Termination of Employment Contract in Cambodia:

The most disputable case in employment relations is the termination of employment contract. It is very simple that starting a relationship is a story and termination of such is another story. When employer terminates the contract, it is called dismissal and when employee terminates the contract, it is called resignation.

Employee who finds that the dismissal unfair wishes to demand for compensation or reinstatement to the same position. Employer who believes that the dismissal is fair will not accept such a demand from the dismissed employee.

How do the laws deal with this issue?

First of all, you have to know whether your contract is a fixed duration contract or non fixed duration contract. This is because they are governed by different rules. Fixed duration contract normally ends at expiration of the specified duration. Termination before expiration is possible if there is (1) mutual agreement; (2) serious misconduct of any party; or (3) Acts of God. Non fixed duration contract can be terminated at any time; however, no dismissal can take place unless there is a valid reason related to worker's capacity or misconduct or the necessity of the operation of the enterprise.

Compensations under the laws?

For fixed duration contract, if employer terminates the contract before its expiry the employer has to pay the amount of money which is equal to the wage and benefit the employee would have received until the end of the contract. If it is the act of the employee, the employer can claim for the amount of money which is the amount corresponds to the damage sustained.

Termination of the non fixed duration contract by the employer without valid reason entitles the employee to damage, severance pay, compensation in lieu of prior notice (if employer fails to provide prior notice), and others.

It is also important to check clauses of employment contract, internal regulations of the employer, and collective agreement regarding termination of the employment contract in addition to rules in the laws.