Employment Archives

In the course of business operations, circumstances may arise that require the closure and winding up of a company. When this occurs, employers have important legal responsibilities, particularly concerning their employees.

This article, “Employment Considerations for Responsible Business Closure in Myanmar” provides an overview of the key employment-related legal requirements involved in closing a business and how to manage employment matters properly. It is intended to guide employers and employees in understanding the legal framework surrounding business closure from a labour perspective.

To read the full article, please click “download” below:

Nishant Choudhary

Partner and Managing Director, Myanmar | Head of Regional Dispute Resolution

Partner and Managing Director, Myanmar | Head of Reg ...

Cambodia, Myanmar

The Ministry of Labour and Vocational Training (“MLVT”) has recently introduced a series of regulatory updates aimed at enhancing clarity, consistency, and compliance in labour registration and reporting practices. These updates are particularly focused on aligning procedures with the MLVT’s digital platforms, including the Labour Centralized Management System (“LACMS”).

The key regulatory updates include:

Declaration of Enterprise Opening and Closure – Enterprises are now required to formally notify the MLVT of their commencement or cessation of operations via the LACMS. The scope of information that must be reported to the MLVT regarding changes to enterprise particulars has been expanded and must be submitted via the MLVT’s online platform.
Enterprise Establishment Book – Employers must maintain a standardized enterprise establishment book, accessible through LACMS.
Payroll Ledger – Enhanced requirements for payroll documentation and digital submission have been introduced to ensure transparency and traceability. Enterprises are now required to update their payroll records monthly through the LACMS platform.
Management of Labour Contractors – New compliance obligations have been set for enterprises engaging third-party labour contractors.
Overtime, Public Holiday Work, and Weekly Time Off – the MLVT has clarified the conditions under which employees may work overtime, on public holidays, or have their weekly rest days suspended. It emphasizes voluntary participation, operational

Click ‘Download‘ to view full update details.

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 situation

Vansok Khem

Partner

Cambodia

The Ministry of Labour and Vocational Training (MLVT) has issued two key regulations—Prakas 073 and Prakas 074—that alter how individual and collective labour disputes are managed in Cambodia.

What’s New?

Structured Resolution Process

Step-by-step procedures for filing complaints, labour inspector reviews, inquiry sessions, conciliation and re-conciliation.

Stricter Compliance Rules

Procedural requirements include penalties for non-attendance.
Complaints may be nullified if procedural obligations are not met.
Dual Role of Labour Inspectors – Labour inspectors now serve as both conciliators and inspectors. When a complaint is filed, they may initiate conciliation or conduct a labour inspection—employers should be prepared for both.

Outlook

These reforms focus on procedural discipline and clarity. Legal consultation is advisable to understand the evolving framework. Further guidance from MLVT is anticipated, especially regarding arbitration procedures for individual disputes.

Click the “Download” button below to read the full article:

Vansok Khem

Partner

Cambodia

Myanmar workers seeking overseas employment initially needed a Passport for Job (“PJ”). The Overseas Worker Identification Card (“OWIC“) was introduced under the 1999 Overseas Employment Law to systematically register migrant workers and provide necessary assistance abroad. However, it wasn’t until around 2021 that the OWIC requirement became stringent. Therefore, while the OWIC existed prior to 2019, its strict enforcement for all overseas workers appears to have been implemented after 2021.

The Ministry of Labor (“Ministry“) suspended OWIC issuance on 14 February 2025 to review procedures and consolidate OWIC card centers. On 10 March 2025, it announced that OWIC issuance would resume on 20 March 2025, with additional requirements. Previously, individuals planning to work abroad only needed a PJ and an OWIC. Under the updated process, they must now follow two steps:

Securing PJ and OWIC: Overseas workers must first obtain both the PJ and the OWIC.
Applying for Permission: After obtaining the PJ and OWIC, workers must apply online for permission to work abroad by submitting the required documents, including an application letter, passport copy, and valid OWIC details, to the Labor Department. Workers on leave must provide a valid work permit and employer permission. Agencies are required to submit applications via the designated email of respective countries, while individuals must send documents to [email protected] at least five days in advance. The Ministry will publish approved lists on the Safe Migration Telegram Channel and notify relevant airports.

The Ministry emphasized that OWIC will be issued based on demand letters, prioritizing those with approved work permits and skilled workers traveling independently. Applicants are reminded to secure OWIC before purchasing air tickets.

On 5 May 2025, the Ministry of Labour and Vocational Training (“MLVT”) issued Notification 015/25 (“Notification”) extending the deadline for work permit applications once more. This extension is due to delays in submitting requests for the extension of work permit applications, ensuring that those who have not yet applied can do so on time.

Through this Notification, the MLVT has delayed the submission deadline for renewal of work permit applications until 31 May 2025, being one month after the first extended deadline (30 April 2025).

Please note that the obligation applies to foreign national whose name appears on patent tax certificate, self-employed foreign national and every employer in Cambodia employing foreign employees, including representative offices, branches, private or public limited companies, non-governmental organizations and associations.

Non-compliance with the requirements for obtaining work permits for foreign employees may subject employers to fines imposed by the MLVT, amounting to a maximum of KHR 12.6 million (approximately USD 3,150) per foreign employee. If there are five or more foreign employees working without work permits, the labour inspector may impose a maximum administrative fine of KHR 63 million (approximately USD 15,750), being five times the administrative fine imposed by the MLVT. Fines may be imposed in triple in the event of repeated offenses. Additional sanctions, as imposed by the Labour Law, include terms of imprisonment from six days to one month for any person who hires or retains a foreigner not holding a work permit.

Further, based on Joint Prakas 498 on the Monetary Fines for Those who Violate the Labour Law dated 31 July 2023, a foreign national who conducts business in Cambodia including self-employed person without a work permit is subject to a monetary fine of KHR 50.4 million (approximately USD 12,600).

Unless you have done so already, we strongly recommend that employers with foreign employees submit foreign employee work permit applications by the above extended deadline.

If you would like our assistance with the work permit application or if you have any questions or concerns regarding this reminder, please contact us on [email protected].

Vansok Khem

Partner

Cambodia

Recent changes in U.S. tariff policy and the freezing of USAID funding have created operational challenges to business and non-business enterprises, prompting some enterprises to restructure or suspend operations. Workforce restructuring is an immediate response to cost-cutting pressure. There are various strategies to rationalize costs via workforce restructuring while maintaining the current headcount and ensuring that organizations can effectively navigate crises.

We have prepared a practical legal roadmap for enterprises in Cambodia considering workforce restructuring by exploring various alternatives to layoffs while also offering guidance when layoffs are necessary.

Click ‘Download‘ to view the full article.

Vansok Khem

Partner

Cambodia

On 31 March 2025, the Ministry of Labour and Vocational Training (“MLVT”) issued Notification 009/25 (“Notification”) extending the deadline for work permit applications. This extension is due to delays in submitting requests for the extension of work permit applications, ensuring that those who have not yet applied can do so on time.

Through this Notification, the MLVT has delayed the submission deadline for renewal of work permit applications until 30 April 2025, being one month after the original deadline.

Unless you have done so already, we strongly recommend that employers with foreign employees submit foreign employee work permit applications by the above extended deadline.

If you would like our assistance with the work permit application or if you have any questions or concerns regarding this reminder, please contact us on [email protected].

Vansok Khem

Partner

Cambodia

Government Regulation (PP) No. 6 of 2025, amending PP 37/2021 has been issued to strengthen worker protections under the Job Loss Insurance (JKP) Program:

Key Update	PP 73/2021 (Previous Rule)	PP 6/2025 (New Update)
Higher Cash Benefits	45% of wages for the first 3 months, 25% for the next 3 months	Increased to 60% of wages for up to 6 months
Lower Contribution Rate	0.46% of wages for month	Reduced to 0.36% of wages per month, with a portion from JKK
Extended Claim Submission	Claims must be submitted within 3 months of termination	Extended to 6 months from termination
Protection in Case of Bankruptcy	No specific rule	BPJS must still pay benefits even if the employer is bankrupt or closed
Clearer Coverage for Contract Workers	Unclear eligibility for contract workers	Confirmed eligibility if terminated before contract end date
Expanded Training Access	Access to job market information and training programs	Includes certification programs and digital job market integration

On 7 February 2025, the Ministry of Labour and Vocational Training issued Guideline No. 015/25 on Special Protection for Pregnant Women (“Guideline 015”). Guideline 015 aims to enhance the welfare of female employees during the period of pregnancy and after delivery by providing additional benefits and protections on top of what is currently prescribed by the Labour Law. We set out in the table below the existing benefits under the Labour Law and the additional benefits introduced under Guideline

Description	Labour Law	Guideline 015
Non-Discrimination and automatic renewal of the employment contract	The Labour Law prohibits in general any discrimination act in hiring, defining and assigning of work, vocational training, advancement, promotion, remuneration, granting of social benefits, discipline and termination of employment contract based on race, color, sex, creed, religion, political opinion, birth, social origin, membership of workers’ union or the exercise of union activities. The Labour Law does not explicitly prohibit an act of discrimination against pregnant employees. While the Labour Law offers female employees’ the right to perform only light work during the first two months after returning to work from maternity leave, there is no provision that mentions about automatic renewal of the employment contract.	Guideline 015 explicitly forbids discrimination against pregnant female employees, including in job opportunities, employment contract renewals, salary increments, and other employment benefits. It further encourages automatic renewal of employment contracts for pregnant employees during pregnancy and within one year after delivery.
Timing of maternity payment	During maternity leave, female employees are entitled to 50% of their wage, including other benefits, paid by the employer. The payment shall be granted only to women having a minimum of one year of uninterrupted service in the enterprise. The Labour Law does not provide clarity when the payment should be paid. As a matter of practice, enterprises pay female employees their salaries at the end of each calendar month, during maternity leave.	Guideline 015 clarifies the timing of payment by requiring employers to pay the total maternity payment for the maternity leave period to female employees before they go on maternity leave.
Suspension of the employment contract	The Labour Law stipulates in general reasons for employment contract suspension and consequences thereof.	Under Guideline 015, unless the suspension affects the entire department or section of the enterprise or involves all employees, employers must not suspend the employment contracts of female employees during pregnancy and/or within nine months after giving birth.
Termination of the employment contract	The Labour Law prohibits the termination of the employment contracts of female employees during maternity leave or on a date when the end of the notice period falls during maternity leave. This protection does not extend after the female employee returns to work.	Employers are prohibited from terminating the employment contracts of female employees who are pregnant or within one year after giving birth. While Guideline 015 indicates that employers can terminate pregnant employees for serious misconduct, such termination, if it occurs within one year after the female employees give birth, must be reviewed and receive prior approval from the labour inspector (the detailed process of which is not specified in Guideline 015).

Guideline 015 further emphasizes that any enterprises not complying with the rules specified under this guideline will be subject to penalties pursuant to applicable laws and regulations.

Should you need any further information or support, please contact us at [email protected].

Vansok Khem

Partner

Cambodia

Introduction

The People’s Military Service Law (“Law“) was initially drafted in 2010 by the former State Peace and Development Council; it was enforced by the State Administration Council (“SAC“) on 10 February 2024. The implementing regulation of the Law, People’s Military Service Rules (“Rules“), were subsequently promulgated on 23 January 2025.

Under the Law, military service is mandatory for male Myanmar citizens aged 18 to 35 and female citizens aged 18 to 27. However, exemptions apply to married women and women with children (even if divorced), as well as to individuals with permanent disabilities or members of religious orders. Additionally, experts and professionals – such as medical doctors, engineers, and other skilled workers -are required to serve if they are male and aged 18 to 45 or female and aged 18 to 35. The duration of service is up to 24 months, extendable to 36 months for experts, and may last up to five years during a state of emergency.

This client alert examines only the impacts on public servants and private company employees under the People’s Military Service Law and Rules of Myanmar.

Impact on Public Servants

The Law defines a public servant’s military service period as duty time. The Rules allow public servants to choose between their standard public service salary and the salary provided by the Defense Services during their service. The Ministry of Defense, in coordination with the Ministry of Planning and Finance, the Union Civil Service Board, the relevant Union ministries, and other relevant bodies, is responsible for determining available benefits, service recognition, and performance-based rewards for public servants.

Suppose a public servant serving in the military is due for a promotion that requires a written examination or interview. In that case, the Ministry of Defense will coordinate with the Union Civil Service Board and the relevant authorities to facilitate the promotion process without requiring such assessments.

Impact on Private Company Employees

For private company employees, the Law mandates reinstatement to their original position or a similar one upon completion of military service. When a worker who has completed his military service reports back to his former employer, the Central Body shall coordinate with the Ministry of Labor to ensure that the employer can reassign the worker to his original job or, if it is challenging to reassign him to his original job, to a similar job. That said, the conditions that could be the grounds for assigning a different role are not prescribed under the Law of the Rules. Failure to appoint an employee who has completed the period for military service may result in punishment, including imprisonment for a term not exceeding three years, with a fine, or both.

Further, the Rules stipulate that employers must pay wages to employees performing military service per relevant laws, rules, notifications, orders, directives, and procedures. Relatedly, the Payment of Wages Law of 2016 (“PW Law“) specifies that if an employee is conscripted under the Law, the employer must pay wages for 60 days as a special leave. It is also important to recognize that PW Law is a general law, whereas the Law is a specialized law governing military service. Under established common law principles, a general law cannot override a specific law. Accordingly, the Law may require employers to continue to pay due wages to any of their workforce members who have been conscripted. That said, neither the Law nor the Rules are explicit on how this amibuity will be addressed and would likely require further clarification from the regulator, lest a practice that may not be the actual legislative intent develops.

Other Entitlements and Benefits

In the event of injury, death, or service-related incidents, the Defense Services will provide benefits to them or their beneficiaries as per its regulations. Those who have fully completed their military service term are entitled to receive appropriate honours awarded by the Union.

Conclusion

In conclusion, the People’s Military Service Law and Rules impose specific obligations on government agencies and private company employers regarding employees called to military service. The private sector employers must also ensure compliance with the relevant provisions to protect employee rights and meet legal obligations.

Notification No. 022/24 on the Procedure for the Legal Use of Foreign Labour in the Kingdom of Cambodia (“Notification 022/24”)

On 12 August 2024, the Ministry of Labor and Vocational Training (“MLVT”) issued Notification 022/24 to clarify the process for hiring foreign employees. Previously, foreign nationals were required to obtain a valid visa (including a regular visa type E) from a Cambodian Embassy abroad, through an online system, or upon arrival at an international airport before they could apply for a work permit. Notification 022/24, introduces a new process specifically for foreign employees requiring them to first obtain an initial work permit before applying for a visa to work legally in Cambodia.

Despite the issuance of Notification 022/24, to date, the MLVT still requires a foreign employee to have an initial visa as one of the required supporting documents when applying for an initial work permit and to obtain the work permit within the period of stay of the initial visa. That is, employers hiring prospective foreign employees must prepare all necessary documents and obtain a work permit before the initial visa of the foreign employees (typically valid for 30 days) expires.

For completeness, in order to obtain a work permit, a prospective foreign employee is required by the MLVT to have, among other things, the following:

a Cambodian valid visa including regular visa type E (“Visa E”) or special visa type K;
a health certificate issued by the Labour Medical Department of the MLVT or other valid health certificate certified by the Labour Medical Department of the MLVT. It takes three to seven working days to obtain such certificate from the MLVT;
a fixed duration contract or an unspecified duration contract in Khmer certified by the MLVT. It takes 15 working days to obtain such certificate from the MLVT; and
a residential certificate or letter issued by the local authority in Cambodia (if any).

For work permit renewals, the foreign employee must possess, among others, an extended visa, such as Visa EB with at least six months’ validity.

In light of the above, businesses planning to hire foreign nationals are advised to plan ahead and obtain necessary supporting documents and ensure that the proper work permit is obtained before the foreign employees begin working in Cambodia or during the validity of the initial visa. This will help avoid penalties under the Labour Law and related regulations.

Prakas 259/24 on Qualifications of Administration and Human Resources Officers (“Prakas 259/24”)

On 2 December 2024, the MLVT issued Prakas 259/24 aiming to improve compliance culture in employment and labour law aspects.

To qualify for the position of administration or human resources officer, an individual must hold a professional certificate in administration and human resources or a diploma in labour law issued by the National Institute of Labour (“NIL”) of the MLVT. Additionally, they are required to attend training organized by the NIL every three years.

We understand that this requirement applies to all enterprises hiring administration and human resources employees, including non-governmental organizations.

Based on a Notification dated 7 November 2024 from the MLVT regarding the available courses for years 2024-2025, the diploma in labour law takes two years to complete at a cost of 800 USD, while the professional certificate in Human Resources can be completed in eight months for 650 USD.

Prakas 259/24 also specifies that companies in the garment, textiles, footwear, travel goods, and bags sectors must send employees holding the position of head of administration or human resources who do not meet the required qualifications to undergo training in administration, human resources, or a higher-level degree in labour law, provided by the NIL. Employers are responsible for covering the training costs and ensuring that the employee’s salary, seniority, and other benefits are maintained during the training period.

There is no penalty provision under Prakas 259/24 for hiring administration and human resources employees that do not meet the qualification requirements.

Given the novelty and stringent requirements of this regulation, the private sector will aim to propose revisions to this new requirement on points relating to the duration of the training as well as the cost burden imposed on the enterprises.

Should you need any further information or support, please contact us at [email protected].

Raksa Chan

Senior Consultant

Cambodia

The Constitutional Court (MK), in October 2024 granted a partial judicial review of Law Number 6 of 2023, which relates to Government Regulation in Lieu of Law Number 2 of 2022, known as the Job Creation Law. This decision, number 168/PUU-XXI/2023, addresses several key points, including:

Regulations on foreign workers (TKA)
Specific time work agreements (PKWT)
Outsourcing workers
Leave rights
Wages
Termination of employment (PHK)
Severance pay, compensation, and long service awards

In addition, the Constitutional Court (MK) urged the House of Representatives (DPR) and the government to draft a new Labor Law that can better balance the protection of workers’ rights with the demands of the business sector. It is essential for all stakeholders, including workers and employers, to actively oversee the implementation of these rulings to ensure fairness and proper application in practice.

Stay informed as these changes unfold!

Vinay Ahuja

Partner and Managing Director, Indonesia & Singapore | Head of Regional Banking and Finance

Partner and Managing Director, Indonesia & Singapore ...

Indonesia, Singapore, Thailand

On 20 September 2024, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 211/24 on the Determination of Minimum Wage for Workers in the Garment, Textile, Footwear (“GTF”), Travel Product and Bag Sectors (“Prakas 211”), to set a new minimum wage for 2025, which will be effective from 1 January 2025.

Under Prakas 211, workers in the above sectors will be entitled to the following new minimum wage:

for regular workers, USD 208 per month; and
for probationary workers, USD 206 per month.

Prakas 211 also sets out the minimum wage for piece rate workers. For such workers, the pay rate is determined based on their level of production and, if such production gives rise to a higher pay rate than the minimum wage, the workers will be entitled to such higher amount. However, if their production gives rise to a pay rate lower than the minimum wage, the employer must adjust the workers’ pay such that the total pay is at least equal to the minimum wage (USD 208 for regular workers and USD 206 for probationary workers).

The other benefits to which the workers in the GTF sectors are entitled remain unchanged, such as compensation for a transportation or accommodation allowance of USD 7 per month, an attendance bonus of USD 10 per month, a meal allowance of USD 0.5 per day (or one free meal per day) for workers who work overtime and a seniority bonus from USD 2 to USD 11 per month for workers in their second to the eleventh years of service.

Under the Law on Minimum Wage, which was promulgated on 6 July 2018, the key factors in determining the minimum wage include social considerations (such as inflation rates and living expenses) and economic considerations (such as productivity, competition, job market status and profitability of a particular industry). The discussions on the minimum wage are conducted on an annual basis, unless decided otherwise by the National Council on the Minimum Wages, and such minimum wage is determined by a Prakas issued by the MLVT.

Should you require any further information or legal support, please contact us at: [email protected].

Vansok Khem

Partner

Cambodia

Law No. 4 of 2024 on the Welfare of Mothers and Children in the First Thousand Days of Life.

Maternity Leave and Special Conditions:
Working mothers are entitled to maternity leave for at least three months, with the possibility of extending up to three additional months under special conditions, as evidenced by a doctor’s certificate. Special conditions include maternal health issues, complications during or after childbirth, miscarriages, or children born with health problems.

Rest Period and Health Services:
Mothers are also entitled to a rest period following a miscarriage, as determined by a certificate from an obstetrician, gynecologist, or midwife. Additionally, employers must provide appropriate opportunities for health and nutrition services and lactation during working hours.

Time for Childcare and Access to Daycare:
The regulation ensures that mothers have sufficient time to care for their children, with “sufficient time” being defined in labor agreements, company regulations, or collective labor agreements. Working mothers must also have access to affordable daycare facilities that are convenient in terms of both distance and cost.

Vinay Ahuja

Partner and Managing Director, Indonesia & Singapore | Head of Regional Banking and Finance

Partner and Managing Director, Indonesia & Singapore ...

Indonesia, Singapore, Thailand

The window to apply for the 2025 foreign employee quota is open until the end of November 2024.

Enterprises employing or intending to employ foreign employees in 2025 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 the hiring of foreign nationals in excess of the above foreign employee quota cap, subject to the MLVT approval. Based on Prakas 277/20, enterprises governed by the scope of Article 1 of the Labour Law that need to hire employees, but cannot find suitably qualified Cambodian nationals or sufficient numbers for their workplace, 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 2025 foreign employee quota application be prepared as soon as practicable and, in any event, before 30 November 2024, in order to avoid potential fines by the MLVT and, where applicable, leave sufficient time to seek approval for any increase in the quota. Please refer to this alert on Annual Labour Compliance for more details about the applicable penalties.

If you require our assistance with such application, please do not hesitate to contact [email protected].

Raksa Chan

Senior Consultant

Cambodia