Guide To Restructuring A Cross-Border Workforce 2026 – Cambodia

Reduction in workforce

01. Is there a concept of redundancy - based on a shortage of work or other economic reasons - as a justified reason to dismiss employees in your jurisdiction? If so, how is it defined?

The Cambodian Labour Law dated 13 March 1997, as amended (the Labour Law) does not address the redundancy of a single employee. However, Article 95 defines "mass layoff" as "any layoff resulting from a reduction in an establishment's activity or an internal reorganization that is foreseen by the employer" . It is a justifiable reason to dismiss employees, provided the statutory process outlined in section 2 is complied with.

02. In brief, what is the required process for making someone redundant?