9 November 2020
Cambodia

Do you need to hire employees from abroad in 2021? If you do, you may want to note that the deadline for application of the foreign workforce quota (“Annual Quota”) for hiring of foreign nationals in the year 2021 is approaching. The Annual Quota is a permit issued by the MLVT which sets out the maximum number of foreign employees an enterprise or establishment may employ. Based on the current practice of the Ministry of Labour and Vocational Training (“MLVT”), it is anticipated that the MLVT will require enterprises and establishments to complete their respective Annual Quota applications for 2021 by 30 November 2020.

Besides applying for the Annual Quota, work permits are also required for the foreign nationals whom you will hire in 2021. On receiving the annual quota permit you may apply for work permits via the Foreign Workforce Centralised Management System (www.fwcms.mlvt.gov.kh) between 1 January 2021 to 31 March 2021.

It is likely that the Labour Inspectorate will soon begin inspecting workplaces to ensure compliance with the requirements on hiring of foreign nationals. Enterprises, establishments and foreign nationals who do not comply with such requirements will face fines ranging from USD610 to USD900.

We are happy to assist you in any queries you may have regarding the requirements for hiring foreign nationals employees in Cambodia. If you need assistance in this or require further information, please feel free to contact Matthew RendallOl Phirum, and Liew Shan Berg, of SokSiphana&associates (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.