Hiring foreign employees in Cambodia.

Hiring foreign employees in Cambodia is a common practice for businesses looking to fill skill gaps, bring in international expertise or support regional operations. However, employing foreign nationals is subject to a range of regulatory requirements designed to protect local employment while allowing flexibility for business needs. Employers must comply with rules on foreign employee quotas, obtain the necessary approvals from the Ministry of Labour and Vocational Training (MLVT) and ensure that all foreign hires hold valid work permits and visas.

This article provides a general overview of the legal requirements and procedures businesses must follow when hiring foreign employees in Cambodia.

Hiring foreign employees

Businesses planning to hire foreign employees must apply for the foreign employee quota with the MLVT. The number of foreign employees should not exceed 10% of the total number of Cambodian employees per company.

After receiving the quota, the company can apply for work permits through the Foreign Workforce Centralised Management System (FWCMS).

If the company wants to hire more employees than the 10% quota, it must follow the rules prescribed in Prakas 277/20 regarding Special Conditions on the Employment of Foreign Nationals issued in August 2020.

According to Article 2 of Prakas 277/70, to hire additional foreign workers in special conditions, owners or directors of the company shall:

• Submit a request for approval of the use of foreign workers from the MLVT attached with the written employment contract of each foreign worker. Generally, the request will outline why the foreign employee is required in the company and why local employees are not available to fulfil the position.
• Fill in the work permit application for foreigners on the data controlling system of foreign workers through the FWCMS
• Pay the work permit fee as stated in the Joint Prakas between the MLVT and the Ministry of Economy and Finance (Joint Prakas No.335/20)
• Obtain a valid foreign national employee visa/residence permit

Obtaining a work permit

Foreigners planning to work in Cambodia must first obtain an E-class (business) visa, which is valid for 30 days. This visa can be extended for one month, three months, six months and a maximum of one year. The one-month and three-month visa allows single-entry only, while the six-month and one-year visa extensions allow multiple entries.

In addition to the visa, foreign employees must also have a work permit and employment card. It is the employer’s responsibility to apply for these documents through the MLVT.

Can foreigners transition from a tourist visa to work visa?

Transitioning directly from a tourist visa to work visa in Cambodia is generally not permitted. Foreigners must first leave the country and re-enter on an E-class visa, which is the appropriate visa type for those seeking employment.

Foreign worker work permit inspections

Cambodia established a Joint Foreign Workforce Inspection Team (JFWIT) to inspect companies’ compliance with the labour legislation.

Documents that are subject to inspection include:

• Declaration of employees
• Company’s article of association
• Declaration on staff movement
• Quota approval to employ foreign employees
• Foreigner’s employment contract in Khmer
• Foreign employee’s passport
• Foreign employee’s entry visa and latest visa extension
• Work permit and employment card

It is important to ensure that foreign employees have valid work permits because, without a proper work permit, employers may be subject to a fine and punishment according to the Labour Law on Immigration.

Conclusion

Hiring foreign employees in Cambodia requires careful planning and full compliance with local regulations. Companies are generally allowed to hire foreign staff up to 10% of their total Cambodian workforce, divided across specific job categories. If a business wishes to exceed this quota, it must submit a formal request to the MLVT under special conditions. In addition, employers are responsible for applying for work permits and employment cards on behalf of their foreign employees and ensuring all workers have the correct visa status. Failure to comply with these requirements can lead to fines or other penalties. By following the proper procedures, businesses can legally and effectively bring foreign talent into their operations in Cambodia.

How Acclime can help with hiring foreign employees

Acclime has a team of experienced HR specialists and legal experts who provide comprehensive support throughout the entire hiring process for foreign employees in Cambodia. From assessing your company’s foreign employee quota and preparing the necessary documentation to submitting work permit applications and visa arrangements, Acclime ensures all regulatory requirements are met efficiently and accurately.

Our team also offers ongoing compliance support, helping businesses stay up to date with changes in labour and immigration laws and managing inspections by authorities. By partnering with Acclime, companies can minimise risks, avoid costly penalties, and streamline the hiring process to focus on growing their business with the right international talent.