New Prakas 443
- Playboy
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The answer to that would seem to be that you stop paying your voluntary 13th month bonus and transfer that the the newly introduced seniority pay 13th month (in two parts) bonus.
Might need new employment contracts with your staff if you have your current 13th month bonus included in that as part of their package.
Might need new employment contracts with your staff if you have your current 13th month bonus included in that as part of their package.
"We, the sons of John Company, have arrived"
- ផោមក្លិនស្អុយ
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Yeah Thats what I was thinking.Playboy wrote:The answer to that would seem to be that you stop paying your voluntary 13th month bonus and transfer that the the newly introduced seniority pay 13th month (in two parts) bonus.
Might need new employment contracts with your staff if you have your current 13th month bonus included in that as part of their package.
However, my staff wanted the 13th month paid before Khmer New year and before Pchum Ben. I’m sure they’ll want to stick to this schedule. I think perhaps keep as is unless someone come poking around and demands we change it.
- Miguelito
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This just out from the Ministry (here's the unofficial translation from CAMFEBA):
Ministry of Labour and Vocational Training
No 042 MoLVT
Instruction On The Payment of Seniority Indemnity before 2019 for Enterprises/Establishments beside Garment Textile and Footwear Sector
Ministry of Labour and Vocational Training would like to inform owners or directors of enterprises, establishments, professional associations and all employees/workers beside garment textile and footwear sector that according to the lower occupational risk and the actual situation of enterprises/establishments beside garment textile and footwear sector the payment of seniority indemnity before 2019 shall be delayed to the end of 2021 by paying 6 days per year, 3 days in June and 3 days in December.
During this postponing period, any employees who has been terminated due to other reasons beside serious misconduct or retirement or death, the employer shall pay off the pay back seniority to that employee or his/her siblings.
For employee who resign or is terminated due to serious misconduct, he/she will not receive the pay back seniority before 2019.
By the way, employer shall settle the current seniority starting from 2019 onward in accordance to the spirit of Prakas 443 MoLVT, dated 21 September 2018 on the payment of seniority indemnity and other relevant regulations by paying to employee 15 days and made in 2 times per year.
Ministry of Labor and Vocational Training strongly hope that: the owner or directors of enterprises, establishments, professional associations, as well as all employee shall effectively follow this instruction.
Ministry of Labour and Vocational Training
No 042 MoLVT
Instruction On The Payment of Seniority Indemnity before 2019 for Enterprises/Establishments beside Garment Textile and Footwear Sector
Ministry of Labour and Vocational Training would like to inform owners or directors of enterprises, establishments, professional associations and all employees/workers beside garment textile and footwear sector that according to the lower occupational risk and the actual situation of enterprises/establishments beside garment textile and footwear sector the payment of seniority indemnity before 2019 shall be delayed to the end of 2021 by paying 6 days per year, 3 days in June and 3 days in December.
During this postponing period, any employees who has been terminated due to other reasons beside serious misconduct or retirement or death, the employer shall pay off the pay back seniority to that employee or his/her siblings.
For employee who resign or is terminated due to serious misconduct, he/she will not receive the pay back seniority before 2019.
By the way, employer shall settle the current seniority starting from 2019 onward in accordance to the spirit of Prakas 443 MoLVT, dated 21 September 2018 on the payment of seniority indemnity and other relevant regulations by paying to employee 15 days and made in 2 times per year.
Ministry of Labor and Vocational Training strongly hope that: the owner or directors of enterprises, establishments, professional associations, as well as all employee shall effectively follow this instruction.
ផោមក្លិនស្អុយ wrote: ↑Tue Jan 29, 2019 9:36 amhttp://www.eurocham-cambodia.org/post/5 ... -Training-
This bonus need to be back-paid capped at 6 months salary. (6 months current salary??? I have staff members who have worked for me for years, starting on a pittance, until I put them through education and trained them - who are now well rewarded)
.
The issue of Backpay is still being finalized but based meeting I attended in November with MoVLT and business chambers and subsequent discussion with various tax and accounting professionals.
http://www.eurocham-cambodia.org/post/6 ... ity-Prakas
Calculation is based on 26 working days month not Actual number worked.
So to get average daily rate for Liability formula is Total wages for Year / 312 days (12*26 days)
Max Backpay amount is 156 days (6 months x 26days)
You calculate the amount of back payment based on their average salary for that period not their current salary.
Example of Staff Member who started in May 2015 (Start H1 2015) then you need to pay them backpay as follows
EDIT JUST SAW MIGS POST ABOVE - Change 7.5 days to 3 days
more information also on this link
https://www.dfdl.com/resources/legal-an ... -payments/
Note if your preparing Financial Statement under CIFRS/CIFRS for SME's you will need to apply probability to raw calculation and prepare a DCF to calculate the liability accrued in Financial Statements
- Hairy-nosed Otter
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"...and also thanks to the understanding of the Royal Government." - for breaking the pre-election promise by rolling back the prakas.
I do understand the cost to employers, and it would have been a bit of a shock. Perhaps it should have only been immediately implemented for the big biz employers.
But still, this just all stinks to high heaven. (the rollback)
Besides, the equiv of 6 months back pay to every worker would have been like handful of blue pills for the economy -by mostly going straight back into the cash registers of small business.
I do understand the cost to employers, and it would have been a bit of a shock. Perhaps it should have only been immediately implemented for the big biz employers.
But still, this just all stinks to high heaven. (the rollback)
Besides, the equiv of 6 months back pay to every worker would have been like handful of blue pills for the economy -by mostly going straight back into the cash registers of small business.
...then he smiled again, and slipped away, further on up the stream
Correct me if I'm wrong, this means that the total back-pay paid to the staff member has stayed the same, but the rate at which they're paid is now a bit less than half? (3 days per 6 month period, rather than 7.5 days per 6 month period.)
Correct and implementation for payment of back pay delayed to now delayed to December 2021 (was June 2019)
No change to the regime for payment of new seniority pay from 1 January 2019. 7.5 days of new seniority pay must be paid in each of June and December (being a total of 15 days per year) So First payment is still June 2019
- Miguelito
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Says someone who has obviously spent zero time in a business.Hairy-nosed Otter wrote: ↑Tue Mar 26, 2019 12:47 pm"...and also thanks to the understanding of the Royal Government." - for breaking the pre-election promise by rolling back the prakas.
I do understand the cost to employers, and it would have been a bit of a shock. Perhaps it should have only been immediately implemented for the big biz employers.
But still, this just all stinks to high heaven. (the rollback)
Besides, the equiv of 6 months back pay to every worker would have been like handful of blue pills for the economy -by mostly going straight back into the cash registers of small business.
This whole thing was always targeted at the garment and low wage earners, and was never intended for high salary workers, which would have a large fiscal effect, hence the delay. Any time a government applies something retroactively it risks jeopardizing future FDI inflows, so it's a good sign at least that they've been open to negotiations and working for a solution.
It should also be noted on how you calculate a daily rate. I believe that the standard applied will be that there are 26 working days in a month, so you take the monthly salary and divide by 26 to get the daily rate to be used. This hasn't been 100% clarified though.drwahwah wrote: ↑Wed Mar 27, 2019 11:27 amCorrect and implementation for payment of back pay delayed to now delayed to December 2021 (was June 2019)
No change to the regime for payment of new seniority pay from 1 January 2019. 7.5 days of new seniority pay must be paid in each of June and December (being a total of 15 days per year) So First payment is still June 2019
- Hairy-nosed Otter
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[quote=Miguelito post_id=964430 time=1553664642 user_id=39241]
[quote="Hairy-nosed Otter" post_id=964274 time=1553579226 user_id=50.
"Says someone who has obviously spent zero time in a business." etc
Hey Mig, I am not sure on what basis you make your first statement - except maybe that I don't have a purely business-centric attitude to the economy. It is not correct by the way, but I will let it slide.
My main point, about "stinking to high heaven" was referring to the broken election bribe. Telling workers they would get a big bonus just before the election then rolling it back immediately after the election. Of course that stinks.
Yes it would have have a big fiscal impact on all business, especially to large employers - but it would have also been a huge stimulant to the economy which would have primarily benefitted small business. Economics 101. It is not correct to only state the negative impacts for big biz when discussing public policy - I leave that to the chamber of commerce.
But i fully agree that this sudden retrospective policy was a very very bad plan overall, I wasn't arguing for it. I don't actually think it was a policy at all actually - just a bribe never meant to be kept. "Willingness to negotiate" is just a cute way of the Gov and the Chamber of Commerce giving each other the big wink. Stinky stinky.
(Just to be clear - it was not me that went into the back pay calculations)
You and Playboy must really love my deeply boring posts - you just goaded me into another one. Bastards!
PS, any tips on self control for over-posters? I think I need help.
[quote="Hairy-nosed Otter" post_id=964274 time=1553579226 user_id=50.
"Says someone who has obviously spent zero time in a business." etc
Hey Mig, I am not sure on what basis you make your first statement - except maybe that I don't have a purely business-centric attitude to the economy. It is not correct by the way, but I will let it slide.
My main point, about "stinking to high heaven" was referring to the broken election bribe. Telling workers they would get a big bonus just before the election then rolling it back immediately after the election. Of course that stinks.
Yes it would have have a big fiscal impact on all business, especially to large employers - but it would have also been a huge stimulant to the economy which would have primarily benefitted small business. Economics 101. It is not correct to only state the negative impacts for big biz when discussing public policy - I leave that to the chamber of commerce.
But i fully agree that this sudden retrospective policy was a very very bad plan overall, I wasn't arguing for it. I don't actually think it was a policy at all actually - just a bribe never meant to be kept. "Willingness to negotiate" is just a cute way of the Gov and the Chamber of Commerce giving each other the big wink. Stinky stinky.
(Just to be clear - it was not me that went into the back pay calculations)
You and Playboy must really love my deeply boring posts - you just goaded me into another one. Bastards!
PS, any tips on self control for over-posters? I think I need help.
...then he smiled again, and slipped away, further on up the stream
- Playboy
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Actually, I would rather have one of your (usually erroneous) long boring posts, than the usual crying of clichés, such as 'It's corruption' or 'the rich are getting richer' or ' it must be money laundering' which everytime comes with zero thought or anything even remotely resembling evidence.You and Playboy must really love my deeply boring posts - you just goaded me into another one. Bastards!
(P.S - Of course it was an election bribe, all election promises are bribes to the electorate, and not just in Cambodia)
"We, the sons of John Company, have arrived"
- Hairy-nosed Otter
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"usually erroneous"Playboy wrote: ↑Thu Mar 28, 2019 7:38 amActually, I would rather have one of your (usually erroneous) long boring posts, than the usual crying of clichés, such as 'It's corruption' or 'the rich are getting richer' or ' it must be money laundering' which everytime comes with zero thought or anything even remotely resembling evidence.You and Playboy must really love my deeply boring posts - you just goaded me into another one. Bastards!
(P.S - Of course it was an election bribe, all election promises are bribes to the electorate, and not just in Cambodia)
(Fuck! I think he's onto me)
...then he smiled again, and slipped away, further on up the stream
- Playboy
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Latest update that I have seen:
Update on Prakas 443 - Payment of the Back Pay of Seniority Pay, provided by Auscham member, DFDL Cambodia
The Ministry of Labour and Vocational Training (“MLVT”) issued Guideline 042/19 on Payment of Back Pay of Seniority Pay prior to 2019 (“Back Pay”) for Enterprises outside of the Garment, Textile and Footwear Manufacturing Sectors on 22 March 2019 (“Guideline”).
The obligation for payment of Back Pay for enterprises outside of the garment, textile and footwear manufacturing sectors has been delayed to December 2021 and the number of days of Back Pay to be paid has been reduced from 15 days to six days per year, being three days in June and three days in December.
During the period of postponement, if an employee is terminated for any reason other than serious misconduct, retirement or death, the employer is required to provide all Back Pay. The Guideline clarifies that an employee who resigns or is terminated due to serious misconduct is not entitled to Back Pay.
While the Guideline confirms the delay in the payment of Back Pay, certain issues regarding the calculation of Back Pay remain unsettled, specifically the calculation of average daily actual wages prior to 2019, the inclusion of the probationary period in the calculation and the application of seniority payments to employees who convert from a fixed duration contract to an unfixed duration contract.
Notwithstanding the postponement of the obligation to provide Back Pay, there is no change to the regime for payment of new seniority pay from 1 January 2019. Employers outside of the garment, textile and footwear manufacturing sectors must comply with Prakas 443, meaning the 7.5 days of new seniority pay must be paid in each of June and December (being a total of 15 days per year).
Update on Prakas 443 - Payment of the Back Pay of Seniority Pay, provided by Auscham member, DFDL Cambodia
The Ministry of Labour and Vocational Training (“MLVT”) issued Guideline 042/19 on Payment of Back Pay of Seniority Pay prior to 2019 (“Back Pay”) for Enterprises outside of the Garment, Textile and Footwear Manufacturing Sectors on 22 March 2019 (“Guideline”).
The obligation for payment of Back Pay for enterprises outside of the garment, textile and footwear manufacturing sectors has been delayed to December 2021 and the number of days of Back Pay to be paid has been reduced from 15 days to six days per year, being three days in June and three days in December.
During the period of postponement, if an employee is terminated for any reason other than serious misconduct, retirement or death, the employer is required to provide all Back Pay. The Guideline clarifies that an employee who resigns or is terminated due to serious misconduct is not entitled to Back Pay.
While the Guideline confirms the delay in the payment of Back Pay, certain issues regarding the calculation of Back Pay remain unsettled, specifically the calculation of average daily actual wages prior to 2019, the inclusion of the probationary period in the calculation and the application of seniority payments to employees who convert from a fixed duration contract to an unfixed duration contract.
Notwithstanding the postponement of the obligation to provide Back Pay, there is no change to the regime for payment of new seniority pay from 1 January 2019. Employers outside of the garment, textile and footwear manufacturing sectors must comply with Prakas 443, meaning the 7.5 days of new seniority pay must be paid in each of June and December (being a total of 15 days per year).
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