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Cambodia - Compensation & Benefit Legislation

CAPITAL

Phnom Penh

 

CLIMATE

Tropical climate; rainy, monsoon season (May to November) and a dry season (December to April) with little seasonal temperature variation.

 

LANGUAGES

Khmer (official) 95%, French, and English.

 

LEGAL SYSTEM

Cambodia’s legal system is primarily a civil law mixture of French-influenced codes from the United Nations Transitional Authority in Cambodia (UNTAC) period, royal decrees, and acts of the legislature, with influences of customary law and remnants of communist legal theory with an increasing influence of common law in recent years.

 

CURRENCY

Cambodian Riel (1 USD = 4,028.60 KHR as of April 15, 2002).

 

CAMBODIA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

CAMBODIA - EMBASSY/CONSULATES

U.S. Embassy at Phnom Penh

16, Street 228

Phnom Penh, Cambodia

Telephone: (855) (23) 216-436

Fax: (855) (23) 216-437

http://usembassy.state.gov/cambodia

 

Royal Cambodian Embassy at Washington D.C.

4530 16th Street N.W.

Washington D.C. 20011

Telephone: (202) 726-7742

Fax: (202) 726-8381

Email: cambodia@embassy.org

http://www.embassy.org/cambodia/

 

CAMBODIA - HOLIDAYS

 

CAMBODIA - LEAVE

Annual Leave: Minimum 18 days paid annual leave each year.

 

Maternity Leave: 90 day – 50% of pay (paid by employer).

 

CAMBODIA - MINIMUM AGE

 

The Labor Law establishes 15 years as the minimum age for employment, and 18 as the minimum age for hazardous work. The law permits children between 12 and 15 to engage in "light work" that is not hazardous to their health and that does not affect school attendance.

 

(Section 6.d. Acceptable Conditions of Work, Cambodia – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

CAMBODIA - MINIMUM REMUNERATION

There is a minimum wage for the garment and footwear industry of approximately $45 USD per month. There is no minimum wage for any other industry.

 

(Section 6.e. Acceptable Conditions of Work, Cambodia – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

CAMBODIA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

CAMBODIA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Labor Law provides workers with the right to form professional organizations of their own choosing without prior authorization, and all workers are free to join the trade union of their choice; however, the Government's enforcement of these rights was inconsistent. Membership in trade unions or employee associations is not compulsory, and workers are free to withdraw from such organizations; however, the Ministry of Social Affairs, Labor, Vocational Training and Youth Rehabilitation (MOSALVY) has accepted the charter of at least one union that requires workers to obtain permission before they may withdraw. The Labor Law does not apply to civil servants, including teachers, judges, and military personnel, or to household servants. Personnel in the air and maritime transportation industries are not subject fully to the law, but are free to form unions.

 

Most workers are subsistence rice farmers. Only a small fraction (estimated at less than 1 percent) of the labor force is unionized, and the trade union movement, still in its infancy, is very weak. Unions are concentrated in the garment and footwear industries, where approximately 25 to 30 percent of the 150,000 to 170,000 workers were union members. Although there was an expanding service sector, most urban workers were engaged in small-scale commerce, self-employed skilled labor, or unskilled day labor. The Labor Law requires unions and employer organizations to file a charter and list of officers with the MOLSAVY. The MOSALVY registered 245 factory unions and 9 national labor federations since the Labor Law went into effect, including 108 unions and 4 federations during the year. Labor unions continued to expand outside the garment sector as well, and in July the Ministry of Interior recognized the country's first public-sector union, the Cambodia Independent Teachers Association, which registered as an "association." Regulations issued in 2000 to simplify union registration procedures were effective. Unlike in previous years, there were no complaints that the Government failed to register unions or labor federations, although some unions and federations complained of unnecessary delays and costs. Although all unions collect dues from members, none has been able to operate without outside sources of support. None of the unions has the capacity to negotiate with management as equals.

 

One labor federation maintains an affiliation with the opposition Sam Rainsy Party. Three other registered labor federations have historical ties to the Government or CPP-affiliated individuals within the Government. Two major labor federations and several unaffiliated factory unions are independent. There was credible evidence of employer involvement in some labor unions, in violation of the Labor Law.

 

The Government's enforcement of provisions that protect the right of association was poor. The Government's enforcement efforts were hampered by a lack of political will and by confused financial and political relationships with employers and union leaders. The Government also suffers from a lack of resources, including trained, experienced labor inspectors, in part because it does not pay staff adequate salaries. In addition unions suffer from a lack of resources, training, and experience. There were credible complaints about antiunion harassment by employers, including the dismissal of union leaders, in more than 20 garment factories and other enterprises during the year. In a case beginning in 2000, a factory continued to defy a MOSALVY order to reinstate dismissed union leaders. The Government has never prosecuted or punished an employer for antiunion activity. The MOSALVY often finds in favor of employees, but rarely uses its legal authority to penalize employers who defy its orders. The MOSALVY often ad

vises employees in such situations to sue in court, which labor unions claim is unnecessary, costly, and ineffective. On several occasions, dismissed union leaders accepted cash settlements after unsuccessfully appealing to the Government to enforce labor law provisions requiring their reinstatement.

 

In 1999 the Government signed a textile agreement with a foreign country, which linked garment market access to compliance with internationally recognized core labor standards. In January the ILO began a program to monitor working conditions in the garment industry. However, senior officials, including the Deputy Prime Minister and the Minister of Commerce, made public statements throughout the year dismissing the labor movement as being made up of political agitators intent on sabotaging the economy.

 

The Labor Law provides for the right to strike and protects strikers from reprisal. There were 97 strikes during the year, the vast majority of which took place without the 7-day prior notice required by law. The Government allowed all strikes and demonstrations, including some in which demonstrators caused property damage. In June the authorities arrested several union members for alleged involvement in violent labor demonstrations at a garment factory, and fined them and released them several days later. However, in general police intervention was minimal and restrained, even in cases in which striking workers caused property damage. In spite of the provisions in the law protecting strikers from reprisals, there were credible reports of workers being dismissed on spurious grounds after organizing or participating in strikes. In some cases, strikers have been pressured by employers to accept compensation and leave their employment.

 

Unions may affiliate freely, but the law does not address explicitly their right to affiliate internationally.

 

b. The Right to Organize and Bargain Collectively

 

The Labor Law provides for the right to organize and bargain collectively; however, the Government's enforcement of these rights was inconsistent. Wages are set by market forces, except in the case of civil servants, for whom wages are set by the Government.

 

Since passage of the Labor Law in 1997, there has been confusion over the overlapping roles of labor unions and elected shop stewards. The Labor Law provides unions the right to negotiate with management over wages and working conditions and allows unions to nominate candidates for shop steward positions. However, the Law provides shop stewards the right to represent the union to the company management and to sign collective bargaining agreements. Legal ambiguities also exist in the process by which unions nominate shop stewards. In practice most factories elected shop stewards before a union was present in the enterprise; thus, many unions had no legally enforceable right to negotiate with management in situations in which there were nonunion shop stewards. In addition the law specifically protects elected shop stewards from dismissal without permission from the MOSALVY, but grants no such protection to elected union leaders. In November 2000, MOSALVY issued a regulation that gave trade unions roles comparable to those of shop stewards and extended protection from dismissal to certain union officers within an enterprise. However, these protections for union leaders did not prove effective.

 

Very little collective bargaining takes place. There are only two collective bargaining agreements registered with the Government, and these do not meet international standards. In addition to difficulties in defining the bargaining unit, collective bargaining is inhibited by the weak capacity and inexperience of unions. In November the Government issued a regulation establishing procedures to allow unions to demonstrate that they represent workers for purposes of collective bargaining. The new regulation also establishes requirements for employers and unions regarding collective bargaining and provides union leaders with additional protection from dismissal.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Labor Law prohibits forced or compulsory labor, including forced labor by children; however, the Government does not enforce its provisions adequately. Involuntary overtime remained widespread. Workers faced fines, dismissal, or loss of premium pay if they refused to work overtime.

 

Trafficking in women and children for the purpose of prostitution was a serious problem. There have been reports of children who were kidnaped and forced to work in the illegal sex trade. Officials of the Government took action to rescue underage or trafficked women from prostitution, but do not do so consistently. There also were reports of isolated cases of forced labor by domestic servants.

 

One study estimates that there are 88,000 bonded Cambodian workers in Thailand at any given time.

 

The Law on the Suppression of Kidnaping, Trafficking and Exploitation of Humans (The Trafficking Law) establishes a jail sentence of 15 to 20 years for any person convicted of trafficking in persons under the age of 15.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Labor Law establishes 15 years as the minimum age for employment, and 18 as the minimum age for hazardous work. The law permits children between 12 and 15 to engage in "light work" that is not hazardous to their health and that does not affect school attendance. A tripartite Labor Advisory Committee is responsible for defining what constitutes work that is hazardous to the health, safety, and morality of adolescents, as well as consulting with the MOSALVY to determine which types of employment and working conditions constitute "light work." MOSALVY has identified six industries as priorities for clarification of what constitutes hazardous work and light work, but has not yet placed the subject on the agenda of the Labor Advisory Committee.

 

Children under the age of 15 account for more than half the population. Approximately 16.5 percent of children between the ages of 5 and 17 work. More than half of these are over the age of 14, and 89 percent are engaged in small-scale agriculture. Only 4 percent of working children are engaged in larger scale enterprises, including brick factories and rubber plantations.

 

Child labor was not prevalent in the garment industry, although there was at least one instance of a young worker misrepresenting her age to gain employment in a garment factory. Lack of credible civil documents made it difficult to guard against this practice. Most garment factories have policies that set the age of employment above the legal minimum of 15 years. The most serious child labor problems were in the informal sector.

 

The MOSALVY is hampered by inadequate resources, staff, and training. Law enforcement agencies have authority to combat child prostitution, but do not do so in a sustained, consistent manner. Some observers note that existing regulations do not address the problem of child labor in the informal sector adequately. With assistance from the ILO, MOSALVY established a child labor unit to investigate and combat child labor. In 1997 the Government, in conjunction with the ILO and NGO's, also approved a national action plan on child labor. The Government has not ratified ILO Convention 182 on the elimination of the worst forms of child labor, and has not established a definition for worst forms of child labor.

 

The Government prohibits forced or bonded child labor. However forced child labor, including by trafficked children is a serious problem in the commercial sex industry. In 1999 the ILO's International Program for the Elimination of Child Labor (IPEC) reported that more than 15 percent of prostitutes were between 9 and 15 years of age.

 

e. Acceptable Conditions of Work

 

The Labor Law requires the MOSALVY to establish minimum wages based on recommendations from the Labor Advisory Committee. By law the minimum wage can vary regionally. In July 2000, the Labor Advisory Committee approved a minimum wage denominated in U.S. currency of $45 per month, but this covered only the garment and footwear industries. Most garment and footwear factories respected the minimum wage. There was no minimum wage for any other industry.

 

According to a survey taken during the year by a local economics research center, garment workers, who were paid in U.S. currency, earned an average of $61 per month, factoring in overtime. However, prevailing monthly wages in the garment sector and many other professions were insufficient to provide a worker and family with a decent standard of living. Civil service salaries also were insufficient to provide a decent standard of living, requiring government officials to secure outside sources of income.

 

The Labor Law provides for a standard legal workweek of 48 hours, not to exceed 8 hours per day. The law stipulates time-and-one-half for overtime and double time if overtime occurs at night, on Sunday, or on a holiday. The Government does not enforce these standards effectively. Despite reminders from the Government concerning hours of work, workers in many garment factories complained that overtime is excessive or involuntary, or that they are required to work 7 days per week. Some factories do not pay the legally mandated premiums for overtime and night or holiday work properly. Another common complaint is that management violates the law by paying the overtime rate only for the salary component of workers' pay, leaving piece rates unchanged regardless of the number of hours worked. Outside the garment industry, regulations on working hours rarely are enforced.

 

The Labor Law states that the workplace should have health and safety standards adequate to ensure workers' well being. The Government enforces existing standards inconsistently, in part because it lacks trained staff and equipment. Work-related injury and health problems were common. Most large garment factories producing for markets in developed countries meet relatively high health and safety standards as conditions of their contracts with buyers. Working conditions in most small-scale factories and cottage industries are poor and often do not meet international standards. The Government has issued several instructions on workplace standards, and more detailed regulations await approval by the Labor Advisory Committee before they may be promulgated. Penalties are specified in the Labor Law, but there are no specific provisions to protect workers who complain about unsafe or unhealthy conditions. Workers who remove themselves from unsafe working conditions risk loss of employment.

 

f. Trafficking in Persons

 

The law prohibits trafficking in persons; however, trafficking was a serious problem. Enforcement of the Trafficking Law also was a problem. The country was a source, destination, and transit country for trafficking in persons.

 

The majority of trafficking takes place within the country, providing both adults and children for exploitation in the country's sex industry. The sex industry is estimated to employ from 80,000 to 100,000 sex workers, a sizable proportion of whom are victims of trafficking. The International Organization for Migration estimates that at least 3,000 women and girls from southern Vietnam were trafficked to the country to work as prostitutes, with more than 15 percent being younger than 15 years of age. The ILO's IPEC Program reported in 1999 that more than 15 percent of female prostitutes in the country were from 9 to 15 years of age, and that 78 percent of these girls were Vietnamese; the remainder were Cambodians. Women have been trafficked from European countries such as Moldova and Romania, as well, for purposes of prostitution. A UNICEF study reported that one-third of the country's prostitutes were under age 18. Some Vietnamese women and girls are trafficked through the country for exploitation in the com mercial sex trade in other Asian countries. One study estimated that 88,000 Cambodians work in Thailand as bonded laborers at any given time; many are exploited in the sex industry or, particularly among young boys, are employed as beggars. One NGO estimated that 30,000 women and girls were trafficked to neighboring countries, especially Thailand. Women and children, especially those in rural areas, are the most likely to become victims of trafficking.

 

The Trafficking Law establishes a jail sentence of 15 to 20 years for any person convicted of trafficking in persons under the age of 15; however, the Government does not enforce the law effectively due in part to budget limitations and a lack of implementing regulations.

 

Although prosecutions of traffickers increased, and the Government devoted greater attention to trafficking during the year, enforcement of antitrafficking laws and prosecution of perpetrators was inconsistent.

 

The Government has several programs underway in conjunction with the International Organization for Migration to combat trafficking, including one program to provide training and capacity building for Government officials with antitrafficking responsibilities. In September the Ministry of Women's and Veterans' Affairs launched a public education campaign against trafficking, focusing on border provinces.

 

CAMBODIA - STANDARD WORKWEEK

The Labor Law provides for a standard legal workweek of 48 hours, not to exceed 8 hours per day. The law stipulates time-and-one-half for overtime and double time if overtime occurs at night, on Sunday, or on a holiday.

 

(Section 6.e. Acceptable Conditions of Work, Cambodia – Report of Human Rights Practices, 2001, U.S. Department of State.)