The main legal instrument regulating individual contract employment in Cambodia is the Labour Law. The contract which is between an employer and a worker under the law can be governed by either an oral or written agreement. The Labour Law provides two types of contracts which are Fixed or Specific Duration Contract (FDC) and Undetermined or Unfixed Duration Contract (UDC).
Fixed Duration Contract (FDC)
This type of contract must be made in writing. If not, it becomes a UDC. The Labour contract includes the labour signed with the consent for a specific duration which cannot be longer than two years. It can be renewed one or more than once. You only need to make sure the contract does not surpass two years. If the employment continues after the end of the fixed period without entering into a new contract, that contract becomes an undetermined duration contract.
Unfixed Duration Contract (UDC)
There is two ways to create the UDC contract, intention creation and unintentional creation. The intention creation means if the labour contract is created without specifying the end date, it can be called as an Unfixed Duration Contract. And the other creation way, unintentional creation is transferring from FDC into UDC either at the time of contracting or at the later time.
Recruiting and Hiring
Recruiting the labour directly or indirectly recruiting is allowed by the Cambodia Labour Law but the employer needs to notify the Placement Office of any vacancies in the enterprise or any new need for personnel. However, in this kind of case, employers usually directly recruit workers and they often skip the announcement requirement in practice. Every employer must do the declaration of the labour hiring or dismissing to the Ministry in Charge of Labour each time. That declaration must be made in writing no later than 15 days from the date of hiring or dismissal.
Cambodia Employment Card
Every person of Cambodian nationality working as labour for any employer is required to possess an employment card. The card is issued by the Labour Inspectors who request the labour to presents an identity card issued by the authorities and a certificate of employment issued by his employer. The possession of an employment card is optional for seasonal farm workers. The hiring and dismissal of a worker, wages and wages increase shall be recorded in the worker’s employment card.
