Following Cambodian Labor Law (“Labor Law”) and applicable regulations, employers shall provide employees under unfixed duration contract (“UDC”) with seniority payments, which consist of current seniority payments from 2019 (“Current Seniority”) and back seniority payments prior to 2019 (“Back Seniority”).

Employees who started working before 1 January 2019 are entitled to Back Seniority. Back Seniority for employees of Garment, Textile and Footwear (“GTF”) is equal to 30 days per year, whereas those working in non-GTF is only 15 days per year. Method of Back Seniority is twice per year, June and December. However, due to impacts of COVID-19, commencement of Back Seniority for employees under non-GTF was postponed to December 2021, and employers shall provide Back Seniority of 3 days in June and 3 days in December until the amount reach its sufficiency.

Employees who have worked from one month or 21 days to 6 months must receive Current Seniority equal to 15 days a year, based on the total average of wages including other benefits. The employers shall provide Current Seniority of 7.5 days in June and 7.5 days in December. The method of Current Seniority is made every 6 months. The first semester is from January to June, and the second semester is from July to December.

Every employer shall also inform the labor inspectors of the seniority payment, as part of the wage payment of the employees, via self-declared labor inspection by the end of June.

If employers fail to complete such obligations, labor inspectors will impose penalties on the employers after reviewing the self-declaration via the MLVT’s online system, including the physically visiting enterprises by the labor inspectors, known as SICMS (https://sicms.mlvt.gov.kh/). According to the Labor Law, employers are liable to a fine ranging from 120 to 360 days of base daily wage. The current base daily wage is KHR 80,000 (approximately USD 20).

We are happy to assist you in calculating the seniority payments of the employees for both Back Seniority and Current Seniority.

For additional information, please contact our legal expert Antoine FONTAINE.

The content shared here is for informational purposes only and should not be interpreted as a legal advice. Legal matters can be complex and may vary based on individual circumstances. For personalized guidance on specific legal issues, we recommend consulting with our qualified legal professionals.