New Amendments to the Labour Law
On 5 October 2021, the Law on the Amendment of the Labour Law was promulgated.
The Labour Law, first promulgated in 1997, is an important legal instrument governing employment relationships in Cambodia, including, but not limited to, employee’s rights, employment contracts, and dispute resolution mechanisms.
The law has been amended twice before; firstly, in 2007 concerning wages for overtime work and night work; and, secondly, in 2018 regarding provisions concerning seniority indemnity.
In this third amendment, three significant areas require particular attention:
- Enterprises can now divide work into three shifts. Previously, the law only allowed division for two work shifts. Under this amendment, work shifts can now be divided into three shifts, namely, morning, afternoon, and night.
- No replacement of public holidays falling on a Sunday. Previously, any public holiday which fell on a Sunday would have a one-day replacement on the following Business Day. This has been removed under the current amendment.
- Individual disputes can be brought to the Arbitration Council. Previously, individual disputes could only be brought to the court in the event where disputing parties are unable to settle through conciliation by the labour inspector. In this new amendment, individual disputes can now be brought to the Arbitration Council if no settlement is made.
This alert is for general information only and is not a substitute for legal advice.