Cambodia-Sciaroni & Associates: Foreign Worker Quota – Notice of Deadline of 30 November 2016 For Online Requests 8 November 2016

newsletter-word-vanarithVanarith, Head of Labor Practice Group and a member of the Corporate & Commercial Practice Group, brings broad experiences to the firm. He has advised clients on labor and HR, commercial law, issues pertaining to legal compliance and corporate matters. The recipient of awards from local and international competitions, he earned a Master of Law from University of Lyon 3 and Royal University of Law and Economics (RULE), a LLB from Pannasastra University and BA in Economics from Cambodian Mekong University. Vanarith speaks English, Khmer and conversational Thai.

Foreign Worker Quota – Notice of Deadline of 30 November 2016 For Online Requests

8 November 2016

With reference to Prakas No. 196 dated 20 August 2014, owners or directors of enterprises and establishments falling under the scope of the labor law are required to make their annual Quota requests for foreign labor to the Ministry of Labor before the end of November of each year. The request must separately mention the current number of foreign workers and Cambodian workers and include an attachment detailing the reason(s) for the need for foreign workers. (Owners and directors are expected to give priority to Cambodian workers when they need to recruit workers).

In considering Quota requests, the Ministry of Labor generally allows the use of foreign workers; however, the percentage of foreign workers shall not exceed 10% of the total number of Cambodian workers. This percentage is divided into 3 categories of employees:

  • Office workers: 3%

  • Skilled workers: 6%

  • Non-Skilled workers: 1%

In cases where the need for foreign workers exceeds the 10% allowance, the owners or directors must provide the details of the position, specialty, or professional skills of each foreign worker as well as the reason(s) for their need.

From 1 September 2016 onward, Quota requests for foreign workers must be made via the Online Labor Centralized Management System (Prakas No. 352 dated 17 August 2016), which is managed by E-Solutions (Cambodia) Co., Ltd.

The fee for online requests as set forth in Prakas No. 1009 dated 28 December 2012 is as follows: the official government fee is $20 per request. Additionally, there is a $30 fee per request payable to E-Solutions for its services with regards to preparing the data management system, supporting operation needs and constructing one window service building.

The failure to apply for a Quota request or meet the deadline for Quota requests may result in a fine of sixty-one to ninety days of the base daily wage of the foreign worker or imprisonment of six days to one month.

Should you require further information or any assistance regarding the above matter or any other queries please feel free to contact us.

Sciaroni & Associates’ Labor Practice Group has demonstrated expertise advising our clients in all aspects of labor and human resource law in the Kingdom of Cambodia.

Our team of expatriate and national advisors and paralegals can help by drafting and reviewing employment policies and agreements and assisting in document registration with the Ministry of Labor and Vocational Training in the Kingdom of Cambodia.

Sciaroni & Associates advises across a broad range of labor and corporate compliance issues while advising on corporate structures that are in keeping with international best practices and prevailing law in Cambodia.

Sciaroni & Associates, one of Southeast Asia’s leading professional services and investment advisory firms, has been providing skilled counsel and knowledgeable business insights for over two decades. Based in Cambodia, with legal offices in Laos and Myanmar, our experienced team of advisors brings considerable general and sector-specific expertise to the challenges confronting companies doing business in emerging markets. We are proud that our clients comprise many of the world’s premier companies, banks, financial institutions, governments and global development organizations.

For more information please visit www.sa-asia.com or contact us at [email protected].