3. Substance of the Individual Contract of Employment
Mandatory Terms in a Contract
The Labor Law provides that a labor contract establishes working relations between the
worker and the employer and is subject to common law and can be made in a form that
is agreed upon by the contracting parties. The contract can be written or verbal. It can
be drawn up and signed according to local custom. If it needs registering, this shall be
done at no cost. The verbal contract is considered to be a tacit agreement between the
employer and the worker under the conditions laid down by the labor regulations, even
if it is not expressly defined. The Civil Code provides that a labor contract must contain
a description of the following: wages, working hours, and other working conditions.36
The word “Working Conditions” includes general working conditions specified in Chapter
VI and specific working conditions stated in Chapter VII of the Labor Law. The General
Working Conditions include wage, hours or work, night work, weekly time off, paid
34 Labor Law, Art 45- Art 50
35 http://www.ilo.org/ilolex/english/newcountryframeE.htm
36 Civil Code, Art 665
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holidays, paid annual leave, special leave, child labor, women labor and also workers
recruited outside the workplace.37 The Specific Working Conditions refer to conditions
set specifically for agricultural work such as plantations, farms (the growing of crops and
raising of animals), forestry exploitation and fisheries. In addition to the general requirements,
the law requires employers to provide partial payment in kind, family benefit,
housing, housing allowance, water, supplies, latrines, funeral services (in case of death),
day nursery, and school for kids.38
Notice Period
The notice period required when one party unilaterally terminates a labor contract
depends on the duration of the contract and the reason for termination. The Labor Law
provides notice periods for FDC and UDC. For FDC, the Labor Law states that if the
contract has a duration of more than six months, the worker must be informed of the
expiration of the contract or of its non-renewal ten days in advance. This notice period
is extended to fifteen days for contracts that have a duration of more than one year. If
there is no prior notice, the contract shall be extended for a length of time equal to its
initial duration or deemed as a contract of unspecified duration if its total length exceeds
the time limit specified.39 For UDC, the Labor Law provides a notice period as follows: i)
Seven days, if the worker’s length of continuous service is less than six months; ii) Fifteen
days, if the worker’s length of continuous service is from six months to two years; iii)
One month, if the worker’s length of continuous service is longer than two years and up
to five years; iv) Two months, if the worker’s length of continuous service is longer than
five years and up to ten years, and v) Three months, if the worker’s length of continuous
service is longer than ten years.40 For UDC, an employee does not have to give a reason
for termination, but the Labor Law requires an employer to have valid reason relating
to the worker’s aptitude or behavior, based on the requirements of the operation of the
enterprise, establishment or group.41
Presumption of Term
The Labor Law provides for three basic term lengths for labor contracts: indefinite term
for UDC, definite-term of 1 to 24 months (FDC), and probationary term of 1 to 3 months
(“probationary contract”).42
37 Labor Law, Art 102-Art 190
38 Labor Law, Art 190-Art 227
39 Labor Law, Art 73(5)
40 Labor Law, Art 75
41 Labor Law, Art 74 (2)
42 Labor Law, Ch 4, Art 65, Art 67, Art 68, Art
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Incorporation of Terms in a Collective Agreement
Terms and conditions between individual employment contracts and collective labor
agreements may be at variance with one another. The Labor Law provides that where
rights and interests of the employees stipulated in individual employment contracts are
less favorable to the employees than provided for in the collective agreement, the collective
agreement will trump the individual employment contracts.43
4. Contract Termination and Dismissal
General
The Labor Law details very specific circumstances under which a labor contract may be
terminated: when the contract expires or is otherwise completed; with the consent of
both parties; in the event of the serious misconduct or force majeure; and at the will of
each party.44
A labor contract of specific duration normally terminates at the specified ending date.
It can, however, be terminated before the ending date if both parties are in agreement
on the condition that this agreement is made in form of writing in the presence of a
Labor Inspector and signed by the two parties to the contract. If both parties do not
agree, a contract of specified duration can be canceled before its termination date only
in the event of the serious misconduct or acts of God.45 The premature termination of
the contract by the will of either the employer or the worker alone for reasons other
than those mentioned in this section entitles the other party to damages in an amount
at least equal to the remuneration he would have received until the termination of the
contract (in case of termination at the will of the employer), and damages in an amount
that corresponds to the damage sustained (in case of termination at the will of worker)46.
The labor contract of unspecified duration can be terminated at will by one of the
contracting parties. This termination shall be subject to the prior notice made in writing
by the party who intends to terminate the contract to the other party. However, no
layoff can be taken without a valid reason relating to the worker’s aptitude or behavior,
based on the requirements of the operation of the enterprise, establishment or group.47
43 Labor Law, Art 98(2)
44 Labor Law, Art 73 and Art 74
45 Labor Law, Art 73(1-2)
46 Labor Law, Art 73(3-4)
47 Labor Law, Art 74
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Dismissal for Cause
The employer can dismiss an employee for serious misconduct mentioned in the Labor
Law48. This is the only situation in which an employer is legally allowed to unilaterally
terminate an employee’s contract without giving notice or being liable for any type of
severance or compensation pay. In the following circumstances, dismissal is permissible:
i) Stealing, misappropriation, embezzlement; ii). Fraudulent acts committed at the time of
signing (presentation of false documentation) or during employment (sabotage, refusal
to comply with the terms of the employment contract, divulging professional confidentiality);
iii) Serious infractions of disciplinary, safety, and health regulations; iv) Threat,
abusive language or assault against the employer or other workers; v) Inciting other workers
to commit serious offenses; and political propaganda, activities or demonstrations in
the establishment. Besides these circumstances, the Labor Law allows for discretionary
expansion of the circumstances under which the employer may dismiss a labor contract
through its “other conduct” provision. This allows the employer to categorize many other
activities aside from the ones listed above as cause for an employee’s dismissal. However,
in order for the provisions to be enforceable against the employee, the prohibited conduct
must be specified in the labor contract, the collective labor agreement, or the company’s
internal regulations. The internal regulations must be approved by the Labor Inspectors
in order to survive a legal challenge. Furthermore, the Labor Law empowers the competent
court to determine the magnitude of offenses besides what are mentioned in the
Labor Law49, and the disciplinary sanction must be proportional to the seriousness of the
misconduct50. The employer is considered to renounce his right to dismiss a worker for
serious misconduct if this action is not taken within a period of seven days from the date
on which he has learned about the serious misconduct in question.51
The Role of the Union and Labor Authority in Termination/Dismissal
Cambodia is unique because it generally does not have an industry-wide or trade-specific
concept of “union,” as in other countries. Unions in Cambodia are not united, and multiple
unions may exist in an enterprise. The union represents the employees in negotiating
the collective labor agreement with the employer.52 The union also plays an important
role in case of mass layoff. Under the Labor Law the employer must inform the workers’
representatives in writing in order to solicit their suggestions, primarily, on the measures
for a prior announcement of the reduction in staff and the measures taken to minimize
the effects of the reduction on the affected workers.53
48 Labor Law, Art 83, and Art 84
49 Labor Law, Art 84
50 Labor Law, Art 27
51 Labor Law, Art 26
52 Labor Law, Art 96
53 Labor Law, Art 95. The Workers’ representatives are elected from the candidates nominated by the
representative union organizations within each establishment (See also art 288)
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The dismissal of a workers’ representative or a candidate for workers’ representative/
trade union can take place only after authorization from the Labor Inspector. The same
protective measures apply to former workers’ representative three months following the
end of their terms and to unelected candidates during three months following the proclamation
of the results of the ballot. Any reassignment or transfer that would end the
workers’ representative‘s term is subject to the same procedure. 54
5. Privacy
There are no employment-specific privacy laws in Cambodia. However, the Civil Code
of Cambodia contains a concept of personal rights. Personal rights under the civil code
include the rights to life, personal safet