Contracts and Dismissals

Written Employment Particulars

The employment contract establishes working relations between the worker and the employer. It is subject to common law and can be made in a form that is agreed upon by the contracting parties. Individual employment contract may be of definite or indefinite period and may be concluded in writing or orally. Employment contract can be written or oral, may be drawn up and signed between the two parties before commencement of employment. The contract must also be registered at no cost, if registration is required. . The verbal contract is considered to be a tacit agreement between the employer and the worker under the conditions laid down by the labour regulations, even if it is not expressly defined.

An employment contract is an agreement in which one person (the employee) agrees to work for wages for another person or company (the employer). The Civil Code provides that a labour contract must contain a description of the following: wages, working hours, and other working conditions. The term “working conditions” includes wage, hours or work, night work, weekly rest, paid annual leave, public holidays, and special leave. Labour Law requires fixed term contracts to be in writing. Indefinite term contracts may be concluded verbally.  

Contracts are further regulated through Decree on Contract and Other Liabilities (No. 38 of 28 October 1988)

Sources: §65 & 66 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021); §664 & 665 of Civil Code, 2007

Fixed Term Contracts

Cambodian labour Law allows hiring of fixed term contract workers for tasks of permanent nature. A contract is a fixed term contract if it is written; its duration is not longer than 2 years; and has a precise starting and end date. A fixed term contract may be renewed many times however the total duration (including renewals) cannot exceed 02 years.

A fixed duration contract may have an unspecified end date if it is concluded for replacing a worker who is temporarily absent; for work carried out during a season; and occasional periods of extra work or non-customary activity of the enterprise. Such contract expires on the return of temporarily absent employee; end of the season; and end of the occasional periods of extra work or non-customary activity of the enterprise. Contracts of daily or hourly workers who are hired for a short-term jobs and are paid at the end of the day, the week or fortnight, are considered to be contracts of fixed duration with an unspecified date.  The contracts without a precise end date can be renewed as many times as possible until the objective condition (for signing them at the first place) remains.

Employer is required to inform the worker of the sensitive issues and the approximate duration of the employment contract. A fixed duration contract must be in writing otherwise it is considered a contract of indefinite duration. If a fixed term contract is signed for a period of less than two years however the worker continues to work after the end of that fixed period, employment contract is changed into a contract of indefinite duration.

Sources: §67 & 73 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021)

Probation Period

At the beginning of an employment contract, the employer can set a probationary period of up to 3 months in order to evaluate the skills and aptitude of an employee.

The probationary period should be long enough to judge the professional worth of the worker and for worker to know completely about the working conditions at the workplace. The maximum duration of probationary period as specified by the law is:

• 3 months for regular employees;

• 2 months for specialized workers; and

• 1 month for non-specialized workers (unskilled workers).

During probation, employer must cover the travelling cost of the worker employed far from his/her residence. An employment contract can be terminated by either of the parties without giving any notice during the probationary period or an apprenticeship period specified in the contract.

Sources: §68 & 82 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021)