Employment
A garment-sector-shaped Labour Law with Arbitration Council oversight
The Labour Law of 1997 governs employment, and its practical development has been driven by the garment export sector and the ILO Better Factories programme. The Arbitration Council, established in 2003, is a genuinely respected tripartite body whose published awards form the most reliable body of Cambodian employment jurisprudence. Minimum wage is set annually by sector.
Governing law
- Labour Law, 1997 — Core employment statute, as amended.
- Law on Trade Unions, 2016 — Union registration and representativeness; amended 2019.
In practice
Fixed duration contracts are limited to two years in total before converting to undetermined duration. Termination of an undetermined-duration contract requires notice and severance based on service. The garment and footwear minimum wage is set annually by Prakas; other sectors differ. Collective disputes may be referred to the Arbitration Council after conciliation. The two-year FDC cap is the most commonly breached rule and converts contracts by operation of law. Arbitration Council awards are published and are the best available guide to how the Labour Law is actually applied.