Employer of Record Guide in 

Cambodia

Vacation Leave

• Annual Entitlement: 18 days after completing 1 year of continuous service
• Accrual: Earned monthly (1.5 days per month)
• Carryover: Unused leave may be carried forward or paid out (per company policy)
• Payout: Must be paid at termination if unused

Sick Leave

Sick leave entitlement varies by length of service:

• First 6 months: Unpaid leave
• 6 months - 3 years: 50% of salary for up to 6 months
• Over 3 years: Full salary for first 3 months, 60% for next 3 months

Maternity Leave

• Duration: 90 days (can be split before and after birth)
• Pay: 50% of average salary for first 2 months
• Job Protection: Position guaranteed upon return
• Nursing Breaks: 1 hour per day for nursing mothers

Paternity Leave

• Duration: 15 days
• Pay: Unpaid (unless company policy provides otherwise)
• Timing: Must be taken within 2 months of birth

Bereavement Leave

• Immediate Family: 7 days paid leave
• Extended Family: 3 days paid leave
• Documentation: Death certificate required

Personal & Family Leave

• Marriage Leave: 3 days paid
• Religious Observances: As per individual agreement
• Emergency Leave: Unpaid, subject to approval

Summary

Termination Types

Termination With Cause:

• Serious misconduct, theft, or breach of contract
• No notice or severance required
• Must be documented and justified

Termination Without Cause:

• Redundancy, restructuring, or performance issues
• Requires notice period and severance pay
• Must follow proper procedures

Notice Period Requirements

Note: Payment in lieu of notice is acceptable

Severance Pay

Severance is required for termination without cause:

• 6 months - 2 years: 15 days' salary per year of service
• 2-5 years: 18 days' salary per year of service
• Over 5 years: 21 days' salary per year of service

Probationary Periods

• Maximum Duration: 3 months
• Termination: 7 days' notice required
• Extension: Not permitted beyond 3 months
• Benefits: May be reduced during probation

Final Pay Requirements

• Timeline: Within 48 hours of termination
• Components: Final salary, unused leave, severance (if applicable)
• Deductions: Only legally permitted deductions allowed

Termination Documents & Process

Required Documentation:

• Termination letter stating reason and effective date
• Final pay calculation
• Certificate of employment
• Return of company property acknowledgment

Anti-Discrimination & Retaliation Laws

Protected characteristics include:

• Gender, race, religion, political opinion
• Pregnancy and maternity
• Union membership or activities
• Filing complaints with authorities

National Public Holidays

Cambodia observes 28 official public holidays annually, including:

Note: Buddhist and traditional holidays follow the lunar calendar and dates vary annually

Holiday Pay Rules

• Eligibility: All employees entitled to holiday pay
• Rate: Regular daily wage
• Work on Holidays: 2× regular pay plus substitute day off
• Consecutive Holidays: Each day paid separately

Religious Observances

• Buddhist Holidays: Multiple throughout the year
• Other Religions: Accommodation required by law
• Substitute Days: Provided when holidays fall on weekends

Required Documents for Employment

Employee Documentation:

• Employment contract (Khmer and English versions)
• Identity card or passport
• Family book (if applicable)
• Educational certificates
• Medical certificate
• Work permit (for foreign employees)

Tax and Social Security:

• Tax registration
• Social security registration
• Bank account details

Language Requirements

• Official Language: Khmer
• Contracts: Must be available in Khmer
• Workplace Communication: Khmer preferred, English acceptable in international companies
• Translation: Legal documents require certified translation

Background Checks & References

• Criminal Background: Permitted for relevant positions
• Employment History: Standard practice
• Educational Verification: Required for professional roles
• Consent: Written employee consent required

Data Protection & Privacy

• Personal Data: Limited protection framework
• Consent: Required for data collection and processing
• Storage: Secure storage requirements
• Cross-Border: Restrictions on data transfer abroad

IP Assignment & Confidentiality

• Work Product: Belongs to employer unless otherwise specified
• Confidentiality: Standard clauses recommended
• Non-Compete: Limited enforceability
• Trade Secrets: Protected under commercial law

Probation Period Setup

• Duration: Up to 3 months maximum
• Terms: Clearly defined in contract
• Evaluation: Regular performance reviews recommended
• Termination: 7 days' notice required

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation
• Government registrations
• Tax and social security compliance
• Payroll processing
• Local labour law compliance
• Document translation and filing

Worker Classification: Employee vs Contractor

Employee Characteristics:

• Regular work schedule and location
• Employer provides tools and equipment
• Integrated into business operations
• Receives regular salary and benefits

Contractor Characteristics:

• Project-based work
• Uses own tools and resources
• Independent business operations
• Invoice-based payments

Note: Misclassification can result in penalties and back-payment of benefits

Unionisation & Collective Agreements

• Union Rights: Protected under labour law
• Formation: Minimum 10 employees required
• Collective Bargaining: Recognised and protected
• Strike Rights: Legal with proper procedures
• Employer Obligations: Must negotiate in good faith

Cultural Norms & Workplace Expectations

Communication Style:

• Indirect and respectful communication preferred
• Hierarchy respected in workplace interactions
• Face-saving important in feedback situations

Work-Life Balance:

• Family obligations highly valued
• Religious observances accommodated
• Flexible scheduling appreciated

Professional Relationships:

• Relationship-building important
• Group harmony prioritised
• Patience required for decision-making

Remote Work Considerations

Legal Framework:

• Limited specific remote work legislation
• Standard labour laws apply
• Contract terms must specify arrangements

Practical Considerations:

• Internet infrastructure varies by location
• Equipment provision may be required
• Regular check-ins recommended for compliance

Tax Implications:

• Work location affects tax obligations
• Cross-border remote work requires careful structuring
• Social security contributions based on work location