Legal Updates for October 2021

Cambodia’s First Law on Competition

The Law on Competition was promulgated by virtue of the Royal Kram No. NS/RKM/1021/013 dated 5 October 2021 ("Law on Competition"). It came into force on 6 October 2021.

Prior to the promulgation of the Law on Competition, issues of competition were addressed broadly in various regulations such as the Law Concerning Marks, Trade Names and Acts of Unfair Competition, Sarachor (Circular) on Preventing Measures Against Unfair Competition in Telecommunication Sector, Order of Council of Ministers on Free Competition and Measures Against the Interconnection Barrier between the Telecommunication Operators, Law on Telecommunications, and Law on Trade Remedies. These laws and regulations, however, are not comprehensive and do not adequately address the core issues that affect market competition.

With the Law on Competition in place, the law now covers all persons, natural or juristic, conducting business activities, or supporting business activities that significantly prevent, restrict and distort competition in Cambodia’s market, regardless of whether the activities are conducted in or outside of Cambodia.

The Law on the Amendment of the Labour Law Comes into Force on 6 October 2021

On 5 October 2021, Royal Kram No. NS/RKM/1021/011 on the Amendment of Articles 123, 138, 162, 300, 343, 350, 363, and 367 of the Labour Law ("Law on the Amendment of the Labour Law") was promulgated. As the law was promulgated on an urgent basis, it has come into force on 6 October 2021.

Under the Law on the Amendment of the Labour Law, four articles of the Labour Law have been substantially amended, including that which relates to the total number of working hours of employees who work on shifts.

2022 Minimum Wage for Workers in the Textile, Garment, Footwear, Travel Goods and Bags Industries

The Ministry of Labour and Vocational Training ("MLVT") issued Prakas No. 264/21 dated 28 September 2021 on the Minimum Wage Determination for Workers in Textile, Garment, Footwear, Travel Goods and Bags Industries for year 2022 ("Prakas").

According to the Prakas, starting from 1 January 2022, the minimum wage of workers in the textile, garment, footwear as well as travel goods and bags industries will be increased to US$194 per month from the current minimum wage of US$192 per month for year 2021.