Legal Services in Cambodia

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Legal Services in Cambodia

Here’s a range of information about legal services in Cambodia, including company registration, due diligence, dispute resolution, compliance and services such as consulting and financial analysis.

If you still can’t find your answer here, just ask us at B2B Cambodia and we’ll put you in touch with one of our trusted partners.

What is the state of the legal system in Cambodia?

  • Cambodia’s legal system has rapidly evolved since the country’s democratic election in 1993 and is now a member of The World Trade Organisation (WTO) and ASEAN.

  • Cambodia was one of the earlier countries to adopt the International Financial Reporting Standards (IFRS), effective from 2012.

  • Cambodian laws are often a mix of those from foreign countries, including UK, USA, Japan and France and are constantly being revised, mended, and new ones introduced.

  • Members of the Cambodian Bar, regardless of citizenship, are the only people allowed to practice law in Cambodia.

  • This means the few international business advisory firms in Cambodia have some foreign lawyers who can act as advisors but not represent clients in court.

  • Those members registered with the Cambodian Bar offer the same services, as you would expect internationally, including due diligence, contract negotiation and intellectual property advice.

  • Laws and legal requirements are issued in a number of ways including: laws adopted by the National Assembly, royal decrees issued by the monarchy, sub-decrees and ministerial orders (known in Khmer as prakas). Given their proliferation, it can sometimes be confusing to determine which proclamation, law or prakas supersedes the others. Ultimately legal counsel should be sought for clarification.

  • Increasingly, law in Cambodia is being drafted with a focus on enforcement and achieving immediate compliance. This is a crucial change in ethos.

  • English is the common language of ASEAN, which means contracts are increasingly written in English. In the future arbitrations, including internationals, may be in English also.

  • Cambodia has a good level of English compared to some of its neighbours, and may benefit from this regional conversion.

  • Economically, Cambodia has already allowed substantial free investment from foreigners, meaning ASEAN offers nothing that special in Cambodia compared to its most economically similar neighbours.

  • The biggest changes happening now are not so much in the law as the practical application of laws already on the books. These things have investors scurrying to accountants and lawyers for clarifications.

  • Cambodia has introduced some mechanisms to help SMEs (small to medium enterprises), particularly with regard to getting finance. In late 2015, for example, the Cambodia Securities Exchange (CSX) launched its Growth Board, a stock-trading platform for SMEs. Companies that wish to be listed in the new platform are required to have a minimum of $500,000 in operating capital to list, compared to $7.5 million on the main board. They are also required to release one year of audited financial results, compared to the two years required for bigger companies.

  • With AEC (Asian Economic Community) integration there were significant changes in IPR, Banking, Taxation and Corporate law. Cambodia also made great efforts to facilitate the process for local enterprises. 

What new laws are currently in the pipeline?

  • A big update on transfer-pricing guidelines is expected soon. Cambodia currently does not have specific transfer pricing regulations. Currently, regulations seem to be based on those adopted by Malaysia and Indonesia (i.e. generally following OECD guidelines).

  • Experts consulted also expect more double taxation agreements (DTA) between the Kingdom and other countries.

  • A draft for a new construction law is currently being considered

  • The key building law currently in place is the Law of Management and Planning of Urban Construction (1994).

  • The new law will not have retroactive effect, so the new standards of construction will only apply to new buildings.

  • A new Traffic Law was promulgated in January 2015 (replacing its 2007 law predecessor). This new legislation, together with a Sub-Decree on the Provisional Penalties for Traffic Law (July 2015), is a fundamental pillar of the National Road Safety Committee’s broader strategy to increase safety on Cambodia’s roads and to maintain traffic order.

  • While the new Traffic Law establishes stricter road safety rules, notably with respect to the use of helmets and seatbelts by vehicle occupants, it is the above mentioned Sub-Decree that will impose significantly heavier fines for such offences. As per the Sub-Decree, which came into effect on 1 January 2016, the penalty for not wearing a seatbelt in a car increases from 5,000 to 25,000 riel (USD 6.25) and the penalty for not wearing a helmet on a motorbike, as a driver, increases from 3,000 to 15,000 riel (USD 3.25).

  • Other notable provisions of the new Traffic law include the prohibition of driving while using a mobile phone without hands-free accessories, a limitation on the number of passengers on a motorbike to an adult drive, adult passenger and a child and the introduction of criminal responsibility under the Criminal Code for legal persons with respect to individuals who drive without care and attention or in violation of certain obligations prescribed by the new Traffic Law that results in the death of others. Furthermore, the maximum penalty for driving under the influence under the new Traffic Law has quadrupled to USD 1,000, with the minimum prison sentence for the offence increasing from six days to one month. Under the Sub-Decree, where offenders of the new Traffic Law have failed to pay fines within 60 days, the fine imposed shall triple in its amount. If not paid within 90 days, the offender may be prosecuted in court by the competent authorities.

  • Foreigners living in Cambodia are expected to follow local road laws, and increasingly fines and other penalties such as impoundment (and potentially imprisonment) will be incurred for noncompliance.

Are there any measures in place with regard to contract enforcement in Cambodia?

  • Contract laws have drastically improved since 2006 when a series of laws were introduced, including the Criminal Code and Civil Code.

  • To prevent problems occurring when a dispute arises, it is advised contracts include an appointed mediator and/or arbitration clauses.

  • Preferred arbitration centres outside local Cambodian jurisdiction are Hong Kong or Singapore.

  • If a contract is breached, the case must be heard in the courts of Cambodia, unless there is an arbitration clause, in which case the courts must refer the case to Arbitration.

  • The National Commercial Arbitration Centre (NCAC) is a commercial dispute solving mechanism established in 2013.

What laws exist surrounding Intellectual Property protection in Cambodia?

  • Protecting intellectual property is an essential requirement for many businesses and in the last decade laws have been developed in this area.

  • These come in four main forms: Trademarks, Copyright, Patents and Geographical Indication (GI).

  • Trademarks offer protection over trade names and devices and prevent others from using the same or confusingly similar marks.

  • Copyright covers any original work of authorship, such as music, books and art and has automatic protection from when it was created.

  • It does not need to be registered but ownership must be proved if an infringement issue arises.

  • Patents can be applied for on original ideas and inventions and GI are product names that relate to a specific region, such as Kampot pepper.

  • In the last few years, there have been a number of important developments with regards to intellectual protection. Most notably, Cambodia joined the Madrid Protocol in March 2015. Under the Madrid system, trademarks registered by businesses in Cambodia can be recognised by all of the treaty’s 98 members, covering 114 countries.

  • Cambodia was the 151st state to accede to the Patent Cooperation Treaty (“PCT”) – an international treaty administered by the World Intellectual Property Organisation (WIPO) that facilitates and simplifies the process of obtaining patent protection internationally.

  • In February 2017, Cambodia officially joined the Hague Agreement Concerning the International Registration of Industrial Designs. The mechanism, administered by the World Intellectual Property Organisation (WIPO), will allow Cambodian businesses to request intellectual property protection for their industrial designs with all other member countries through a single application.

  • Cambodia’s ascension to the Hague System makes it a member of all three intellectual property treaties managed by WIPO.

  • In January 2017, Kingdom of Cambodia became the first Asian nation to sign an agreement of validation with the Patent Organization of Europe (EPO). The EPO was set up for facilitating the members with a single procedure for granting of patents. There are a few non-member nations with which the EPO has signed agreements of validation, Cambodia being one of them. According to this agreement, once an applicant for a patent with WPO submits a request for validation in each or one of the chosen validation countries, the patent application can be extended to these validation states. In these validation states the European Patent will have the same value and effect as a national patent application and will be subjected to national law.

  • The Cambodian Ministry of Commerce launched an online platform that allows trademark applicants to upload the required documents and information for trademark registration online, as well as search the Cambodia Department of Intellectual Property database for potential conflicting marks. Click here for more information.

What is being done to tackle corruption, which traditionally has been rife in Cambodia?

  • Cambodia has made great strides to deal with corruption, primarily through the establishment of the Anti-Corruption Law and the Anti-Corruption Unit.

  • The main focus of the unit is internal to the government and its ministries and has had great success in rooting out the practice.

  • Regardless of the industry, you will still be bound by foreign corruption, bribery and even anti-terrorism legislation. The vast majority of money transferred around the world moves through the US and UK at some point and in doing so becomes subject to such legislation. Citizens of these countries, businesses and organisations registered in them are still subject to the laws of their nation, regardless of their place of residence or business.

  • The British anti-bribery law is particularly strong. British citizens are subject to the law and the penalties that will be incurred by violating it, as is the entirety of the company’s supply-chain.

  • The United States’ Foreign Corrupt Practices Act (FCPA) is only concerned with interactions with foreign governments. It does not prohibit the payment of facilitation fees in certain circumstances. A facilitation fee is one paid to change the time period in which something will be processed.

  • Cambodian law, however, prohibits the payment of facilitation fees.

  • In 2013, for example, nine ministries published a list of their official processing fees for various services, which can be found by visiting the relevant ministry website.

How important is it to do your due diligence in Cambodia?

  • It’s strongly recommended that you carry out your due diligence regarding the legitimacy of any party you choose to do business with, any property or official documents involved in your business transactions, and also in guaranteeing the qualifications of the legal representation you receive.

  • It is not uncommon for people to misrepresent themselves in Cambodia.

  • The Bar Association of the Kingdom of Cambodia (BAKC) is the only body able to register lawyers in Cambodia.

  • On their website, www.bakc.org.kh, any user can search the list of lawyers registered on the Cambodian Bar Association’s roll, and likewise any registered legal office.

Can foreigners practise law in Cambodia?

  • According to Article Two of the Bar Association’s regulations, only a registered bar member can practice law in Cambodia.

  • This means a foreign lawyer cannot practice law in Cambodia.

  • They can, however, act as a legal advisor while working for a legal firm registered with the Cambodian bar.

  • A freelance foreign legal advisor is not possible – you must be acting under the umbrella of a Cambodian bar registered legal firm.

  • Article 6 states, however, that a foreign lawyer can be admitted to the Cambodian Bar only if that person’s own nation would allow a Cambodian lawyer to join their own national bar. This is according to a principle of reciprocity. The Cambodian Bar consulate can grant a foreigner admission to the bar only on these grounds. While it has yet to occur, the Bar Association is currently processing such a request with the Parisian Bar Association.

Top Legal Tips

B2B call on our panel of experts to share what they have learnt about law and legal services in Cambodia.

Make sure you stay above board

  • Keep your books in order and make sure your business stays within the remit of the law.

  • This includes ensuring all elements of the business are registered correctly and with the right ministries, and proper contracts and legal documents are in place.

Get the experts

  • Law and accounting can be complicated on home turf let alone when you’re in a foreign land.

  • This is why it’s advisable that you leave it all to the experts.

  • As Cambodia develops expediently laws and regulations are constantly changing it therefore becomes essential that you have someone to keep you in the know.

Alternative Dispute Resolution in Cambodia

Here’s how to settle disputes outside the courts in Cambodia.

There are currently two main forms of dispute resolution in Cambodia: the courts and alternative dispute resolution mechanism, which includes mediation and arbitration.

Also, find out about the Arbitration Council; an institution aimed at mediating and reducing labour disputes in Cambodia.

Tell me more about solving my disputes through mediation in Cambodia?

  • There are currently two main forms of dispute resolution in Cambodia available for commercial purposes: the courts and alternative dispute resolution mechanisms.

  • The courts continue to play a major role in resolving commercial disputes in Cambodia but can often be a costly and lengthy process.

  • Cambodia has three levels of court: Provincial or Municipal court, Appeals Court, and the Supreme Court.

  • Any decision made by the Judge of a lower court can be appealed to a higher court.

Tell me more about solving my disputes through arbitration in Cambodia?

  • Commercial arbitration in Cambodia has seen several cases filed to institutional arbitration centres such as the ones in Hong Kong and Singapore.

  • Awards in commercial arbitration are not always published in Cambodia and so arbitration provides some privacy to companies.

  • Since 2013 Cambodia has had a National Commercial Arbitration Center (NCAC) to arbitrate commercial disputes, or aid settlement.

  • The NCAC is composed of independent elected members, who have been selected and trained in arbitration at Singapore International Arbitration Centre (SIAC) and Singapore Institute of Arbitrators. The General Assembly has adopted the NCAC’s Rules of Arbitration. Also, internationally recognized foreign arbitrators with relevant experience can be appointed by the NCAC to preside over cases.

  • For increasing its activity and to be trusted, in 2015 the NCAC adopted a Code of Ethics to ensure arbitrators’ neutrality, independence and transparency.

  • One to three arbitrators can hear arbitration cases – one is selected by each party and the third by the two pre-selected arbitrators.

  • There are no restrictions in assigning foreign arbitrators at the NCAC, as long as they are internationally recognised arbitrators with relevant experience.

  • While technically possible for an international business to conduct arbitration according to the current Rules of Arbitration, due to an ongoing lack of funding, the NCAC have only initially been accepting applications for arbitration from local parties.

  • The centre has only received three cases to date, of which the first one was dropped because the claims did not fit the institution’s criteria.

  • The NCAC recently signed a cooperation agreement with the newly opened China-ASEAN Legal Cooperation Centre (CALCC). The main purpose is to facilitate the activities of Chinese investors in Cambodia, and to solve commercial disputes involving Chinese companies in Cambodia. As a result of this agreement, there are five arbitrators from China working alongside the NCAC to facilitate their work with Chinese companies in Cambodia.

  • According to experts, more and more businesses are inserting arbitration clauses into their business contracts. That means if they have a dispute both parties have agreed in advance to bring the case before the NCAC to be resolved.

Tell me more about the Arbitration Council in Cambodia?

  • The Arbitration Council in Cambodia is a national body responsible for resolving collective labour disputes.

  • The Arbitration Council was launched in 2003 with the support of the Ministry of Labour, unions and business community. Since its inception, the council has heard more than 2000 cases.

  • Cases come from a variety of industries across Cambodia, including garment and footwear, hospitality, construction and agriculture sectors.

  • Periodic independent studies reveal that the Arbitration Council is a corruption-free institution, highly trusted by both businesses and trade unions for its professional services, which are rare in an emerging market environment like Cambodia.

  • Unlike the National Arbitration Centre, the Arbitration Council is a national tribunal that focuses on mediating and arbitrating ‘collective labour disputes’ involving a group of employees and their employer, rather than commercial disputes.

  • The Council is independent from the government but works alongside relevant ministries.

  • Labour disputes are natural occurrences in the relationship between employers and their employees, triggered by pay and employment benefits, activities of trade unions, discipline and termination matters, labour rights of women, occupational safety and health or other working conditions.

  • If not properly addressed, they are likely to cause disruption to the company’s production, which could take the form of strike action.

  • As an independent and credible third party, the Council bridges the divide between both parties and decides on their dispute if they fail to reach a settlement among themselves.

  • When a labour dispute occurs, both parties normally attempt to resolve it themselves. If they cannot reach an agreement, one of them can submit the dispute to the Ministry of Labour for conciliation, which takes approximately 15 days. If the Ministry cannot conciliate the dispute and consider it a collective one, it will forward the case to the Arbitration Council.

  • The process at the Arbitration Council is efficient and cost-free.

  • Under Article 316 of the Labour Law, the procedure for conciliation and arbitration shall be carried out free of charge. Also pursuant to the articles of the Labour Law, the Council maintains its timeliness in dispute resolution process. After the case is registered, within three days a panel of three arbitrators is set up. The Council has 30 professional arbitrators on three different lists: 10 each on ‘employer’, ‘employee’ and ‘ministry’ lists – and each chosen specifically for their expertise in employment relations and their high integrity.

  • When a case is registered, employer parties select one arbitrator from the ‘employer’ list, while employee parties also choose one from the ‘employee’ list.

  • Both selected arbitrators will then choose a third arbitrator from the neutral roaster to chair the panel.

  • At the beginning of the hearing, arbitrators on the application panel ask parties whether they want the arbitral award to be binding, which means they have to comply and agree to be bound by the arbitral award. Alternatively, they can choose the non-binding option, which is more popular. If one party chooses the non-binding option, the other parties have to follow – you need two parties in agreement to make it binding. In 72% of all cases resolved, parties comply with the decision.

  • The panel then convene a hearing where both parties are given the chance to present their case. Generally, within 15 working days after it is formed, the arbitration panel issues a ruling in the form of a reasoned arbitration award. Parties can agree to extend the 15 days to 20 or 25 days, if there are many issues in that particular case. The average period in which a case is resolved is 18 days.

  • Data from the Garment Manufacturers Association shows in 2011 there were 34 strikes in the garment and footwear sector. In 2012, the figure rose to 121 and then to 147 in 2013.

  • The garment and footwear industry remains the majority user of the Arbitration Council services making up 90% of disputes; however, it is also one of the three most significant pillars of the Cambodian economy, so it is unsurprising that disputes arise. However, that figure was down to 77% for the first 7 months of 2015, as other sectors – non garment and footwear, construction, the hotel industry, gas companies, security, electricity, cement production, transportation and even radio stations – were bringing more cases to the council.

  • A common issue brought in dispute cases can be divided into two categories: a dispute about rights under the labour law contract or a collective bargaining agreement, with one party demanding the other party to respect what it says in those documents.

  • The other type of dispute is called an interest dispute. Common interest disputes that come to the arbitration council includes overtime meal allowance. One party, particularly employees, demand an increase of the attendance bonus and lunch allowance. The most common kinds of disputes and issues are related to wages.

  • Yet, strikes continue to happen, and so do incidents of non-compliance with labour standards by companies.

  • Addressing these problems will need structural adjustments to the way labour law is enforced. This tells us there is more work to be done beyond pure arbitration. There should be more complementary actions taken with regards to prevention of labour disputes as well.

  • To further the goal of labour dispute prevention, the Arbitration Council Foundation is in the process of introducing two additional services for businesses and their employees.

  • A specialised training program in workplace dispute prevention and resolution skills aims to give employers and employees better skills in communication and negotiation, understanding labour disputes, instituting practical workplace grievance procedure, and finding better ways to resolve them.

  • A private mediation service will also be introduced. This focuses on resolving individual labour disputes or disputes parties wish to settle in private. 

  • Up to 33% of cases handled by the Council are settled through conciliation.

  • The option of the Council means that the labour movement doesn’t have to go to court, and go through three levels of litigation, which can take a long time. If they come to the council, after 18 days they have to issue the arbitration award that tells the parties what to do. This kind of quick resolution helps parties to go back to work quickly.

  • The arbitration council can also issue strikers with an interim return to work order, requesting the employees to return to work within 48 hours if they want the arbitration to resolve the dispute. This order has a high rate of compliance.

Intellectual Property Protections (IPP) in Cambodia

IPP laws are constantly evaluated and strengthened, with training and education offered to enforcers, traders and the public in Cambodia.

Firms are advised to take advantage of the laws available, whether it be to protect a trade name, invention, design or creative work.

How do trademarks work in Cambodia?

  • Trademarks are registered with the Department of Intellectual Property Rights, which forms part of the Ministry of Commerce.

  • Registration can either be done directly or if the applicant is not in Cambodia, by appointing a legal representative, who is given power of attorney.

  • Registration takes between three and six months and is valid for 10 years.

  • Currently if you want to protect your trademark you must register it in Cambodia.

  • In the last few years, there have been a number of important developments with regards to intellectual protection. Most notably, Cambodia joined the Madrid Protocol in March 2015. Under the Madrid system, trademarks registered by businesses in Cambodia can be recognised by all of the treaty’s 98 members, covering 114 countries.

  • The Cambodian Ministry of Commerce recently launched an online platform that allows trademark applicants to upload the required documents and information for trademark registration online, as well as search the Cambodia Department of Intellectual Property database for potential conflicting marks. Click here for more information.

How about copyright law in Cambodia?

  • It is recommended that work be voluntarily registered with the Ministry of Culture and Fine Arts in case copyright infringement occurs and judicial action is launched, when it is upon the claimant to prove ownership.

  • Copyright infringement is a criminal offence and offenders face a fine and imprisonment.

How are patents covered in Cambodia?

  • Patents are covered by the Law on Patents, Utility Models and Industrial Designs (2003), which seeks to protect technical aspects of inventions.

  • The first Patent was created recently in Cambodia.

  • Any new patents must be registered with the Department of Industrial Property at the Ministry of Industry, Mines and Energy, who check for originality.

  • Cambodia became 151st state to accede to the Patent Cooperation Treaty (“PCT”) – an international treaty administered by the World Intellectual Property Organisation (WIPO) that facilitates and simplifies the process of obtaining patent protection internationally.

  • In January 2017, The Kingdom of Cambodia became the first Asian nation to sign an agreement of validation with the Patent Organization of Europe (EPO). The EPO was set up for facilitating the members with a single procedure for granting of patents. There are a few non-member nations with which the EPO has signed agreements of validation, Cambodia being one of them. According to this agreement, once an applicant for a patent with WPO submits a request for validation in each or one of the chosen validation countries, the patent application can be extended to these validation states. In these validation states the European Patent will have the same value and effect as a national patent application and will be subjected to national law.

How do I register a Geographic Indication (GI) in Cambodia?

  • The GI Law was implemented on 30 January 2014 in Cambodia, but obtaining a GI status is not an easy process.

  • Producers must first form an association to clearly define the product’s characteristics and lay out a unique set of rules regarding the cultivation of the product within the designated area.

  • An external body must then step in to certify the quality of the resulting product.

  • To register a GI with the Ministry of Commerce, producers must be able to prove their goods stand out from others in the market.

  • The WTO’s GI status authenticates for buyers and consumers that a product is produced in a specific geographical area, and this represents an assurance of its quality.

  • Increasingly, Cambodian consumers are demanding products specifically from certain areas of the country.

  • For example, Battambang oranges can fetch a higher market price, if the registered GI Indicator is on display. If the indicator is not on display, consumers generally assume the product could be misrepresented and are not willing to pay higher prices. In addition, international markets are increasingly asking to see GI indicators for products such as Kampot Pepper. Protection lasts for 10 years and can be renewed.

  • Kampot pepper and Kampong Speu palm sugar are the only Cambodian products to hold the status thus far. Yet they have both seen a boost in demand since gaining GI recognition.

  • Feasibility studies on achieving Geographical Indication status for Thma Koul rice, Kampot durian and Cambodian golden silk have been completed, officials from the Ministry of Commerce said in March 2015 following reports from experts from the UN Conference on Trade and Development in three Cambodian provinces.

Work Permits in Cambodia

Here’s what’s up with the new work permit regulations.

What has changed in the last year in regards to work permits?

  • Under the 1997 Labour Law (as amended) and the 1994 Immigration Law, foreigners who wish to work in Cambodia are required to have a valid E visa issued by the Cambodian embassy, consulate or immigration authorities at the port of entry.

  • The most recent laws that formally govern work permits are Prakas No. 195, 20 August 2014, “On Work Permits and Employment Cards for Foreigners”; and  Prakas No. 196, 20 August 2014, “On Employment of Foreign Labor”.

  • Employees must have a work permit and an employment card issued by the Ministry of Labour and Vocational Training.

  • The process demands that business owners first must register their company.

  • When registering a business in Cambodia, the Company must make a “Declaration of Opening a Business” in writing and deliver it either to the Ministry of Labour and Vocational Training for companies with more than 100 employees or to the Department of Labour and Vocational Training for 100 employees and less.

  • Having done this, the company must register its entire staff with the DOL. Don’t forget, this includes both foreign and Khmer staff.

  • If the Company wishes to use foreigners as employees, the Company must request a permit for employment of foreign labour (Quota).

  • This is done by both a Request Form and a Request Table, for use of foreign workforce.

  • If the rate of foreign labour exceeds 10 percent of the total employees, a request letter must be sent which thoroughly and clearly explains the positions in excess of the quota and the specialty and professional skills of each of these foreign workers.  A penalty payment normally applies for each worker in excess of the quota.

  • Foreigners are issued a Foreign Work Permit and Foreign Employment card.

  • Although by law the Company is required to make a declaration in writing each time an employee is hired or dismissed, in practice the Company should register new employees as they are hired and provide the workbook and card to departing employees.

  • Labour Inspectors routinely update the company’s labour records for incoming and outgoing employees when the company is audited.

  • Once the company and staff are registered, workbooks will be issued for all staff. After registration, however, the Department of Labour can request staff status updates.

  • As part of this process, the DOL ask for extensive details about employees listed for a company, including foreigner quotas, and expect this information to be updated every time the employees of a business change.

  • This may be a somewhat expensive process, especially if you employ a large number of staff at your company, and if your registration is long overdue.

  • While this was once an unenforced law, Government inspectors have now begun foreign labour inspection at workplaces in order to fully enforce the law, including a comprehensive review of the declaration of personnel and its updates, quota approval for foreign labour usage, employment contracts for foreigners, employment cards and work permits, valid passports, valid visas of the appropriate type, and foreign workers themselves.

  • In August 2017, police officials at the Department of Immigration confirmed that it will become compulsory for all foreigners to obtain an official work permit/employment card to be eligible to apply for a long-term extension to their E visa.

  • Non-compliance can lead to a fine and/or imprisonment. In order to get a business visa now, one also needs to be able to show a valid work permit.

How can I get a valid work permit in Cambodia?

  • The regular E-type visa has been split into several sub-types, including the EB visa, the most common type. In August 2017, police officials at the Department of Immigration confirmed that it would become compulsory for all foreigners to obtain an official work permit/employment card to be eligible to apply for a long-term extension to their EB visa.

  • Work permits are issued by the Cambodian Ministry of Labour and are valid for one year.

  • An online system (www.fwcms.mlvt.gov.kh) was established on September 2016 to aid in the registering for work permits.

  • Work permit/employment cards, which are two separate documents but can be applied for at the same time and considered as one application, costs $100 per year. The fee for the visa application process is $33. Applicants must have also undertaken a straightforward health check at the Ministry, which costs $25. You can pay $60 to an agent to get your health certificate without going to the Ministry.

  • The official period for renewal of a work permit/employment card is between January and March each year, although the Ministry of Labour has yet to confirm the exact details surrounding late payments.

  • Companies must submit their Foreign Worker Quota Requests to the Ministry of Labour between September and November each year.

  • The online system has received substantial criticism, especially from foreigners frustrated with having their applications refused. Many of these are either self-employed or freelancing, although it is technically possible to successfully obtain a work permit/employment card for these types of workers.

  • This information is not set in stone and can vary from situation to situation. Some people have a smooth and painless application, others do not.

Will my employer organise my work permit for me?

  • The obligation is on the employer to register employees, assist in arranging work permits and even withhold and pay their own income taxes.

  • The same is true for contracts with freelancers or consultants.