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Cambodia Legal Update: Clarification of Seniority Payments for 2019 Onwards

Cambodia Legal Update: Clarification of Seniority Payments for 2019 Onwards

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 the following clarifications:

  • The seniority payments to be made starting from 2019 onwards will be paid twice a year (the first payment must be made in June and the second payment in December every year). The payment must be implemented starting from June 2019 onwards.
  • For the retroactive seniority payment that is due for previous years, the MLVT is in discussion with the private sector to determine a specific schedule for the payment. Thus, there is no clear timeline at present for this payment. Once we have clear information from the MLVT, we will update you further.

If you have any questions about this alert, please contact me ([email protected]) or Mr. Leung Seng ([email protected]).

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Alex is a US attorney who has worked in Cambodia for the past six years. He has over 12 years of experience in corporate and commercial law and transactions, litigation and arbitration, as well as intellectual property law, and labor law. He has been advising clients in Southeast Asia for over eight years, focusing on corporate transactions, advising foreign investors on joint venture structuring, mergers & acquisitions, as well as regulatory matters in relation to hydropower projects in the region. Alex, a successful commercial litigator, is well-versed in commercial dispute resolution, and has advised clients in arbitration proceedings in the US and Singapore.
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