In B2B Cambodia's 'Legal Update' we delve into the latest legal changes and developments in Cambodia's laws and regulations with key experts in the field.
In Episode 8, Saryda Ou, Associate at Tilleke & Gibbins, explains work permits under Cambodia's Labour Law, clarifying who is obligated to obtain one, as well as the documents needed and fees involved in the work permit application process.
B2B Cambodia: What is a work permit and who needs to obtain one in Cambodia?
Saryda Ou: “Foreign workers who wish to work legally in Cambodia have to obtain a work permit. The validity of a work permit is one year, meaning they have to renew it annually.”
B2B Cambodia: Whose obligation is it to apply for a work permit in Cambodia? Is it the individual or the employer that needs to start the process?
Saryda Ou: “The law does not specify who is obligated to apply for a work permit. However, in practice, the employer has to apply for a work permit for the foreign employee.”
B2B Cambodia: Foreigners who own their own businesses in Cambodia will have their name on the official tax patent, however, some may not reside or otherwise work in Cambodia. Do foreign nationals that have their name on the tax patent also need to apply for a work permit?
Saryda Ou: “Yes. The Ministry of Labour and Vocational Training (MLVT) released an instruction that requires foreign nationals whose names appear on the patent tax certificate to also apply for a work permit as well, even if they don't reside or work here.”
B2B Cambodia: Where can foreigners in Cambodia apply for a work permit? What is the general application process like?
Saryda Ou: “Typically you have to apply through an online system that we call the Foreign Workers Centralised Management System, in short we call FWCMS. They can apply by submitting the supporting documents and meeting other requirements set by the MLVT.”
B2B Cambodia: What types of documents are needed for a work permit application? What are the fees involved and the average processing times?
Saryda Ou: “Regular employees have to provide documents such as a passport, stay permit, residency letter, physical health check, photo and a valid visa. It is important to know that for foreign nationals whose names appear on patent tax certificates, there are some documents that do not apply to them, such as residency letters, stay permits and declarations of movement in and out of the country.”
B2B Cambodia: For companies employing foreign workers, can you break down the process of applying for work permits? What steps do companies need to take?
Saryda Ou: “In order to apply for a work permit in Cambodia, quota approval is one of the requirements. Companies have to apply for their [foreign worker] quota approval via the FWCMS online system first. Once quota approval is granted, they can apply for work permits.”
B2B Cambodia: How can a company in Cambodia apply for foreign worker quota approval?
Saryda Ou: “Normally, the quota period opens in September and will end by November. So during that time, if a company employs, or plans to hire, foreign employees, they can process the quota approval based on the number they need.
“Also, there are some enterprises that might want to apply for an additional quota—they can apply for this by submitting a request letter to the MLVT, explaining the reason why they need an additional quota based on their business structure or something like that. It may take around two to four weeks to receive an update from the MLVT on whether the company gets the quota or not.”
B2B Cambodia: What are the penalties for failing to apply for a work permit or employee foreign quota in Cambodia?
Saryda Ou: “Regarding the penalty for not applying for a foreign employee quota, a company may be subject to a fine of approximately USD 50 to USD 3,150. And the penalty for not having a work permit ranges from a fine of USD 50 to USD 12,600.”