Logo of Phnom Penh Post newspaper Phnom Penh Post - Ministry to monitor seniority payments

Ministry to monitor seniority payments

Content image - Phnom Penh Post
Minister of Labour and Vocational Training Ith Sam Heng at a meeting in 2015. Hong Menea

Ministry to monitor seniority payments

The Ministry of Labour and Vocational Training says it will monitor the implementation of seniority indemnity payments to all factory employees in line with the new policy which comes into force this month.

The ministry is also ready to impose a fine on any factory failing to follow the policy.

Tes Rokaphal, deputy secretary-general of the ministry’s General Secretariat of the Committee for the Resolution of Strikes and Demonstrations, told The Post on Sunday that the ministry will continue to urge employers to implement the prakas on payment of seniority indemnity, which is to be paid to workers with their salary.

“Seniority indemnity back pay and future seniority indemnity payments for workers will begin in late June. If any factory is found to have failed to implement the payment of back pay and seniority indemnity for workers, there will be a fine on those enterprises."

“As far as I can see, there is no problem because we have the participation of organisations such as the Garment Manufacturers Association in Cambodia [GMAC] and we have received a letter from them saying they will instruct their members to implement this prakas.

“We certainly hope there is no problem because we have been disseminating this information since late last year,” he said.

He requested that factory workers accept what the ministry is implementing and avoid demanding more than what has been stipulated.

Ministry spokesman Heng Sour confirmed that seniority indemnity should be paid to workers with their June salaries but could not make an assessment of the extent of the scheme’s implementation until payday arrives.

“An evaluation cannot be made, as payday has not come yet. The money is to be paid with June salaries,” he said.

GMAC chairman Van Sou Ieng declined to comment to The Post, referring questions to GMAC deputy secretary-general Kaing Monika.

Monika said briefly: “There is no problem. We are working with the ministry [of Labour and Vocational Training] to organise a three-day training course from Tuesday to Thursday on how to calculate payment.”

Last year, the ministry issued a prakas changing the procedure for paying seniority indemnity for workers in the textile, garment and footwear (TGF) sectors.

Instead of paying it in full when terminating workers’ contracts, the payments are to be made regularly twice a year and must include seniority indemnity due before this year.

Content image - Phnom Penh Post
Garment factory workers at Sihanoukville Special Economic Zone in 2018. POST STAFF

Seniority indemnity for enterprises outside the TGF sectors will be implemented in the same way, but the settlement of back pay has been delayed until December 2021.

Sour said employers must provide workers with a payment equal to 15 days per year of their wages, along with other benefits, with 7.5 days paid every June and the other 7.5 days in December each year.

The back pay of seniority indemnity before 2019 is initially only being implemented for the TGF sectors.

Employees in the TGF sectors who have worked prior to January 1 this year and remain working for an enterprise will be entitled to 30 days of back pay per year to a maximum of six months.

They are to receive 15 days of seniority payment in June each year and 15 days every December.

Srey Neang, who has worked at W&D Cambodia’s garment factory for more than five years, said it will be good if workers’ seniority indemnity really is paid later this month, but she was worried that the payments may not be paid correctly.

“If it is really paid, it will relieve some of my financial burdens. Of course, I am happy but it’s not clear whether their method of payment is correct or not or how they are going to pay us."

“Some time ago, I had a meeting with them and they said if there were any new developments, they would tell me – but I haven’t received any news,” Srey Neang said.

Collective Union of Movement of Workers president Pav Sina said he doesn’t believe that all factories will pay seniority indemnity on time because he had seen evidence of evasion and some factories do not have sufficient funds.

“It cannot be widely implemented yet as I think some factories may face financial problems and delay it to the following month,” he said.

MOST VIEWED

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea

  • Judge lands in court after crashing into alleged thief

    Sen Sok district police on Thursday sent a Koh Kong Provincial Court judge to the Phnom Penh Municipal Court on manslaughter charges after he crashed his car into a woman riding a motorbike on Wednesday, killing her. District police chief Hour Meng Vang told The

  • Preah Vihear court drops charges against villagers

    The Preah Vihear Provincial Court has dropped all charges against eight ethnic Kuoy villagers who were in a land dispute with the Hengfu Group Sugar Industry Co Ltd since 2014. Wednesday’s decision was made by the judge who tried the case on June 10. The eight

  • Gov’t to boost Siem Reap tourism

    The Ministry of Tourism released the results of an inter-ministerial committee meeting concerning Siem Reap province’s Tourism Development Master Plan for 2020-2035 on Wednesday, revealing the government’s plan to improve the overall tourist landscape there. The meeting was attended by Minister of Tourism

  • Residents ordered to remove structures on Phnom Penh’s canal

    Phnom Penh municipal governor Khuong Sreng has ordered authorities to act against the perpetrators who built houses along the Luo 5 canal in Meanchey district. The municipal administration plans to create a committee to solve the matter. The order was given on Wednesday while Sreng led

  • ‘On the offensive’: Cambodia to load up on loans to stimulate economy

    As the dust settles on the economy, Cambodia comes to grips with what needs to be done to turn the economy around, starting with a big shopping list for credit ‘We are going on the offensive,” Vongsey Vissoth, Ministry of Economy and Finance permanent secretary

  • Eighty replacement peacekeepers set for Mali mission despite Covid

    Eighty Cambodian blue helmet soldiers who completed the peacekeeping mission under the UN umbrella in Mali will return to Cambodia on Friday, said the Centre for Peacekeeping Forces spokeswoman Kosal Malida. “To protect their families and communities from the Covid-19 pandemic, the 80 are required to

  • Government set to make up for cancelled April holiday

    The government is set to make up for a five-day Khmer New Year holiday late this month or early next month. The holiday was earlier cancelled due to the onset of Covid-19. The announcement is expected on Friday as the government is studying a range

  • Families told to register for cash handouts

    The government has called on poor families to apply to commune authorities for evaluation to receive financial support during the Covid-19 crisis. A $300 million budget has been planned for implementation within a year. Ministry of Economy and Finance secretary of state Vongsey Visoth said this