Suspension of the Labour Contract

New Instruction No. 138/25 dated 20th August, 2025 on Suspension of the Labour Contract issued by Ministry of Labour and Vocational Training, in pursuant with article 71 and article 72 of Cambodian Labour Law, enterprise, company, garment factory that faces with a serious economic or material difficulty or any particularly unusual difficulty may suspend of the employee worker's employment agreement in the Labour Centralized Management System-LACMS per website: https://lacms.mlvt.gov.kh in comply with below process execution:

Step 1: Give Prior Notification to Employee Worker 

Provide comprehensive prior notice to employee worker on commencement date and expiration date for suspension of the labour contract such as name and amount of employee worker who shall be suspended of the labour contract with wholly or some part or some group based on product system operations.

Step 2: Letter of Consent on Suspension of the Labour Contract 

Shall have mutual consent on suspension of the labour contract with at least ⅔ of the shop steward or employee's representative of the enterprise, company, garment factory. In case of has no shop steward or employee's representative shall have granted 50%+1 consents from employee worker of totally amount who is subject for suspension of the labour contract and posted the consent on information board of the enterprise, company, and garment factory accordingly.

Step 3: Filling the information into LACMS 

Shall fulfilling the application form on suspension of the labour contract in LACMS at least 3 working days before commencement date of execution of suspension of labour contract in pursuant with instruction on suspension of labour contract in LACMS in the Annex 1 of this instruction.

Step 4: Upload List of Employee Worker who Suspension of the Labour Contract

Selected employee worker who suspended of the labour contract and list of employee worker that is suspended in comply with list form in the Annex 2 of this instruction, whereby required suspension employee worker to take thumbprint on personal information such as Number of Cambodian Identification Card or Number of Passport for foreigner and mobile phone contact as well.

Step 5: Upload Notification Letter on Suspension of Labour Contract  

Shall download letter request for suspension labour contract to stamp and signature of enterprise, company, garment factory as attached in the Annex 3 of this Instruction and upload into this system.

Step 6: List of Last Update on Payroll

Shall included last update of payroll list before execution of suspension of the labour contract in form of excel life.

Step 7: Letter on Reinstate of Suspension of the Labour Contract

In case of reinstate of suspension of labour contract (resume for normally working) shall submit report into the LACMS at least 2 (two) days of working day before resume to work based on letter in the Annex 4 of this instruction.

Step 8: Legal Obligation of Employer or Labour Inspector 

Shall kept all documents related with suspension of the labour contract for Labour Inspector to inspect.

Conclusion

Employer or owner of enterprise, company, and garment factory shall be submitted request letter related with suspension of the labour contract to Labour Inspector for supervision accordingly. Therefore; suspension of the labour contract, employer shall be asked for approval permit from Labour Inspector per LACMS based on the above detail reasons requirement and legal proceeding terms accordingly. In case of employer or owner of enterprise, company, and garment factory is failing to apply for suspension of the labour contract in pursuant with article 71 and article 72 of Cambodian Labour Law and legal regulation in the Instruction No. 138/25 dated 20th August, 2025 shall be penalty imposed based on applicable law. 

Legal Reference Term related with Cambodian Labour on Suspension of Labour Contract 

ARTICLE 71

The Labour Contract shall be suspended under the following reasons:

1. The closing of the establishment following the departure of the employer to serve in the military or for a mandatory period of military training.
2. The absence of the worker during obligatory period of military service and military training.
3. The absence of the worker for illness certified by a qualified doctor. This absence is limited to six months, but ca, however, be extended until there is a replacement.
4. The period of disability resulting from a work-related accident or occupational illness.
5. The leave granted to a female worker during pregnancy and delivery, as well as for any post-natal illness.
6. Absence of the worker authorized by the employer, based on laws, collective agreements, or individual agreements.
7. Temporary layoff of a worker for valid reason in accordance with internal regulations.
8. The absence of a worker during paid vacations, including an incidental travel period as well.
9. The incarceration of a worker, without a later conviction.
10. An act of God that prevents one of the parties from fulfilling his obligations, up to a maximum of three months.
11. When the enterprise faces a serious economic or material difficulty or any particularly unusual difficulty, which leads to a suspension of the enterprise operation. This suspension shall not exceed two months and be under the control of the Labour Inspector.

An employer can reinstate a suspended contract provided that the reasons for the suspension have been remedied and he has given prior notice in accordance with the law.

ARTICLE 72 

1. The suspension of a labour contract affects only the main obligations of the contract, that are those under which the worker has to work for the employer, and the employer has to pay the worker, unless there are provisions to the contrary that require the employer to pay the worker. Other obligations such as furnishing of accommodation by the employer, as well as the worker's layalty and confidentiality towards the enterprise, continue to be in effect during the period of suspension.
2. The suspension of a labour contract does not leads to a suspension of the union's mandate or that of workers' representative.
3. Unless otherwise specified, periods of suspension are taken into account when calculating the employment seniority.

For further legal consultation HR and Labour please feel freely to reach Ministry of Labour and Vocational Training (MoLVT) per 1268 or reach directly to Mr. SORN Somakara, our team in charge of Labour Practice Group, YOENG & ASSOCIATES LAW OFFICE​ per Telegram: 0974146999 or E-mail: consult@yoenglawyer.com