• 14 August, 2020
• Posted by: EuroCham Cambodia

With the COVID-19 situation continuing to impact Cambodia, EuroCham will be regularly disseminating the official announcements from the Royal Government to ensure our network is updated as efficiently as possible. 

Due to the significant number of incoming announcements, we are unable to translate these in full so please refer to our summaries below and the attached official notices in Khmer.

Official Announcements: 05 - 14 August

(English summaries provided by EuroCham Cambodia, subject to corrections by relevant authorities)

1. Ministry of Labour and Vocational Training Clarification on Notice Period and Damage Payments when Terminating the Undetermined Duration Contract (UDC) 

On 14 August, the Ministry of Labour and Vocational Training clarified that the termination of UDC shall be done through a written notice following the Article 75 of the Labour Law. If the employer follows the notice period requirements, he/she is not obliged to pay layoff compensation to the employees. The layoff compensation is also not implemented when the enterprise is closed as abandoned by its owner. 

Damage payment shall be made when the employer terminates the employee’s contract without a proper reason unless the termination is based on operation slowdown or the enterprise is moving towards bankruptcy which requires partial suspension of its operation. Based on the COVID-19 situation, Article 87 (new) and Article 91 (new) of the Law on Labour stated the conditions which are considered “proper reasons” for contract termination: 

• Purchase orders are canceled, final products are rejected, or payments are not settled following the contract;
• The enterprise is fully closed after trying to cope with economic issues through all legal measures including suspension and/or termination of contract; and
• Bankruptcy.

 

2. Ministry of Labour and Vocational Training Notification on Foreigner Work Permit

On 7 August, the Ministry of Labour and Vocational Training notified business owners who employ foreign workers and foreigners who are doing business in Cambodia, to apply for or extend their work permit. The announcement was made following the discovery that some foreigners had not yet applied for or extended their work permit for 2020.  

The Ministry suggested that businesses and foreigners apply for or extend their 2020 work permit through this website: www.fwcms.mlvt.gov.kh. Businesses and foreigners, who will be found failing to follow this instruction and the Labour Law, will be handed monetary fines by the Ministry’s inspection team.

  

3. Office of the Council of Ministers Approval on Cancellation of the Water Festival in 2020 

On 11 August, the Office of the Council of Ministers sent a letter to the Deputy Prime Minister, Minister of the Royal Palace and Chairman of the National Committee for the organization of National and International Festivals. The letter outlined that the Royal Government of Cambodia has approved the cancellation of the 2020 Water Festival.   

4. Ministry of Post and Telecommunications Draft Prakas on Postal Service Business Permit Provision 

On 5 August, the Ministry of Post and Telecommunications discussed the Draft Prakas on Postal Service Business Permit Provision. The Draft Prakas aims to ensure the management of local and international postal service businesses. It will also promote the delivery of postal services more widely, effectively, efficiently, and reliably. 

The draft Prakas determines procedures for license application and approval to operate postal service businesses. It additionally sets out mechanisms to monitor the implementation of those postal service operators following the given license, certificate, and permit.

5. Inter-Ministerial Committee to Combat COVID-19 on Temporary Suspension of Flights from the Philippines from 13 August 2020  

On 11 August, the Inter-Ministerial Committee to Combat COVID-19 announced that the Royal Government has temporarily suspended flights from the Philippines from 13 August 2020 onwards. The Ministry of Health observed that the number of infections has risen sharply in the Philippines, making them the highest COVID-19 carrier country in ASEAN. 

6. Ministry of Tourism Notification on Provision of a Grace Period from Transitional Fines for the Entertainment Tourism and Massage, Spa and Wellness Businesses  

On 12 August, the Ministry of Tourism notified tourism business operators that the Ministry will continue to grant the grace period from transitional fines for the entertainment tourism businesses (such as Karaoke, Bar-Disco, Beer Garden) and massage, spa and wellness businesses. The grace period will be effective from 1 August to 30 September 2020.  

7. Ministry of Education, Youth and Sport Press Release on High School Examination at the Public Educational Institutions for the academic year 2019-2020  

On 10 August, the Ministry of Education, Youth and Sport announced that the Prime Minister approved public educational institutions to be re-opened in September 2020 for 9 - 12 grade students by allowing only 15 students per class and respecting the Ministry of Health and the World Health Organization’s hygiene measures. 

In this regard, the Ministry will organise high school examinations in December 2020 for the academic year 2019-2020. The Cambodian Higher Education Association and other private educational institutions have also voluntarily postponed their high school examinations to December 2020.

8.  Press Release on Draft Strategy for School Reopening 

On 5 August, the Ministry of Economy and Finance issued a press release about a meeting with the Ministry of Education, Youth and Sport. According to an evaluation of the Ministry of Education, Youth and Sport, schools must adapt to the “New Normal Life” by implementing “Safe Study Measures”. In this context, the Ministry of Education, Youth and Sport prepared a “Strategy for Educational Institution Reopening” based on two approaches: 

1. Step by step reopening for schools that have correctly followed “Health Safety Standard”  
2. Implement mixed study in schools, through distance and e-learning, traditional way (printed worksheet) and self-study.

9. Ministry of Tourism Statistics for July 2020 

On 5 August, the Ministry of Tourism released its statistics for July 2020. The number showed a total of 740,028 tourists visiting the country in July, an increase of 15.2% compared to the previous month. This included: 723,238 national visitors (monthly increase of 15.35%) and 16,790 foreign visitors (monthly increase of 9.99%).  

10. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Suspended Employees in the Garment and Tourism Sectors (Round 23)  

On 12 August, the Ministry of Labour and Vocational Training confirmed that 15,484 suspended employees from 66 enterprises and factories of the garment and tourism sectors will receive a message from Wing (Cambodia) Specialised Bank about their subsidised allowance. Employees can withdraw the allowance at any Wing branch by bringing along their Khmer ID card and phone number. No service fee is required for the withdrawal. 

11. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Suspended Employees in the Garment and Tourism Sectors (Round 24)  

On 12 August, the Ministry of Labour and Vocational Training confirmed that 10,501 suspended employees from 44 enterprises and factories of the garment and tourism sectors will receive a message from Wing (Cambodia) Specialised Bank about their subsidised allowance. Employees can withdraw the allowance at any Wing branch by bringing along their Khmer ID card and phone number. No service fee is required for the withdrawal.