Factory/Enterprise Owners or Directors to Update Employees' Addresses with Effect from 25 June 2021
On 10 June 2021, the Ministry of Labour and Vocational Training (“MLVT“) issued notification No. 029/21 on Updating of Current Employees’ Addresses to the Authorities (“Notification“). Pursuant to the Notification, owners/directors of factories/enterprises were to submit the updated addresses of their employees to MLVT via MLVT’s online system prior to 25 June 2021.
The owners/directors of affected factories/enterprises shall advise their workers/employees to prepare three copies of 4×6-sized photos for purposes of complying with the Notification and cooperate with the authorities in providing address details and other necessary information as may be required in the future.
The details required from employees/workers include address details such as house number/room number, village, commune/sangkat, krong/district/khan, and city/province for reporting and submission to the factory/enterprise administration.
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MOC Issues Notification Requiring Relevant Persons to Apply for E-Commerce Permit or Licence
On 26 May 2021, the Ministry of Commerce (“MOC“) issued Notification No. 1143 on the Issuance of Permit or Licence on E-Commerce (“Notification No. 1143“). Notification No. 1143 urges all individuals, sole proprietorships, legal entities and branches of foreign companies which carry out their business activities via electronic platform (“Relevant Persons“) to apply for a permit or licence on E-Commerce.
According to the Law on E-Commerce, the Sub-Decree on the Determination of Type, Formality and Procedure for the Issuance of Permit and Licence on E-Commerce to Intermediaries and E-commerce Service Providers, and Prakas No. 290 on the Issuance of Permit and Licence on E- Commerce dated 9 October 2020, Relevant Persons are required to apply for a permit or licence on E-Commerce with the Business Registration Department of Trade Support Services General Directorate of MOC.
Relevant Persons that fail to apply for a permit or licence on E-Commerce in accordance with Notification No. 1143 will be required to discontinue their operations. They will also face fines, the quantum of which will be determined by the applicable laws and regulations.
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Legal and Regulatory Requirements on Project Companies Concerning Environmental and Social Contribution
On 12 April 2021, the Ministry of Environment (“MOE“) issued notification No. 550 on the Clarification on Payment of Environmental and Social Contribution of Investment Projects (“Notification“). The Notification aims to clarify the legal requirements concerning the payment of environmental and social contribution by companies with investment projects (“Investment Projects“) for which environmental and social impact assessment (“ESIA“) reports have been approved by MOE. These companies will hereinafter be referred to as “Project Companies“.
The Notification provides a list of legal and regulatory directives and requirements Project Companies need to comply with including submission of ESIA reports, classification of Investment Projects and reports on payment of environmental and social contribution.
MOE has appealed to all Project Companies to strictly comply with the legal requirements, and has requested for the payment of environmental and social contribution to be made on a voluntary basis or depending on the size of environmental damages caused by activities of the Project Companies. In the Notification, MOE also disclosed the names of certain companies which have not fulfilled the obligation to pay environmental and social contribution. These companies often challenge MOE on such payments during public forums despite MOE’s multiple attempts to clarify this issue on many occasions.
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Deadline to File Request to Extend Work Permit Postponed to 31 May 2021; Labour Arrangements During Khmer 2021 New Year Holidays
The Ministry of Labour and Vocational Training (“MLVT“) has issued two regulations concerning labour law. The first piece of regulation relates to the postponement of the deadline to file a request for extension of work permits for foreign employees for 2021 and the documentary requirements for newly hired foreign employees. The second piece of regulation relates to paid leave during the Khmer 2021 New Year celebration.
March 2021 (“Notification No. 013/21“), postpones the deadline for filing a request for extension of work permit/employment cards of foreign employees from 31 March 2021 to 31 May 2021.
Notification No. 013/21 exempts foreign employees who have already obtained their work permits/employment cards in 2020 from paying any penalty in the event of failure to apply for extension of such work permits/employment cards for year 2021 by 31 March 2021.
However, the newly hired foreign employees are required to fulfil the existing documentary requirements in accordance with the applicable laws when applying for their work permits.
MLVT has also issued Guideline No. 029/21 on the Implementation of Khmer New Year Holidays for Year 2021 dated 23 March 2021 (“Guideline“). According to the Guideline, the owner/director of a factory/enterprise has the discretion to implement either of the two options below in relation to the Khmer New Year Holidays from 14-16 April 2021 (“Khmer New Year holidays“).
- Option One: Allow employees to take paid leave for three days during the Khmer New Year holidays. Factories/enterprises which require continuous operations and whose production process will be disrupted when employees are allowed to take leave during the Khmer New Year holidays, may assign their employees to work and take leave on a rotational basis.
- Option Two: Add the number of days allocated for the Khmer New Year holidays to other future declared public holidays.
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Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
