Cambodia Severance Laws

Under the Labour Law, statutory termination compensation for termination without cause (that is, any of the reasons listen above under Notice periods) is as follows:

• Affected workers under UDCs:
  • compensation for accrued unused annual leave (if any);
  • last unpaid salary and benefits (if any);
  • written notice or compensation in lieu of prior notice based on the worker’s length of continuous service;
  • two days of paid leave per week to look for a new job during the notice period;
  • seniority payments; and
  • damages at least equal to seniority payments capped at six months of current salary and benefits.
• Affected workers under FDCs:
  • written prior notice (only applicable in the case of expiration or non-renewal of the FDCs);
  • severance pay of at least 5% of the total salary and benefits the worker has received during the duration of the employment contract;
  • compensation for accrued annual leave (if any);
  • last unpaid salary and benefits (if any); and
  • damages equal to the salary and benefits the worker should be entitled to up to the expiration date of the FDCs.