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LABOURLAW

FOREWORDThe history of Cambodia has indicated that the development of the labor lawhas evolved through five main stages as follows:1. Pre-independence era: Social measure were taken to gradually eradicate slavery pursuant to aDecree of February 1, 1898 with completely abolished slavery. The very legal measure to govern the relationship between employersand employees were in initiated under the 1920 Civil Code withinwhich a labor contract was required for the employment of workers. Further detailed regulations on contact-related employment wereissued in a 1927 Sub-decree to establish: a 10 hours workdays. materials requirement for living conditions. A Joint Decree covering Indochina establishment:the labor Inspectorates in 1927.the Reconciliation Committee for individual and collectivelabor disputes between workers, employees and employers in1930 and 1932.In 1936 the Government of Cambodia drafted and enacted 3 laws toRegulate three different categories of people involved in the labor filed: the Decree of December 30, 1936 covering Indochinese peopleand other in the same classification. the Decree of February 24, 1937 covering European and othersin the same classification. the Royal Ordinance No 84 NS of May 20, 1938 expanding thecoverage to overseas Cambodia.These 3 laws have significantly marked a turning point in the historicalEvolution of the Cambodia Labor Law. The Regulation on liberalized on liberalized agricultural labortaking effect in 1942. In 1947 the Royal Decree 375 NS of October 30, 1947abrogated the 1938 Royal Ordinance and imposed theimplementation of the French labor regulations on Cambodianationals while Cambodia labor regulations was being drafting.Meanwhile, a Cambodia Inspectorate and a Social Affairs Office wereestablished under the Ministry of Information and Social Affairs.

After the singing the French-Cambodia Treaty on November 8,1949, French labor inspectorates were officially transferred to the CambodiaGovernment and the Ministry of Labor and Social Affairs was establishmentin 1951 by a Royal Decree No 651 NS of December 26, 1951.2.Post-independence era to 1970:From 1953 onward, significant events have marked this era: The transfer of the administration of the Cambodia courts from the FrenchAdministration to the Cambodia Government on August 29, 1953 and theorganization of labor services which was establishment and subsequentlystrengthened. The Ministry of Labor and Social Affairs was also graduallyreorganized. Various other legal documents were also use to broaden the scopeof the Labor Law.3. From 1970 to 1975:The year of 1970 saw an important change when the labor administration ofthe Khmer Republic amended the Labor Law. Several major events of significantimportance took place that time, namely: The Khmer Republic ratified its membership to the International laborOrganization by Decree No 467/71 CE of April 7, 1971 which became effective onFebruary 24, 1969. The complete overall of the labor administration through Decree No701/707 CE of October 31, 1970. The determination of detailed responsibilities for technical officials workingfor the field of labor. The establishment of roles and responsibilities of the Ministry of LaborSocial Affairs and Employment. The drafting of a new Labor Law. The ratification of various International Labor Conventions.4. From 1979 to 1992: One should note that during the period 1975-1979 Cambodia fell under thegenocidal Pol Pot regime where all the previous national achievementswere completely shattered and Cambodia people brutally massacred.From 1979 to 1992 some important events took place: The Social Affair Committee, an institution equivalent to that of a ministry,was established pursuant to Decision No 07 of October 24, 1979 in orderto deal with issues related to social affairs such as: disabled veterans,orphans, windows and indigent elderly. The Ministry of Social Affairs and Disabled Veterans was established by

Decree No 19 Kr.ch. of March 5, 1985 to supplant the Social AffairsCommittee and to take charge of pensions for disabled officials, orphans ofDeceased officials, armed force personnel, compensation settlement forDisabled veterans and supplementary income for families or dead soldiers. The Ministry of Social Affair and Labor was established by Decree No 53Kr. Of May 2, 1992 to take additional responsibilities in the labor sectorPursuant to the labor law which was enacted by the National Assembly byDecree No 99 Kr. of October 13, 1992.We should recall that the 1992 Labor law was drafted by the Department ofLabor Wages of the Ministry of Planning and not by the Ministry of SocialAffairs and Disabled Veterans. Only after the promulgation of the said law byDecree No 99 Kr. of October 13, 1992 that the government tasked theMinistry of Social Affairs and Labor as the agency to implement this law.5. Form 1993 to present: Cambodia has adopted a democratic and multi pluralist policy since the1993 general election. The Law No NS/RKM/0196/17 of January 24, 1996 establishment theMinistry of Social Affairs, Labor and Veteran Affairs to be responsible forThree social sectors: Social Affair Labor and Veteran Affairs. In 1994, with the kind support of ILO, the French Ministry of Labor, andAAFLI, the Ministry of Social Affairs, Labor and Veteran Affairs took theExisting 1992 Labor Law and various other labor related documents inConformance with the 1993 Constitution as a foundation to draft the new“Labor Law” which was subsequently promulgated by Royal Decree NoCS/RKM/0397/01 of March 13, 1997. The new Labor Law has in many respects completed the old labor law andregulations to make its implementation much more efficient and effective.A particular attention should be drawn on the fact that the 1997 Labor Lawallows a great freedom of establishment of trade unions, rights to strike andto lockout, provisions which were not available in previous laws.This law is a very important instrument to promote better workingrelationship, individual and collective bargaining, to resolve individual and collectivelabor disputes, and ensure labor sanitation, safety and general labor conditions ofworkers and employees in the Kingdom of Cambodia.Cambodia is a state respecting the rule of law and as such the Ministry ofSocial Affairs, Labor and Veteran Affairs appeals to all workers, employee andemployers as well as to labor officials to strictly implement the Labor Law for thebenefits of all the parties concern.Phnom Penh, October 25, 1998Suy SemSecretary of StateMinistry of Social Affairs, Labor and Veteran Affairs

LABOUR LAWCONTENTSCHAPTER I:SECTION I:GENERAL PROVISIONSSCOPE OF APLLICATIONDifferent Categories of WorkersIn the Kingdom of CambodiaSECTION II:SECTION III :SECTION IV:SECTION V:NON-DISCRIMINATIONPUBLIC ORDERPUBLICITYFORCED LABOURCHAPTER II:ENTERPRISS – ESTABLISHMENTSSECTION I:DECLARATION OF THE OPENIN ANDCLOSING OF THE ENTERPRISEECTION II:DECLARATION ON MOVEMENT OFPERSONNALSECTION III:INTERNAL REGULATIONS OF THEENTERPRISESECTION IV:SECTION V:SECTION VI:SECTION VII:SECTION VIII:EMPLOYMENT CARDPAYROLL LEDGERCOMPANY STOREGUARANTEECHARACTERISTICS OF LABOURCONTRACTORSCHAPTER III:APPRENTICESHIPSECTION I: NATURE AND FORM OF APPRENTICESHIPCONTRACTSSECTION II: TERMS OF APPRENTICESHIP CONTRACTSSECTION III: DUTIES OF INSTRUCTORS AND APPRENTICESSECTION IV: MONITORING OF APPRENTICESHIPSECTION V: TERMINATION OF APPRENTICESHIP CONTRACTCHAPTER IV:THE LABOUR CONTRACTSECTION I: SIGNING AND EXCUSION OF A LABOURCONTRACSECTION II: SUPSPENSION OF THE LABOUR CONTRACTSECTION III: TERMINATION OF THE LABOUR CONTRACTA.Labour Contracts of Specific DurationB.Labour Contracts of Unspecified DurationC.Indemnify for DismissalD.DamagesE.Mass LayoffCHAPTER V:COLLECTIVE LABOUR AGREEMENTS

CHAPTER VI :GENERAL WORKING CONDITIONSSECTION I: WAGEA.Wage DeterminationB.Guaranteed Minimum WageC.Payments of WagesD.Lapes of Lawsuits for Payment of WagesE.Guarantees and Priority of Wage ClaimsF.Wage DeductionsG.Garnishment and Assignment of Wages of Workers andDomesticsH.Tips – Supervision and Distributions of TipsSECTION II :SECTION III :SECTION IV :SECTION V :SECTION VI :SECTION VII :SECTION VIII:SECTION IX:HOURS OF WORKDAILY AND WEEKLY HOURSNIGHT WORKWEEKLY TIME OFFPAID HOLIDAYSPAID ANNUAL LEAVESPECIAL LEAVECHILD LABOUR-WOMEN LABOURA.Joint ProvisionsB.Child LabourC.Women LabourWORKERS RECRUITED OUTSIDE THEWORKPLACECHAPTER VII:SPECIFIC WORKING CONDITION FORAGRICULTURAL WORKSSECTION I:PLANTATIONSA.Hours of WorkB.Partials Payment in KindC.Family BenefitsD.HousingE.Housing AllowanceF.WaterG.Provision of SuppliesH.LatrinesI.Death – Interment or CremationJ.Day NurseryK.SchollSECTION II:CHAPTER VIII:OTHER AGRICULTURAL WORKSHEALTH AND SAFETY OF WORKERS SCOPE OFAPLLICATIONSECTION I :SECTION II :SPECTION III:GENERAL PROVISIONSINSPECTIONSLABOUR HEALTH SERVICE

CHAPTER IX:WORK-RELATED ACCIDENTSCHAPTER X:TRADE UNION FREEDOM AND WORKERREPRESENTATION IN THE ENTERPRISESECTION I :SECTION II :SECTION III :CHAPTER XIISECTION I::SECTION II :CHAPTER XIII:SECTION I :SECTION II :SECTION III :SECTION IV :THE RIGHT TO FORM A TRADE UNIONPROTECTION OF TRADE UNION FREEDOMREPRESENTATION OF THE WORKERS IN THEENTERPRISESETTLEMENT OF LABOUR DISPUTESINDIVIDUAL DISPUTES, PRELIMINARYCONCILATION OF INDIVIDUAL DISPUTESCOLLECTIV LABOUR DISPUTESA. ConciliationB. ArbitrationSTRIKES – LOCKOUTSGENERAL PROVISIONSPROCEDURES PRIOR TO THE STRIKEA. Prior NoticeB. Minimum ServiceC. Essential ServicesEFFECTS OF A STRIKEILLEGAL STRIKECHAPTER VIVSECTION ISECTION IISECTION III::::LABOUR ADMINISTRATIONGENERAL PROVISIONSLABOUR INSPECTIONLABOUR MEDICAL INSPECTIONCHAPTER XV :THE LABOUR ADVISORY COMMITTEECHAPTER XVI :PENALTIESCHAPTER XVII :LABOUR COURTSCHAPTER XVIII : TRANSITIONAL PROVISIONCHAPTER XIX :FINAL PROVISIONS

CHAPTER IGENERAL PROVISIONSSECTION ISCOPE OF APPLICATIONDIFFERENCE CATEGORIES OF WORKERS IN THE KINGDOM OF CAMBODIAARTICLE 1This law governs relations between employers and workers resulting fromemployment contracts to be performed within the territory of the Kingdom ofCambodia, regardless of where the contract was made and what the nationality andresidences of the contracted parties are.This law applies to every enterprise or establishment of industry, mining,commerce, crafts, agriculture, non religious, whether they are of professionaleducation or charitable characteristic as well as the liberal profession, associations orgroups of any nature whatsoever.This law shall also apply to every personnel who is not governed by theCommon Statutes for Civil Servants or by the Diplomatic Statutes as well as officialsin the public service who are temporarily appointed.This law shall not apply to:a)Judges of the Judiciaryb)Person appointed to a permanent post in the public service.c)Personnel of the Police, the Army, the Military Police, who aregoverned by a separate statute.d)personnel serving in the air and maritime transportation, who aregoverned by a special legislation, these workers are entitled to applythe provisions on freedom of union under this law.e)Domestics or household servants, unless otherwise expressly specifiedunder this law. These domestics or household servants are entitled toapply the provisions on freedom of union under this law.ARTICLE 2All natural persons or legal entitles, public or private, are considered to beemployers who constitute an enterprise, within the meaning of this law, provided thatthey employ one or more workers, even discontinuously.Every enterprise may consist of several establishments, each employing agroup of people working together in a defined place such as in factory, workshop,work site, etc., under the supervision and direction of the employer.A given establishment shall be always under the auspices of an enterprise.The establishment may employ just one person. If this establishment is unique andindependent, it is both considered as an enterprise and an establishment.

ARTICLE 3“Worker”, within the meaning of this law, are very person of all sex andnationality, who has signed an employment contract in return for remuneration, underthe director and management of another person, whether that person is a naturalperson or legal entity, public or private. To clearly determine the characteristics of aworker, one shall not take into account of neither the jurisdictional status of theemployer nor that of the worker, as well as the amount of remuneration.ARTICLE 4“Domestics” or household servants “are those workers who are engaged totake care of the home owner or of the owner’s property in return for remuneration.ARTICLE 5“Employee or helpers” are those who are contracted to assist any person inreturn for remuneration, but who do not perform manual labor fully or who do soincidentally.ARTICLE 6“Laboures” are those workers who are not household servants or employees,namely those who perform mostly manual labour in return for remuneration, underthe direction of the employer or his representative.The status of labourer is dependent of the method of remuneration, it isdetermined exclusively by the nature of the work.ARTICLE 7“Artisans” are persons, who practice a manual trade personally on their ownaccount, working at home or outside, whether or not they use the motive force ofautomatic machines, whether or not they have a shop with a signboard, who primarilysell the products of their own work, carried out either alone or with the help of theirspouse or family members who work without pay, or with the help of workers orapprentices, but the entire workshop is solely under the direction of their own.The number of non-family workers, who regularly works for an artisan, cannotexceed seven; if this number is exceeded, the employer loses the status of artisan.ARTICLE 8“Apprentices” an those who have entered into an apprenticeship contract withan employer or artisan who has contracted to teach or use someone to teach theapprentice his occupation; and in return, the apprentice has to work for the employeraccording to the conditions and terms of the contract.ARTICLE 9In accordance with the stability of employment, it is distinguished: regular workerscasual workers, who are engaged to perform an unstable job.Regular workers are those who regularly perform a job on a permanentbasis.Casual workers are those who are contracted to:

perform a specific work that shall normally be completed within ashort period of time.perform a work temporarily, intermittently and seasonally.ARTICLE 10Casual workers are subject to the same rules and obligations and enjoy thesame rights as regular workers, except for the clauses stipulated separately.ARTICLE 11In accordance with the method of remuneration, workers are classified asfollows: Workers remunerated on a time basis (monthly, daily, hourly), who arepaid daily or at intervals not longer than fifteen days or one month. Workers remunerated by the amount produced or piecework. Workers remunerated on commission.SECTION IINON-DISCRIMINATIONARTICLE 12Except for the provision fully expressing under this law, or in any otherlegislative text or regulation protecting women and children, as well as provisionsrelating to the entry and stay of foreigners, no employer shall consider on account of: race, colour, sex, creed, religion, political opinion, birth, social origin, membership of worker’s union or the exercise of union activities.To be the invocation in order to make a decision on : hiring, defining and assigning of work, vocational training of work, advancement,

promotion, remuneration, grating of social benefits, discipline or termination of employment contract.Distinctions, rejections, or acceptances based on qualifications required for aspecified job shall not be considered as discrimination.SECTION IIIPUBLIC ORDERARTICLE 13The provision of this law are of the nature of public order, exceptingderogations provided expressly. Consequently, all rules resulted from a unilateraldecision, a contract or a convention that do not comply with the provision of this lawor any legal text for its enforcement, are null and void.Except for the provisions of this law that cannot be derogated in away, thenature of public order of this law is not obstructive to the granting of benefits or therights superior to the benefits and the rights defined in this law, granted to workers bya unilateral decision of an employer or a group of employers, by an employmentcontract, by a collective convention or agreement, or by an arbitral decision.SECTION IVPUBLICITYARTICLE 14The employer must keep at least one copy of the labour law at the disposal ofhis workers and, in particular, of the workers’ representatives in every enterprise orestablishment set forth in Article 1 of this law.SECTION VFORCED LABOURARTICLE 15Forced or compulsory labour is absolutely forbidden in conformity with theInternational Convention No.29 on the Forced or Compulsory Labour Organizationand ratified by the Kingdom of Cambodia on February 24, 1969.This article applies to everyone, including domestics or household servantsand all workers in agricultural enterprise or businesses.ARTICLE 16Hiring of people for work to pay off debts is forbidden.

CHAPTER IIENTERPRISES-ESTABLISHMENTSSECTION IDECLARATION OF THE OPENINGAND CLOSING OF THE ENTERPRSIEARTICLE 17All employers to whom this labour law is applied, shall make a declaration tothe Ministry in charge of Labour when opening an enterprise or establishment Thisdeclaration, called a declaration of the opening of the enterprise or establishment,must be made in writing and be submitted to the Ministry in charge of Labour beforethe actual opening of the enterprise or establishment.Employers who employ fewer than eight workers on a permanent basis andwho do not use machinery, shall make and submit this declaration to the Ministry incharge of Labour within thirty days following the actual opening of the enterprise orestablishment.ARTICLE 18For the closing of the enterprise, employers shall also make a declaration tothe ministry in charge of Labour within thirty days following the closing of theenterprise.ARTICLE 19A Prakas of the Ministry in charge of Labour shall define the formality andprocedure of the declarations to follow in each case.ARTICLE 20Every employer shall establish and neatly keep a register of an establishmentthat was numbered and initialed by the Labour Inspector. The model of the registershall be set by a Prakas of the Ministry in charge of Labour.SECTION IIDECLARATION ON MOVEMENT OF PERSONNELARTICLE 21Every employer must make the declaration to the Ministry in charge of Laboureach time when hiring or dismissing a worker.This declaration must be made in writing within fifteen days at the latest afterthe date of hiring or dismissal.This period is extended to thirty days for agricultural enterprise.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 employmentdoes not exceed three months within twelve consecutive months.

SECTION IIIINTERNAL REGULATIONS OF THE ENTERPRISEARTICLE 22Every 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 theenterprise.ARTICLE 23Internal regulations adapt the general provisions of this law in accordance withthe type of enterprise or establishment and the collective agreements that are relevantto the sector of activity of the aforementioned enterprise or establishment, such asprovisions relating to the condition of hiring, calculation and payment of wage andperquisites, benefits in kind, working hours, breaks and holidays, notice periods,health and safety measures for workers, obligations of workers and sanctions that canbe imposed on workers.ARTICLE 24The internal regulations must be established by the manager of enterprise afterconsultation with worker’s representati

labour law contents chapter i: general provisions section i: scope of apllication different categories of workers in the kingdom of cambodia section ii: non-discrimination section iii : public order section iv: publicity section v: forced labour chapter ii: enterpriss – establishments section i: declaration of the openin and closing of the .

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