On 26 June 2018, Royal Kram No. NS.RK.0618/010 promulgating the Law on the Amendment to Article 87, Point C, Section III of Chapter IV, Article 89, 90, 91, 94, 110, 120 and 122 of the current Labour Law promulgated by Royal Kram No.NS.RK.0396/01 dated 13 March 1997 ("Amendment Law"), was issued.
The Amendment Law focuses on the seniority of employees and the indemnity to be paid after the termination of an employment contract. The scope and procedure of implementing the seniority and indemnity provisions of the Amendment Law shall be determined by a Prakas to be issued by the Minister in charge of the labour sector ("Minister"). The method of calculation and settlement of seniority of employees who have been working before the entry into force of the Amendment Law shall also be determined by the Minister. This Amendment Law entered into force with immediate effect.
On 25 June 2018, the Royal Government of Cambodia issued Sub-Decree No. 87 on Classification of Constructions and Projects and Requirements on System for Fire Prevention and Firefighting ("Sub-Decree"). The Sub-Decree requires all constructions and projects in Cambodia to have a system for fire prevention and firefighting. The Sub-Decree also requires the owners of constructions and projects to get their plans of fire prevention and firefighting system acknowledged by the Ministry of Interior and / or other relevant authorities before commencing works. The approval of the Ministry of Interior and / or other relevant authorities is also needed before commencing the renovation or repair of any fire prevention and firefighting system.
The penalties for non-compliance with the Sub-Decree include the issuance of a warning letter, temporary suspension of the affected construction and project, and fines ranging from KHR2,000,000 (approx. US$500) to KHR10,000,000 (approx. US$2,500).
The Sub-Decree covers all types of constructions and projects including but not limited to public, commercial and household properties.
A new Law on Nationality promulgated by Royal Kram No.NS.RK.0618/008 dated 21 June 2018 ("Law on Nationality") has recently been issued. The new Law on Nationality entered into force with immediate effect. It repealed the previous Law on Nationality dated 9 October 1996 which contained numerous irregularities from the past years and was no longer applicable to the present Cambodian society.
With the entry into force of the new Law on Nationality, the penalties for violating the law can be as high as 10 years of imprisonment and a fine ranging from KHR4,000,000 (approx. US$1,000) to KHR100,000,000 (approx. US$25,000).
On 29 May 2018, the Securities and Exchange Commission of Cambodia ("SECC") issued Prakas No. 002/18 on Accreditation of the Custodian Agent in the Securities Sector ("Prakas No. 002"). Prakas No. 002 aims to ensure that the conduct of a custodian agent is in compliance with the requirements and obligations of a custodian agent set out in the Law on Issuance of Trading of Non-Government Securities, as well as other relevant regulations in force.
Prakas No. 002 covers all SECC-accredited custodian agents who provide custodian services in Cambodia. Based on Prakas No. 002, any eligible person intending to be a custodian agent shall submit an application in a form prescribed by the Director-General of the SECC. The applicant shall be notified of the accreditation or rejection within 45 days from receipt of the duly completed application form and supporting documents by the Director- General. The validity of the accreditation is indefinite.
Prakas No. 002 entered into force on 29 May 2018. All provisions contrary to this Prakas are abrogated.
On 28 May 2018, the Ministry of Post and Telecommunication, the Ministry of Interior and the Ministry of Information jointly issued Prakas No. 170 on Management of Webpage and Social Media on Internet System ("Inter-Ministerial Prakas No. 170"). Inter-Ministerial Prakas No. 170 provides a stern warning to all online operators carrying out illegal or unlawful online business, and sets out effective action against any kind of illegal or unlawful online business operations. It allows the relevant Ministries and / or other international institutions to block or close down any unlawful webpage or website.
The National Bank of Cambodia, together with the Securities and Exchange Commission of Cambodia ("SECC") and the General-Commissariat of National Police issued a Joint Statement on Illegal Activities related to Crypto Currencies in Cambodia ("Joint Statement"). The Joint Statement clarifies that the propagation, circulation, buying, selling, trading and settlement of Crypto Currencies without obtaining license from competent authorities are illegal activities. "Crypto Currencies" includes but not limited to KH coin, Suncoin, K coin, One-coin, Forex coin. The Joint Statement also alerts the public of the potential risks of Crypto Currencies, such as:
- The Issuance of Crypto Currencies is not backed by collateral;
- Investments in Crypoto Currencies may incur losses due to the volatility of its face value;
- Facing cybercrime and losses of funds due to the system being hacked;
- Absence of customer protection system; and
- Risks of money laundering and financing of terrorism.
Any person or legal entity that propagates to mobilise funds, buys, sells, trades or settles Crypto Currencies without obtaining license from competent authorities shall be penalised in accordance with the applicable laws.
On 25 April 2018, the Ministry of Labour and Vocational Training ("MLVT") issued Prakas No. 184 on Amendments to Articles 2, 4, 5, 6, 7, 8 and 10 of Prakas No. 109 dated 17 March 2016 ("Prakas No. 184"). Prakas No. 184 sets out more definitions to the technical terms used in the provisions related to the Health Care Benefits under the National Social Security Fund ("NSSF"). Pursuant to this amendment, general health check-up is now excluded from the medical care services covered by the Health Care Benefits provided by NSSF. Moreover, with immediate effect, medicines for diabetes mellitus types 1 and 2 and hypertension, as well as chemotherapy shall be paid by fee-for-services (i.e. paid separately based on each service).
On 25 April 2018, the Ministry of Labour and Vocational Training ("MLVT") issued Notification No. 016/18 ("Notification") to extend the deadline for renewing the work permits of foreigners. This is the second extension issued since the initial deadline of renewal was announced. According to the Notification, the new deadline was set for 31 May 2018. Enterprises, establishments, and foreign employees that had not renewed their work permits for 2018 were directed to promptly apply for such renewals on www.fwcms.mlvt.gov.kh by the deadline. Otherwise, a penalty based on a daily wage of KHR40,000 (approx. US$10) will be imposed. This shall not forbid the MLVT from taking any further action allowed by laws against such violation.
