Preah Reach Kram (Royal Code)
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1 Preah Reach Kram (Royal Code) NS/RKM/0718/015 I Preah Karona Preah Bat Samdech Boramneat Norodom Sihamoni Saman Phum Cheat Sasna Rakha Thayea Khemra Rathreas Puthitrie Mohakasat Khereanea Smou Hotas Kampu Ekreach Rathboranak Sante Sopheakmanglea Sereyvibola Khemra Srey Pireas, Preah Chao Krang Kampuchea Thibpadey - Having seen the Constitution of the Kingdom of Cambodia - Having seen Royal Decree No. NS/RKT/0913/903 dated 24 September 2013 on Appointment of the Royal Government of the Kingdom of Cambodia - Having seen Royal Code No. 02/NS/94 dated 20 July 1994 promulgating the Law on Organization and Functioning of the Council of Ministers - Having seen Royal Code No. Ch.S/RKM/0498/06 dated 08 April 1998 promulgating the Law on Organization and Functioning of the Constitutional Council - Having seen Royal Code No. NS/RKM/0107/005 dated 31 January 2007 promulgating the Law on Amendment to the Law on Organization and Functioning of the Constitutional Council - Having seen Royal Code No. NS/RKM/031/005 dated 10 March 2018 promulgating the Law on Amendment to Article 26, Article 27 (new), Article 28, Article 31 and Article 32 of the Law on Organization and Functioning of the Constitutional Council - Having seen Royal Code No. NS/RKM/0105/003 dated 17 January 2005 promulgating the Law on Establishment of Ministry of Labour and Vocational Training - Having seen the submission of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia Promulgate The Law on Minimum Wage, approved by the National Assembly on 7 June 2018 in the National Assembly s 10 th session of the 5 th legislature and which the Senate has completely reviewed all the legal format and legality on 15 June 2018 during the 1 st plenary session of the 4 th legislature has the full and was declared by the Constitutional Council as constitutional as per the Decision 195/003/2018 dated 26 June 2018 and has full content as follows: Page 1
2 Law On Minimum Wage Page 2
3 Chapter 1 General Provisions Article 1 This law has its purpose to: - Improve the livelihood and living conditions to a proper one, create job opportunities and increase productivity of workers/employees - Promote better business and investment environment that is attractive Article 2 This law has its objective to: - Set a minimum wage for those covered by the provisions of the Labour Law - Create a procedure for setting a minimum wage according to a scientific method based on social and economic criteria - Create a National Council of Minimum Wage as a tripartite mechanism to study and provide recommendations on minimum wage and other benefits of those covered by the provisions of the Labour Law. Article 3 This law covers enterprises or establishments and those who are covered by the provisions of the Labour Law. Chapter 2 Minimum Wage Article 4 Wage shall be at least equal the minimum wage which is the lowest wage and is set by a Prakas of the Minister of the Ministry in charge of Labour. Article 5 The elements that are taken into consideration in setting minimum wage are to focus on economic conditions, cost of living and the actual situation of the country. Those elements are: 1- Social criteria which include family status, inflation and cost of living. 2- Economic criteria which include productivity, competitiveness of the country, labour market status and profitability of the sector. If necessary, the National Council of Minimum Wage may adjust the criteria for setting minimum wage according to economic, professional, occupational or regional activities based on the economic and social situation of the country. Article 6 Any written or oral agreement within the scope of minimum wage implementation and requiring a minimum wage for workers/employees less than the enforceable minimum wage shall be null and void. Any written or oral agreement within the scope of minimum wage implementation and requiring a minimum wage for workers/employees more than the enforceable minimum wage shall continue to be implemented. Page 3
4 Article 7 For task-work or piecework, the wage must by calculated in a manner that permits the worker/employee of mediocre ability working normally to earn, for the same amount of time worked, a wage at least equal to the guaranteed minimum wage as determined for a worker. Workers/employees receiving wages according to the quantities produced shall receive their wage based on the actual output produced. If the output produced exceeds the minimum wage, the worker/employee shall receive their wage according to the exceeding quantities. If it is lower than the minimum wage, the employer shall add any amount to make it equal to the guaranteed minimum wage. Article 8 For any work with equal condition, skill and profession and equal output, the wage shall be equal for all workers/employees covered by this law regardless of origin, sex or age. Article 9 The minimum wage set by the Prakas of the Minister of the Ministry in charge of Labour shall be made regardless of any profession or occupation. This minimum wage can be changed according to areas, economic condition that is for setting livelihood condition. The Minister of the Ministry in charge of Labour can set priority of the scope of minimum wage implementation according to economic activity, profession, occupation or areas based on the economic and social situation of the country after receiving recommendations from the National Council of Minimum Wage. Chapter 3 Discussion and Determination of Minimum Wage Article 10 The discussion to set minimum wage shall comply with the following principles: 1- The discussion of minimum wage shall be held as per the determination of the Minister of the Ministry in charge of Labour. 2- The minimum wage shall be a changeable figure or rate which is predictable, i.e. accumulative increase. 3- Stick to win-win principle 4- Shall use legal official data of the national institution or unit that is in charge of producing data and take social and economic criteria as stipulated in Article 5 of this law to be a basis for the discussion. Article 11 The Minister of the Ministry in charge of Labour shall issue a Prakas to determine a schedule of minimum wage discussion and determination after receiving recommendations from the National Council of Minimum Wage. In case of act of God or if necessary, the Minister of the Ministry in charge of Labour may issue a Prakas to suspend or change the schedule of minimum wage discussion and determination. In this case, the last minimum wage that has been set will be valid until there is a new minimum wage determination. Page 4
5 Article 12 To participate in the discussion of minimum wage, each party of the National Council of Minimum Wage shall seek its official stance by using the criteria as stipulated in Article 5 of this law. In the event that an official unanimous stance cannot be sought, each party shall accept the majority votes by an internal vote to determine its official stance and shall not violate the official stance adopted by the party to be submitted for discussions. The decision on an increase figure or change rate of minimum wage by the National Council of Minimum Wage shall be based on the principle of unanimous agreement of members who are present in the meeting. In the event that a unanimous agreement on any point cannot be reached 2 (two) times in 2 (two) different meetings, the decision shall be made based on majority votes by a secret vote in the 2 nd (second) meeting. In the event of equal votes, the chair shall have the final decision. Article 13 After having a decision on the change figure or rate of minimum wage as per the procedures stipulated in Article 12 of this law, the National Council of Minimum Wage shall take this result as a recommendation for the Minister of the Ministry in charge of Labour. If necessary, the Minister of the Ministry of Labour may request a principle from the Royal Government before issuing a Prakas on minimum wage for the following year. The new minimum wage shall take effect from 1 January of the following year. Article 14 The employer shall permanently post the Prakas on minimum wage in the workplace, wage payment office and hiring place. Chapter 4 National Council of Minimum Wage Article 15 The National Council of Minimum Wage shall be established to be attached to the Ministry in charge of Labour. Article 16 The National Council of Minimum Wage shall have its duties as follows: - Conduct a scientific study on tasks related to minimum wage. - Coordinate and make it easy for relevant parties in conducting a study and meeting on minimum wage. - Provide recommendations on minimum wage, other benefits and the scope of the implementation of minimum wage for the Minister of the Ministry in charge of Labour. - Disseminate and raise awareness and social dialogue on minimum wage. - Carry out other duties assigned by the Minister of the Ministry in charge of Labour related to minimum wage. If necessary, the National Council of Minimum Wage may create a technical working group to be an aide in carrying out its duties. Page 5
6 Anyone, besides the National Council of Minimum Wage, who conducts a study on minimum wage shall give the result of the study and sources of data related to the study to the National Council of Minimum Wage within 15 (fifteen) days after completing the study. Article 17 The National Council of Minimum Wage has at least 48 (forty eight) full-rights members which is a tripartite composition with equal members as follows: 1- one-third as the representatives of the Royal Government 2- one-third as the representatives of workers/employees 3- one-third as the representatives of employers The Minister of the Ministry in charge of Labour or 1 (one) representative of the Ministry in charge of Labour is the chair of the National Council of Minimum Wage. The National Council of Minimum Wage shall have 2 (two) vice chairs, 1 (one) of whom is selected from the composition of the representatives of worker/employee party and the other is selected from the composition of the representatives of employer party by an internal vote of each party. The National Council of Minimum Wage shall have reserve members equal to the number of full-rights members to replace any full-rights member who is absent. The Minister of the Ministry in charge of Labour may request an adjustment to the number of the members of the National Council of Minimum Wage to the Royal Government if necessary but cannot be less than 48 (forty eight) persons. The salary of the members of the National Council of Minimum Wage shall be borne by their own Ministry, institutions or professional organizations. Article 18 The composition for organization and functioning of the National Council of Minimum Wage shall be determined by a Sub-decree. The full-rights members and reserve members of the National Council of Minimum Wage shall be determined by a Parkas of the Minister of the Ministry in charge of Labour. Article 19 Any employer having a worker/employee who is the full-rights member or reserve member of the National Council of Minimum Wage shall afford necessary time for this person to attend an official meeting related to the tasks of the National Council of Minimum Wage. For all meetings as stipulated in the above paragraphs, wages shall be paid as usual and shall consider that [he/she] has worked as usual when considering the seniority or other rights to take leave. Any worker/employee receiving the position as member of the National Council on Minimum Wage shall receive the same protection as shop stewards as stipulated in the law. Page 6
7 Article 20 Besides the meeting as stipulated in Article 11 of this law, the chair of the National Council of Minimum Wage may convene a meeting of this council at any time if necessary or at the request of any of the vice chairs. This request shall state a proper and necessary reason. The members of the National Council of Minimum Wage shall attend a meeting as set and invited by the chair of the National Council of Minimum Wage. The quorum for each meeting of the National Council of Minimum Wage shall be at least 50% + 1 (fifty plus one) of all the members of the National Council of Minimum Wage. The General Secretariat of the National Council of Minimum Wage shall prepare an invitation letter together with documents related to this meeting for the full-rights members and reserve members at least 15 (fifteen) days before the meeting. If necessary and urgent, the period of the invitation depends on the actual situation. In the event of having a request from the chair or any of the vice chairs, the National Council of Minimum Wage may invite any person who is qualified other than the members to attend the meeting to give advice on the issues to be discussed but the person has no right to vote in the meeting. The minutes of the meeting shall be signed by the chair of the National Council of Minimum Wage by attaching the attendance list of the meeting participants and shall be sent to all the full-rights and reserve members within 15 (fifteen) days after the meeting. Article 21 The National Council of Minimum Wage has a general secretariat as an aide which is under the Ministry in charge of Labour. The organization and functioning of the general secretariat of the National Council of Minimum Wage shall be determined by a Sub-decree. The National Council of Minimum Wage shall have its own budget as a separate budget which is part of the budget of the Ministry in charge of Labour for its operations. The National Council of Minimum Wage has the right to receive, allocate and use fund from other sources for its operations. Chapter 5 Administrative Measures and Penalties Article 22 The penalties in this Chapter include a warning in writing and an interim fine. The warning in writing and interim fine shall be the authority of the Minister of the Ministry in charge of Labour. The payment for an interim fine brings an end to a criminal complaint. In the event that the perpetrator refuses to pay the interim fine, the case of the offense shall be sent to court for further proceedings. Page 7
8 The formalities and procedures for imposing a penalty shall be determined by a Prakas of the Minister of Ministry in charge of Labour. Article 23 A warning in writing shall be given to any person who violates Article 5 of this law. In the event of not complying with the above warning, there shall be an interim fine of not more than 5,000,000 (five million) Riels. Article 24 There shall be an interim fine of not more than 40,000,000 (forty million) Riels for the employer who violates Article 4, Article 6, Article 7 or Article 8 of this law. In addition to the above penalties, any employer who has paid their workers/employees less than the minimum wage shall provide back pay to the workers/employees of the amount that has been violated, including interest as per the rate set by the law. Article 25 A warning in writing shall be given to the employer who violates Article 14 of this law. In the event of not complying with the above warning, there shall be an interim fine of not more than 5,000,000 (five million) Riels. Article 26 There shall be a warning in writing for any person who violates Paragraph 3 of Article 16 of this law. In the event of not complying with the above warning, there shall be an interim fine of not more than 10,000,000 (ten million) Riels. Article 27 There shall be a warning in writing for any employer who violates Article 19 of this law. In the event of not complying with the above warning, there shall be an interim fine of not more than 10,000,000 (ten million) Riels. Article 28 The implementation of Chapter 5 (administrative measures and penalties) of this law shall not prevent the implementation of the Law on Trade Union, the Labou Law or other criminal laws in the event that the violation of the provisions stipulated in this law is a crime stipulated in those laws. Chapter 6 Final Provisions Article 29 Article 104, Article 105, Article 106, Article 107, Article 108, Article 109 of the Labour Law promulgated by Royal Code Ch.N/RKM/0397/01 dated 13 March 1997 and any provision contrary to this law shall be abrogated. Page 8
9 Article 30 This law shall be declared as a matter of urgency. PRL Submitted to His Majesty for signature Prime Minister Signature Samdech Akka Moha Sena Padei Techo Hun Sen Royal Place, 06 July 2018 Signature and stamp Norodom Sihamoni Submitted to Samdech Akka Moha Sena Padei Techo Prime Minister Minister of Labour and Vocational Training Signature Ith Sam Heng No: 732 S.N Certified copy for dissemination Phnom Penh, 09 July 2018 Secretary General of the Royal Government (signed and stamped) Soy Sokha Page 9
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