Employment Contract

Instructor: Neov Thinh

Employment Contract

What is a Contract ?
 Forming a Contract
 Valid Contract
 Termination of a Contract
 What is an Employment Contract?
 Type of Employment Contract
 Termination of Employment Contract
What is a Contract

Article 1 of Degree-Law No. 38

A contract is an agreement between two or more
persons to create, change or terminate one or
more obligations which bind them.
 In the above definition, a person may be a natural
person or a legal entity. A legal entity  can enter
into a contract  through his/her own
representative.
Forming A Contract

Written Contract
 Oral
Article  4:
 Contracts can be made  orally  or in writing . The law
shall set up precise formalities in making a contract.
Every contract not consistent with the formalities
fixed by law shall be deemed void. Except where
there is any provision to the contrary, contracts
involving money, or item(s) worth more than five
thousand Riels must be in writing.
Offer and Acceptant
 In England, a contract, whether verbal or written, must follow
some basic principles in order to be formed:
 There must be an offer by a party to enter into a contract on
certain, specific terms.
 The offer must be accepted – with no variation of the terms of
the offer – and then communicated (although certain actions
can be considered acceptance). If there is a variation, then
this becomes a counter offer, which itself must be accepted.
 There must (in most cases) be consideration, so something in
exchange for what is being offered.
 There must be an intention to create legal relations. Without
intention, there cannot be a contract.
Valid Contract

 Offer and Acceptance

 Formality
 Freewill Agreement / Real Agreement
 Legal Purpose
 Capacity of parties
 Consideration
Offer and Acceptance


An offer is an open call to anyone wishing to
accept the promise of the offeror and
generally, is used for products and services.
 Acceptance occurs when an offeree agrees to
be mutually bound to the terms of the
contract by giving consideration, or something
of value like money, to seal the deal.
Valid Contract in Degree Law No. 38
Article  3:
A contract is valid provided that it:
 arises out  of  a real and free agreement.
 ismade by parties who have capacity to
enter into a contract.
 has a subject  matter that is certain,
possible to perform, lawful, and consistent
with public order and good customs.
Consideration

This requirement basically means

each party must do must do or
agree to do something he or she
did not have to do before
voidness of contracts.

Article 5:
The following contracts shall be deemed void when
 itis illegal, and not consistent with public order
or good customs.
 itis contrary to social interests or violating
social  ethics.
a contract whose subject matter is impossible to
perform.
voidness of contracts.

Article  6:
The following contracts shall be
deemed voidable  when
it is not resulting from a real or free
agreement
a contract made by a party lacking
capacity to contract.
 voidness of contracts.

Article  7: An agreement that is the result of mistake,
duress, or fraud is not a valid agreement.
 Article  8: Mistake shall be a ground for avoiding a contract
if there is mistake as to substance of the object which is
the subject  matter of the contract. Mistake as to person
can not be a ground for avoiding  a contract except where
the identity of the person is the basis of the contract.
 Article  9: Violence is a ground for avoiding a contract if
such violence is in the form of mental or physical duress
against a party to the contract, his/ her husband or wife,
any ascendants, or any descendants of the party.
Employment Contract
Article 65 of labour law:

A labor contract establishes working relations between
the worker and the employer. It is subject to common
law and can be made in a form that is agreed upon by
the contracting parties.
 It can be written or verbal. It can be drawn up and
signed according to local custom. If it needs registering,
this shall be done at no cost.
Type of Employment Contract


Fixed Duration Contract ( FDC)
 Unfixed Duration Contract
( UDC)
Three criteria of employment contract


Employee agree to provide labor force for
the employer
 Employer agree to provide wage for the
employee
 Employee agree to follow the leadership of
the employer
Fixed Duration Contract


A contractual relationship between an
employer and an employee that lasts for a
specific period.
Written Contract
 no more than two years term
Unfixed Duration Contract

 Articile 67:
 Both parties agree upon without setting specific
ending date
 Both parties agree upon , setting a specific
ending date but this duration is more than 2 years
 In case a FDC continues quietly ( without
notice) and the total duration of the previous
contract and the new contract exceeds two years
Termination of UDC

 Have a valid reason concerning the attiude of

worker or according to the necessity of the
enterprise’s operation ( article 74)
 Must fulfill an obligation to give notice in
writing to the dismissed worker ( article 75)
 The employer is not required to give notice in
case the employee commit serious misconduct
( article 82)