Foreign labour registry extended
THE Ministry of Labour and Vocational Training has announced a two-month extension to the deadline for applying for the use of foreign workers for next year. Cambodian labour law requires firms employing foreign workers to apply for permits by the end of each November for t he follow ing ca lendar year.
In a press release dated December 9, labour minister Ith Sam Heng declared that such businesses would now have until t he end of Januar y to register t heir foreign workforce, noting that some employers are late to file t his year.
“[ The ministry] would like to remind all owners or directors of enterprises and establishments who need to use foreign workers for 2021 to hurry to apply for permission for the use of their foreign workforce by January 31, 2021,” it said.
The ministr y stressed that employers who fail to register by t he end of t he extended grace period will face fines in accordance with the law.
The Garment Manufacturers Association in Cambodia deput y secretar ygenera l Kaing Monika told The Post on December 10 that it was a good idea for t he government to favour and facilitate business operations in t he countr y while dealing wit h t he Covid-19 crisis.
According to Monika, the delayed filings from some factories are due to companies having faced suspensions in labour and production. He said uncertainties stemming from this year’s extraordinary events, which have left production orders reduced or pending, are among myriad financial reasons that have led companies to having insufficient time to make decisions regarding their foreign workforce and subsequently file for permits for the next year.
“The government has postponed [the deadline] for two months, which is a convenience for investors in order to have sufficient time to apply for [permits for] their foreign workforce. The provision of this extension will be enough for some companies and factories to return and resume their production operations,” he said.
Monika estimates that Cambodia’s textile and garment sector employs upwards of 40,000 foreign labourers. Cambodian law a llows loca l enterprises to use sk illed foreign labour for 10 per cent of t heir tota l workforce.
According to a report released by the interior and labour ministries in 2018, there were more than 100,000 unregistered foreign workers i n Cambodia employed without a work permit, representing an annual loss of $20 million in ta x receipts.