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2016 03 February

Cambodia Law Update for February 2016

#Cambodia #HealthCare #Legal #SocialSecurity

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SUB-DECREE № 11/16, DATED 06 JANUARY 2016, ON HEALTH CARE SCHEME

This sub-decree introduces a health care scheme pursuant to the Law on Social Security Regime applicable to persons governed by the Cambodian Labour Law. The health care scheme is the second of the three phase implementation of the social security regime.

 ◙ LABOR 2016

SUB-DECREE № 11/16, DATED 06 JANUARY 2016, ON HEALTH CARE SCHEME

This sub-decree introduces a health care scheme pursuant to the Law on Social Security Regime applicable to persons governed by the Cambodian Labour Law. The health care scheme is the second of the three phase implementation of the social security regime.

Benefits of the health care scheme include preventive health services, treatment and medical care services, and daily allowance during work suspension resulting from disease treatment or accidents other than occupational risk and maternity leave. These benefits are applicable to persons covered by the provisions of the Cambodian Labour Law including spouse and dependent children of workers who are members of the National Social Security Fund (“NSSF”) and NSSF members who are receiving pensions resulting from the permanent disability and survivors.

Employers and workers subject to this sub-decree must pay contributions for the health care scheme to NSSF.  Details regarding process and procedures for payment of contributions and rates will be disclosed by prakas of the Ministry of Labour and Vocational Training.

PRAKAS № 467/15, DATED 20 NOVEMBER 2015, ON PROCEDURES FOR RECRUITING YOUNG WORKERS IN ENTERPRISE AND ESTABLISHMENT

This prakas sets the procedures for recruiting young workers to work in factories, enterprises and establishments. A young worker is defined as a worker at the minimum age of 15 to below 18 years old as determined by Article 177 of the Cambodian Labour Law.

Employers are prohibited from employing young workers to engage in dangerous working conditions and certain forms of child labour. Before recruiting young workers, employers must comply with certain procedures as determined by this prakas. These include, among others, procuring consent of the parents or guardians of the young worker on the employment contract, seeking approval from the Department of Child Labour of the Ministry of Labour and Vocational Training for employment of young workers, and maintaining at the enterprise a recording book that lists the names of young workers.

Failure to comply with the recruitment procedures as stated in this prakas will subject employers  to sanctions in accordance with Chapter 16 of the Cambodian Labour Law.

INSTRUCTION № 042/15, DATED 27 NOVEMBER 2015, ON THE IMPLEMENTATION OF PRAKAS № 004 DATED 05 JANUARY 2000 ON THE TRAINING OF APPRENTICES  

This instruction aims to remind all enterprises covered by Article 1 of the Cambodian Labour Law employing more than 60 workers to conduct annual training of apprentices in accordance with Prakas 004 based on the following quota proportional to the enterprise’s total workforce: (1) 10%, for enterprises that employ between 60 to 200 workers; (2) 8%, for enterprises that employ between 201 to 500 workers; and (3) an additional 4% for every further 500 workers at enterprises that employ more than 501 workers, provided that a maximum of 110 apprentices may be trained by an enterprise in one year.

To reinforce implementation of Prakas 004, the Ministry of Labour and Vocational Training (“MLVT”) has provided specific instructions including, but not limited to, the following: (1) selection of apprentices, which allows the enterprises to select workers under probationary period or workers required to obtain new skill to be apprentices, (2) the timeline of implementation of apprenticeships, which is from 01 January to 31 October of each calendar year; (3) registration of apprenticeship courses at the MLVT or Department of Labour and Vocational Training; (4) qualification of apprenticeship courses; and (5) internal regulations to govern apprentices.

It is important to note that enterprises that have not fulfilled the obligations of the training of apprentices must make a proposal to the MLVT to pay tax, equal to 1% of the annual salary of the total number of workers employed in the enterprise, in lieu of compliance with apprenticeship obligation. Enterprises that fail to implement the apprenticeship obligation will be subject to sanction as stated in Chapter 16 of the Cambodian Labour Law.

*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.