Cambodia

Fixed Duration Contracts: According to Cambodian Labor Law, a fixed duration contract may be terminated on one of the following three grounds without being entitled to severance pay:

• Mutual agreement - A termination by mutual agreement between the employee and the employer must be made in writing. Prior notice is not required.
• Serious misconduct - An employee can be terminated immediately if the employee commits an act of serious misconduct. The statutory deadline for employment termination on grounds of serious misconduct is seven days from the time the employer became aware of the employee's misconduct. Prior notice is not required.
• Force majeure - An unforeseen event of force majeure (like a flood or an earthquake) that prevents the worker from fulfilling their obligations under the FDC. Prior notice is not required in this instance.

The company must pay severance to the employee upon termination if none of the aforementioned reasons for the termination apply.

Undetermined Duration Contracts (UDC): Colombian employment law recognizes two grounds for terminating a UDC without notice and without payment of damages:

• Serious misconduct: An employee can be terminated immediately if the employee commits an act of serious misconduct. Termination for this reason must take place within seven days from the time the employer became aware of the employee's misconduct. Prior notice is not required.
• Force majeure: In the event of an uncontrollable situation (like a natural disaster) which prevents a worker from fulfilling their obligations under the UDC, the agreement can be terminated without prior notice.

Otherwise, a UDC can be terminated by either party provided:

• Due notice of the termination is given in writing and the employer has a valid reason for terminating the employee (examples includes deficiencies in the employee’s aptitude or behavior, or business operation requirements of the employer) and the employer will not have to pay damages in this case
• If the employer does not have a valid reason for terminating the employee, the employer can still terminate the employee so long as the employer pays applicable damages required by Cambodian law outlined below.

In Cambodia, the notice period is based on the employee's tenure with the employer:

• Up to 6 months of employment - 1 week's notice
• 6 months - 2 years of employment - 2 weeks' notice
• 2 - 5 years of employment - 1 month's notice
• 5 - 10 years of employment - 2 months' notice
• 10+ years of employment - 3 months' notice

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When hiring new employees, there is no requirement that probationary periods be offered. Employees in Cambodia are used to employers choosing to impose a probationary period, and they anticipate this.

The probationary period does have some stipulations if applied:

• Cannot last longer than three months for regular employees
• Two months for specialized workers
• One month for non-specialized workers

Depending on the level of professional abilities required by the specific job, it must be determined on a case-by-case basis whether a person qualifies as a specialized worker or not. The probationary period may be ended at any time during or after its intended duration without prior notification.

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According to Cambodian law, severance benefits are only necessary if an employee is fired without justification and depend on the specifics of the employment contract.

Employees under a fixed-term contract are entitled to:

• Severance Payment: A severance payment equal to at least 5% of the wages paid to the employee during the length of the contract. This is calculated by collecting the sum of the total wages, including bonuses, paid during the course of the contract. This sum is multiplied by 5% to determine the amount of the severance payment
• Unused Annual Leave: Unpaid annual leave through to the termination date must be paid out in full
• Other Benefits: Any other benefits agreed to between the employer and the employee in an employment contract, internal work rules, employee manual/HR handbook or collective bargaining agreement, if any.

The following compensation is also due to an employee whose employment is terminated prior to the contract's end date:

• Damages: Damages for being laid off before the expiration date should equal the wages the employee would have received had they completed the original contracted term.