Compensation

Overtime Compensation

Normal working hours are 8 hours a day and 48 hours a week. Workers may be required to work overtime, provided that  total working hours, inclusive of overtime, must not exceed ten (10) hours per day, except for a case of preventing a disaster or repairing damage caused by a disaster.

Employers may set the normal working hours in such a way that employees get Saturday afternoon, as well as Sunday, off. However, the normal working hours must not exceed 9 hours per day. Overtime is the work done in excess of normal working hours. Overtime is allowed only for exceptional and urgent work. Workers must be allowed to choose whether they want to work overtime or not. Employers cannot impose any penalty on workers who choose not to work overtime. Employers are required to get permission from the Ministry of Labour before giving overtime work to employees. The overtime authorization letters issued by the Ministry of Labour limit overtime to 2 hours per day. To make up for the hours lost due to interruption in certain cases, overtime of one hour per day is also allowed for 30 days per year.

An employer is required to pay at least150% of the wage if overtime work is performed during the day on normal working days and 200% of the wage if overtime work is performed during the night hours (22:00 to 05:00).

The same higher rates are applicable to the piece-rate employees who work overtime. The piece-rate employees are entitled to an additional 50% payment for overtime work performed during normal overtime hours and an additional 100% for overtime  performed during night hours, Sunday or a public holiday. Employees who work overtime must receive 2,000 riels per day for a meal or receive one free meal every day on which they work overtime.

Sources: §137-140 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2007); Prakas on Overtime Work of Normal Work Hours (80/1999); Arbitration Council Awards 78/2004

Night Work Compensation

In accordance with the Labour Code, night work is a period of at least 11 consecutive hours including the period from 22:00 to 05:00 of the following day.

Night work is paid at the premium rate of 130% of the normal hourly salary paid during the day. If the night work is performed as overtime, it is paid at 200% of the normal wage rate during the day. Employers are required to provide the night workers with  sleeping place or otherwise provide them with the transportation when they finish work at  night.

Sources: §137 & 144 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2007); Prakas on Overtime Work of Normal Work Hours (80/1999)

Compensatory Holidays / Rest Days

In extraordinary circumstances, workers may perform work on weekly rest days and public holidays. Instead of getting higher wages for working on weekly rest day, workers get a compensatory day off in lieu of the rest day during the following week. There is no provision for compensatory holiday for workers working on a public holiday.

Sources: §151 & 152 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2007)

Weekend / Public Holiday Work Compensation

Workers may be required to work on weekly rest days and public holidays. In such circumstances when employees have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the rate of 200% of the normal wage rate.

Sources: §139 & 164 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2007)

Regulations on Compensation

  • Labour Code, 1997
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