The Instruction clarifies the following:
(1) a foreign national employer whose name appears on a patent tax certificate must have a work permit;
(2) a foreign national employee whose name appears on a patent tax certificate or who is a self-employed person must have a work permit; and
Based on the Instruction, a foreign national employer or employee whose name appears on a patent tax certificate is required to apply for a work permit, whether or not he/she works in Cambodia. Hence, the employee whose name appears on a patent tax certificate must be declared in as an employee and covered under a foreign employee quota approval and enter into an employment contract with the company in Cambodia.
We would like to highlight that failure to obtain a valid work permit for a foreign employee may give rise to a fine of up to KHR 12.6 million (approximately USD 3,150) per employee by the MLVT capped at KHR 63 million (approximately USD 15,750) and/or KHR 18 million (approximately USD 4,500) by the court. Additional sanctions, as imposed by the Labour Law, include terms of imprisonment from six days to one month.
For further detail, please refer to our article on annual labour compliance obligations: Annual Labour Compliance Obligations.
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