Fixed-Duration Contracts Threaten Garment Industry

Cambodia’s garment sector is in danger of losing its reputation for adherence to international labor standards because of the widespread use of “abusive temporary labor contracts,” according to a report released by Yale Law School on Wednesday. “Cambodian garment manufacturers have adopted the practice of employing their regular, full-time workforce almost exclusively on temporary, fixed-duration contracts (FDCs) that are repeatedly renewed,” the report stated. Among the problems with FDCs were issues of annual leave, maternity leave and seniority bonuses, all of which workers can only access after a year at a company, said Moeun Tola, from the Community Legal Education Center’s labor project.