2018 04 September

Cambodia Legal Update August 2018

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CORPORATE & COMMERCIAL

LABOUR

PROVISION OF PUBLIC SERVICES OF MINISTRY OF LABOUR AND VOCATIONAL TRAINING, Joint Prakas № 714 of the Ministry of Labour and Vocational Training (“MLVT”) and the Ministry of Economy and Finance, dated 19 July 2018.

The new Joint Prakas, effective from 1 August 2018, sets out the provision of the MLVT’s public services which entirely replaces Joint Prakas № 1009 dated 28 December 2012.

The most significant change introduced under the new Joint Prakas is the validity period of a declaration of enterprise opening. Previously, enterprises were required to file a declaration of enterprise opening with the MLVT only once. However, under the new Joint Prakas, enterprises must now declare the opening of an enterprise to the MLVT every three years. While the new Joint Prakas came into force on 1 August 2018, it is not yet entirely clear whether all enterprises must now re-register with the MLVT in order to comply with the new requirement.

Furthermore, the new Joint Prakas amends the public service fees and official timeframes for certain services. These include an increase in public service fees for, among others, establishment books, payroll ledgers, foreign work permits, and foreign employee quotas. Notably, the official timeframe for the MLVT to issue approvals or permits has increased from 8 working days to 20 working days for foreign work permits and foreign employee quotas.

Additionally, certain public services that had previously been free of charge are now subject to service fees and official timeframes. For instance, certification of a foreign worker’s employment contract (in the form of a fixed duration contract) for the purpose of applying for a foreign work permit is now subject to a public service fee of KHR 40,000 (approximately USD 10) and an official timeframe of 15 working days.


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.


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