Yuanta Reports

Employer representatives unhappy with draft amendments to Labor Law

Representatives of private sector are dissatisfied with the draft amendments to Cambodia’s Labor Law, which would overhaul the regulations surrounding working contracts and guaranteed employee protections. The current Labor Law stipulates that a fixed duration contract (FDC) cannot exceed two years in length, but allows FDC to be renewed indefinitely. The proposed changes would keep the FDC maximum length at two years, but after four years of contract renewals—no matter how many renewals occur within that time—the contract would automatically shift to an unlimited duration contract (UDC). UDC require employers to pay additional benefits to employees, and unlike FDC, provide protection for workers against being fired by requiring cause for any dismissal. Van Sou Ieng, president of the Cambodian Federation of Employers and Business Associations (CAMFEBA), said the final draft of the law would likely favor workers over employers due to the government’s push for political support ahead of national elections in July. Matthew Rendall, a partner at law firm Sok Siphana & Associates, raised the issue that the proposed law is geared specifically towards the garment and textile industry, and may negatively affect other industries. (Source: Phnom Penh Post)

Equity Report

16th January 2018


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