Legal Updates for June 2020

RGC Updates Subsidies for Employees during the Employment Suspension

The Ministry of Labour and Vocational Training has issued two notifications dated 23 June 2020 and 25 June 2020 updating the amount of the subsidy provided by the Royal Government of Cambodia for the garment and tourism sectors annexed to the notification via Wing (Cambodia) Limited Specialised Bank in Khmer Riel ("KHR"). The amount of subsidy varies with the suspension period.

New IT Platform for Business Registration

The Royal Government of Cambodia has issued Sub-Decree No. 84 ANK.BK on Business Registration through IT Platform dated 10 June 2020. The Business Registration through IT Platform (hereinafter called the "Online Business Registration Portal" or "Single Portal") was officially launched on even date and has been in operation since 15 June 2020. The Single Portal aims to facilitate and modernize the registration procedure for new businesses by requiring the submission of a set of application documents, with a cost-effective and speedy approval process.

Schedule to Negotiate the Minimum Wage in Textile, Garment and Footwear Sectors for 2021

The Ministry of Labour and Vocational Training issued notification No. 019/20 dated 10 June 2020 on the schedule of minimum wage negotiations in the textile, garment and footwear sectors for 2021. 

Adjustment of the Requirements for Cambodian Travellers and Quarantine of Diplomatic Personnel

As part of its efforts to contain COVID-19, the Royal Government of Cambodia (“RGC”) has issued consecutive regulations affecting several sectors of the country to prevent and mitigate the devastation brought about by the COVID-19 pandemic. Moreover, the RGC has restricted travelling into Cambodia by imposing requirements on both Cambodian and foreign travellers.

RGC Updates Subsidies for Employees during the Employment Suspension

On 16 June 2020, the Ministry of Labour and Vocational Training issued two notifications updating the amount of the subsidy provided by the Royal Government of Cambodia for the garment and tourism sectors annexed to the notification via Wing (Cambodia) Limited Specialised Bank in Khmer Riel (“KHR”). The amount of subsidy varies with reference to the suspension period.

COVID-19 Costs for Testing, Quarantine Facilitation and Treatment

Following notification No. 4898 MEF dated 8 June 2020 issued by the Ministry of Economy and Finance on the Costs of Foreign Travellers for COVID-19 Testing and Health Examination at Public Hospitals, the Ministry of Health issued notification No. 564 dated 11 June 2020 on the payment fees for COVID-19 tests and health examinations.

RGC’s Subsidy for Employees during the Employment Suspension (Update)

The Ministry of Labour and Vocational Training issued a notification dated 9 June 2020 updating the amount of the subsidy provided by the Royal Government of Cambodia (“RGC”) to 17,052 employees of 50 factories/enterprises in the garment and tourism sectors annexed to the notification via Wing (Cambodia) Limited Specialised Bank in Khmer Riel (“KHR”). The amount of subsidy varies with reference to the suspension period.

Tourism Licenses Renewal Fee Exemption for 2021

In accordance with the Royal Government of Cambodia’s press release dated 26 May 2020 on the fourth-round of preventive measures for mitigating the impact of COVID-19 on business operations, the Ministry of Tourism issued a notification dated 8 June 2020 providing for, among others, the waiver of the renewal license fee and the public service fee for the license renewal of all types of valid tourism licenses for 2021.

A QUICK ANTI-CORRUPTION GUIDE FOR BUSINESSES IN ASEAN, CHINA & JAPAN

International corruption has been estimated to cost a massive $3.6 trillion annually in the form of bribes and stolen money, amounting to over 5% of global GDP. It has been listed by the United Nations as one of the biggest impediments to achieving its 2030 Sustainable Development Goals, and governments worldwide have criminalised corruption in an effort to stem the losses.

Rajah & Tann Asia's member firms and regional desks hail from the jurisdictions of Cambodia, China, Indonesia, Japan, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This Publication brings together our lawyers from the above jurisdictions to answer the following questions on anti-corruption efforts:

  1. What is the principal anti-corruption legislation in your country?
  2. Who is the authority in charge?
  3. Does the principal legislation have extra-territorial effect?
  4. Is there a different threshold in bribery offences in the public and private sector?
  5. Is there a duty to report bribery offences?
  6. What are the key offences under the principal legislation?
  7. What are the penalties for the key offences?
  8. Are there defences to the key offences?
  9. If a body corporate commits an offence under the principal anti-corruption legislation, would the officers of the body corporate be liable?
  10. Are Deferred Prosecution Agreements an option in your country?
  11. Are there any other key anti-corruption initiatives in your country?
  12. What is the enforcement trend of anti-corruption laws in your country?
RGC’s Subsidy for Employees During the Employment Suspension

The Ministry of Labour and Vocational Training (“MLVT”) issued notifications dated 26 May 2020, 1 June and 3 June 2020 on the amount of subsidy provided by the Royal Government of Cambodia (“RGC”) to employees whose employment contracts are suspended pursuant to an earlier Notification. This is the third-round of the RGC’s measures put out to support private sectors and employees heavily impacted by COVID-19.

Reminder on COVID-19 Preventive Measures at Factories and Enterprises

Although the situation of the COVID-19 pandemic is currently getting better, the Ministry of Labour and Vocational Training has issued Notification dated 2 June 2020 as a reminder on COVID-19 preventive measures that factories and enterprises, in particular those of the garment industries, must continue to implement. These include (a) arranging to have temperature checks of all persons before entering the factories and enterprises; (b) placing alcohols or hand sanitisers (gels or soaps) at the entrances of the workplaces; and (c) reminding employees to cover their mouth and nose with handkerchief, scarf or elbow when coughing or sneezing.

Suspension of Payment of Back Seniority Payment Prior to 2019 and Seniority Payment for 2020

The Ministry of Labour and Vocational Training issued Notification No. 018/20 dated 2 June 2020 on the Suspension of the Payment of the Back Seniority Payment prior to 2019 and the Seniority Payment for 2020 (“Notification”). This Notification was implemented in the line with Point 7 of the Royal Government of Cambodia’s press release dated 7 April 2020 which provides for additional measures to assist the private sector and employees heavily impacted by COVID-19.

RGC’s Guideline on Additional Measures to Support Private Sector and Employees Heavily Impacted by COVID-19 and Post COVID-19 Economic Rehabilitation

After issuing consecutive press releases, the Royal Government of Cambodia (“RGC”) on 26 May 2020 issued a press release on the fourth-round preventive measures in order to mitigate the impact of the COVID-19 pandemic on the business operations of the main sectors. The measures include (a) extending the validity of some measures previously issued; and (b) imposing additional measures. These measures will also include social assistance to help poor families.

Travellers’ Quarantine and Travelling Restriction Lifted During COVID-19 Containment

Based on the development of the COVID-19 pandemic, the Ministry of Health issued Announcement No. 101 of the Inter-Ministerial Committee to Combat COVID-19 dated 20 May 2020 (“Announcement”) to amend the travelling restriction imposed in connection with the COVID-19 pandemic. The Announcement abrogates the announcement of the Ministry of Health dated 14 and 15 March 2020 on the travelling restriction of foreign nationals from Iran, Italy, Germany, Spain, France, and the United States of America into Cambodia.