Cambodia: Labor Law Amendment on ‘Seniority Payment’

On July 11, 2018, Cambodia passed an amendment to the Labor Law that eliminates “indemnity for dismissal”—a local legal concept equivalent to a severance payment—for undetermined duration contracts (i.e., employment contracts without a fixed expiration date, or UDCs), and replaces it with an ongoing requirement for employers to pay employees a new “seniority payment.” These […]