On 28 December 2023, the Ministry of Labour and Vocational Training (“MLVT”) issued a new Instruction 110/23 on the Provision of Foreign Work Permit for Foreign National Employers (“Instruction”) to clarify the on-going questions as to whether certain foreign nationals need to apply for work permits.
The Instruction clarifies the following:
(1) a foreign national employer whose name appears on a patent tax certificate must have a work permit;
(2) a foreign national employee whose name appears on a patent tax certificate or who is a self-employed person must have a work permit; and
(3) a foreign national who is a shareholder or a member of the board of directors under the company’s articles of incorporation and does not hold a Cambodia visa is not required to apply for a work permit.
The work permit must be applied for via the MLVT’s online portal at www.fwcms.mlvt.gov.kh.
Based on the Instruction, a foreign national employer or employee whose name appears on a patent tax certificate is required to apply for a work permit, whether or not he/she works in Cambodia. Hence, the employee whose name appears on a patent tax certificate must be declared in as an employee and covered under a foreign employee quota approval and enter into an employment contract with the company in Cambodia.
We would like to highlight that failure to obtain a valid work permit for a foreign employee may give rise to a fine of up to KHR 12.6 million (approximately USD 3,150) per employee by the MLVT capped at KHR 63 million (approximately USD 15,750) and/or KHR 18 million (approximately USD 4,500) by the court. Additional sanctions, as imposed by the Labour Law, include terms of imprisonment from six days to one month.
For further detail, please refer to our article on annual labour compliance obligations: Annual Labour Compliance Obligations.
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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.