G-P’s Employer of Record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Cambodia
When negotiating terms of an employment contract and offer letter with an employee in Cambodia, it may be useful to keep the following in mind.
Employment contracts in Cambodia
In Cambodia, employment contracts can be for fixed or indefinite terms. Fixed contracts must be in writing and may not extend for more than 2 years. Indefinite contracts may be oral or written.
It is best practice to provide a written employment contract in Cambodia’s national language, Khmer, which spells out the terms of the employee’s compensation, benefits, and termination requirements.
An offer letter and employment contract in Cambodia should always state the salary and any compensation amounts in riel (KHR) rather than another currency.
Working hours in Cambodia
In general, Cambodians work 8-hour days, and the workweek is no more than 48 hours. Employees should not be expected to work more than 9 hours per day and may not work more than 2 hours of overtime per day. Overtime is compensated at 1.5 times the regular wage or if performed at night, on a Sunday, or holiday, at 2 times the regular wage.
Holidays in Cambodia
Cambodia celebrates 19 public holidays:
- International New Year Day
- Victory Over Genocide Day
- Meak Bochea Day
- International Woman’s Day
- Khmer New Year (3 days)
- International Labor Day
- King Birthday (3 days)
- Visak Bochea Day
- Royal Plowing Ceremony
- Children’s Day
- King Mother’s Birthday
- Constitutional Day
- Phum Ben Day (3 days)
- The commemoration of Former King Norodom Sihanouk
- Paris Peace Agreement Day
- King’s Coronation Day
- Independence Day
- Water Festival (3 days)
- International Human Rights Day
Vacation days in Cambodia
Employees are generally entitled to 1.5 days of annual paid leave for every month worked. After every 3 years of service, employees are entitled to an additional day of vacation per year.
Cambodia sick leave
Employees are entitled to up to 6 months of sick leave, with a doctor’s certificate, and are compensated as follows:
- 100% of wages during the 1st month of sick leave
- 60% of wages during the 2nd and 3rd months of sick leave
- Unpaid leave from the 4th until 6th month
Maternity/paternity leave in Cambodia
Expecting employees who have worked for the employer for at least 1 year are generally entitled 90 days of leave at half of their normal salary.
Fathers are entitled to 1 day of paid paternity leave.
Health insurance in Cambodia
Employees who are injured on the job are generally entitled to have their healthcare expenses paid for by the employer.
Cambodia supplementary benefits
In general, employees receive:
- Healthcare allowances
- Housing allowances
- Transportation allowances
- Attendance bonuses
Bonuses
After the first year of work, employees are generally entitled to a seniority bonus of between USD 2 and USD 11 per month, equal to the year of service. After 11 years of service, the bonus is capped at USD 11.
Termination/severance in Cambodia
Probationary periods of up to 3 months are allowed. Employers must pay transportation costs for the employee. No notice is required to terminate a probationary employee.
Indefinite-term contracts may be terminated by the employee for any reason. An employer must have a valid reason related to the employee’s ability to do the work or the economic health of the company.
Termination notice must be served in writing according to the following schedule:
- Up to 6 months’ service: 7 days
- 6 months to 2 years’ service: 15 days
- 2 to 5 years’ service: 1 month
- 5 to 10 years’ service: 2 months
- 10+ years’ service: 3 months
Employees may spend 2 days per week looking for new employment. At the end of a fixed-term contract, employees are generally entitled to severance pay of at least 5% of the wages received during the contract.
Employees with indefinite contracts receive severance pay based on their length of service, as follows:
- 6 to 12 months of service: 7 days’ wages
- For each year of employment: 15 days’ wages, up to a maximum of 6 months of wages
Paying taxes in Cambodia
Employers pay 0.8% of monthly wages to social security. Employees do not contribute.
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