The Ministry of Labour and Vocational Training and the Ministry of Economy and Finance issued a Joint Prakas 498, which replaced the previous Joint Prakas 659 on Monetary Fines for Those Who Violate the Provisions of the Labour Law dated 6 June 2016. The new Joint Prakas 498 updates the penalty for those who violate the provisions of the Labour Law and consolidates the increase of daily base wage and related penalties.
The key updates introduced by Joint Prakas 498 are highlighted below:
(1) increase of daily base wage: the daily base wage, used to calculate penalty for any non-compliance with the Labour Law, is increased from KHR 40,000 (approximately USD 10) to KHR 80,000 (approximately USD 20). There is also a new separate daily base wage of KHR 200,000 (approximately USD 50) used for the calculation of the penalty for violation of Articles 261, 264 and 372 of the Labour Law on work permit and employment of foreign nationals as stated under Joint Prakas 326 on the New Daily Base Wage dated 25 November 2022 (“Joint Prakas 326”); and
(2) removal of the monetary penalty by a competent court: monetary fines that can be imposed by a competent court included in the previous Joint Prakas 659 have been removed from Joint Prakas 498. Instead, under Joint Prakas 498, if an offender refuses to pay the fine as determined, the Labour Inspector will file a case to the competent court in accordance with the legal procedures in force.
In the table below, we highlight some of the offences related to labour registration obligations:
*For more details on the work permit penalty for foreign national who conducts business in Cambodia including self-employed person without a work permit, please check our article in the following link.
Should you need further information or legal support, please contact us at: 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.
