As an employer, it’s important to understand Cambodia’s labor laws to build a stable and productive workplace. These laws set the standard for employment contracts, wages, working conditions, social security obligations, and even employee termination. It promotes fair treatment of your employees and is essential for legal compliance under Cambodian law.
In this article, we will cover Cambodia’s key labor laws and regulations, employee rights, and how to legally terminate an employee.
Understanding Cambodian Labor Laws and Regulations
The Labor Law of 1997 is Cambodia’s primary statute governing employment relationships in the private sector. It applies to both foreign and local workers in multiple sectors including industrial, commercial, service, and agricultural enterprises. However, it does not apply to public servants or permanent posts in public service or personnel serving in air and maritime transportation.
The Cambodian Labor Law covers employment contracts, working conditions, wages, disciplinary procedures, occupational safety, dispute resolution, and workers’ rights.
The Ministry of Labour and Vocational Training (MLVT) supplements the Labour Law through Prakas (ministerial regulations) and Sub-Decrees. These regulations provide detailed rules on:
- Work schedules, occupational health and safety requirements,
- Supervision and enforcement of labor laws,
- Procedures for working on public holidays,
- Worker protections, dispute resolution processes, and internal regulations approval.
Types of Employment in Cambodia
Employment types in Cambodia are primarily categorized by the nature of their role, the duration of the contract, and your employee’s employment status. The Cambodian Labor Law recognizes the following types of employees:
- Regular (Permanent) Workers: employees who perform a job on a stable, ongoing basis without a predetermined end date, typically covered by an undetermined duration contract (UDC). They enjoy full labor protections under the law, including rights related to wages, working hours, leave, and social security.
- Casual (Temporary) Workers: employees who perform unstable, temporary, intermittent, or seasonal work. Employment for casual employees may be for a short period or for a specific task with a definable completion. They are legally entitled with the same rights and protections as a regular worker except when the law explicitly provides it.
The Cambodian government also recognizes other types of employment:
- By Payment Method: Employees may be paid by time (hourly, daily, monthly), piece rate (output-based), or commission.
- Foreign Employees: Foreign workers must have a valid work permit, employment card, passport, and residency permit, and meet health requirements, per MLVT regulations.
Three Types of Employment Contracts in Cambodia
Understanding different types of employment contracts in Cambodia is essential for compliance and helps avoid legal disputes. It helps you hire the right people and establishes transparency with your employees to provide a stable working relationship.
Here are different types of employment contracts recognized under Cambodian law:
- Fixed Duration Contract (FDC): This contract has a specific start and end date and must be in writing. It is commonly used for temporary, project-based, or seasonal work. If the employee continues working beyond the expiry without a new contract, it converts to an undetermined duration contract automatically.
- Undetermined Duration Contract (UDC): an indefinite contract that provides more employment stability and employee protections. It is often used for regular, ongoing employment relationships.
- Apprenticeship Contract: A specialized contract involving professional or technical training alongside work under the supervision of an employer. It is designed to provide training and skill development while the trainee works and learns specific skills. This contract must be in writing and cannot exceed two years.
Employee Rights Under Cambodian Labor Law
Cambodia’s labor code guarantees equal pay for equal work and explicitly prohibits all forms of forced labor, including debt bondage and compulsory work. These laws are so comprehensive that the government even recognizes housework as valuable labor.
Minimum Wages for Employees in Cambodia
Under the Labor Law in Cambodia, employees must receive a reasonable income to meet their basic needs. This wage floor helps workers afford essentials and supports better quality of life for low-income employees. As of 2025, the minimum wage in Cambodia is ~KHR 839,809 (about USD 208) per month. These wages are paid monthly at the last working day of each month.
As an employer, you are also required to make social security contributions for employees to the national Social Security Fund (NSSF). The NSSF covers pension, healthcare, and occupational risks. Here is a breakdown of contributions:
| Contribution | Employer Contribution | Employee Contribution |
| Occupational Risk | 0.8% | 0% |
| Healthcare | 1.3% | 0% |
| Old-age Pension (Phased) | First 5 years: 2% Next 5 years: 4% From the 11th year onward: +2.75% every 10 years | First 5 years: 2% Next 5 years: 4% From the 11th year onward: +2.75% every 10 years |
These contributions are deducted from your employee’s salary and remitted to the NSSF every 15th of each month. The deadline for submitting the bank slip is on every 20th of each month.
Working Hours and Overtime Premium
The standard working hours in Cambodia are set at 8 hours per day and 48 hours per week within a 6-day period. Any work above the working hours is considered overtime with a cap of 2 hours per day. The work must also be considered urgent and exceptional with prior approval from the Labor Inspector at least 15 days beforehand. Overtime is also compensated as follows:
| Overtime Period | Pay Rate |
| Daytime (regular days) | 150% |
| Nighttime (10 PM – 5 AM) | 200% |
| Weekly rest days (weekly day off) | 200% |
| Public holidays | 200% |
The Cambodian labor law also mandates rest periods for employees. Employees are entitled to lunch breaks during the day and must have at least 24 consecutive hours of rest per week (often on Sunday). Night shift workers must be provided with proper rest facilities or transport after shifts if the work is overnight.
Leaves and Holidays for Employees
Employees in Cambodia are entitled to leave provisions and holidays. These leave entitlements are awarded to employees based on the length and continuity of service and their employment status.
Here’s an overview of leave entitlements for employees in Cambodia:
| Leave Type | Number of Days | Details / Notes |
| Annual Leave | Minimum 18 days per year after 1 year of continuous service | Accrued at 1.5 days per month. Increases by 1 day for every 3 years of service (e.g., 18 days for 1–3 years, 19 days for 4–6 years, etc.) |
| Maternity Leave | 90 calendar days (about 3 months) | Paid at 50% of wages during this period. Applies to female employees regardless of length of service. |
| Paternity Leave | Typically 1 to 10 days (varies by company) | No statutory entitlement under Labor Law, but some companies offer paternity leave or special leave as per policy |
| Sick Leave | Up to 6 months (long-term hospitalization leave) | Employees must provide medical certification from an authorized hospital or recognized doctor to qualify for paid sick leave. |
Terminating Employees in Cambodia
Terminating employees in Cambodia governed by strict labor laws that require nuanced handling to respect both employer and employee rights. As an employer, it’s your obligation to provide written notice (based on employee contract) and follow detailed instructions, including a notification to labor authorities. Given the legal and personal implications, each termination should be managed thoughtfully and transparently to minimize distress and ensure compliance with the law.
Grounds for Termination
The Cambodian Labor Law also outlines provisions for terminating employees in Cambodia. The grounds for termination of employees in Cambodia under the Labor Law and related regulations fall into several main categories:
- Termination for Serious Misconduct (With Cause): Employers may terminate employees without notice or severance pay if the employee commits serious misconduct. Termination due to serious misconduct requires a proper disciplinary process, including written warnings and opportunity for explanation unless the misconduct is exceptionally severe.
- Termination Without Cause: occurs for reasons not linked to employee misconduct. In such cases, employers must provide the appropriate notice period depending on contract type and length of service, and pay severance and other compensations as required by law. This could include the following:
- Economic reasons such as workforce reduction, restructuring, or business closure
- Technological changes affecting the business
- Employee’s inability to perform duties due to valid reasons such as prolonged illness
- Other legitimate business reasons not related to misconduct
- Termination for Bankruptcy or Force Majeure: if you declare bankruptcy or force majeure occurs, contracts may be terminated, but employees are entitled only to wages and unused leave, without additional damages.
- Termination Due to Contract Expiry or Mutual Agreement: FDCs generally end upon the expiry date unless terminated early for serious misconduct or mutual agreement. Contracts may also end by mutual consent between you and your employee.
Requirements for Terminating an Employee in Cambodia
To lawfully terminate an employee in Cambodia, you must comply with several key legal requirements under the Cambodian Labor Law.
- Written termination notice detailing effective date and cause (if applicable)
- Notification to Ministry of Labour and Vocational Training (MLVT) within 15 days of termination
- Record termination in employee’s work book
- Provide work a certificate to employee
- For serious misconduct: fair internal disciplinary process and investigation required
- Notification and consultation with relevant labor unions (especially for mass layoffs)
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FAQs About Employment and Labor Laws in Cambodia
An employment contract is not strictly required to be in writing for UDCs. These contracts can be verbal or written or both. However for FDCs, the law mandates that the contract must be in writing, specify the precise start and end dates, and cannot exceed two years in duration.
Cambodia’s labor law applies to all employment relationships within the territory of Cambodia. This includes any nationality and residence of the employer or employer. The law governs all workers under employment contracts who work under the direction and management of an employer, whether natural persons or legal entities. However, it does not apply to public servants or permanent posts in public service or personnel serving in air and maritime transportation.
Yes, foreign employees in Cambodia are required to have a valid work permit and employment card in order to legally work in the country. As the employer, you are responsible for applying for and securing the work permit and employment card for the foreign employee through the MLVT.
Labor disputes in Cambodia are typically resolved through a structured, multi-step process. When an individual labor dispute arises, either party can file a complaint with the MLVT or the provincial Department of Labor. Here is an overview of labor dispute resolution in Cambodia:
- A labor inspector then reviews the complaint and initiates either conciliation sessions or an on-site labor inspection.
- Both parties attend fact-finding meetings and attempt to reach a mutual agreement during the reconciliation process. Failure by either party to cooperate or attend conciliation meetings within set deadlines can result in dismissal of the case or liability being assumed as claimed.
- If conciliation is unsuccessful a dispute can be escalated to the Arbitration Council or the Labour court after three weeks.
