An individual dispute is one that arises between the employer and one or more workers or apprentices individually, and relates to the interpretation or enforcement of the terms of a labor contract or apprenticeship contract, or the provisions of a collective agreement as well as regulations or laws in effect.
Prior to any judicial action, For any individual dispute, any party can be referred for a preliminary conciliation, at the initiative of one of the parties, by the Labor Inspector of his province or municipality. In case of non-conciliated, either party may refer the case to labour court or to arbitration council in accordance with the Prakas of Minister in charge of labour. |
| 343 | The tasks of the Labor Inspection are assumed by Labor Inspectors and by Labor Controllers. Before their appointment, Labor Inspectors and Controllers must solemnly swear allegiance to fulfilling their duties and to not revealing, even after having left their post, any manufacturing or trade secrets or operating methods that they learned of during the course of their work. |
The tasks of the Labor Inspection are assumed by Labor Inspectors and by Labor Controllers. Before taking their position appointment, Labor Inspectors and Controllers must solemnly swear allegiance to fulfilling their duties and to not revealing, even after having left their post, any manufacturing or trade secrets or operating methods that they learned of during the course of their work. |
| 350 | Within the framework of their mission, the provisions relating to the powers and obligations of Labor Inspectors provided for in Articles 343 – paragraph 2, 346 and 347 – points 1, 2, 3, 4 of this law, are also extended to the Labor Medical Inspectors. | Within the framework of their mission, the provisions relating to the powers and obligations of Labor Inspectors provided for in Articles 343 (new)- paragraph 2, 346 and 347 – points 1, 2, 3, 4 of this law, are also extended to the Labor Medical Inspectors. |
| 363 | Those guilty of violating the provisions of Articles 21, 28, 44, 45, 49, 50, 57, 59, 106, 139, 144, 162, 163, 164, 166, 167, 168, 169, 170, 179, 180 – paragraphs 1 and 2, 182 – paragraphs 2 and 3, 184, 194, 198, 200, 204, 205, 206, 210, 249, 296, and 306 are liable to a fine of thirty-one to sixty days of the base daily wage. | Those guilty of violating the provisions of Articles 21, 28, 44, 45, 49, 50, 57, 59, 106, 139, 144, 162, 163, 164, 166, 167, 168, 169, 170, 179, 180 – paragraphs 1 and 2, 182 – paragraphs 2 and 3, 184, 194, 198, 200, 204, 205, 206, 210, 249, 296, and 306 of labour law are liable to a fine of thirty-one to sixty days of the base daily wage. |
| 367 | Employers who employ staff under conditions contrary to the provisions of Articles 137, 138 – paragraph 2, 140 and 141 regarding hours of work or the Prakas instructing enforcement of these articles are liable to a fine of thirty-one to sixty days of the base daily wage. | Employers who employ staff under conditions contrary to the provisions of Articles 137, 138(new) – paragraph 2, 140 and 141 of labour law regarding hours of work or the Prakas instructing enforcement of these articles are liable to a fine of 31 (thirty-one) to 60 (sixty) days of the base daily wage. |
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:
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SON Sokeng,
Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870
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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). |
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NOEUM Sokvichhai,
Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785
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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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