Reminder: Penalties for Persons Violating Provisions of the Labour Law

The new Joint Prakas No. 498 on Penalties for Persons Violating the Provisions of the Labour Law was issued on 31 July 2023 by the Ministry of Labour and Vocational Training (“MLVT”) (the “Joint Prakas 498”). The Joint Prakas 498 abrogates the Joint Prakas No. 659 dated 6 June 2016 on Penalties for Violators of the Labour Law (the “Prakas 659”), and other relevant rules and regulations that are contrary to the Joint Prakas No. 498. Below is the comparison between Prakas No. 659 and the New Joint Prakas on updated provisions.

Provisions	Prakas 659	The New Joint Prakas
Determination of monetary fine	Based on aggravating circumstances and separated into two levels which are the monetary fines determined under the competence of MLVT and the monetary fine determined under the decision of the competence tribunal.	Fines based on the new lists of offenses annexed to the Prakas that include type of offense, the daily base wage reference, the number of days applicable as a penalty, and the amount of fines.
Revenues Collection	Fine by MLVT Separation for Central Administration: A percentage of revenues collected is allocated to the national budget (30%), MLVT (69%), and Ministry of Economy and Finance (MEF) (1%) Separation for Skill Department of Municipal/Provincial: The percentage of revenues collected is allocated to the national budget (30%), department of MLVT (69%), and department of MEF (1%) Fine by the Decision of the Tribunal Separation for Central Administration: A percentage of revenues collected is allocated to the national budget (26%), MLVT (49%), the relevant tribunal (24%), and MEF (1%) Separation for Skill Department of Municipal/Provincial: The percentage of revenues collected is allocated to the national budget (26%), the department of MLVT (49%), the relevant tribunal (24%), and the Department of MEF (1%)	All Revenues collected under the Central Administration of MLVT go to the revenue of the National Administration’s budget. All Revenues collected under the Capital and Provincial Department go to the revenue of the Capital and Provincial, and Sub-national Administration. No revenues by the decision of the Court.
Formula	Amount of fine = Number of days for fine x Daily Wage (40 000 Riels)	Amount of fine = Number of days for fine x Daily Wage (80 000 Riels)
New Penalties in the Annex have been added	Not mentioned	No. 102: Employers that dismiss or suspend the weekly day off of workers or provide a weekly day off contrary to Section 4 Part VI of the Labour Law or this Prakas No. 105: Foreign Nationals conducting business without a work permit/workbook including sole proprietorships

For any Labour or Employment related inquiries, please feel free to contact Shan, Head of Labour at SOK SIPHANA & ASSOCIATES.

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Reminder: Penalties for Persons Violating Provisions of the Labour Law

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