Cambodia: 2021 Foreign Employee Quota Application Window Now Open

By way of notice, please note that the window to apply for the 2021 foreign employee quota is open as of September 2020 until the end of November 2020.

Enterprises employing or intending to employ foreign employees in 2021 are required to apply for a foreign employee quota from the Ministry of Labour and Vocational Training (“MLVT”). Under the quota system, a maximum of 10% of an employer’s total local workforce may be foreign nationals (based on a calculation of foreign employees/local employees), comprised of: office employees (3%); skilled labour employees (6%); and unskilled labour employees (1%).

However, in August 2020, the MLVT issued Prakas 277/20 concerning Special Conditions on the Employment of Foreign Nationals (“Prakas 277/20”), to permit hiring foreign nationals in excess of the above foreign employee quota cap under special conditions, subject to MLVT approval.

Based on Prakas 277/20, enterprises governed by the scope of Article 1 of the Labour Law which need to hire employees, but could not find suitably qualified Cambodian nationals or sufficient numbers thereof for a given workplace, type of work or shift, may file a request to hire foreign nationals under special conditions in excess of 10% of the total number of Cambodian employees.

If your organization employs or intends to employ any foreign nationals, we recommend that the 2021 foreign employee quota application be prepared as soon as practicable and, in any event, before 30 November 2020, in order to avoid potential fines by the MLVT and, where applicable, leave sufficient time to seek approval for any increase in the quota.

If you require our assistance with such application, please do not hesitate to contact labor.kh@dfdl.com.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

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