Recap: Breakfast Talk on Seniority Back Payment Obligations and Calculations
- 28 July, 2022
- Posted by: EuroCham Cambodia
EuroCham and the Cambodian Federation of Employers and Business Associations (CAMFEBA) hosted a productive Breakfast Talk on Seniority Indemnity Back Payment Obligations and Calculations Wednesday, July 27, at Sofitel Phnom Penh Phokeethra.
Following opening remarks by Her Excellency Vannaroth SOVANN, Secretary of State of the Ministry of Labour and Vocational Training, Narith MANH, Advisor to the Ministry and Deputy Director of the ministry’s Labour Inspection Department, provided clarification on the topic with a detailed presentation.
One of the main ideas behind 2018’s Labour Law Amendment (when seniority indemnity payments were introduced), Her Excellency Vannaroth SOVANN said, was to safeguard employees from employers who leave the country without fully compensating their staff, particularly in event such as company bankruptcy.
The law was also meant to help facilitate payments for employees terminated from companies, improve harmony in the working environment of factories, and assist in conflict resolution regarding severance.
Private sector representatives raised several questions about seniority back pay obligations in the non-garment and textile sector companies, including how the payments should be calculated (the labour ministry offered a formula that has historically been used), when they need to be paid, and how companies can negotiate with employees to come to mutual agreements on payment packages.
Mr. Narith MANH said an upcoming announcement from the labour ministry, currently in the draft phase, will lay out clear calculations for back payment and offer further guidance on the matter.
The event encouraged fruitful dialogue between the public and private sectors and EuroCham would like to thank all who participated and attend, in particular, our panel: Her Excellency Vannaroth SOVANN, Mr. Narith MANH, Mr. Narath CHHEAV (Managing Director of CoGen Consulting, EuroCham Board Member and Chairman of the HR Committee), Dr. Antoine Fontaine (EuroCham Board Member and Founding Partner of Bun & Associates), and Mr. Sophoan TEP (General Manager of CAMFEBA)