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, […]

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 Ministry of Labour, Immigration and Population published the Leave and Holidays Rules (Notification 69/2018) and the Shops and Establishment Rules (Notification 68/2018) (the “Rules”) which implement the relevant laws. The Rules provide new forms for use by employers in lodgments to labor offices, and clarify entitlements relating to days off, public holidays, leave and […]

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 […]

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 […]

Cambodia’s regulatory framework in the area of alternative dispute resolution has developed considerably. In the last few years, Cambodia has seen the first foreign arbitral award successfully enforced by the Cambodian courts and has also seen the first completion of domestic commercial arbitration cases. These developments have given investors, both foreign and local, increased confidence […]

The National Committee for The Minimum Wage (the “Committee”) publicized a Notification on 2 January 2018 in which a new minimum wage of MM4,800 per day, calculated at a rate of MMK600 per hour, was proposed. In relation to the previous effective Minimum Wage (MMK3,600 per day / MMK450 per hour), this represents an increase […]

Further to its Notice No. 012/18 dated 29 March 2018, the Ministry of Labor and Vocational Training (“MLVT”) issued Notice No. 016/18 dated 25 April 2018 (“Notice 016”) to further extend the deadline to apply for renewal of foreign employees’ work permits. According to Notice 016, the previous deadline of 30 April 2018 is extended […]

On 7 March 2018, the Ministry of Commerce (“MOC”) issued Prakas No. 088 MOC (“Prakas 088”) regarding the filing of business association statutes. According to Prakas 088, as part of ongoing obligations after registration with the government authorities, all business associations must file their statutes with the MOC. The filing must include their statutes as […]

Good news for corporate entities that have not yet renewed the 2018 work permits for their foreign employees with the Ministry of Labor and Vocational Training (“MLVT”).On 29 March 2018, the MLVT issued Notice No. 012/18, extending the previous deadline of 30 March 2018 to 30 April 2018 to give employers more time to renew […]

Commercial Law – Filing Statute of Business Associations On 07 March 2018, the Ministry of Commerce (“MOC”) issued Prakas No. 088 MOC (“Prakas 088”) regarding filing statutes of business associations. According to Prakas 088, as part of ongoing obligations after registration with government authorities, all business associations, including foreign chambers of commerce, must file their […]

As Myanmar increasingly becomes a place to do business to both domestic entrepreneurs and foreign investors alike, Myanmar’s labor compliance framework has recently taken stimulus with the re-working of Notification 1/2015 on the Employment Contract Template. The result? Notification 140/2017 of 28 August 2017 (the “Notification”). The Notification has new provisions dealing with how an employment contract […]

As part of ongoing efforts to strictly enforce work permit requirements, following a notice from the Office of the Council of Ministers, the Ministry of Interior (“MOI”) and the Ministry of Labor and Vocational Training (“MLVT”) issued a joint Prakas (No. 719 Br.K) dated 19 February 2018 (“Joint Prakas 719”) on the enforcement of foreign […]

The National Assembly has passed Myanmar Companies Law (the “MCL”) after extensive debate on various aspects of Myanmar’s long awaited corporate reform. The Law is finally here, passed on 23 November, pending signing into law by the President. Key areas which were hotly debated in recent weeks included the highly contentious question of whether small […]

Introduction: The end of the comprehensive overhaul of Myanmar’s corporate legal framework is finally in sight with an updated Companies Law (the “MCL”) approved by Myanmar’s Parliament. Once the MCL is signed into law by the President, the outdated Myanmar Companies Act of 1914 (the “1914 Act”) will be abolished, bringing Myanmar Companies Law in […]

The Myanmar government has reconvened the National Minimum Wage Committee with new members in the interest of reevaluating the minimum wage rate. The committee is comprised of economic advisors, representatives of government ministries, labor and employer organizations and is chaired by Minister of Labor, Immigration and Population, Than Swe. The committee aims to establish a […]

In an investment dispute between a foreign investor and the Government of the Union of Myanmar, there are several institutions and rules which can be used.  Highlights of this note What Are the Pros and Cons of ICSID Arbitration for Myanmar Compared to Non-ICSID Arbitration Myanmar’s Dispute Settlement Mechanisms in Existing Investment Treaties Will Myanmar […]

As foreign enterprises continue flock to Myanmar, lured by a robust investment landscape and the recent easing of US sanctions, they must also contend with a new reality – more labor protection and a special labor disputes arbitration system. Highlights of this note Terminate after three warnings Profanity at workplace – is it a reason […]

A recently published Supreme Court case (Supreme Court decision dated 29 July 2015) delves deep into the rights of farmland users in Myanmar and challenges while securing the Form-7 land user certificates, especially for thousands of smallholder farmers across the country. Highlights of this note Background What was the lower court’s judgment and why? What […]

The legal system of the Union of Myanmar is a unique combination of customary law, codified English common law and recent Myanmar legislation. The principles of English common and statutory law were established in Myanmar through the British law codes as applied in the pre-independence India statutes.These statutory laws, based on and incorporating the English […]