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July 7, 2023

Employment Law Basics in Southeast Asia

Tilleke & Gibbins is pleased to announce the release of Employment Law Basics in Southeast Asia. This publication serves as an indispensable resource for businesses navigating the complex landscape of employment law in Cambodia, Laos, Myanmar, Thailand, and Vietnam.

Authored by Tilleke & Gibbins’ regional team of employment law specialists, the guide provides a detailed overview of key employment law topics essential for businesses operating or planning to expand their operations in Southeast Asia. From employment contracts to termination procedures, each topic is examined in depth to ensure businesses are well-equipped to comply with local regulations and protect their interests.

Key topics covered in the guide include:

  • Employment contracts
  • Probationary period
  • Minimum wage
  • Social security and statutory payments
  • Working hours
  • Leave and holidays
  • Work rules
  • Termination
  • Foreign employees
  • Data protection
  • Remote work
  • AI and automation

Our guide offers multinational corporations establishing a presence in the region and local enterprises alike practical insights and actionable advice tailored to the unique regulatory environments in Cambodia, Laos, Myanmar, Thailand, and Vietnam.

To access the full guide, please download the PDF below.

RELATED INSIGHTS​ 

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
May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
May 28, 2025
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
May 9, 2025
On May 6, 2025, Cambodia’s Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 113/25, introducing new obligations for enterprise owners and directors regarding the use and maintenance of enterprise payroll books. Under this prakas, enterprise owners or directors are required to: Utilize and maintain the enterprise payroll book in accordance with the official template provided by the MLVT. Make the enterprise payroll book available to labor inspectors for annotations related to compliance with labor laws and regulations. Review and adjust (if necessary) internal practices based on any findings, recommendations, and restrictions issued by labor inspectors during inspections. The official enterprise payroll book template can be downloaded via the ministry’s Labor Automated Central Management System (LACMS). Additional requirements include: Retention of supporting documents related to the payroll book at the enterprise’s head office to facilitate inspections. Preservation of completed payroll books for a minimum of three years after their closure. Downloading a new payroll book from the LACMS once the current one is fully used. Labor inspectors are authorized to conduct inspections of the payroll book and related documentation at any time. Noncompliance with the provisions of Prakas No. 113/25 may result in significant monetary penalties, as stipulated in Cambodia’s Labour Law. This prakas also repeals Prakas No. 268, dated October 11, 2001, and any provisions in related regulations that conflict with Prakas No. 113/25. All enterprises are strongly advised to comply with the new requirements and begin using the updated enterprise payroll book template from the LACMS to avoid potential penalties.