Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 4 - Oct/Nov/Dec 2018
 

Amendments to Occupational Risk Benefits

On 18 October 2018, the Ministry of Labour and Vocational Training ("MLVT") issued Prakas No. 480 MLVT/P.NSSF to amend Articles 6, 11 and 13 of Prakas No. 109 dated 16 June 2008 on occupational risk benefits, in order to clarify and adjust certain aspects of health benefits provided under Prakas No. 109. 

The new Article 6 clarifies the calculation of the average wage for the purposes of social security. It provides that the average wage shall be an average contributory wage of a period no longer than six months prior to the date of accident. In addition, the new Article 11 adds a new category of survivor benefits when the victim worker only has a spouse or children in burden. It stipulates that the survivor will receive 56% of the average daily wage of the victim worker. Finally, Article 13 replaces previous application forms that were used for different types of benefits with a one-format form (called "Occupational Risk Benefit Form") that will be used by the applicant in filing for all types of benefits from occupational risk scheme.

MLVT Reminds Strict Compliance with Law against Forced Labour and Child Labour

On 12 October 2018, the Ministry of Labour and Vocational Training ("MLVT") issued announcement No. 034/18 MLVT.A ("Announcement") in relation to forced labour and child labour. The Announcement informs the owners and directors of factories, enterprises, institutions, brick handicrafts and other businesses that forced labour and child labour were not found during the labour inspection. They are also reminded that they must strictly comply with labour requirements and child labour prohibition as set forth by the Labour Law and other relevant Prakas as follows:
  • They must continue to oppose any form of labour exploitation. They are prohibited from imposing limitations on employees' freedom of work by private debts and financial institution debts.
  • All businesses, handicrafts and service providers shall not employ any minor under the age of 15. For businesses engaged in entertainments for adults, it is prohibited to employ minors under the age of 18.

Minimum Wage Determination for 2019 for Workers in Textile, Garment and Footwear Industries

On 5 October 2018, the Prakas on minimum wage determination for workers in textile, garment and footwear industries for 2019 was issued by the Ministry of Labour and Vocational Training ("MLVT").

Under the Prakas, starting from 1 January 2019, the minimum wage for workers in the textile, garment and footwear industries will be US$182 per month. Probationary workers will be paid a minimum wage of US$177 per month to be increased to US$182 per month upon the successful completion of the probationary period.

Payment of Wages

On 21 September 2018, the Ministry of Labour and Vocational Training ("MLVT") issued Prakas No. 442 MoLVT on Wage Payment requiring all enterprises and establishments governed by the Cambodian Labour Law to pay wages to their workers / employees twice a month starting from January 2019. Such payment shall be made as follows:
  • First time payment (to be made in the second week of the month) is 50% of actual wage per month.
  • Second time payment (to take place in the fourth week of the month) is the remaining actual wage plus additional wage and other benefits to be received each month.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

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