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Cambodia Legal Update - Labor Law – Deadline to Apply for Foreign Employees Quota Approval for 2021

Cambodia Legal Update – Labor Law – Deadline to Apply for Foreign Employees Quota Approval for 2021

August 31, 2020

Employers should be aware that 2021 labor compliance deadlines are approaching. The period to apply to the Ministry of Labor and Vocational Training (“MLVT”) for the 2021 quota approval for foreign employees is now open and runs from 1 September 2020 to 30 November 2020. Applications for work permit renewals for 2021 are to be submitted to the MLVT from 1 January to 31 March 2021.

The quota threshold for foreign employees in an enterprise is 10% of the total number of Cambodian employees. According to the MLVT’s Prakas No. 277/20 dated 14 August 2020, employers wishing to use foreign employees in excess of the threshold can apply to the MLVT for a special purpose approval. Justification as to why they are unable to find Cambodian employees to fill the required positions must be given, such as there are specific qualifications needed, or foreign employees are more suitable for a specific working place or work shift.

Quota and work permit renewal applications for foreign employees must be submitted through the Foreign Worker Centralized Management System of the MLVT (www.fwcms.mlvt.gov.kh) before the deadlines mentioned above.

The quota application process involves the following:

  • Submission of a request letter addressed to the Minister of the MLVT attached with the employment contract of each foreign employee
  • Uploading of all required information and documents via the online system
  • Payment of the applicable government fee

If you have any questions, or would like us to assist with this process, please contact me at ([email protected]).

Leung

Leung Seng | Senior Associate
M:  +855 10 333 530/92 864 322
W: www.vdb-loi.com
No. 33, Street 294 (corner of Street 29)
Sangkat Tonle Bassac, Khan Chamkarmorn
Phnom Penh 120101
Cambodia

AUTHOR

Leung has over 15 years of experience advising both local enterprises and multinational corporations on banking, finance, M&A, employment, and insurance matters. He has assisted numerous clients in the financial, telecommunications and transportation industries with their M&A legal due diligence. He is particularly known for his deep knowledge of investment licensing, corporate law, commercial contracts and labor law.


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