According to the labour law, when an employer hires someone, they must make an offer and sign an employment contract to finalize the employment. An employment contract is an agreement between an individual employee and employer following the labour law to attribute both rights and responsibilities. It will also allow the employee to understand the company obligations, policy, and terms of employment. The employment contract in Cambodia should be in English Language. However, the contract can be written with both Khmer and English language.
There are two types of contracts in Cambodia which are (UDC) Undetermined Duration Contractand (FDC) Fixed Duration Contract. A UDC is a contract with no ending date. It can be verbal or written and all verbal contracts can be defined as UDC. An FDC can be for between 6 months to 2 years and can be renewed as many times as required. However, if an FDC expires without a renewal or a notification ending the contract, it automatically converts into a UDC.
So, what are the common things found in employment contracts?
- Name and personal details of the employee
- Commencement date of employment, probation period, probation notice period
- Job title and Functions or Duties and Responsibilities
- Place of work and working hours
- Holidays and overtime policy
- Type of employment and contract duration (If any)
- Leave entitlement
- Reimbursement or any other expenses
- Pay, compensation and benefit
- Deductions of Tax and NSSF
- Seniority indemnity payment
- Company properties and data protection policy
- Performance requirement
- Non-compete obligations
- Company internal policies (If any)
- Serious misconduct terms
- Termination terms of contract with notice period
The contract should have two copies and be kept by employer, employee A witness is not required for this type of agreement, and only the employer and employee need to sign it. If you want to ensure your companies employment contract is following the labour law, you can rely on our professionals to help you create a good employment contract template. You can also visit our website https://www.cambodia-payroll-and-outsourcing.com/ for more information about us.