Why it is new: In February %''#, the Cambodian government proposed amending Article +- so that fixedterm contracts could be renewed for two years, without any limit on the number of renewals.%( This would permit industry to legally hire on fixed-term contracts indefinitely, a practice which they had already begun doing, and which garment manufacturers and some officials within the MoLVT argued was in fact the correct interpretation of the law.%) However, in the Jacqsintex case, the Arbitration Council held that a fixed-term contract could only last for two years in total, including both the initial contract and any renewals. The guidelines compromise between industry and the Arbitration Council’s positions. The guidelines allow fixed-term contracts for up to four years, rather than two years, since both the first contract and the renewal period can last two years each. However, they limit the use of fixed-term contracts for four years, rather than permitting indefinite renewals. Nevertheless, considering contracts to be new after a month lapse is a loophole that permits indefinite renewals in practice. Why it matters: As discussed elsewhere in this report, fixed-term contracts are used by the industry as a tool to undercut worker power. In Cambodia, fixed-term contracts have been used extensively in the garment industry to ensure industry can fire workers for otherwise impermissible reasons and thereby deter behaviour such as organising or filing complaints, as well as exclude workers from benefits.%* Issue #3: Freedom of association and right to organise Issue 3.1: Unionisation limited to those covered by labour and employment law What it is: In Cambodia, only workers who fall under the provisions of the Labour Law are able to unionise under Article ( of the %'"+$Trade Union Law. Why it is new: This is inconsistent with Article (+ of Constitution of Cambodia, which guarantees that “Khmer citizens of either sex shall have the right to form and to be members of trade unions.” It is also inconsistent with Article % of the ILO C',-$ - Freedom of Association and Protection of the Right to Organise Convention, "#), (No. ,-), ILO, which states that workers shall have the right to organise without distinction, including distinctions as to sector. 14