The MoLVT's latest notification not only provides crucial guidelines for employers on the statutory compensations owed to employees upon the termination of employment contracts but also empowers them with a comprehensive understanding of their obligations. 

This move aims to streamline the existing framework and ensure greater transparency in handling employment terminations.

Compensation in Standard Termination Cases:

For Fixed Duration Contracts , the compensation includes:

• Unpaid wages
• Remuneration for unused annual leave
• An end-of-contract remuneration of at least 5 per cent of the total wages paid during the contract's term
• Additional compensation equates to the salary that the worker would have earned until the contract's scheduled end

For Undetermined Duration Contracts , employees are entitled to:

• Unpaid wages
• Compensation for unused annual leave
• Payment in lieu of prior notice if the employer fails to provide the legally required notice
• Remuneration for any semester during which the employee is terminated, plus any unpaid seniority remuneration due
• Severance pay equal to the seniority allowance received throughout the employment term

Bankruptcy Specifics:

In the event of bankruptcy, the compensation structure for both FDC and UDC remains similar to the standard termination scenario, covering unpaid wages, annual leave remuneration, and end-of-contract remuneration. However, it's crucial to note that bankruptcy cases do not warrant additional compensation for potential harm to honour or dignity, as the termination does not inherently suggest incompetence or lack of productivity.

This detailed specification in the notification is particularly significant for employers as it outlines their obligations clearly and underscores the urgency of meticulous compliance to avoid legal repercussions and maintain fairness in labour practices.

Moreover, while the new rules provide clarity, the distinction made in bankruptcy scenarios highlights a nuanced understanding of the different impacts of termination reasons on employees.

The notification is a development for both employers and employees in Cambodia. It provides clear guidelines that help protect employee rights while giving employers a definitive framework for managing terminations.