- 27th - January, 2024
Overtime System in Cambodia
In the rapidly evolving economic landscape of Cambodia, the legal framework governing labor practices, particularly overtime work, plays a pivotal role in balancing the dynamics between employer expectations and employee rights. As businesses strive for growth and adaptability, understanding the intricacies of Cambodia’s overtime work regulations becomes crucial. This column aims to shed light on the legal system of overtime work in Cambodia, offering insights into how the law shapes the working hours beyond the standard workweek. By delving into the specifics of the Labour Law of the Kingdom of Cambodia (the “LL”) and its application in today’s corporate environment, we embark on a comprehensive exploration of a system designed to harmonize productivity with the well-being of the workforce.
1. Overview and Conditions of the Overtime System in Cambodia
Under the LL, there are three primary types of overtime systems:
Overtime work beyond normal working hours, work on weekly days off and work on national public holidays.
Overtime Work Beyond Normal Working Hours:
As per Article 137 of the LL, normal working hours should not exceed 8 hours per day or 48 hours per week. In March 1999, the Ministry of Labour and Vocational Training (the “MLVT”) issued Prakas No. 80, allowing enterprises to implement overtime work systems in cases of unusual workloads or operational necessities. Notification No. 030, issued on 27th February 2015 by the MLVT, stipulates that overtime work beyond normal hours is limited to a maximum of 2 hours per day, with total working hours not exceeding 10 hours per day. Enterprises must be approved the overtime by the MLVT in advance.
Work on Weekly Days Off:
Workers are guaranteed a minimum of 24 consecutive hours off each week, usually on Sunday. Under Prakas No. 100, issued by MLVT on 11th April 2002, employers are permitted to suspend a weekly day off for up to two days per month. However, this suspension cannot occur for two consecutive weeks.
Additionally, as per Prakas No. 142, issued on 10th June 2002 by the MLVT, employers have the option to extend the weekly rest period to include Saturdays. This can be arranged by extending the working hours to 9 hours from Monday to Friday and reducing them to 4 hours on Saturday. Such a schedule adjustment requires the agreement with a trade union, a shop steward or a majority of the workers (in cases where no shop steward is present).
Work on National Public Holidays:
Workers are entitled to paid leave on national public holidays as determined by the MLVT’s annual Prakas. Prakas No. 10, issued on 4th February 1999 by the MLVT, states that in necessary cases where operations cannot cease on national holidays, employers may negotiate with workers to work on these days.
According to the new Article 139 of the Law on Amendment of Labour Law and the MLVT’s Prakas 10/99, workers consenting to work overtime are entitled to the following overtime pay rates:
• Normal working days: 150% of the normal hourly wage
• Night-work (10:00 pm – 5:00 am): 200% of the normal hourly wage
• Weekly day off: 200% of the normal hourly wage
• National holidays: 100% of the normal hourly wage (plus normal pay)
2. Procedure of the Overtime Work Application
Overtime work must be voluntary and receive prior approval from the MLVT, under the supervision of a labour inspector. Since 11th January 2021, applications for overtime work (including work on national public holidays and weekly days off) approval can be submitted through the new online system (https://lacms.mlvt.gov.kh) with a public service fee of 100,000 riels (approximately USD 25) per application. Requests must be submitted at least 7 working days before the planned overtime work. Enterprises must register on the online system before applying, and separate approvals are required for each workplace.
Enterprises requesting overtime work must provide:
• The reason for the overtime request
• The selected date(s) for overtime work
• The total number of workers, including the number of female workers, requested for overtime
• An uploaded application or request form, signed and stamped by the enterprise
• A letter confirming the consent of shop stewards or more than half of the total workers (if no shop steward is present)
Enterprises will receive a digital approval letter within 7 working days of application submission, provided all information is accurate and correct.