.webp){kind=small}
How to hire remote employees in
Hiring remotely in another country is normally difficult—the labor laws are different and you haven’t established a physical presence, so you’ll need to rethink the way you approach hiring. Bottom line is, you’ve got two options—we’ll cover them below.
If you want to successfully hire in
Cambodia
, you have two options:
Laws about hiring contractors are significantly more simple in
Cambodia
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Cambodia
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Cambodia
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Cambodia
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Cambodia
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Cambodia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Cambodia.
PTO is calculated by the:
There are 15 public holidays.
Employees are entitled to up to 6 months of sick leave per year as long as they are able to provide a medical certificate.
The employee will receive 100.00% of their regular salary rate for the first month of sickness, the two months that follow are paid at 60.00%, and the remainder of the leave is unpaid.
An employer holds the right to dismiss an employee following more than six months of sick leave.
Maternity leave is 90 days and the woman is entitled to 50% of their pay.
There are no provisions in the law regarding paternity leave.
Parental leave falls under special leave.
Special leave– Employees are entitled to up to 7 days per event for matters that affect an immediate family member.
An employee is entitled to 7 days of unpaid leave in the event of their wedding.
In the event of the death of an immediate member, an employee is entitled to bereavement leave.
For the death of a father, mother, spouse, or child, an employee is entitled to seven days of unpaid leave.
Fixed-term contracts- If the employer and employee agree, a fixed-term contract can be terminated before the end date. To do so, both the employee and employee must sign an agreement in front of a labor inspector. If one of the parties does not agree, the employment contract cannot be terminated unless for reasons of gross misconduct or force majeure.
Indefinite employment contracts- Written notice must be given. If the employer initiates the dismissal, then just cause must be provided. The employer must notify the Ministry of Labor
Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.
The notice period in Cambodia is based on the duration of employment as well as the type of employment contract:
For indefinite employment contracts:
Fixed-Term Contracts:
During the notice period, the employee is entitled to 2 days’ paid leave per week for the purpose of looking for employment.
The Severance Pay in Cambodia:
If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.
The probation period varies depending on the skill level of the employee:
A standard full-time workweek is 48 hours.
Overtime is paid at the rate of 150% of the regular pay.
For overtime between 10 PM and 5 AM, the pay rate is 200%.
.png)
Book a demo to get started.
