Logo of Phnom Penh Post newspaper Phnom Penh Post - Seniority payments postponed

Seniority payments postponed

Content image - Phnom Penh Post
Seniority payments for a large percentage of workers have been postponed until next year. Hong Menea

Seniority payments postponed

The Ministry of Labour and Vocational Training announced on Monday the postponement of seniority payments for workers prior to 2019 and new seniority payments for workers in 2020, opting to implement them next year instead.

The ministry also asked more than 25,000 workers in the garment and tourism sectors to withdraw their second round of subsidy money after losing work due to Covid-19.

The announcement, signed by Minister Ith Sam Heng specified that workers with fixed-term employment contracts in the textile and footwear industries will have their pre-2019 seniority payments postponed to next year as well.

It also said that 2020 seniority payments for workers in all sectors will be postponed to next year.

The announcement also said that during this postponement period, all factory owners and enterprises must pay workers their entire seniority payments if their contract is terminated.

However, if an employee’s contract is terminated due to serious misconduct or an employee resigns, he will not receive his seniority payment.

“The reason for the postponement is to contribute to the private sector and the workers most affected by the outbreak of Covid-19,” the ministry confirmed.

The ministry also announced to the 25,888 workers in the garment and tourism sectors that they can collect their second stage of government subsidies through Wings agencies.

The announcement said: “More than 25,000 workers from 67 garment and tourism businesses which have suspended operations due to Covid-19 [have been asked to collect their subsidies]”.

It said workers have 10 days from the moment they receive a text message from Wing (Cambodia) Limited Specialised Bank to withdraw their subsidies or their money will be returned to the government.

On Tuesday, ministry spokesman Heng Sour said the subsidy payments for the more than 20,000 workers were based on the number of days that the factory had suspended work.

In late May, the ministry requested more than 33,000 suspended garment and tourism workers from 111 factories and enterprises to withdraw their subsidy payments, which were divided into three parts.

If their work was suspended from seven to 10 days, workers are eligible for a 60,750 riel ($15) payment. Workers suspended from 11 to 20 days are eligible for a 121,500 riel and those suspended for 21 days to one month are eligible for 162,000 riel.

Centre for Alliance of Labour and Human Rights (Central) programme coordinator Khun Tharo told The Post on Tuesday that the government must have stronger measures in place to assist the workers.

“The impact could be long-term if there are no purchase orders and overseas stores are out of business. Therefore, the stability in orders and production depends on the evolution of global events.

“The government must consider that cash reserves must ensure that all workers are employed and the private sector is functioning properly,” he said.

He said if the impact lasts for too long, the government will need to look at borrowing money and finding development partners to ensure the survival of the country’s core industries.

The withdrawal of the EU’s Everything But Arms (EBA) scheme from Cambodia, he said, would also hurt the economy.

Tharo said he expects the government to offer subsidies to workers in other sectors as well, as every sector has been impacted by Covid-19.

Watch video:

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to