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The law applies to all natural and legal persons, public or private, whose activities concern the exercise of an economic activity. It covers Cambodian and foreign employees working in Cambodia.
Key Principle: No work without a contract. The law explicitly prohibits "disguised employment relationships" designed to circumvent worker protections.
Protection for women:
Child labour:
Penalties in 2014: Heavy fines and prison terms (6 days – 3 months) for employing children in hazardous conditions.
The 1997 Cambodian Labour Code governs employment, establishing regulations for contracts, 48-hour maximum work weeks, and mandatory leave entitlements. Key provisions include a 5% severance for Fixed Duration Contracts, 90-day maternity leave, and strict work permit requirements for foreign employees. For comprehensive details, refer to the Guide to the Cambodian Labor Law for NGOs Humanitarian Library | Guide to the Cambodian Labor Law for NGOs
The "Cambodian Labour Law Guide (English 2014)," published by the International Labour Organization and Better Factories Cambodia, acts as a practical handbook for navigating legal standards regarding employment contracts, working hours, and worker rights, particularly in the garment industry. It provides clear guidelines on mandatory regulations like 8-hour workdays, proper leave entitlements, and strict protections for minors. Review the guide at SlideShare. Cambodian labour-law-guide-english-2014 - Slideshare
The "Guide to the Cambodian Labour Law for the Garment Industry" (often referred to in 2014/2015 revisions) is a key publication by the International Labour Organization (ILO) and Better Factories Cambodia (BFC). It translates the complex 1997 Labour Law and its amendments into practical, plain language for employers, unions, and workers.
Here are the key areas covered in this guide, based on its structure:
Employment Contracts: Details on fixed-duration contracts (FDC) and undetermined-duration contracts (UDC), including probation periods and termination rules.
Wages: Covers minimum wage regulations, payment methods, and bonuses, noting that as of January 2026, minimum wages have increased to for regular employees.
Working Hours & Overtime: Defines standard work weeks (48 hours), maximum overtime (2 hours/day), and higher pay rates for night work (130%) and overtime.
Leave & Holidays: Outlines paid annual leave (18 days per year for full-time), sick leave, maternity leave, and public holidays.
Safety & Health: Mandates on-site health standards, protective equipment, and accident compensation.
Discipline & Dismissal: Procedures for suspending contracts and lawful termination, such as those caused by economic hardship.
Unions & Disputes: Covers the right to form unions, collective bargaining, and the role of the Arbitration Council in settling disputes. Cambodian labour-law-guide-english-2014 - Slideshare
Cambodian Labour Law Guide (English 2014) a resource published by the International Labour Organization (ILO) Better Factories Cambodia to explain the Labor Law of 1997 in plain language
. Originally funded by the US Department of Labor and the Cambodian government, the guide serves as a central reference for employers, unions, and workers. Slideshare Key Legal Provisions (per the 1997 Labor Law) Working Hours: Standard hours are capped at 8 hours per day 48 hours per week Night Work: Defined as work between 10:00 PM and 5:00 AM, paid at of the normal rate. Leave Policies:
Annual leave cannot be converted into cash payments; any agreement to do so is legally null and void. Payment Intervals:
Laborers must be paid at least twice a month (maximum 16-day intervals), while other employees must be paid at least once a month. Resignation and Termination
Notice periods depend on the duration of continuous service: Western Cape Government Under 6 months: 7 days notice. 6 months to 2 years: 15 days notice. 2 to 5 years: 1 month notice. Compensation and Pay Minimum Wage: As of early 2026, the minimum wage is $210.00 USD per month Seniority Pay:
For undetermined duration contracts (UDC), employees receive 15 days of wages per year, paid in two installments (June and December). Severance: Cambodian-labour-law-guide-english-2014
Fixed duration contracts (FDC) require severance of at least of the total wages earned during the service period. Acclime Cambodia
The full 76-page presentation of this guide is available on platforms like Slideshare of the 2014 guide or more recent updates to the Cambodian labor code? Cambodian labour-law-guide-english-2014 - Slideshare
The 1997 Labor Law remains the cornerstone of employment regulation in Cambodia. While "guides" from 2014 provide essential historical context, the following essay synthesizes the core principles of the law as they stand today, focusing on the rights and obligations relevant to the modern Cambodian workplace.
The Architecture of Fairness: Navigating the Cambodian Labor Law
Cambodia’s legal system, largely rooted in the French civil system, places the Constitution as its supreme authority, with the Labor Law of 1997 serving as the primary statute governing the relationship between employers and employees. This framework aims to balance industrial productivity with the protection of human dignity and social justice. 1. Fundamental Protections and Non-Discrimination
A pillar of the Cambodian Labor Law is the prohibition of discrimination. No worker can be treated unfairly based on sex, age, origin, or caste. This ensures that professional skills and output—rather than personal attributes—are the sole metrics for employment and career advancement. 2. Working Hours and Compensation
The law establishes clear boundaries for the standard workweek to prevent exploitation:
Standard Hours: Normal working hours are capped at 8 hours per day or 48 hours per week.
Rest Periods: Any employee working eight consecutive hours is entitled to a one-hour lunch break.
Night Work: Work performed between 10:00 PM and 5:00 AM is legally classified as "Night Work" and must be compensated at a rate of 130% of the normal wage. 3. Leave Entitlements
Paid leave is a mandatory benefit for those who have completed at least one year of service:
Annual Leave: Full-time workers (48 hours/week) receive 18 days of paid annual leave per year. This increases by one day for every three years of continued service.
Special Leave: Workers can request up to seven days of special leave for personal milestones or family emergencies, such as marriage, paternity, or the illness of an immediate family member.
Sick Leave: Employees can take up to six months of sick leave if certified by a doctor, though an employer may terminate the contract if the illness exceeds this duration. 4. Termination and Severance
The law differentiates between Fixed Duration Contracts (FDC) and Undetermined Duration Contracts (UDC), each with specific exit requirements:
Notice Periods: For permanent (UDC) contracts, notice periods range from seven days to three months, depending on the length of service.
Severance Pay: Under an FDC, severance must be at least 5% of the total wages earned during the contract. For UDC workers, severance pay is calculated based on their length of service, such as seven days of wages for those employed between six months and one year. Conclusion
While 2014 guides were vital for the post-conflict industrial boom, the 1997 Labor Law continues to evolve through ministerial "Prakas" (regulations). For any worker or employer, understanding these core tenets—ranging from the 48-hour workweek to specific severance calculations—is essential for maintaining a compliant and harmonious workplace in the Kingdom of Cambodia.
Southeast Asian Region Countries Law: Cambodia - Library Guides
The Cambodian legal system is based largely on the French civil system, and is statute based. The Constitution is the Supreme Law. The University of Melbourne Cambodia Payroll and Benefits Guide - CloudPay
This is the most litigated area of the law. The law applies to all natural and legal
A. Termination by Employer (UDC):
B. Termination by Employee (Resignation):
C. Abusive Dismissal: If a court finds dismissal was due to union membership, pregnancy, or filing a complaint, the employee may be reinstated or receive damages (minimum 1 month’s salary).
The Cambodian Labour Law is pro-worker in spirit but practical in execution. For foreign investors, compliance is not just about avoiding fines—it builds trust, reduces turnover, and protects your brand. Always work with a licensed local HR consultant or labour lawyer when drafting contracts or handling terminations.
Disclaimer: This post is based on the 2014 English guide to the 1997 Cambodian Labour Law and is for informational purposes only. Laws and regulations change. Always consult a qualified legal professional for specific cases.
Have you encountered a specific challenge under Cambodian labour law? Share your experience in the comments.
Cambodian Labour Law Guide: A Comprehensive Overview (2014 Edition)
Cambodia, a country located in Southeast Asia, has undergone significant economic growth and industrialization in recent years. As a result, the country's labour laws have become increasingly important to ensure that workers' rights are protected and that employers are aware of their obligations. In this article, we will provide a comprehensive guide to Cambodian labour law, as outlined in the 2014 edition of the Cambodian Labour Law Guide.
Overview of Cambodian Labour Law
Cambodian labour law is governed by the Labour Code, which was enacted in 1997 and amended in 2008. The Labour Code sets out the fundamental principles and rules governing employment relationships, including the rights and obligations of employers and employees. The law aims to promote fair labour practices, protect workers' rights, and foster a safe and healthy work environment.
Key Principles of Cambodian Labour Law
The Cambodian Labour Law is based on several key principles, including:
Employment Relationships
Under Cambodian law, an employment relationship is established when an employer and employee agree to work together in exchange for wages. The employment relationship can be established through a written contract or an oral agreement.
Types of Employment Contracts
There are several types of employment contracts recognized under Cambodian law, including:
Minimum Wage and Working Conditions
The Cambodian government sets a minimum wage for workers, which is currently set at USD 160 per month for workers in the garment, construction, and tourism sectors. Employers are also required to provide safe working conditions, including:
Working Hours and Overtime
The standard working week in Cambodia is 48 hours, with a maximum of 10 hours per day. Overtime is permitted, but employers must pay employees at least 150% of their normal wage rate for overtime work.
Leave and Holidays
Employees are entitled to several types of leave, including:
Termination of Employment
Employment can be terminated in several ways, including:
Dispute Resolution
Labour disputes can be resolved through several mechanisms, including:
Inspections and Penalties
The Ministry of Labour conducts regular inspections to ensure compliance with labour laws. Employers who fail to comply with labour laws may face penalties, including fines and imprisonment.
Conclusion
The Cambodian Labour Law Guide provides a comprehensive overview of labour laws in Cambodia. Employers and employees should be aware of their rights and obligations under the law to promote fair labour practices and harmonious labour relations. By understanding the key principles and provisions of Cambodian labour law, employers and employees can work together to build a safe and healthy work environment.
Recommendations
Based on the Cambodian Labour Law Guide, we recommend that:
Future Developments
The Cambodian government has announced plans to review and update the Labour Code to address emerging labour issues, including the gig economy and digital labour platforms. Employers and employees should stay informed about future developments in Cambodian labour law to ensure compliance and promote fair labour practices.
References
By following this guide, employers and employees can work together to promote fair labour practices and harmonious labour relations in Cambodia.
| Type of Leave | Entitlement | Paid by Employer | |---|---|---| | Annual leave | 18 days/year | 100% | | Sick leave | 1 day/month (with doctor's note) | 50% of wages | | Hospitalization sick leave | Up to 6 months (reducible rate) | 60% (month 1–3), 40% (month 4–6) | | Maternity leave | 90 days (pre- and post-natal) | 50% (employer), 50% (social security – though NSSF was limited in 2014) | | Compassionate/Personal leave | Not mandated by law – per contract | Negotiable |
Important: As of 2014, Cambodia’s National Social Security Fund (NSSF) was operational mainly for work-related injuries. Maternity and health insurance were not yet fully universal (pilot programs existed). Many employers self-insured.
The standard legal workweek in Cambodia is 48 hours. The guide details the regulations surrounding this standard:
If you are using this 2014 guide for current reference, be aware that the following amendments have since been introduced:
Nevertheless, the 1997 Labour Law’s core provisions on working hours, contracts, leave, termination, and union rights – as interpreted in the 2014 period – remain the bedrock of Cambodian employment law.