Cambodia is a popular destination for foreign investors and therefore offers many job opportunities for both Cambodian citizens and foreigners. However, hiring foreign employees in Cambodia can be a complicated process with employers needing to meet various legal and administrative requirements.
If you are considering hiring foreign workers in Cambodia, it is important to understand the eligibility criteria, procedures for applying for work permits and visas, and the pros and cons of hiring foreign nationals. Here is what you need to know:
Requirements and qualifications for hiring foreign workers in Cambodia
Foreigners working in Cambodia must meet certain requirements and eligibility criteria. These include:
- Hold a valid passport or travel document
- Be of legal age (18 years or older)
- Possess the skills and qualifications for the job you want
- No criminal record or blacklisting
- Pass a medical examination (for certain types of jobs)
Additionally, certain types of work are restricted to Cambodian citizens only. These include domestic work, unskilled labor, and work in specific areas such as agriculture, forestry, and fisheries.
Procedures for obtaining work permits and visas for foreign employees
An employer must obtain a work permit for each foreign employee they hire. Work permits are issued by the Ministry of Labor and Vocational Training (MLVT) and are valid for one year.
To obtain a work permit, employers must submit an application to the MLVT, attaching supporting documents such as the employee’s passport, qualification certificates and medical certificates. The application must also include details of the job, including salary, job description and employment contract.
Once a work permit is obtained, the employee must apply for a visa at the nearest Cambodian embassy or consulate. The type of visa required depends on the length of stay and purpose of the visit.
Types of visas for Cambodia
There are different types of visas that foreigners need to be aware of when working and living in Cambodia. The following are the most common types of visas in Cambodia:
- EP Visa: EP visas are issued to foreigners who come to Cambodia to seek work, conduct business, or to remain in the country after the initial 30-day stay of an E visa expires.
- EG visa: A general visa for people seeking work. It can be valid for one, three or six months.
- ER Visa: The ER visa is for people who wish to retire in Cambodia. They must show documentation that they retired in their home country and prove that they can support their own living expenses.
- ES Visa: A visa issued to students attending school or university in Cambodia. Holders can extend their visa indefinitely as long as they can provide a letter from a registered Cambodian school and show that they can cover their own living expenses.
- ET Visa: This is an extension of a skilled worker visa and is for people working in a specific trade or industry.
It is important to note that visa requirements and regulations in Cambodia are subject to change, so it is best to consult with the relevant authorities or a legal professional to ensure that you obtain the appropriate type of visa for your situation.
Pros and Cons of Hiring Foreign Employees
Hiring foreign employees can bring many benefits to companies, such as access to a wider talent pool, international expertise and language skills. However, it can also bring some challenges, such as language barriers, cultural differences and the need for additional administrative and legal procedures.
To overcome these challenges, it is important to establish clear lines of communication, provide cultural training and support, and ensure that all legal and administrative requirements are met.
Vacation rights for Cambodian employees
In Cambodia, employees are entitled to various types of leave, including paid vacation, paid holidays, sick leave, and maternity leave. Here’s what you need to know about each type of leave:
Paid Vacation
According to Cambodia's labor law, all employees are entitled to 1.5 days of paid vacation per month. This right is acquired after one year of employment. For every three years of continuous employment, employees are entitled to an additional day of paid vacation.
When an employee's employment contract is terminated, they are entitled to compensation for unused paid leave, calculated in proportion to the time they have worked in the enterprise.
Paid holidays
Employees in Cambodia are entitled to paid time off during festivals, anniversaries, and religious holidays. The government announces holidays every year. If a public holiday falls on a weekend, employees will have the next working day off. There are approximately 21 paid holidays in 2021.
Weekly rest day
By law, all employees in Cambodia must have at least one day off per week, usually Sunday. The same employee is prohibited from working more than six days a week.
If it would affect the company's operations if all employees rest on Sunday, the company can choose from the following conditions:
- Give employees a day off on a day other than Sunday.
- Allow employees to rest from Sunday noon to Monday noon.
- Give employees time to rest by rotating all employees.
sick leave
Employees in Cambodia are entitled to sick leave when they provide a certificate from an authorized hospital and a legally recognized doctor certifying the employee’s medical condition. Although paid sick leave is not provided for in the Labor Law, the Ministry of Labor has issued guidelines
Maternity Leave
After one year of continuous employment, a pregnant woman is entitled to 90 days of paid maternity leave. These 90 days include weekends and public holidays. If the employee does not complete a year of work, she will take unpaid maternity leave.
During maternity leave, employees are entitled to 50% of their normal wages and benefits.
Working hours in Cambodia
In Cambodia, normal working hours are 8 hours a day and 48 hours a week. The following are the obligations of employers regarding overtime working hours, night working hours and working hours:
Overtime working hours
If an employee is required to work overtime, including normal working hours, the working hours shall not exceed 10 hours per day, and the employee may choose whether to work overtime. Employers must obtain permission from the Ministry of Labor and Vocational Training to allow employees to work overtime, and the maximum overtime hours per day is two hours.
Employers must pay employees at least 150% of their wages if the work is performed on a normal working day, and at least 200% of their wages if the work is performed between 10pm and 5am.
Night working hours
According to Article 144 of the Labor Law, night work is defined as at least 11 consecutive hours, including the period between 10 pm and 5 am. The wage rate for night work is 130% of the daytime wage. If overtime work is required at night, overtime pay is paid at 200% of the daytime wage.
Employer's obligations
If an employee needs to work at night, the employer must provide accommodation or transportation. In addition, the employer must ensure that the employee has at least one day off per week, and the same employee may not work more than six consecutive days. In addition, the employer must provide employees with rest and rest periods during the working day.
National Social Security Fund (NSSF)
The National Social Security Fund (NSSF) is a social security mechanism established by the government to provide insurance and benefits to employed persons in Cambodia. NSSF provides the following benefits to eligible employees:
- Medical insurance: including outpatient, hospitalization, surgery, medicine and other medical services.
- Workers’ Compensation Insurance: Provides insurance coverage for employees for accidents that occur during the course of their work.
- Maternity Insurance: Provide maternity benefits and maternity leave for female employees.
- Pension insurance: Provide retirement benefits for eligible employees.
The NSSF is jointly paid by employers and employees, with the proportion of contributions depending on the employee's salary level. The operation and management of the NSSF is the responsibility of an independent committee composed of government, employer and trade union representatives.
NSSF is an important mechanism established by the Cambodian government to promote the welfare of employed people and social stability. Through NSSF, employees can obtain basic social security protection and enjoy benefits such as medical care, maternity, work injury and pension, thereby improving their living standards and welfare security.
Employment Injury Insurance Program
Under the Employment Injury Insurance Scheme, employers are required to pay 0.8% of their employees’ pre-tax monthly salary. Employers are required to pay this amount because any injury to an employee is considered the employer’s responsibility, as they create employment opportunities for their employees and at the same time incur occupational risks.
The minimum monthly salary for calculating the contribution is 200,000 riels and the maximum is 1.2 million riels. For employees with a salary exceeding 1.2 million riels, the monthly contribution is fixed at 9,600 riels per employee.
The benefits or compensation provided by the National Social Security Fund of Cambodia (NSSF) to its members include medical treatment benefits, temporary disability benefits, nursing benefits, permanent disability benefits, continuous nursing benefits and survivor benefits.
Health Care Plans
Employees in Cambodia are also eligible for a healthcare scheme which is fully paid for by the employer at a contribution rate of 2.6%.
The minimum monthly salary for calculating the contribution is 200,000 riels and the maximum is 1.2 million riels. For employees with a salary exceeding 1.2 million riels, the monthly contribution is fixed at 31,200 riels per employee.