I’ve posted before on how important it is for NGOs to comply with the Labor Law. The Post has a couple of stories this week (here and here) providing a perfect example of just how crucial it really is.
A local human rights NGO (having plenty of lawyers on staff), has been sued by three former employees, claiming over $20,000 in compensation under the Labor Law. I’m not involved in the case, and know nothing more than what the article states – it could be a frivolous claim for all I know. But even still, the story illustrates how former employees can come back to sue the organization for substantial damages.
Even the most generous and well-intentioned NGOs can find itself in serious difficulty if it’s not fully aware of some very specific and non-obvious provisions. Just for example, if you find out an employee has been stealing from the organization, you have only seven days to terminate him. Wait until the eighth day, and you’ll be stuck employing a known thief.
We’re currently drafting a guide to the labor law specifically for NGOs, which will explain the major provisions and provide practical advice on compliance. Stay tuned to this space for its release date. In the meantime, you can read more about compliance in our prior publication – Labor Law Compliance Review for NGOs.
Reposted from Cambodian Law Today
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Labor Law( May-26-2010 )
Several years ago I surveyed a number of groups in Siem Reap as I compiled a personnel manual.
It was surprising to find that some of the most established INGOs were technically in violation of the labor law.
It was a legal ruling that ousted the head of the Center for Social Development. Whether this was fair and appropriate was rather hotly discussed and debated in the NGO community. The apprehension was, (and is) that the legal system will be used as as an extension of ruling party political interests. Other NGOs such as those in the health and education sector are less concerned, as they usually have an established relationship with the government.
I'll be curious to see how the lawsuits play out - what legal staff argue the case; and who the state assigns for the hearing.
re: Labor Law( May-28-2010 )
Thanks for the insightful comments Jinja. I'd be surprised if any organization is fully in technical compliance with every one of the Labor Law's 400 articles. Some are completely impractical to comply with - for instance, foreigners can't account for more than 10% of staff, without special permission from the Ministry. That being said, there are a number of provisions that really do matter - they're possible to comply with, many organizations are, and violators risk being sued by unhappy employees.
I'd be interested to read the survey and manual you compiled, if it's not confidential. Please email me at info [at] bnglegal [dot] com