Labour Ministry secures benefits and new jobs for 2,500 garment workers after factory closure

PHNOM PENH, July 22, 2026 (KPT) – A spokesman of Ministry of Labour and Vocational Training said Wednesday it has successfully managed the closure of a garment factory employing more than 2,500 workers, ensuring they receive full legal benefits, enhanced welfare support for vulnerable employees and immediate access to new job opportunities.

The ministry said the shutdown of Hi‑Tech Apparel (Cambodia), which employed 2,532 workers, was coordinated through negotiations involving labour officials, local authorities, trade unions and the employer. The agreement was accepted by both workers and union representatives.

Labour Ministry spokesperson Sun Mesa said affected workers will receive their final salary, compensation for unused annual leave, payment in lieu of notice and seniority indemnity for the second half of 2026 equivalent to 7.5 days’ wages.

In addition to statutory entitlements, the ministry secured benefits exceeding legal requirements for pregnant workers and employees with young children. Pregnant workers will continue to have their National Social Security Fund contributions paid until childbirth and receive 50 percent of their wages for 90 days, regardless of whether they start new employment or remain at home. Workers with children aged 18 to 36 months will also receive an additional US$5 per month.

Mesa said protecting workers’ rights and securing new jobs remain the ministry’s top priorities. He acknowledged factory closures are part of the business cycle but stressed the government seeks to minimize the impact by safeguarding livelihoods and facilitating swift re‑employment.

Workers began confirming compensation claims on July 21, with payments expected within 48 hours. The ministry has coordinated with factories in neighboring provinces to recruit displaced workers immediately, noting more than 92,000 job vacancies nationwide.

Mesa added that the ministry will continue monitoring payments and supporting workers’ transition, underscoring its commitment to labour rights and confidence in Cambodia’s job market.