Employer of Record (EOR) Cambodia

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Employer of Record (EOR) in Cambodia

Cambodia’s emerging economy and youthful workforce make it an attractive destination for businesses seeking to expand in Southeast Asia. Our Employer of Record (EOR) services in Cambodia simplify the process of entering this market by managing all aspects of local employment, including compliance with labor laws, payroll, and taxes. By utilizing our EOR solutions, you can quickly and efficiently establish a presence in Cambodia without the need to set up a legal entity, allowing you to focus on growing your business.

Employment Benefits

Mandatory benefits

In Cambodia, employers are required to make mandatory contributions to the National Social Security Fund (NSSF), which provides essential benefits to employees. These contributions are crucial for ensuring workers’ health, safety, and financial security. Compliance with these requirements is vital for maintaining a fair and supportive work environment.

Healthcare Scheme

Employers must contribute to the health insurance scheme, ensuring employees have access to medical care and treatment.

The contribution rate is totalled at 2.6%, in which the employee pays 1.3% of the salary and the employer pays the other 1.3%.

Pension Scheme

Contributions to the pension scheme provide financial security to employees upon retirement, ensuring they have a stable income in their later years.

Employers are required to contribute 2% of each employee’s salary to the NSSF pension scheme. Employees are also required to contribute 2% of their salary on a monthly basis.

Occupational Risk Insurance

This insurance covers employees in case of work-related accidents or illnesses, providing compensation and medical benefits.

Employers pay 0.8% of the assumed wage of the employee’s monthly salary before taxation.

Our Employer of Record (EOR) service in Cambodia can help you design a benefits package tailored to your industry and workforce requirements. We ensure that your benefits offerings are fully compliant with local regulations and meet the expectations of skilled professionals. By partnering with us, you can create a compelling benefits package that strengthens your employment offer and supports both employee well-being and career growth.

Additional perks and benefits

In Cambodia’s competitive job market, providing a comprehensive benefits package is essential for attracting and retaining top talent. Employers often offer additional benefits such as private health insurance, performance-based bonuses, housing allowances, flexible work arrangements, and opportunities for professional development, in addition to mandatory contributions to social security and pensions.

These extra perks not only improve employee satisfaction and productivity but also foster long-term loyalty, helping you build a committed and motivated workforce. By offering a well-rounded benefits package, you can enhance your employment offer and create a supportive environment that encourages both personal and professional growth.

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Working Hours and Leave Policies

Standard working hours

Statutory working hours

Cambodia’s statutory working hours are designed to ensure a balance between work and personal life.
- Standard working hours: The standard working hours in Cambodia are 8 hours per day, 6 days a week.
- Rest days: Employees are entitled to one full day of rest per week, typically on Sunday.
Overtime regulations

Overtime regulations in Cambodia ensure fair compensation for additional work hours.
- Employers must compensate employees for overtime work at a rate of 150% of their normal wage for regular overtime and 200% for overtime on rest days or public holidays.
- Overtime work is generally capped at 2 hours per day to prevent excessive working hours and ensure employee well-being.

Leave entitlements

Leave entitlements in Cambodia are designed to provide employees with adequate time for rest, health, and family responsibilities.

Annual leave:

Employees are entitled to 18 days of paid annual leave after one year of service, which increases by one day for every three years of service.
Sick leave:

Employees are entitled to up to six months of sick leave, with full pay for the first month, 60% pay for the second and third months, and no pay thereafter.
Maternity leave:

Female employees are entitled to 90 days of maternity leave with 50% of their normal wage.
Paternity leave:

Male employees are entitled to one day of paid paternity leave.
Public holiday leave:

Employees are entitled to paid leave on 21 public holidays per year, as mandated by the government.

In Cambodia, detailed local laws govern employee leave entitlements, making strict compliance essential for your business. At AYP, we manage leave entitlements accurately and in full compliance with Cambodia ’s regulations. Let us manage the complexities of local compliance, so you can concentrate on growing your core business.

Visa and Work Permits

Employment visas

Employment visas in Cambodia are required for foreign nationals who wish to work in the country.

EB Visa

This visa is valid for one year and renewable. The application process typically involves securing a job offer, providing relevant documents, and obtaining approval from the Ministry of Labor and Vocational Training.

Business visas

Business visas in Cambodia are designed for foreign nationals who need to conduct business activities.

E-class Visa

This visa allows for business-related stays of up to one year. Applicants must provide proof of business activities and comply with relevant regulations.

Other relevant visa types

Other relevant visas in Cambodia cater to different needs and durations of stay.

These include the T-class (tourist visa), R-class (retirement visa), and K-class (Cambodian origin visa). Each visa type has specific requirements and benefits tailored to different purposes of stay.

Navigating Cambodia ‘s employment visa and work permit regulations can be challenging due to strict rules and detailed requirements. Our Employer of Record (EOR) service simplifies the visa application process, ensuring full compliance with Cambodia ’s immigration laws. We handle everything from documentation to approvals, allowing you to onboard international talent quickly and seamlessly without the usual complications. Avoid the stress and potential delays—partner with us to ensure a smooth, compliant visa process.

Termination and Offboarding Procedure

In Cambodia, labor contracts are categorized into two types, each with distinct termination processes:

Specified Duration Contracts (Article 73)
- Expiration
  
  These contracts end on the specified date.
- Mutual Agreement
  
  Termination can occur if both parties agree, with the presence of a labor inspector.
- Without Agreement
  
  If the parties cannot reach an agreement, termination is only possible due to serious misconduct or an act of God.
- Premature Termination
  
  Employees may be entitled to compensation for damages if the contract is terminated early, subject to conditions.
- Notice Period
  
  For contracts longer than six months, a 10-day notice is required. For contracts exceeding one year, a 15-day notice is necessary.
- Extension
  
  Without prior notice, the contract is considered extended for a period equal to its initial duration.
- Severance Fee
  
  At contract expiration, employees receive a severance fee proportional to their wages and the contract length.
- Severance Fee
  
  At contract expiration, employees receive a severance fee proportional to their wages and the contract length.
Unspecified Duration Contracts
- Termination
  
  Either party can terminate the contract, but employees cannot be dismissed without a valid reason.
- Notice Period
  
  The notice period varies depending on the length of employment, with specific requirements based on tenure.

Proper offboarding in Cambodia involves several key steps to ensure compliance and maintain positive relations:. This includes ensuring that all outstanding wages, bonuses, and benefits are settled according to legal requirements as well as providing any severance pay due, based on the length of the contract and the employee’s wages.

Offboarding and termination in Cambodia require careful attention to local labor laws. AYP’s Employer of Record (EOR) services simplify these processes, ensuring smooth transitions and full compliance with Cambodia’s regulations. Let us take care of the legal intricacies so you can focus on your business.

Advantages of Using Employer of Record through AYP

Partnering with AYP’s Employer of Record (EOR) in Cambodia provides distinct advantages in managing the country’s intricate employment landscape. Our comprehensive service manages payroll, benefits, and tax compliance, alleviating the complexities and risks associated with direct hiring.

With AYP’s deep expertise in Cambodian labor laws, your company can confidently navigate legal obligations related to employment contracts, termination procedures, and workplace regulations. This proactive approach reduces administrative burdens and shields you from potential legal disputes and compliance issues.

By entrusting AYP with these critical functions, you can focus on growing your business and achieving your strategic objectives. Let AYP be your trusted partner for a seamless and compliant employment experience in Cambodia.