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ARTICLE · 19 OCTOBER 2018

Implementing Guidelines Provide New Details On Labor Law Amendments

Tilleke & Gibbins
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Tilleke & Gibbins

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Seniority payments only apply to an employee with an undetermined duration contract.

CambodiaEmployment and HR
Jay Cohen
Jay Cohen
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Cambodia's Ministry of Labor and Vocational Training (MLVT) has introduced two new Prakas (implementing guidelines), one of which seeks to clarify recent amendments to the country's Labor Law pertaining to seniority payments, and the other establishes a new requirement to make salary payments twice per month. Below we set out full details of the changes.

Prakas No. 443 on Seniority Payments

On September 21, 2018, the MLVT issued Prakas No. 443 on Seniority Payments, which provides implementing guidelines for the recent amendment to the Labor Law. To recap, the amendment to the Labor Law eliminated the "indemnity for dismissal" on termination of undetermined duration contracts and replaced it with an ongoing requirement for employers to pay a new "seniority payment." Please refer to our client alert dated August 6, 2018, for more information on the amendment to the Labor Law.

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