You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 11, 2020

Cambodia Imposes Domestic Travel Restrictions and Other Measures to Limit COVID-19 Transmission

Domestic Travel Restrictions

On April 9, 2020, the Cambodian government issued travel restrictions within Cambodia to prevent the progression of COVID-19 to the community transmission stage, effective from 12:00 a.m. Thursday, April 9, 2020, to 12:00 a.m. Thursday, April 16, 2020.

During this period, the following are prohibited: 

  • traveling from one province to another;
  • traveling from one district to another (within one province or across provinces); or
  • traveling in or out of Phnom Penh, the capital city of Cambodia.

This order by the Cambodian government, reinforced by an official statement from the Phnom Penh City Hall, emphasized that traveling within Phnom Penh will not be affected by these travel restrictions.

Exceptions

There are, however, some exceptions to these travel restrictions, such as travel by the following vehicles or for the following purposes: 

  • transportation of all kinds of goods;
  • civil servants and members of the armed forces traveling for official business;
  • ambulances of both private and public hospitals;
  • firetrucks;
  • dump trucks;
  • transportation of workers authorized by the labor authorities; or
  • traveling to the closest hospital or health center for emergency treatment with fewer than four people at a time.

Partial Lifting of Domestic Travel Restrictions

After implementing the in-country travel restrictions, on April 10, 2020, the Government of Cambodia decided to lessen the travel restrictions slightly by: 

  • Lifting the travel restrictions between one district to another within the same province. However, the restriction on traveling between provinces remains effective, and therefore crossing between one district in one province to another district in another province is still prohibited; and
  • Treating Phnom Penh and Kandal Province (an area surrounding Phnom Penh) as one region, so that travel within and across Phnom Penh and Kandal Province is permitted. 

Measures for Workplaces

Cambodia’s Ministry of Labor and Vocational Training (MLVT) also enacted the following implementation measures for the above restrictions. 

Obligations for Employees

  • Employees traveling between their residences and workplaces on their own must carry their work IDs, and their government-issued IDs or other documents showing their residential addresses. Employees traveling between their residences and workplaces on shared transportation must carry their work IDs and use vehicles that are authorized by the labor authorities. It is ambiguous whether these requirements apply only to employees that need to bypass the travel restrictions (e.g., from one province to another) or if they also apply to those who travel within the permitted areas (e.g., within Phnom Penh and Kandal Province).
  • Employees are required to come to work during the period; otherwise, employees would be considered as committing an act of serious misconduct, which would allow an employer to terminate an employee without any compensation. Presumably, this rule only applies during this domestic travel restriction period, but the MLVT’s notification is also unclear on this matter. Moreover, it is also unclear whether employees who were instructed to work from home, or those who take leave with the permission of their employers, could be considered as committing serious misconduct in this case. 
  • Employees who are at their workplaces must go to their workstations. They must not disturb other employees or disrupt their employers’ business operations. Employees are also reminded not to incite, threaten, or intimidate other employees; otherwise, they will face legal consequences under Cambodian law, such as the Penal Code.

Obligations for Employers

  • Employers must provide vehicle plate numbers to the labor inspector and cooperate with the labor inspector to obtain permits for vehicles transporting their employees. If any transportation service providers refuse to transport employees between their residences and workplaces, employers must terminate their transportation services immediately.
  • Employers must guarantee that all of their employees have work IDs, and reissue IDs to employees if they are lost. Employers must accurately record the attendance of their employees in order to provide this information to the labor inspector and other competent authorities. Again, it is questionable whether an employee who is working from home must be noted accordingly or marked as absent from the workplace. 
  • Any company that does not maintain its production and operations will not be eligible to receive any incentives or financial packages from the government.

Obligations for Employee Transportation Service Providers and Drivers

  • Transportation service providers and drivers must continue to transport employees to and from workplaces; otherwise, their service contracts may be terminated. 
  • In addition, in order to transport employees, transportation service providers must display permits on the front of their vehicles issued by the labor authorities.

Ambiguities

These measures contain several ambiguities that we hope will be addressed in subsequent regulations. 

  • The MLVT notification refers to the governmental orders for the domestic travel restrictions, and thus it could mean that these measures and rules imposed by the MLVT are only applicable during the travel restriction period. However, the MLVT does not expressly limit its application to this period; thus the duration of these measures is uncertain. 
  • It is also unclear whether all measures are applicable to employees who do not need to travel outside of restricted areas (e.g., within a province or within Phnom Penh–Kandal Province area). In particular, it is uncertain whether they need to carry their work IDs and government-issued IDs, or can only travel to work via vehicles authorized by the labor authorities if they do not have their own vehicles. 
  • These measures seem most applicable to employees working in the garment, textile, and footwear production industry, which is a major part of Cambodia’s workforce. However, if these measures are extended to other industries, the measures create a number of uncertainties. For example, if an employer has allowed its employees to work from home, and has supported other social distancing measures, it is not clear whether the employer would now have to require its employees to return to the office to work, or whether the employer must record these employees as absent and report the absent employees to the labor authorities.

Until these ambiguities become clear, companies should err on the side of caution when interpreting these rules to avoid unexpected penalties for noncompliance. 

RELATED INSIGHTS​ 

April 3, 2023
Most employers know that terminating employees for poor job performance is not easy. But it is actually legally possible—if employers have the right approach and take specific precautionary measures. However, failing to take these precautions can mean that an employer is either stuck with an incompetent employee or on the losing end of a lawsuit for unfair termination. This article will lay out some essential considerations for employers in Thailand regarding termination of employment for poor performance. First, understand that “poor work performance” is a lack of performance or ability, or an inability to work with other employees. It does not constitute a violation of work rules or regulations. In some cases, however, an employee’s failure to act in accordance with lawful instructions or commands of the employer, resulting in poor work performance, could also be considered a violation of work rules or regulations. This may be the case if the work rules or regulations clearly state that an employee must strictly comply with the employer’s instructions or commands. Second, an employer can, in fact, terminate an employee due to poor work performance. For example, this may be possible in the following scenarios: Records show that an employee’s work performance has fallen below the employer’s required standards, and the employee has not tried to improve his or her work performance for three consecutive years. In addition, it does not appear that the employer was biased when giving ratings or scores for the employee’s work performance. The job description of the employee includes coordination with employees in other departments, but the employee has not been able to do so. Therefore, the employee was reassigned to a new job function, but the employee still did not improve. This suggests that the employee has a lack of interpersonal skills and is not
March 23, 2023
On March 19, 2023, Thailand’s new work-from-home (WFH) legislation amending the Labour Protection Act (No. 8) B.E. 2566 (2023) was published in the Government Gazette. It will come into effect on April 18, 2023. The amendment aims to enhance employee protections to accord with current global standards, provide alternative working arrangements for employers and employees, increase workforce efficiency, and strengthen employees’ job security and a better quality of life. As we detailed previously, the new WFH legislation allows employers and employees to reach agreements that permit employees to work remotely. Since there are no accompanying criminal punishments relating to this new provision, and the legislation incorporates the term “may agree,” it appears that this WFH provision is not mandatory but is primarily intended to facilitate and encourage remote working agreements between employers and employees. For more details on the WFH legislation, or on any aspect of employment law in Thailand, please contact Tilleke & Gibbins at [email protected].
February 24, 2023
Many companies have moved to Southeast Asia to benefit from the advantages of this vibrant and diverse market. The region is already a manufacturing hub for a multitude of industries—computer and automotive products in Thailand, textiles in Cambodia, and footwear and electrical goods in Vietnam, to name a few—and an increasing number of companies worldwide are reconfiguring their supply chains to include regional suppliers. A key challenge is keeping up to date with employment law trends in these jurisdictions to ensure compliance with local regulations—and avoid costly, time-consuming business interruption. Here we outline trends and recent regulatory developments in Cambodia, Thailand, and Vietnam, and consider what they mean for employers. Cambodia The Ministry of Labour and Vocational Training (MLVT) is likely to pursue a more proactive enforcement strategy in 2023. Last May, the MLVT announced companies would be required to submit a twice yearly self-declaration on labour compliance through a new online system. The self-declaration form requires companies to confirm and upload evidence of compliance, and the MLVT online system—through which the ministry can easily determine if a company is compliant –generates a report that lists all fines. Companies should comply with the self-declaration requirement and carefully review the form to understand what fines will apply for non-compliance. On 1 October 2022, regulations relating to the National Social Security Fund (NSSF) pension system came into effect, and employers and employees began making NSSF pension contributions. Over the next five years, total compulsory pension contributions will amount to 4% of an employee’s wage, half of which is paid by the employer and half deducted from the employee’s salary. The contribution wage is capped at KHR 1.2m (USD 300). Employers are currently required to pay a relatively small amount (KHR 24,000, or around USD 6). This will increase to 10.75% over
January 19, 2023
The Thai parliament has passed the so-called Work from Home Bill—formally known as Labour Protection Act (No. 8) B.E. 2566 (2023)—which amends the country’s Labour Protection Act (LPA) to reflect current circumstances. The accompanying legislative remark states that the proposed amendments to the LPA will provide additional options for work arrangements between employers and employees, upgrade the level of labor protection, increase work stability, and improve quality of life for employees in Thailand. The legislation adds a single section to the LPA providing that an employer and an employee “may agree in the employment contract” that the employee is allowed “to bring work . . . to perform at home or at the residence of the employee or anywhere that the employee can work remotely through information technology, if the nature of the work permits.” The provision further provides that employers are responsible for ensuring that remote work agreements are in writing, either physically or electronically, and may include the following details: Period of the agreement; Normal working hours, rest periods, and overtime work; Criteria for overtime work, holiday work, and various types of leave; Scope of work and control or supervision by the employer; and Responsibility for arranging supplies and equipment, including necessary costs relating to the work. The amended LPA gives employees who work from home the right to refuse contact from the employer or the supervisor beyond working hours. In addition, employers must treat remote employees equally to on-premise employees. The most notable question surrounding this legislation is whether employers must allow employees to work remotely. The phrase “may agree” suggests that employers do not have to agree to allow an employee to work remotely. Another important aspect of the amendment is that there is no criminal punishment attached to it, which suggests that the legislation