Issue 1.3: Proposed elimination of night wage
What it is:
The MoLVT is preparing to eliminate night wages for night work, having conducted a tripartite
consultation in January 2020 to discuss the issue.%' MoLVT argues that eliminating night wages
is important for attracting investment.
Why it is new:
Currently, night wages are "('% of the day rate, reduced further from %''-, when they were$
"*'% of the day rate.%" According to workers’ rights advocates, in %''-, rates were reduced in
order to attract investment, but in practice failed to do so. Yet the same justification is being used
again to justify further cuts.
Why it matters:
Article , of the C"-" - Night Work Convention, "##' (No. "-") states “Compensation for night
workers in the form of working time, pay or similar benefits shall recognise the nature of night
work.” Although Cambodia has not ratified C"-", Cambodia should recognise the nature of
night work in setting compensation.
Issue #2: Employment (in)security
Issue 2.1: Use of fixed-term contracts clarified
What it is:
On May "-.$%'"#, MoLVT issued a Guideline on Determination of Types of Employment Contracts clarifying the timeframe and purpose for the use of Specified Duration Contracts (SDCs),
or fixed-term contracts. Section +- of the %''- Labour Code states a fixed-term contract “cannot
have a duration of over two years. Such a contract may be renewed one or more times so long as
the renewals have a maximum duration not exceeding two years.”
The new guidelines clarify the meaning of Section$+-. The first time a fixed-term contract between
an employer and employee is made, it can be for any length of time up to two years. After this,
renewals can also be made for up to two years. For example, if the initial employment contract is
for a period of six months, the total maximum duration of the contract, if renewed, is six months
and two years. If the initial contract is for a year, the total maximum duration of the contract,
if renewed, is three years. After the contract is over, after a month lapse of the contract and all
severance payments, if any, being paid, the clock is “reset.” Any fixed-term contract entered into
between the same parties will be considered to be a new contract, entered into for the first time. %%
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