The Labour Ministry earlier this week said employers must be prepared to distribute the first round of seniority indemnity payments to their employees, as the policy will take effect at the end of this month.
Last year, the government issued Directive 443 on seniority indemnity, which requires employers to pay a bonus equalling to half of a month’s wage – twice a year to qualified workers.
The Labour Ministry is currently hosting learning sessions on how to calculate seniority indemnity payments that will last until Thursday.
Labour Minister Ith Samheng in an instruction letter issued on Monday said employers must be prepared to comply with the new policy. Mr Samheng said the first indemnity payment is due June, while the second is due in December.
“After probation, employees who have worked during the first semester (January to June) and during the second semester (July to December) are qualified to receive seniority indemnity,” he said, noting that any employee who stop working during the first or second semester, will not receive the bonus.
“Seniority indemnity payments are counted after probation,” Mr Samheng added. “After probation, employees who have worked for at least 21 days shall be considered as having worked one full month – which means they can receive seniority indemnity.”
Kaing Monika, deputy secretary-general of the Garment Manufacturers Association in Cambodia, yesterday said factories are ready to comply with the new policy.
“All factories are ready for the implementation,” Mr Monika said. “In these three days, June 11 to 13, the Labour Ministry is conducting explanation sessions on the [seniority indemnity] calculation method.”