2019 10 May

Cambodia Legal Alert: Certain Foreign Organizations and Agencies Exempt From Implementation of Prakas 442 and 443

Back

Following the issuance of Prakas 442 on the Payment of Wages dated 21 September 2018 and Prakas 443 on Seniority Payments dated 21 September 2018, the Ministry of Labour and Vocational Training (“MLVT”) issued official Guidelines 044/19 on the Implementation of Prakas 442 and 443 for Personnel of Foreign Missions, Agencies of the United Nations and International Organizations in Cambodia dated 5 April 2019 (“Guidelines”).

With reference to the Convention of the United Nations on Diplomatic Relations, the Guidelines exempt diplomatic missions (including foreign embassies and consulates), agencies of the United Nations and international organizations in Cambodia from the obligation to pay salary in two instalments per month under Prakas 442 and seniority payments under Prakas 443 to employees.

Interestingly, the Guidelines do not explicitly clarify what types of organization are considered international organizations. It remains unclear whether International Non-Governmental Organizations registered with the Ministry of Foreign Affairs and International Cooperation are considered international organizations in the context of the Guidelines, and thereby entitled to the exemption. To date, there has been no official guidance from the MLVT that provides additional clarification on this matter.

Should you have any concerns or queries on whether your organization is entitled to the above exemption, please feel free to contact our labour team at labor.kh@dfdl.com.


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.


DFDL Contacts

Chris Robinson

Partner, Head of Cambodia Corporate & Commercial Practice Group

DFDL Cambodia

chris.robinson@dfdl.com

Chesda Teng  

Senior Consultant, Corporate & Commercial Practice Group

DFDL Cambodia

chesda.teng@dfdl.com


Read more Legal & Tax Updates

Read more about DFDL

Read more about DFDL Cambodia