Relevant Legislation
The Government of Cambodia, Cambodian Labour Law (1997)2
Unlawful Termination, Damages and Compensation
Under Article 74 of the Cambodian Labour Law, in regards to contracts of unspecified duration: ‘no layoff can be taken without a valid reason relating to the worker’s aptitude or behavior, based on the requirements of the operation of the enterprise, establishment or group’. In regards to fixed term contracts, Article 73 provides that: ‘If both parties do not agree, a contract of specified duration can be canceled before its termination date only in the event of serious misconduct or acts of God’. The article goes on to stipulate:
[…] premature termination of the contract by the will of the employer alone for reasons other than those mentioned in paragraphs 1 and 2 of this article entitles the worker to damages in an amount at least equal to the remuneration he would have received until the termination of the contract.
Article 77 elaborates:
The termination of a labour contract at will on the part of the employer alone, without prior notice or without compliance with the prior notice periods, entails the obligation of the employer to compensate the worker the amount equal to the wages and all kinds of benefi ts that the worker would have received during the official notice period.
Article 89 outlines the amount that is to be given to a worker who has been unfairly dismissed:
1) Seven days of wage and fringe benefits if the worker’s length of continuous service at the enterprise is between six and twelve months.
2) If the worker has more than twelve months of service, an indemnity for dismissal will be equal to fifteen days of wage and fringe benefits for each year of service. The maximum of indemnity cannot exceed six months of wage and fringe benefits. If the worker’s length of service is longer than one year, time fractions of service of six months or more shall be counted as an entire year. The worker is also entitled to this indemnity if he is laid off for reasons of health.
Article 90 also specifies that in addition to an indemnity for dismissal, an employee may claim damages from the employer in instances of constructive dismissal where the latter, ‘through his evil actions, pushed the worker into ending the contract himself. If the employer treats the worker unfairly or repeatedly violates the terms of the contract, he also has to pay indemnities and damages to the worker’.
Furthermore, Article 91 provides that damages may be claimed (in addition to compensation in lieu of prior notice and the dismissal indemnity) where a labour contract has been terminated by either party without valid reason. The worker, however, ‘can request to be given a lump sum equal to the dismissal indemnity. In this case, he is relieved of the obligation to provide proof of damage incurred’ [Article 91]. The damages are to be decided by a competent Court, and determined based on:
[…] local custom, the type and importance of the services rendered, the worker’s seniority and age, the pay deductions or payments for a retirement pension, and, in general, on all circumstances that can justify the existence and the extent of the harm incurred.
Endnotes
2 Cambodian Labour Law, 1997, available at http://www.gocambodia.com/laws/labor_ law.asp (accessed 16/05/11).
