Update Type: Legal Updates

September 23, 2020

As a developing country, child labor has been an important concern in Cambodia for decades. The increased power of social media has shone a new light on child exploitation. Highlights of this note Convention on the Rights of the Child: Provision on the Protection of Children From Economic Exploitation Does Cambodia Allow Minors to Perform […]

September 22, 2020

Introduction   The banking system in Cambodia includes commercial banks, specialized banks, microfinance institutions (“MFIs”), rural credit institutions, financial leasing companies, third-party processors, credit bureaus, representative offices, payment service providers, and money changers. Of these entities, commercial banks play a crucial role in providing financial services to the general public and businesses, ensuring economic and social stability, and the sustainable growth of the economy. As of this writing, there are 51 licensed commercial banks in Cambodia; […]

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 […]

May 28, 2020

On 20 May 2020, Cambodia’s State Secretariat of Civil Aviation issued new rules for international travelers arriving in Cambodia. The new regulation addresses the problem of Cambodian and overseas nationals coming (back) to the country during the pandemic. A Cambodian national who returned from the Philippines that very same day was discovered to have COVID-19. […]

April 2, 2020

In response to the current economic situation caused by the COVID-19 pandemic, and to relieve the burden on borrowers facing financial hardship, the National Bank of Cambodia (“NBC”) has issued Circular No. T7.020.001 directing banking and financial institutions (including microfinance institutions) in Cambodia (“Institutions”) to be flexible with regard to debt repayment by offering loan […]

March 26, 2020

On 23 March 2020, in response to the spreading of COVID-19, the Ministry of Labor and Vocational Training (“MLVT”) issued notification 009/20 requiring all employers to provide an updated list of the contact telephone numbers of all employees to the Department of Labor Inspection of the MLVT by 26 March 2020. Lists are to be emailed to [email protected] […]

March 26, 2020

Sickness is a paid leave permitted by the Labor Law (Article 169). Therefore, during sickness, employer needs to pay the salary of his employee. Highlights of this note If an employee falls sick, who pay the salary? What if an employee wants to stay home to take care of children or school closed or child […]

March 23, 2020

With the emergence and spread of COVID-19, the sale of protective masks and antiseptic disinfectant have greatly increased to the extent that it has become difficult to buy them at a reasonable price.

March 13, 2020

The spread of the novel coronavirus is creating a global emergency situation and negatively impacting almost every country in the world, including Cambodia. In response to this viral pandemic, the Royal Government of Cambodia, as well as the National Bank of Cambodia (“NBC”) is taking immediate action to steer the economy through this very difficult […]

November 27, 2019

In the wake of the tragic and fatal building collapse in Sihanoukville June this year, the new and hotly debated Construction Law has come into force on 2 November 2019 and is now set to become a real factor which will take into account in a wide range of investment projects in Cambodia. Highlights The […]

July 19, 2019

As you may be aware, the Ministry of Labor and Vocational Training (“MLVT”) has issued several regulations since its introduction of an employee seniority payment for those with unlimited duration contracts (“UDCs”) (which replaced the indemnity for dismissal previously stipulated in the 1997 Labor Law) through an amendment to the Labor Law (for more details […]

March 29, 2019

As you may be aware, according to the applicable regulations, foreign employees are required to renew their 2019 work permits and employment cards (“Work Permit”) with the Ministry of Labor and Vocational Training (“MLVT”) by 31 March 2019. Through its ministerial announcement (No. 008/19), dated 27 March 2019, the MLVT has extended the deadline for […]

March 19, 2019

As you may be aware, according to the applicable regulations, employers of foreign employees are required to ensure that they obtain a work permit and employment card (“Work Permit”), and that such Work Permit is renewed with the Ministry of Labor and Vocational Training (“MLVT”) on an annual basis. With respect to 2019 Work Permit […]

February 15, 2019

Electricite du Cambodge (“EDC”) has finally issued the long-awaited tender for the development of a 60MW solar power plant to be connected to the national grid, which is Phase 1 of a planned 100MW solar power park. On 13 February 2019, EDC issued an invitation for bids for the development, design, finance, construction, operation, and […]

January 31, 2019

According to a previous notice of the Ministry of Commerce (“MOC”) dated 22 December 2017, all corporate entities were required to complete their online re-registration with the MOC by 31 December 2018. Recently, the MOC issued another notice, No. 0384, dated 30 January 2019, regarding further extension of the online re-registration deadline to 31 December […]

January 30, 2019

Financing and tax 2018 saw several changes to the tax regulations. The application of transfer pricing rules in Cambodia is now a reality. Starting from 2018, companies have to comply with the regulations issued in October 2017, which adopt the arm’s length principle in accordance with the OECD’s guidelines. The regulations left many questions unanswered, […]

January 8, 2019

Further to the amendment in 2018 of the Labor Law and Prakas 443 on seniority payment, which is applicable to all existing unlimited duration contracts (for more details, please see our Cambodia legal update here), the Ministry of Labor and Vocational Training (“MLVT”), through its information declaration on seniority payments dated 28 December 2018, has provided […]

October 1, 2018

Seniority payment On 11 July 2018, the Labor Law was amended by Royal Decree (“Labor Law Amendment”), particularly Articles 89, 90, 91, 94, 110, 120, and 122. One notable amendment is the elimination of the “indemnity for dismissal”, which is equivalent to severance pay and paid upon employment termination only, and the introduction of the […]

September 12, 2018

On 20 August 2018, the Ministry of Labor and Vocational Training (“MLVT”) issued notice No. 028 K.B./S.Ch.N (“Notice 028”) regarding approval requests for employing foreign employees (“Quota Approval”) and renewing work permits for 2019. According to Notice 028, employers or managers of any corporate entities employing foreign employees must apply for the 2019 Quota Approval […]

May 31, 2018

The Council of Ministers of Cambodia has recently approved the long-awaited project for the construction of a 60MW solar power plant. This is the first part of a 100MW project, which, according to the pre-feasibility study, proves to be not only viable, but will also contribute to national grid stability and an increase in energy […]