In March 2016, the Ministry of Labour and Vocational Training (“MLVT”) and the Ministry of the Interior (“MOI”) issued Joint Prakas 2703 (“Joint Prakas 2703”) to ensure that all relevant foreign nationals entering Cambodia, including owners or directors of enterprises, establishments, foreign investors or workers, fulfill certain legal requirements under the Labour Law and the Law on Immigration.
The joint foreign inspectors, with or without notice, can request copies of key documents, such as the: (1) articles of incorporation; (2) certificate of incorporation issued by the Ministry of Commerce or other relevant corporate documents; (3) declaration of staff movement; (4) approval of foreign employee quotas; (5) certification of the foreign employee’s employment contract issued by the MLVT; (6) employee work permits issued by the MLVT; and (7) employee visas issued by the MOI.
In order to bolster Joint Prakas 2703, the MLVT and MOI recently issued Joint Prakas 719 dated 19 February 2018 (“Joint Prakas 719”). Joint Prakas 719 is similar in content to its predecessor. The inspection team will comprise officials from the MLVT and MOI, and aims to ensure that the formalities and conditions enshrined in the Labour Law and the Law on Immigration are met.
Under Joint Prakas 719, the joint foreign labour inspectors may impose fines under Chapter 16 of the Labour Law and relevant labour regulations. For example, failure to comply with the foreign employee quota and work permit requirements could result in fines for each offence of up to USD 630 by the MLVT and/or up to USD 900 by a court. Furthermore, Chapters 5 and 6 of the Law on Immigration provide for a term of imprisonment for up to three months and/or deportation orders that may be issued to the foreign employees concerned.
We would be very happy to assist your enterprise in preparing for and responding to labour inspections, including training your staff to deal with any joint inspections.
Please contact us at labor.kh@dfdl.com, if you have any further questions or need any assistance regarding the above.
DFDL Contact
Partner, Head of Cambodia Corporate & Commercial Practice Group
Consultant, Cambodia Corporate & Commercial Practice Group
The information provided in this email 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.
