National Employment Policy 2015-2025

The Royal Government of Cambodia National Employment Policy 2015-2025 (Unofficial Translation) Approved by the Council of Ministers at the Plenary Meeting on 04 September 2015 The Royal Government of Cambodia National Employment Policy 2015-2025 (Unofficial Translation) Foreword The Royal Government of Cambodia (RGC) has been pursuing an appropriate policy direction in leading the country across different political and socio-economic challenges. This has allowed Cambodia to achieve a gradual development and to transform from the least developed economy with a high poverty rate to one of the most dynamic and highly potential economies in the region and the world. These socio-economic achievements, reflected by an annual economic growth rate of 7.7 per cent on average during the last two decades, have positioned Cambodia in the top sixth fast growing economy in the world. Its gross domestic product (GDP) - a measurement of national income or economic size - has increased at least sixfold, from US$2,480 million in 1993 to US$16,709 million in 2014. Cambodian per-capita GDP in turns reached US$1,123 in 2014, from just US$229 in 1993 while current revenues of the national budget grew by almost 29 times, from US$103 million in 1993 to around US$2,779 million in 2014. Cambodian economy has now entered another development stage, approaching a lower-middle income country and in the process of structural changes from being an agriculture-based country to be the industrial one. Under this circumstance, Cambodia needs to ensure an achievement of inclusive and sustainable economic growth which is fundamental to productive and decent employment opportunities as well as to speeding up poverty alleviation and livelihood improvement of Cambodian people. Rapid urbanisation along with fast growing trading and investment activities in urban areas have bolstered labour migration from countryside, especially in a demographic situation where abundant young labour force exists. Technical and vocational training would hence play a crucial role in this context to contribute high benefits to economic growth. Realising that labour sector and vocational training provide important support for institution responsible for coordination with other relevant ministries and institutions in designing action plan to achieve the set targets. On behalf of the RGC, I would like to express my sincere appreciation to the MoL VT for their efforts in developing this important policy document and my high appreciation to all other ministries, institutions, as well as employers, unions and development partners, especially the International Labour Organisation (ILO), the European Union, Swedish International Development Cooperation Agency (SIDA), and the Asian Development Bank (ADB) for their support and cooperation with the government to make this Policy materialise. I strongly believe that all relevant ministries, institutions and other stakeholders as well as development partners will continue to cooperate in a concerted effort to translate this Policy into actions in order to achieve the set goals and to contribute to the transformation of Cambodia to a higher income country with inclusiveness and sustainability. Phnom Penh, 5 October 2015 Prime Minister (Signed and sealed) Samdach Akka Moha Sena Padei Decho HUN Sen Table of contents 1. Introduction .................................................................................................................................. 1 2. Vision ............................................................................................................................................. 4 3. Goals and objectives .................................................................................................................... 4 3.1. Goals ...................................................................................................................................... 4 3.2. Objectives .............................................................................................................................. 4 4. Strategies ....................................................................................................................................... 5 4.1. Goal 1: To increase decent and productive employment opportunities ...................... 5 4.2. Goal 2: To enhance skills and human resource development ....................................... 7 4.3. Goal 3: To enhance labour market governance ................................................................ 9 5. Monitoring and Evaluation of the Implementation .............................................................. 12 6. Conclusions ................................................................................................................................. 13 Annex 1. Glossary .............................................................................................................................. 14 Annex 2. Policy Matrix ...................................................................................................................... 15 1. Introduction With the accomplishment of peace, national unity and political stability, the Cambodian economy has prospered in all sectors and has experienced structural changes, as reflected by a shift from an agriculture-dependent country to the one depending on the industrial sector. Cambodia is also becoming a middle-income country in the near future. Meanwhile, increased urbanisation along with fast growing trade and investment activities in urban areas have bolstered labour migration from the countryside. Especially, as the demography of the country is characterised by an abundant young labour force, providing this young labour force with vocational trainings would thus considerably contribute to economic growth by ensuring decent jobs that would improve livelihood, dignity and social harmony. Failure in such provision, however, would have social and political consequences that could hinder poverty reduction processes of the government. Responding to the changing socio-economic context aforementioned, the Royal Government of Cambodia in its fifth legislature of the National Assembly has launched the Rectangular Strategy Phase III for "growth, employment, equity and efficiency in Cambodia" in which more employment generation for Cambodian people is a priority among the four key strategic objectives. In the meantime, the government has also launched the Cambodia Industrial Development Policy 2015-2025 with a vision to promote changes and to upgrade industrial structures in Cambodia from labour-intensive to high-skilled industries by 2025. It aims to shift from a low-value added industries to the high-value added ones and to improve competitiveness and labour productivity. The achievement of this vision would contribute to the development of the national economy with high growth, sustainability and inclusiveness; employment generation for Cambodian people; value addition for the economy; and an increase in decent income for Cambodian people. In spite of these impressive successes, Cambodia has faced some challenges, particularly in improving people's incomes and productive job opportunities in rural areas, addressing the shortage of high quality and capable human resources to meet the needs of socio-economic development, and improving the national competitiveness. Moreover, socio-economic progress also brings about a new set of challenges in the labour market. To contribute to a successful implementation of the policy framework and strategies and to cope with the challenges above, the government has set out the National Employment Policy First, the majority of Cambodian people of both sexes are employed. In 2008, the employment­ to-population ratio of people aged 15 years and above stood at 80 per cent for men and 75 per cent for women, equivalent to more than three-quarters of the working-age Cambodians. In 2012, this ratio was 67 per cent (based on the Labour Force Survey 2012) and 84 per cent (based on Cambodia Socio-Economic Survey 2012), considering the population aged 15-64. Regardless of this achievement, it is crucial that the types of work people undertake need to be improved to secure incomes across seasons. Past growth in employment had largely occurred in the agricultural sector and in informal types of work. And past economic growth had been narrowly driven by construction, crops, garment and footwear, and tourism. Such limited sources of growth suggest that the work experiences and job-related skills that the labour force had been accumulating are also likely to be limited. As stipulated in the Rectangular Strategy Phase III, there is a recognized need to diversify the country's economic base, both within agriculture and beyond. Such diversification needs to be accompanied by active and promotional strategy to further develop and diversify the profiles of the country's labour force, in terms of skills and work experience. Second, much of the population is also young, with a consequence that the employed population is also young. Between 1998 and 2008, it has been estimated that around 230,000 joined the labour force every year. A slightly bigger magnitude of labour force entries has been estimated for the period up to 2015. And of those who joined the labour force, most became employed, with almost two-thirds of young people finding work in agriculture. Generally, most of the labour force starts work in the agricultural sector, then moves to industry and services sectors upon reaching a legal working age. In 2008, 68 per cent of the employed in industry were less than 30 years old, while the corresponding figures in agriculture and services were around 39 per cent. Some proportion of new labour force entrants are composed of youth who dropped out of compulsory education. Hence, on the one hand, preparing the future entrants to the dynamic and diversifying economy becomes critical; and on the other hand, there is a need to ensure that youth who are already in the labour force also have chances of developing and diversifying their skills and work experience. Third, low population density can seasonally make labour supply relatively short and necessitates investment to raise land productivity and increase in capital supply. Most ASEAN member states, other than Brunei Darussalam, Lao PDR, and Myanmar, have more people per square kilometre than in Cambodia. And much of this' scarce' labour in Cambodia has been concentrated in the agricultural sector, although some proportion of rural Fourth, continued and accelerating economic integration among ASEAN member states will bring new labour market challenges. While also bringing benefits, such economic integration process is very often accompanied by considerable uncertainty and adjustment costs in the labour market. Moreover, ASEAN Economic Community (AEC) 2015 envisages free movement of skilled labour in a limited number of occupations and some specific sectors; and it also requires anticipation whether more labour mobility would occur, especially semi­ skilled and low-skilled labour forces, due to demographic imbalance and different levels of socio-economic development of the ASEAN Member States. Adequate preparations are needed to manage potential negative impacts of freer trade and labour mobility on the domestic labour market and to grasp any new emerging economic opportunities. Along with labour market measures, social protection measures need to be in place to safeguard migrant workers and other labour force who would suffer unemployment or underemployment. Fifth, industrial development in labour-intensive sectors along with labour migration out of the country have put increasing pressure on domestic wages, which may quickly reduce national competitiveness. Investment is required in order to maintain the balance between wage increase and productivity growth. This in tum requires investments at the macro, enterprise and individual levels. The challenge is to constantly raise labour productivity at the individual level, which includes investment in education and vocational training and on-the­ job trainings. Sixth, industrial relations remains a big challenge in the labour market. Cambodia has made considerable progress in industrial relations in that a comprehensive labour law in compliance with international standards has been put in effect and freedom of association has been promoted. Development of institutional arrangement for labour conflict resolution has taken place, such as tripartite mechanism and off-court labour Arbitration Council. Nevertheless, challenges remain for effective nationwide mechanism for social dialogue. While Cambodia is trying to diversify its industrial base toward light manufacturing sectors, there is a need for robust and harmonious industrial relations that supports structural change and distributes benefits of economic growth between the workers and the employers. The challenges are numerous and not all of them can be addressed by the government policy alone. Effective delivery of the National Employment Policy 2015-2025 requires active participation and inputs from the social partners and the subnational administration. The Policy outlines the proposed actions and mode of implementation and monitoring the decent • can look forward to getting better jobs and earning opportunities in the future. 2. Vision The vision of this Policy is to improve livelihood and dignity of the people and social harmony by providing them with equal opportunities of decent and productive employment. 3. Goals and objectives The goals of the National Employment Policy are to provide a vision, a policy framework, strategies and policy measures, a coordinating framework, implementation, and arrangement of institutional mechanism promoting the development of employment sector, which eventually contribute to the achievement of the vision stated above. 3.1. Goals Goal 1: To increase decent and productive employment opportunities; Goal 2: To enhance skills and human resource development; Goal 3: To enhance labour market governance. 3.2. Objectives To achieve Goal 1 "To increase decent and productive employment opportunities", this policy sets out the following objectives: 1.1 To promote decent and productive employment opportunities in macroeconomic policy framework; 1.2 To promote decent and productive employment opportunities in the sectoral development policies; and 1.3 To promote decent and productive employment by enabling the transition of workers and economic unit from the informal to the formal economy, by ensuring the preservation and improvement of the existing livelihood during the transition. To achieve Goal 3 "To enhance labour market governance", this policy sets out the following objectives: 3.1 To strengthen information system and database of labour market; 3.2 To strengthen employment service effectiveness and expand outreach; 3.3 To improve conditions of work and protection of workers; 3.4 To harmonize industrial relations and strengthen wage-setting mechanisms; 3.5 To conduct a feasibility study to establish unemployment scheme; 3.6 To oversee and protect migrant workers in obtaining decent employment and skill recognition. 4. Strategies The underlying strategy of this Policy is to fill in gaps related to employment needs and increasing decent work opportunities so that objectives and actions can be implemented and achieved, and to promote decent work in specific sectors and localities within the broader national economic development policies. 4.1. Goal 1: To increase decent and productive employment opportunities In order to increase new opportunities for decent and productive employment, the government has to create an economic development environment which is conducive toward generation of such gainful activities. Hence, the implications of macroeconomic and sectoral development policies on labour market structure shall be assessed from decent and productive employment perspectives. The government will conduct a concrete study on macroeconomic, sectoral and enterprise policies by considering decent work perspective in order to ensure that those policies promote decent and productive employment creation. This National Employment Policy 2015-2025 is also in line with the goals and priorities of the Cambodia Industrial Development Policy 2015-2025. 4.1.1. Objective 1.1: To promote decent and productive employment opportunities in macroeconomic policy framework population at large, the government will regularly monitor and analyse its impact on the economy and decent employment opportunities. Measures: 1. Annually monitor and assess macroeconomic performance with regards to decent and productive employment opportunities. 2. Engage in policy dialogue through an inter-ministerial forum on the progress made to increase decent and productive employment in the country. 3. Set and monitor employment targets, including a separate target for men and women, which reflect quantity and quality of employment. 4. Build capacity and technical expertise of the inter-ministerial committee to set and regularly monitor employment targets. 4.1.2. Objective 1.2: To promote decent and productive employment opportunities in the sectoral development policies Development of sectors and diversification into new sub-sectors with high employment potentials generate large productivity gains. The sectoral development and diversification strategies produce very important role that this Policy needs to play: to ensure prioritization of sectors that have high employment potentials and the availability of adequately skilled workforce to support sectoral development. Implementation of strategies proposed under Rectangle II ("The Development of Physical Infrastructure") of the Rectangular Strategy Phase III heavily influences development of agriculture, industry, and services, including strengthening of the inter-linkages across sectors. Development and diversification of agriculture sector pursued under Rectangle I ("Promotion of Agriculture Sector") along with development of industrial and service sectors proposed under Rectangle II and III highly influence the creation of decent employment opportunities for Cambodian people. In particular, Industrial Development Policy (IDP), Agricultural Strategic Development Plan, and Small and Medium Enterprise Promotion Policy Framework have important implications for employment in the sub-sectors. Measures: 1 for hoth 4.1.3. Objective 1.3: To promote decent and productive employment by enabling the transition of workers and economic unit from the informal to the formal economy, by ensuring the preservation and improvement of the existing livelihood during the transition The businesses in the informal sector are defined as those without formal registration with the relevant competent authorities. The result of the Cambodia Economic Census 2011 shows that only 3.4 per cent (of total establishments of 505,134) registered with Ministry of Commerce; the rate is even lower, mostly at less than one per cent, for registrations with other ministries or agencies. The labour force in informal-sector businesses are mostly the vulnerable groups and in need of better conditions of employment. Transforming the informal sector businesses into formal ones can lead to more decent and productive employment opportunities, if appropriate measures are in place for business expansion. This objective is to be implemented in coordination with the relevant competent authorities. It also needs to coordinate with Goal 3 of this Policy. Measures: 1. Promote formal business registration by simplifying the registration process. 2. Raise awareness among the informal sector businesses on the benefits of registration. 3. Orientate informal and formal sector workers and employers on Labour Law and other related regulations. 4. Study, assess and disseminate employment, incomes and productivity implications of formalizing the informal sector businesses. 5. Provide incentives for those transforming their informal businesses into formal sector, with intention to encourage participation in decent employment creation. 6. Promote entrepreneurship. 4.2. Goal 2: To enhance skills and human resource development To diversify the economic base and produce high-value added outputs, the government needs to invest in skill development of Cambodia's current and future labour force. Skill shortages on "Capacity Building and Human Resource Development", particularly with side 1 "Strengthening and Enhancing Education, Science and Technology, and Technical Training". 4.2.1. Objective 2.1: To enhance and expand the development of soft skills To achieve economic development and diversification, Cambodian people should be equipped with technical and soft skills so that they will have enough capability to find jobs in both wage and self-employment and live in good living standards. Measures below are proposed to achieve this particular objective: Measures: 1. Ensure that trainees, students and workers are equipped with soft skills for their life­ long employment through education and TVET programmes. 2. Ensure that soft skills are mainstreamed in secondary school study curriculum, TVET programmes and entrepreneurship trainings. 3. Increase and spread short-course training programmes on soft skills for trainees, students and workers. 4. Promote and encourage the participation of public and private sectors in soft skill development programmes. 4.2.2. Objective 2.2: To improve the quality of, in compliance with national, international and ASEAN standards, and access to education and technical and vocational education and training (TVET) To ensure that Cambodian people are equipped with skills that are relevant and respond to market needs, it requires an enforcement of quality of education and TVET. Measures: 1. Improve national competency standards, testing and certification, and accreditation system in line with industry/ private sector standards by benchmarking with the ASEAN standards. 2. Strengthen connections and coherence between education and TVET policies as well as the Cambodia Industrial Development Policy 2015-2025. 3. Develop TVET Centres of Excellence and Competency Testing Centres in support of 9. Monitor and evaluate the effectiveness and efficiency of education and TVET. 10. Develop the National TVET Policy. 4.2.3. Objective 2.3: To improve relevance of education and TVET to labour market needs In order to respond to skills needs in the current and future sectors with large-scale investments, it requires establishment of m.echanism.s by which the labour force can obtain job-related skills, through participation and support from. the employers. Measures: 1. Develop sector-based approaches in education and TVET for higher-level skills in priority sectors (linked to Goal 1, objective 1.2 of this Policy). 2. Strengthen and promote connections between education and TVET providers with the private sector to reduce skill gaps. 3. To encourage work-based learning, promote intemship and apprenticeship. 4. Strengthen and further develop existing institutional mechanism. and create new mechanism. to allow for better and regular dialogue among the stakeholders of education and training. 5. Promote and encourage the private sector to play an active role in providing inputs to policy formulation, skills development, training delivery, and financing training. 6. Develop mutual recognition of skills program.me within ASEAN. 7. Conduct research and development (R&D) on new technologies. 8. Monitor and evaluate the relevance to the labour market of education and TVET. 4.3. Goal 3: To enhance labour market governance The governance of the labour market occurs through development of labour market institutions and services, and this Policy is intended to strengthen these institutions and services. 4.3.1. Objective 3.1: To strengthen information system and database of labour market Labour market information is the most basic piece of input necessary to overcome skills and spatial m.ism.atch. A good labour market information system. requires collection, analyses and 4. Regularly conduct annual analyses of the labour market information obtained from national and supplementary data sources. 5. Disseminate the results of the analyses to different target audiences (including policy makers, job seekers, employers, and youth). 6. Strengthen capacity of responsible institutions on data collection, management and analyses. 4.3.2. Objective 3.2: To strengthen employment service effectiveness and expand outreach An important means of improving the functioning of the labour markets is through effective delivery of employment services. The services include assistance to job search and placement, counselling, and implementation of other labour market programmes. These services can contribute to meeting the employment needs in the priority sub-sectors. The present network of job centres in the country will be strengthened through the following measures. Measures: 1. Strengthen the delivery of employment services. 2. Strengthen guidance for different target groups on career, vocational and employment, in coordination with relevant stakeholders. 3. Facilitate matching of job seekers and employers' needs in the priority sub-sector(s). 4. Regularly conduct national and local employment fora to bring together job seekers and employers. 5. Strengthen networks among education and TVET institutions, employers, and job seekers. 6. Establish additional job centres. 7. Raise awareness among job seekers and employers on the services provided by the job centres. 8. Allow private companies to provide domestic recruiting services. 4.3.3. Objective 3.3: To improve conditions of work and protection of workers Measures: 1. Strengthen labour inspection mechanism. 2. Develop database of enterprises for monitoring conditions of work (and employees). 3. Study the possibility of ratifying relevant conventions that are applicable to the Cambodian context. 4. Amend the Labour Law. 5. Strengthen coordination with relevant stakeholders. 6. Expand coverage of social protection, in line with the Social Protection Strategy within the Framework of Social Protection Development Strategy; and improve occupational safety and health at workplaces. 4.3.4. Objective 3.4: To harmonize industrial relations and strengthen wage-setting mechanisms Organization, representation and social dialogue lie at the core of decent work and good labour market governance. Harmonious industrial relations through constructive social dialogue and collective bargaining contribute to further development of both formal and informal sectors of the economy and the labour force. Efforts should be made to improve the representativeness of trade unions through, inter alia, addressing unfair labour practices by both unions and employers, including anti-union discrimination. Greater efforts need to be made to promote the effective recognition of the right to collective bargaining. Continued support for the Arbitration Council and Labour Advisory Committee will be vital for the emergence of harmonious industrial relations in the future. Measures: 1. Review and assess legal and regulatory framework, including the Labour Law 1997, with a view to ensuring a harmonious and representative industrial relations, in line with ratified ILO conventions. 2. Strengthen the Arbitration Council and the Labour Advisory Committee to be more effective in its consultation process, in line with international standards. 3. Build a more robust and evidence-based wage-setting system, including through an annual review of minimum wages. 4. Strengthen labour dispute settlement mechanism and create the Labour Court. 5. Develop capacity on the system of representation and collective bargaining at Measures: 1. Conduct feasibility assessment on establishing an unemployment scheme in line with the Framework of Social Protection Development Strategy. 2. Increase awareness among stakeholders on the cost and benefits of unemployment scheme. 3. Conduct initial stakeholder consultations on unemployment scheme. 4.3.6. Objective 3.6: To oversee and protect migrant workers in obtaining decent employment and skill recognition In line with the strategic priorities of the Policy on Labour Migration for Cambodia 2014, provide support to Objective 3 "reviewing and harnessing benefits obtained from labour migration for development", in particular upon return of the migrant workers to the country and their re-integration processes. Measures: 1. Governance of labour migration. 2. Protect and empower migrant workers. 3. Strengthen service provision for social and economic reintegration for returned migrants, as proposed in strategy 3 (harnessing labour migration for development) of the Labour Migration Policy launched in 2014. 4. Improve information management system on migrant workers sent abroad and those who have returned. 5. Enforce and promote the implementation of the Labour Law, Immigration Law and other regulations related to the management of foreign manpower who come to work in Cambodia. 5. Monitoring and Evaluation of the Implementation In order to ensure constant progress, effectiveness and consistency of policy implementation, the Royal Government of Cambodia (RGC) mandates the Ministry of Labour and Vocational Training (MoL VT) as its secretariat responsible for coordination, monitoring and evaluation of the implementation of the National Employment Policy 2015-2025. outcomes and outputs, as well as a budget required to attain them. Budget sources for implementing this Policy can be from the government, the International Labour Organisation (ILO), development partners, and employers. 6. Conclusions The National Employment Policy 2015-2025 is a government's roadmap to develop labour market institution and to ensure decent and productive employment opportunities for all Cambodian people. This Policy is an appropriate and timely measure to reap benefits of the current demographic situation in Cambodia where there are abundant young and dynamic labour forces in the context of highly diversified economy; and to equip Cambodian youth with high quality work experience and proper workplace organization that transform them into capable workforce that support sustainable and inclusive economic development. The Policy contains comprehensive measures that embrace three broad goals of labour market system (1) to increase decent and productive employment opportunities, (2) to enhance skills and human resource development and (3) to enhance labour market governance. With this Policy, the government is determined to move Cambodia to a higher level of development through providing better education and skills for better employment opportunity with ultimate outcome that Cambodian people enjoy shared prosperity, have high income and good living in a harmonious society. Annex 1. Glossary No. Keyword Explanation 1. Productive A job which provides a good opportunity in self-development and employment generates income that permits the worker and his/her family a level of consumption above the poverty line. 2. Productivity Ratio of output for a given set of inputs (labour, capital, land, input materials) in a specific period. 3. Labour Ratio of output per labour in a specific period (e.g. per hour). productivity 4. Inclusiveness Inclusion of all stakeholders or equitable distribution of economic gains. 5. Diversification Increasing the types of economic activities or sectors. 6. Informal Economic activities which are mostly family-based and have no official economy registration. 7. Dynamism Full of energy (both at present and future) or having strength over time. 8. Unemployment Having no jobs, actively seeking for a job and/ or available if offered one. 9. Industrial relation Collective relations between employers and employees, between employers and trade unions, or between employers, unions and the government. 10. Goal A statement showing the overall intended achievement at the aggregate level. There can be many objectives under one goal. 11. Objective A statement showing the intended achievement at the more disaggregated level, which is an integral part of the goal. Under one objective, there can be many implementing strategies or measures. 12. Migration Moving from one location or a country to another. 13. Migrant worker Person who moves from one location or a country to another for employment reasons. 14. Decent Benefits obtained from working, including decent income level, employment opportunities for self-development (in the career path), in good working outcomes conditions, etc. 15. Unemployment Public services to provide benefits during spells of unemployment. scheme Benefits may be based on unemployment insurance system. 16. Soft skills Competencies/skills other than technical (including ethic, communication, teamwork, etc.) 14 Annex 2. Policy Matrix Goals and Objectives Measures Target Year Responsible Institution Goal 1: To increase decent and productive employment opportunities Objective 1.1: To promote 1. Annually monitor and assess macroeconomic performance with 2016-2025 - MEF NBC decent and productive regards to decent and productive employment opportunities. -SNEC employment opportunities in - ECOSOCC macroeconomic policy - CDC MoP framework 2016 - 2025 - MoLVT 2. Engage in policy dialogue through an inter-ministerial forum on -NEA the progress made to increase decent and productive -SNEC employment in the country. - ECOSOC CDC 3. Set and monitor employment targets, including a separate 2016-2025 - MoLVT NEA target for men and women, which reflect quantity and quality of - CDC employment. - MEF 4. Build capacity and technical expertise of the inter-ministerial 2016-2025 - MoLVT MEF committee on NEP to set and regularly monitor employment targets. Objective 1.2: To promote 1. Assess the employment needs for both males and females at the 2016 - 2025 - MoP MoLVT decent and productive sectoral and sub-sectoral levels -NEA employment opportunities in -MoWA CDC 15 Goals and Objectives Measures Target Year Responsible Institution the sectoral development 2. Identify priority sub-sectors with high employment potentials. 2016 - 2025 - MoP policies -MoC MAFF MoT MIH CDC 3. Promote employment in the priority sub-sector(s) through 2016 - 2025 - MoLVT NEA enterprise development and support to SMEs in both urban and - MIH rural areas. - CDC MRD MAFF 4. Encourage domestic investment and FDI in priority sub-sectors 2016 - 2025 -MoC MEF which have high employment potentials. - CDC MAFF 5. Coordinate with proposed activities under Goal 2 and 3, to fill 2016 - 2025 - MoLVT the potential employment needs. Objective 1.3: To promote 1. Promote formal business registration by simplifying the 2016-2025 -MoC MIH decent and productive registration process. employment by enabling the 2016-2025 -MoC transition of workers and 2. Raise awareness among the informal sector businesses on the - MIH economic unit from the benefits of registration. informal to the formal economy, 3. Orientate informal and formal sector workers and employers on 2016-2025 - MoLVT by ensuring the preservation Labour Law and other related regulations. 16 Goals and Objectives Measures Target Year Responsible Institution and improvement of the 4. Study, assess and disseminate employment, incomes and 2016 - 2025 - MIH existing livelihood during the productivity implications of formalizing the informal sector transition businesses. 5. Provide incentives for those transforming their informal 2016 - 2025 - MIH businesses into formal sector, with intention to encourage participation in decent employment creation. 6. Promote entrepreneurship. 2016 - 2025 - MoLVT MIH MoEYS MoC Goal 2: To enhance skills and human resource development Objective 2.1: To enhance and 1. Ensure that trainees, students and workers are equipped with 2016 - 2025 - MoLVT MoT expand the development of soft soft skills for their life-long employment through education and skills TVET programmes. 2. Ensure that soft skills are mainstreamed in secondary school 2016 - 2025 - MoEYS study curriculum, TVET programmes and entrepreneurship trainings. 3. Increase and spread short-course training programmes on soft 2016-2025 - MoLVT MoEYS skills for trainees, students and workers. -MoT 4. Promote and encourage the participation of public and private 2016-2025 - MoLVT MoEYS sectors in soft skill development programmes. 17 Goals and Objectives Measures Target Year Responsible Institution Objective 2.2: To improve the 1. Improve national competency standards, testing and 2016 - 2025 - MoLVT MoT quality of, in compliance with certification, and accreditation system in line with national, international and industry/ private sector standards by benchmarking with the ASEAN standards, and access ASEAN standards. to education and technical and 2016 - 2025 - MoLVT vocational education and 2. Strengthen connections and coherence between education and - MoEYS training (TVET) TVET policies as well as the Cambodia Industrial Development Policy 2015-2025. 3. Develop TVET Centres of Excellence and Competency Testing 2016 - 2025 - MoLVT MoT Centres in support of priority skills and occupations. 4. Provide bridging programme to allow students to re-enter 2016 - 2025 - MoLVT MoEYS education and TVET. 5. Increase accessibility of education and TVET schemes for 2016-2025 - MoLVT MoEYS disadvantaged groups ( drop outs, poor people, orphans, people with disabilities, etc.). 6. Enhance second chance education schemes to adult population. 2016 - 2025 - MoEYS 7. Increase the supply and enhance quality of teachers who have 2016-2025 - MoLVT MoEYS adequate knowledge and experience. -MoT 8. Strengthen the institutional quality and increase the number of 2016-2025 - MoLVT MoEYS education and TVET institutions. -MoT 18 Goals and Objectives Measures Target Year Responsible Institution 9. Monitor and evaluate the effectiveness and efficiency of 2016 - 2025 - MoLVT MoEYS education and TVET. -MoT Other related ministries and institutions 10. Develop the National TVET Policy. 2016 - 2025 - MoLVT MoEYS Other related ministries and institutions Objective 2.3: To improve 1. Develop sector-based approaches in education and TVET for 2016 - 2025 - MoLVT MoEYS relevance of education and higher-level skills in priority sectors (linked to Goal 1, objective TVET to labour market needs 1.2 of this Policy). 2. Strengthen and promote connections between education and 2016 - 2025 - MoLVT MoEYS TVET providers, with the private sector to reduce skill gaps. 3. To encourage work-based learning, promote internship and 2016-2025 - MoLVT MoEYS apprenticeship. 4. Strengthen and further develop existing institutional 2016-2025 - MoLVT NEA mechanism and create new mechanism to allow for better and - MoEYS regular dialogue among the stakeholders of education and training. 19 Goals and Objectives Measures Target Year Responsible Institution 5. Promote and encourage the private sector to play an active role 2016 - 2025 - MoLVT NEA in providing inputs to policy formulation, skills development, - MoEYS training delivery, and financing training. 6. Develop mutual recognition of skills programme within 2016 - 2025 - MoLVT Other related ASEAN. ministries and institutions 7. Conduct research and development (R&D) on new 2016 - 2025 - MoEYS MoLVT technologies. - MIH MoP 8. Monitor and evaluate the relevance to the labour market of 2016 - 2025 - MoLVT NEA education and TVET. - MoEYS Goal 3: To enhance labour market governance Objective 3.1: To strengthen 1. Conduct annual labour force survey regularly. 2016 - 2025 - MoP information system and 2016-2025 - MoLVT database of labour market 2. Broaden and emich labour market information database. -NEA CDC MoP 3. Enforce existing regulations on data collection and compilation 2016-2025 - MoLVT NEA of labour market information with relevant stakeholders. 20 Goals and Objectives Measures Target Year Responsible Institution 4. Regularly conduct annual analyses of the labour market 2016 - 2025 - MoLVT NEA information obtained from national and supplementary data sources. 5. Disseminate the results of the analyses to different target 2016 - 2025 - MoLVT audiences, including policymakers, jobseekers, employers, and youth. 6. Strengthen capacity of responsible institutions on data 2016 - 2025 - MoP MoLVT collection, management and analyses. Objective 3.2: To strengthen 1. Strengthen the delivery of employment services. 2016 - 2025 - MoLVT Other related employment service ministries effectiveness and expand 2. Strengthen guidance for different target groups on career, 2016-2025 - MoLVT outreach - Other related vocational and employment, in coordination with relevant ministries and stakeholders. institutions 3. Facilitate matching of jobseekers and employers' needs in the 2016 - 2025 - MoLVT NEA priority sub-sector(s). 4. Regularly conduct national and local employment fora to bring 2016 - 2025 -NEA together jobseekers and employers. 5. Strengthen networks among education and TVET institutions, 2016 - 2025 - MoLVT MoEYS employers, and jobseekers. -NEA 21 Goals and Objectives Measures Target Year Responsible Institution 6. Establish additional job centres. 2016 - 2025 -NEA 7. Raise awareness among jobseekers and employers on the 2016 - 2025 -NEA services provided by the job centres. 8. Allow private companies to provide domestic recruiting 2016 - 2025 - MoLVT services. Objective 3.3: To improve 1. Strengthen labour inspection mechanism. 2016 - 2025 - MoLVT conditions of work and 2016 - 2025 - MoLVT protection of workers 2. Develop database of enterprises for monitoring conditions of work (and employees). 3. Study the possibility on ratifying relevant conventions that are 2016 - 2025 - MoLVT applicable to the Cambodian context. 4. Amend the Labour Law. 2016 - 2025 - MoLVT 5. Strengthen coordination with relevant stakeholders. 2016 - 2025 - MoLVT 6. Expand coverage of social protection, in line with the Social 2016-2025 - CARD MoLVT Protection Strategy within the Framework of Social Protection - MIH Development Strategy; and improve occupational safety and - Other related health at workplaces. ministries and institutions 22 Goals and Objectives Measures Target Year Responsible Institution Objective 3.4: To harmonize 1. Review and assess legal and regulatory framework, including 2016 - 2025 - MoLVT industrial relations and the Labour Law 1997, with a view to ensuring a harmonious strengthen wage-setting and representative industrial relations, in line with ratified ILO mechanisms conventions. 2. Strengthen the Arbitration Council and the Labour Advisory 2016 - 2025 - MoLVT Committee to be more effective in its consultation process, in line with international standards. 3. Build a more robust and evidence-based wage-setting system, 2016 - 2025 - MoLVT including through an annual review of minimum wages. 4. Strengthen labour dispute settlement mechanism and create the 2016 - 2025 - MoLVT MoJ Labour Court. 5. Develop capacity on the system of representation and collective 2016 - 2025 - MoLVT bargaining at different levels (national, sectoral, enterprise). Objective 3.5: To conduct a 1. Conduct feasibility assessment on establishing an 2016 - 2025 - MoLVT feasibility study to establish unemployment scheme in line with the Framework of Social unemployment scheme Protection Development Strategy. 2. Increase awareness among stakeholders on the cost and benefits 2016 - 2025 - MoLVT of unemployment scheme. 23 Goals and Objectives Measures Target Year 3. Conduct initial stakeholder consultations on unemployment 2016 - 2025 scheme. Objective 3.6: To oversee and 1. Governance of labour migration. 2016- 2025 protect migrant workers in obtaining decent employment 2. Protect and empower migrant workers. 2016 - 2025 and skill recognition 3. Strengthen service provision for social and economic 2016 - 2025 reintegration for returned migrants, as proposed in strategy 3 (harnessing labour migration for development) of the Labour Migration Policy launched in 2014. 4. Improve information management system on migrant workers 2016 - 2025 sent abroad and those who have returned. 5. Enforce and promote the implementation of the Labour Law, 2016 - 2025 Immigration Law and other regulations related to the management of foreign manpower who come to work in Cambodia. Note: CARD ECOSOCC MEF Council for Agricultural and Rural Development Economic, Social and Cultural Council CDC MAFF MFAIC MoC Council for the Development of Cambodia Ministry of Agriculture, Forestry and Fisheries MIH MoEYS MoJ MoP MoT MRD NEA Ministry of Economy and Finance Ministry of Industry and Handicraft Ministry of Education, Youth and Sports Ministry oflustice Ministry of Planning Ministry of Tourism Ministry of Rural Development National Employment Agency MoI MoLVT MoSAVY MoWA NBC SNEC 24 Ministry of Foreign Affairs and International Cooperation Ministry of Commerce Ministry of Interior Ministry of Labour and Vocational Training Ministry of Social Affairs, Veterans and Youth Rehabilitation Ministry of Women Affairs National Bank of Cambodia Supreme National Economic Council Responsible Institution MoLVT MoLVT Mol MFAIC MoLVT Mol MFAIC MoLVT MoWA MoSVY MoLVT MoLVT Mol MFAIC