In late 2016, the Ministry of Labour announced the introduction of a new online system namely the Foreign Workers Centralized Management System (“FWCMS”).
The FWCMS replaces the former system of manual application at the Ministry of Labour’s Foreigner Inspection Bureau of the Employment Workforce Department for the work permits and employment cards for foreign workers. The FWCMS is a one stop window service with a web-based online management system providing all services in relation to the online applications for quotas, work permits and employment cards.
Under the new decree, from 1 September 2016, all businesses or organisations employing foreign workers must apply for work permits and employment cards for all their foreign workers (individually) through the FWCMS website. The online system is managed by E-Solution (Cambodia) Co. Ltd, a company assisting the Ministry of Labour in developing the FWCMS. From the above-mentioned date, other than the annual government fee of approximately USD100 for a Work Permit and Employment Card, each applicant is liable to an additional fee of USD30 payable to E-Solution (Cambodia) Co., Ltd, for the online application fee.
According to a joint decree dated 14 September 2015 issued by the Ministry of Justice (“MOJ”) and the Ministry of Labour on “the Adjustment of the Daily Wage”, the penalty for non-compliance with any Labour law shall be based on the new adjusted daily wage 40,000 KHR per day.
Therefore, any employer who illegally employs a foreign worker without a work permit and employment card shall be penalised between USD610 to USD900 or imprisonment of 6 days to 1 month. In the event of a subsequent offence, the Employer shall be liable on conviction to imprisonment of 1 to 3 months.
Are you ready for labour inspections?
The labour inspectors normally inspect businesses and organisations to ensure compliance with the labour laws without any prior notice. This inspection includes a general review of the following documents:
This alert is for general information only and is not a substitute for legal advice.