Find out, in this article, conditions and formalities regarding employment in Cambodia.
Every year, Cambodia attracts foreigners from all around the world in large numbers due to the various opportunities it offers. But if you intend to work there, you are advised to inquire on the labor market's conditions and regulations beforehand. As in many Asian countries, some specific conditions may apply.
In general, employers are required to register all their local and foreign employees with the Ministry of Labor and Vocational Training (MLVT) if the company has more than 100 employees. In the case of companies having less than 100 employees, they have to be registered with the Department of Labor and Vocational Training (DLVT).
On registration with the MLVT or DLVT, each employee receives a work book along with their work permit. The work book is a document containing the employer's and the employee's basic information. The work permit, for its part, is an official document authorizing you to work for a specific employer in Cambodia. Employees are also required to undergo a simple health examination at the MLVT labor hospital.
Foreign employees have to renew their work book and work permit every year. Local employees, on the other hand, are required to renew their work book on changing their employer.
Once registration procedures with the MLVT or DLVT have been completed, the work permit and work book should be issued within 4 to 6 weeks. It can even extend to up to eight weeks, depending on the number of requests. However, this may prevent the employee from starting to work.
In case the employee has to join work at the soonest, the employer has to produce evidence regarding the registration application when the company's premises are visited by labor inspectors.
Good to know:
Employers who do not bother to register their foreign employees are liable to penalty which is generally calculated according to the latter's basic daily wage (about US $ 2 a day), or an imprisonment sentence ranging between 6 days and a month. Employers having violated these conditions may be condemned for 1 to 3 months.
Some companies are not required to register their employees with the Ministry of Commerce and the Directorate General of Taxes. Hence, the MLVT or DLVT do not consider them as employees until the employer registers them with the Ministry of Trade and the Directorate General of Taxes. This exception applies to certain companies based on their legal form and their business.
If you are a shareholder of a company which has been incorporated in Cambodia and your name appears as such in the company's article, you are not required to register with the MLVT or DLVT. However, the company's employees have to be registered.
According to certain laws, you are required to turn a business into a company when the latter reaches a certain turnover or if the market is regulated by the government. But if you are a shareholder of the company, the above-mentioned exceptions apply to you as well.
Entrepreneurs do not have to apply for a work permit and work book.
Good to know:
In general, these exceptions do not apply to NGOs.
Temporary workers and volunteers
Temporary workers and volunteers, for their part, must be registered with the Ministry of Labor, regardless of the duration of their stay in Cambodia. However, the decision to register these types of workers often depends on the duration of their contract, internal policies and business needs, according to the time required to obtain the permit and the work book.
Ministry of Labor and Vocational Training www.mlvt.gov.kh