Welcome to this edition of DFDL’s Cambodia Law Update. In this issue, we present Cambodian regulations and information touching on the following: Determination of minimum wages for employees in the textile, garment and footwear sector for the year 2016
Welcome to this edition of DFDL’s Cambodia Law Update. In this issue, we present Cambodian regulations and information touching on the following:
- Determination of minimum wages for employees in the textile, garment and footwear sector for the year 2016;
- Paid public holidays for the year 2016 according to the Ministry of Labor and Vocational Training;
- Reminder on enterprise information update for enterprises and companies under the authority of the department of large taxpayers;
- Notification on suspension of receiving applications for registration of rural credit operators;
- Proclamation on use of standard limitation for poisonous quantity or hazardous substance permitted for disposal;
- Management of child care centers; and
- Draft telecommunication law approved.
❑ LABOR 2015
DETERMINATION OF MINIMUM WAGES FOR EMPLOYEES IN THE TEXTILE, GARMENT AND FOOTWEAR SECTOR FOR THE YEAR 2016, Prakas № 409 (MoLVT) 08 October 2015
After the Labor Advisory Committee recommended an increase to the minimum wage for the textile, garment, and footwear sector, to USD 135 per month, the amount has been increased by an additional USD 5 per month, which will bring the minimum wage to USD 140 per month, effective 01 January 2016. Minimum wage of USD 135 per month will apply to the probationary period for newly-hired employees.
For employees who are compensated based on real output, their total compensation must be no less than the minimum wage stated above.
PAID PUBLIC HOLIDAYS FOR THE YEAR 2016 ACCORDING TO THE MINISTRY OF LABOR AND VOCATIONAL TRAINING, Prakas № 416 (MoLVT) 21 October 2015
Paid public holidays for the year 2016 for employees of all enterprises and establishments as provided in Article 1 of the Labor Law are as follows:
One day-off: International New Year (Jan 1), Victory over Genocide (Jan 7), Meak Bochea Day (Feb 22), International Women’s Day (March 8), Labor Day (May 1), Visak Bochea Day (May 20), Royal Plowing Day (May 24), International Children’s Day and Cambodian Children’s Day (June 1), Queen’s Birthday (June 18), Constitution Day (Sept 24), commemoratory Day of King Norodom Sihanouk (Oct 15), Anniversary of the Paris Peace Agreement (Oct 23), Coronation Day of the King Norodom Sihamoni (Oct 29), Independence Day (Nov 9) and Human Rights Day (Dec 10).
Three days-off: National New Year (April 13-14-15-16), King’s Birthday Norodom Sihamoni (May 13-14-15), Pchum Ben Day (Sept 30-Oct 1-2), and Water Festival (Nov 13-14-15).
Where any public holiday falls on a Sunday, employees are to be given one day carried forward to the next day.
❑ TAXATION 2015
REMINDER ON ENTERPRISE INFORMATION UPDATE FOR ENTERPRISES AND COMPANIES UNDER THE AUTHORITY OF THE DEPARTMENT OF LARGE TAXPAYERS
On 23 September 2015, the General Department of Taxation (GDT) issued Letter No. 7487 GDT to inform enterprises and companies under the authority of the Department of Large Taxpayers that registered prior to 01 November 2014, which have not yet completed the tax registration update process, they must do so by 15 November 2015.
For enterprises and companies which fail to update their enterprise information by the above deadline, from 16 November 2015 onwards, the GDT may take certain measures as follows:
- Invalidate VAT certificate registered prior to 01 November 2014 (VAT certificate by old system);
- Not accept requests for input tax credit or request to VAT refund;
- Ask for cooperation with the General Department of Customs and Excise to cease export-import operation;
- Ask for cooperation with the Council for the Development of Cambodia to postpone requests to import raw materials, machineries and equipment; and
- Other measures in accordance with applicable law.
❑ BANKING 2015
NOTIFICATION ON SUSPENSION OF RECEIVING APPLICATIONS FOR REGISTRATION OF RURAL CREDIT OPERATORS
With reference to the Law on Organization and Functioning of the National Bank of Cambodia, the Law on Banking and Financial Establishment, and Prakas № Th 7-02-49-Br.K, dated 25 February 2002, on Obligation for Registration of Micro-Financial Operator and Requesting for License of Micro-Financial Establishment, and in compliance with the joint statement between the Ministry of Economy and Finance and the National Bank of Cambodia, dated 02 February 2015, the National Bank of Cambodia announced that it has received nearly 300 applications for registration of rural credit operators as of September 2015.
Those applications are currently being reviewed and evaluated and that appropriate time and resources are needed to complete the process.
The National Bank of Cambodia has decided to temporarily suspend receiving application forms for the rural credit operators commencing from 31 October 2015.
❑ ENVIRONMENT 2015
IMPLEMENTATION OF STANDARD LIMITATION OF POISONOUS QUANTITY OR HAZARDOUS SUBSTANCE PERMITTED FOR DISPOSAL, Prakas № 387 (MOE), 30 September 2015
A standard determination for quantity of poisonous chemical substance or hazardous element in waste which can be permitted to be disposed of at safe places and with standard limitations is put into use as provided in annexes 1 and 2 attached to this Prakas.
Disposal of poisonous chemical substances, hazardous substances or hazardous waste requires that a request be submitted to the Ministry of Environment (MOE).
❑ SOCIAL AFFAIRS 2015
MANAGEMENT OF CHILD CARE CENTER, Sub-decree № 119 (RGC), 11 September 2015
This sub-decree is aimed at promoting and strengthening the quality and effectiveness in managing child care centers and protecting children. The goal of the sub-decree is to manage child care centers relating to providing care, accommodation and basic needs to children living in groups, to children without parents, to children abandoned by their parents, and to children whose parents are not able to give sufficient care.
This sub-decree extends its scope of implementation to all child care centers in the Kingdom of Cambodia.
The Ministry of Social Affairs, Veteran and Youth Rehabilitation is the competent institution for managing child care centers.
❑ TELECOMMUNICATION/POST 2015
DRAFT TELECOMMUNICATION LAW APPROVED, Extract from the Cambodia Daily, Volume 62 Issue № 61 (Weekend Edition) 10-11 October 2015
On 09 October 2015, the Council of Ministers approved a draft law on telecommunications. While the contents of the draft law are not clear, it is believed that the law is aimed at regulating the telecommunications infrastructure and services of Cambodia, potentially impacting mobile phones service providers and internet service providers among others.
The draft law has been sent to the National Assembly for consideration.
DFDL Contact:
Alex Larkin
Senior Adviser
alex.larkin@dfdl.com
*The information contained in this legal update is provided 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.
