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

May 28, 2025

Cambodia Issues New Work Regulations on Overtime, Paid Holidays, and Weekly Days Off

On May 6, 2025, Cambodia’s Ministry of Labor and Vocational Training (MLVT) issued Prakas No. 112/25 on Overtime Work, Work on Paid Holidays, and Suspension of Weekly Days Off, which outlines specific conditions, formalities, and procedures in relation to working overtime, work on paid holidays, and suspension of weekly days off.

Overtime Work

Employees may be requested to perform overtime work based on the operational needs of the employer, particularly in the following circumstances:

  • When undertaking special assignments related to inventory and balance sheets, liquidation deadlines, and closing of accounting books.
  • In cases of excessive workload arising from exceptional circumstances where alternative measures are not feasible for the employer.

However, the overtime work must be conducted voluntarily and must not be enforced through coercion or disciplinary action.

Although this new prakas on overtime work does not specify the maximum allowable hours of overtime work, the Labor Law states that overtime must not cause total working hours to exceed 10 hours per day, except in cases of disaster prevention or rectification.

Work on Paid Public Holidays

Employees are entitled to paid public holidays announced annually by the MLVT. However, when work cannot be suspended, employees may be requested to perform work on paid public holidays on a voluntary basis.

Suspension of Weekly Days Off

When urgent work is required to prevent imminent accidents or to repair damage to materials, facilities, or buildings, weekly days off may be suspended for up to two nonconsecutive days per month. This applies to both employees of the affected enterprise and those of external entities engaged in the repairs of the affected enterprise.

Reduction of Weekly Days Off Due to Weather

Certain categories of enterprises are permitted to reduce employees’ weekly days off by up to two nonconsecutive days per month as compensation for working days interrupted by adverse weather conditions, such as heavy rain, flooding, and strong winds. However, employers must arrange compensatory leave for employees within 30 days.

Eligible enterprises are those engaged in the following:

  • Public works, including street cleaning, garbage collection in public areas, and the repair of streets or drainage systems;
  • Repair or replacement of water and gas pipelines, or in the renovation of residential or nonresidential building roofs;
  • Construction activities outside of enclosed buildings;
  • Operating brick kilns, mines, restaurants, or retail stores where work is performed in outdoor or unenclosed environments;
  • Inland waterway transportation;
  • Agricultural and fishing sectors, including crop harvesting and aquaculture;
  • Packaging of canned fruits, vegetables, and fish; or
  • Loading, unloading, or moving perishable goods or materials.

Compensation and Other Benefits for Overtime Work

Employers must pay employees for overtime work at the following rates:

  • 150% or one-and-a-half times the normal wages for overtime work conducted during the daytime on regular working days;
  • 200% or twice the normal wages for overtime work conducted from 10 p.m. to 5 a.m. (overnight) and on weekly days off; and
  • Work performed on paid holidays can be compensated at a rate matching the employee’s regular daily wage.

In addition, employers must provide appropriate accommodation or transportation to employees following nighttime overtime work.

Procedural Requirements

Employers must submit the following information and documents to the MLVT for review and approval via the ministry’s Labor Automated Central Management System (LACMS) at least three working days before the commencement of overtime work, work on paid public holidays, or suspension of weekly days off:

  • The start and end dates;
  • The total number of employees, including the number of female employees, involved;
  • The reason for the additional work; and
  • A confirmation letter signed or thumbprinted by either two-thirds of the staff representatives or by over 50% of the total employees involved.

Employers are required to retain all relevant documentation for inspection by labor inspectors.

Penalties

Failure to comply with these provisions may result in a fine of KHR 3,360,000 (approx. USD 840) for each violation, in accordance with the Labor Law and Joint Prakas No. 498 on Monetary Fines for Those Who Violate the Labor Law, dated July 31, 2023.

RELATED INSIGHTS​ 

July 7, 2025
On June 20, 2025, Cambodia’s Ministry of Economy and Finance issued Instruction No. 19116 to clarify when board members and company directors must receive salaries and pay payroll taxes. Board members and company directors who are not considered employees are subject to a withholding tax. This category consists of people who complete services for a nonresident individual and people who perform independent work for a company in Cambodia. Board members and company directors who are considered employees, including those appointed by a foreign head office to temporarily manage a company in Cambodia, must pay payroll taxes on any salary they receive, regardless of whether they are paid by a local or foreign branch of the company. The above obligations apply regardless of whether the person has a work permit. Board members and company directors are exempt from paying payroll tax if they: Are not present and not performing a regular management role at the company despite being registered on the company’s statutes or patent tax card; Participate only in board meetings and occasional shareholder meetings; and Do not receive a salary from a company in Cambodia. Overall, this instruction provides an important clarification regarding the tax obligations of board members and company directors. Companies should pay attention to the classification of their board members and directors and be mindful of the exemption.   This article was written with the assistance of Tilleke & Gibbins interns Amelia Gemma Erickson and Amrin Keat.
July 7, 2025
On June 27, 2025, Thailand issued the new Ministerial Regulation Prescribing the Criteria and Rates for Receiving Unemployment Benefits (No. 2) B.E. 2568 (2025), which amended a similarly named ministerial regulation by boosting the rate of social security benefits to alleviate hardships for employees who are terminated. The new ministerial regulation took effect the following day. Under this new ministerial regulation, eligible terminated employees are entitled to receive unemployment benefits under the Social Security Fund (SSF) for a maximum of 180 days per year, at the rate of 60% of the employee’s monthly wages at the time of termination, up from 50% previously. However, the maximum wage used as the basis for calculating the benefit remains capped at THB 15,000 per month. Therefore, the maximum unemployment benefit that an employee can receive from the SSF is now THB 9,000 (up from THB 7,500) per month for a period of up to six months. To qualify for the unemployment benefits from the SSF, employees must be registered with the Social Security Office and must have contributed to the SSF for at least six months within the 15 months prior to the start date of the relevant unemployment period. This new ministerial regulation was enacted to increase the amount of financial support provided to insured persons in the case of termination, as part of the government’s objective of alleviating economic hardship under current economic and social conditions in Thailand. For more details on unemployment benefits in Thailand, or on any aspect of employment law in the country, please contact Pimvimol (June) Vipamaneerut at [email protected], Dusita Khanijou at [email protected], Ketnut Pukahuta at [email protected], or Chomanut Arif at [email protected].
July 4, 2025
On July 1, 2025, new minimum daily wage rates for Bangkok and certain business types nationwide were published in the Government Gazette, taking effect on the same day. The daily minimum wage rate for Bangkok has been increased to THB 400 per day, while the minimum wage rates for other provinces remain unchanged from the rates that took effect on January 1, 2025. However, daily minimum wage rates have also been increased to THB 400 nationwide for type 2, type 3, and type 4 hotels under the Hotel Act and for entertainment establishments under the Entertainment Place Act. This THB 400 rate applies to all businesses that meet the criteria, even if the province’s general rate is lower. The new minimum wage rates supersede any lower wages agreed upon in existing employment contracts or conditions of employment that were in force before this announcement came into effect. As a result, these employees must be paid their wages at the newly prescribed rate for work performed from July 1, 2025, onward.
June 30, 2025
On March 4, 2025, Cambodia’s Ministry of Labor and Vocational Training (MLVT) issued Prakas No. 073/25 on Procedures for Resolving Individual Labor Disputes, replacing Prakas No. 318 on the same topic from 2001 and introducing significant changes to how individual labor disputes are filed, processed, and escalated. In addition, Prakas No. 073 outlines the roles and responsibilities of labor inspectors, the process for filing and handling complaints, and the steps for conciliation and further legal recourse, as described below. Filing a Complaint Any party to an individual labor dispute can file a complaint with the Labor Dispute Department of the MLVT or the Department of Labor at the capital or provincial level. Upon receiving a complaint, a labor inspector will review the case and may initiate either conciliation or a labor inspection. Invitation letters will be issued to the disputing parties to provide relevant information and documents. Conciliation Process Prakas No. 073 places strong emphasis on the conciliation process, introducing strict procedural rules and deadlines with clear consequences for noncompliance: If the claimant fails to provide required information within the specified deadline (or within three working days thereafter without reasonable excuse), the complaint is deemed void. If the respondent fails to attend the conciliation meeting within the deadline (or within three working days thereafter without reasonable excuse), the conciliation is considered unsuccessful, and the respondent is deemed guilty as claimed. Once all necessary information is gathered, a labor inspector will invite both parties to a joint conciliation meeting, which must be held within three weeks of the complaint being received. If the claimant fails to attend the meeting or sign the minutes without a reasonable excuse, the complaint is void. If the respondent fails to attend the meeting without a reasonable excuse, the conciliation is unsuccessful, and the respondent