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Legal and Tax Updates

Foreign Employee Quota Deadline

Sep 12 2014
Written by opmin-dfdl

Dear Clients,

We take this opportunity to remind you that the deadlines for filing applications for foreign employee quota approval and work permits are fast approaching.  Given recent measures by the authorities to increase enforcement of the laws concerning the employment of foreign nationals in Cambodia, it is imperative that your organisation submits all necessary applications within the required deadlines.
 
By law, every organisation employing foreign nationals must file an application for foreign employee quota approval with the relevant labor authority by 30 November each year.  Foreign employee quota applications may be filed from October 2014 and, given that it typically takes several months to receive approval from the relevant labor authority, we strongly recommend that an application is submitted as early as possible.   
 
In addition, the work permits held by foreign nationals expire on 31 December each year and your organisation is required to apply for an extension to those work permits by 31 March each year.  
 
The above requirements apply to each and every employer in Cambodia, including representative offices, branches, limited liability companies and NGOs. 
 
Failure to comply with the foreign employee quota and work permit requirements could result in fines of up to USD180 or, in serious circumstances, imprisonment of up to three months. The foreign nationals concerned may also be deported.
 
While such sanctions were rarely imposed in the past, the authorities in Cambodia have started to strictly enforce the work permit requirements by increasing labour inspections and imposing fines for non-compliance.
 
In order to avoid such sanctions, we can assist your organisation in filing the applications for foreign employee quota approval and the renewal of work permits.  We can also assist with preparations for labour inspections in order to minimise disruption to your operations.  We would be pleased to advise you of our expected fees once we gain a better understanding of the number of foreign nationals currently employed by your organisation.
 
If you would like DFDL to assist you with the above services, please contact registration.kh@dfdl.com.  We look forward to hearing from you.

Chris Robinson
Deputy Managing Director;
Head of the Corporate and Commercial Practice Group, Cambodia

chris.robinson@dfdl.com

Vouchly Ou
Adviser, Corporate and Commercial Practice Group, Cambodia

vouchly.ou@dfdl.com 

opmin-dfdl
Bangladesh
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