Labor Law of Cambodia, Chapter II
ENTERPRISES - ESTABLISHMENTS
Declaration of the opening and closing of the enterprise
All employers to whom this labor law is applied, shall make a declaration to the Ministry in Charge of Labor when opening an enterprise or establishment. This declaration is called a declaration of the opening of the enterprise or establishment, that must be made in writing and be submitted to the Ministry in Charge of Labor before the actual opening of the enterprise or establishment.
Employers who employ fewer than eight workers on a permanent basis and who do not use machinery, shall make and submit this declaration to the Ministry in Charge of Labor within thirty days following the actual opening of the enterprise or establishment.
For the closing of the enterprise, employers shall also make a declaration to the Ministry in Charge of Labor within thirty days following the closing of the enterprise.
A Prakas (ministerial order) of the Ministry in Charge of Labor shall define the formality and procedure of the declarations to follow in each case.
Every employer shall establish and neatly keep a register of an establishment that was numbered and initialed by the Labor Inspector. The model of the register shall be set by a Prakas of the Ministry in Charge of Labor.
Declaration on movement of personnel
Every employer must make the declaration to the Ministry in Charge of Labor each time when hiring or dismissing a worker.
This declaration must be made in writing within fifteen days at the latest after the date of hiring or dismissal.
This period is extended to thirty days for agricultural enterprises.
The declaration of hiring and dismissal is not applied to:
Casual employment with a duration of less than thirty continuous days.
Intermittent employment for which the actual length of employment does not exceed three months within twelve consecutive months.
Internal regulations of the enterprise
Every employer of an enterprise or establishment, set out in Article 17 above, who employs at least eight workers shall always establish an internal regulation of the enterprise.
Internal regulations adapt the general provisions of this law in accordance with the type of enterprise or establishment and the collective agreements that are relevant to the sector of activity of the aforementioned enterprise or establishment, such as provisions relating to the condition of hiring, calculation and payment of wages and perquisites, benefits in kind, working hours, breaks and holidays, notice periods, health and safety measures for workers, obligations of workers and sanctions that can be imposed on workers.
The internal regulations must be established by the manager of enterprise after consultation with workers' representatives, within three months following the opening of the enterprise, or within three months after the promulgation of this law if the enterprise already exists.
Before coming into effect, the internal regulations shall be [visaed] by the Labor Inspector. This visa shall be issued within a period of sixty days.
The articles of internal regulations that suppress or limit the rights of workers, set forth in laws and regulations in effect or in conventions or collective agreements applicable to the establishment, are null and void.
The Labor Inspector shall require the inclusion of enforceable provisions in virtue of laws and regulations in effect.
An employer can not impose disciplinary action against a worker for any misconduct of which the employer or one of his representatives has been aware for over fifteen days.
The employer shall be considered to renounce his right to dismiss a worker for serious misconduct if this action is not taken within a period of seven days from the date on which he has learned about the serious misconduct in question.
Any disciplinary sanction must be proportional to the seriousness of the misconduct. The Labor Inspector is empowered to control this proportionality.
The employer shall not impose fines or double sanctions for the same misconduct. These fines mean any measure that leads to a reduction of the remuneration being normally due for the performance of work provided.
The internal regulations must be diffused and affixed to a suitable place that is easily accessible, on the premises where work is carried out and on the door of the premises where workers are hired.
These internal regulations shall constantly be kept in a good state of legibility.
All modifications to the internal regulations must be conformable to the provisions governing the enterprise or
In enterprises or establishments, employing less than eight workers, where there are no internal regulations, the employer may pronounce, according to the seriousness of the misconduct of the workers concerned, a warning, a reprimand, a suspension of work without pay for not more than six days or a dismissal with or without a prior notice.
Every person of Cambodian nationality working as a worker for any employer is required to possess an employment card.
No one can keep a worker in his service who does not comply with the provision of the above paragraph.
The possession of an employment card is optional for seasonal farm workers.
The employment card is for the purpose of identifying the holder, the nature of work for which he has contracted, the duration of contract, the agreed wages and the method of payment, as well as the successive contracts.
It is forbidden to use a worker's employment card for purposes other than those for which it is created.
When the worker quits working for the employer, that employer shall not write any appreciation on the employment card.
The employment card is drawn up and issued by the Labor Inspectors at the request of the worker who presents an identity card issued by the competent authorities and a certificate of employment issued by his employer.
The issuance of employment card is incurred in a fee that shall be collected and given to the national budget. The fee rate and the method of collection are to be set by a joint Prakas (ministerial order) of the Ministry of Finance and the Ministry in Charge of Labor.
The hiring and dismissal of a worker, his wage and wage increase shall be recorded in his employment card.
The above record made by the employer must be presented, within seven whole days following the date of entry and departure of the worker, for the visa of the Labor Inspector.
The loss of employment card must be declared to the Labor Inspector's Office. A duplicate shall be issued under the same conditions as those laid for the issuance of employment card.
Every employer of an enterprise or establishment covered by Article 17 above shall constantly keep a payroll ledger whose format shall be set by a Prakas (ministerial order) of the Ministry in Charge of Labor.
Before being used, all the pages of the payroll ledger must be numbered and initialed by the Labor Inspector.
The payroll ledger must be kept in the Bureau of Cashier or Head Office of each enterprise so that it is simply available immediately for inspections. The employer shall keep the payroll ledger for three years after it has been closed.
The Labor Inspector may require to see the payroll ledger at any time.
The payroll ledger shall record:
a) information about each worker employed by the enterprise.
b) all indications concerning the work performed, wage and holidays.
Any enterprises that wish to make the payroll ledger in a different way but contains the same type of information and the
same method of review, may apply to the Labor Inspector's Office.
The "company store" is defined as any establishment where the employer directly or indirectly sells his workers or their families foodstuffs and merchandise of any kind, for their personal needs.
Company stores are authorized under the four conditions as follows:
1. The workers are not obliged to shop just there.
2. The employer or his attendant is not allowed to make a profit from the sale of the merchandise.
3. The accounting of each company store is to be entirely distinctive of that of the enterprise.
4. The price of items on sale is to be displayed visibly.
The opening of a company store is determined by a Prakas (ministerial order) of the Ministry in Charge of Labor.
The Labor Inspector monitors the operation of company stores whose management is also shared by the elected representatives of the concerned workers. The Labor Inspector has the authority to order a temporary shutdown of a company store until a final decision is made by the Ministry in Charge of Labor.
The employer cannot subject the signing or the maintaining of employment contract to a cash guarantee or bond of any form.
Characteristics of labor contractor
The labor contractor is a sub-contractor who contracts with an entrepreneur and who himself recruits the necessary work force or workmen for the execution of certain work or the provision of certain services for an all-inclusive price.
Such a contract must be in writing.
The exploitation or underestimation of workmen by the labor contractor or sub-contractor is forbidden.
The labor contractor is required to observe the provisions of this law in the same manner as an ordinary employer and assumes the same responsibilities as the latter.
In case of insolvency or default by the labor contractor, the entrepreneur or the manager of enterprise shall substitute for the contractor to fulfill his obligations to the workers.
The harmed workers, in such case, may file a case directly against the entrepreneur or manager.
The labor contractor is required to indicate his status, the name and address of the entrepreneur, by affixing them to a place that is simply visible in each workshop, storeroom, or work site where work is performed.
The entrepreneur shall constantly keep available a list of labor contractors with whom he has contracted. This list, indicating the name, address, and status of the labor contractor as well as the situation of each workplace, must be sent to the Labor Inspector's Office within seven whole days following the date of signing the labor contract.
This period is extended to fifteen days for agricultural enterprises or businesses.