Cambodia Employment Guide

Cambodia is located in Southeast Asia, bordering Thailand to the west, Laos to the north, Vietnam to the east, and facing the Gulf of Thailand and Gulf of Cambodia to the south. It has a population of approximately 17 million, and its economy is dominated by agriculture, garment manufacturing, tourism, construction, and services. Phnom Penh, the capital, serves as the political, economic, and cultural center. Cambodia’s labor laws require employment contracts to be in writing, with a standard 48-hour workweek. Employers are obligated to provide a minimum wage, social insurance, and paid leave. Dismissals must comply with legal procedures and include financial compensation for employees. Its labor relations system is gradually improving and has a certain appeal to foreign-funded enterprises, but compliance requirements still need attention in some industries.

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Currency

Cambodian Riel (KHR)

Capital

Phnom Penh

Official language

Khmer

Salary Cycle

Monthly

Our Employment Guide in Cambodia

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Understanding Employment Contracts in Cambodia

In Cambodia, employment agreements can be structured as either fixed-term or indefinite-term contracts. These documents must clearly outline essential components such as employee compensation, benefits, termination conditions, and any applicable severance payments. Key details to include are the contract type, employee passport information, start and end dates, job title, salary, additional benefits, and a comprehensive job description. Any contractual provisions that fail to meet these legal standards are considered invalid.

Navigating Probation Periods

The probation period for new hires in Cambodia is legally defined, with a minimum duration of 30 days and a maximum of 90 days. This timeframe allows employers to assess an employee's suitability while providing job security benchmarks.

Case Study: Implementing Compliant Contracts

For instance, SailGlobal assisted a manufacturing firm in Phnom Penh by drafting contracts that meticulously adhered to Cambodian labor laws, avoiding potential disputes. Ensuring clarity in roles and compensation not only fosters compliance but also enhances employee retention.

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