– These contracts have a fixed term. Upon expiry, they automatically terminate, and the employee is entitled to an end‑of‑contract indemnity of at least 5% of the total wages paid during the contract term. If an employer terminates a CDD before its expiry date without a valid reason (serious misconduct), the employee is generally entitled to compensation equivalent to the wages they would have received until the end of the contract term.
Domestic or household servants (unless specific provisions explicitly state otherwise).
The 2014 guide reiterates the government's commitment to fair compensation, a topic that has seen significant evolution in Cambodia.
An FDC naturally expires on its stated end date. If either party wishes to terminate the FDC prior to its expiration date without mutual consent, the terminating party must show evidence of serious misconduct by the other party. Premature termination without legal cause obligates the employer to pay damages equivalent to the wages the employee would have earned until the contract’s original expiration date. Terminating a UDC
The law differentiates between Fixed Duration Contracts (FDC) and Undetermined Duration Contracts (UDC), each with specific exit requirements: Cambodian-labour-law-guide-english-2014
He walked back out into the humid air of the factory floor. The noise of the machines was still deafening, but the rhythm had changed. It sounded manageable.
If an FDC exceeds two years of continuous renewals, Cambodian courts and arbitration panels typically reclassify it as an Undetermined Duration Contract (UDC). 2. Undetermined Duration Contract (UDC)
Air and maritime transportation personnel, who are governed by separate special legislation. 2. Employment Contracts: FDC vs. UDC
The humidity in the garment district of Phnom Penh was a physical weight, pressing down on the tin roofs of the factory complex. For Samnang, a 24-year-old floor supervisor, the heat was the least of his worries. The worry was the noise—the clatter of sewing machines that usually sounded like productivity, but today sounded like a ticking clock. – These contracts have a fixed term
Outside the factory, the city changed too. New construction rose along the river and with it came other factories. Some were kinder; some were harsher. The group’s knowledge did not transform the world overnight, but it changed the balance at the margins. Workers learned to keep records, to demand simple acknowledgements, to know when to seek a mediator.
The Ministry of Labour conducts regular inspections to ensure compliance with labour laws. Employers who fail to comply with labour laws may face penalties, including fines and imprisonment.
: Grounded in the Cambodian Constitution , it explicitly guarantees the right to equal pay for equal work, outlaws forced labor, and prohibits any form of discrimination based on sex, race, religion, or social origin. 2. Typology of Employment Contracts
Any work beyond the standard 8 hours must be voluntary, paid at a rate of 150% (regular days) or 200% (nights/Sundays), and requires prior permission from the Ministry of Labour. 3. Wages and Seniority Payments If either party wishes to terminate the FDC
: Paid at 200% of the regular hourly rate if performed between 22:00 and 05:00, or on weekly rest days (Sundays). Rest and Breaks
One day an official from a worker support center came to their neighborhood offering free legal clinics. The group invited her to the mango-tree meetings. She was impressed by the care in the notes and by how many disputes were resolved informally. She asked for copies to use at other factories and offered a stack of printed leaflets in response. The Guide’s narrow print reached farther than its binding.
Working beyond normal hours requires prior authorization from the Ministry of Labour. Overtime is generally paid at 150% of the normal rate, or 200% if performed at night, on Sundays, or on public holidays.
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