Cambodia: Workers protest to demand wages and job security following an abrupt closure of factory
"Nearly 700 Workers in Limbo After Bankruptcy Forces Poipet Factory To Close", 28 April 2026
Hundreds of workers protested … after ML Intimate Apparel (Cambodia) Ltd, a garment factory in Poipet, went bankrupt and closed down, leaving nearly 700 workers worried about their future employment as they await final wages and severance pay.
The workers took to the street outside the factory in Banteay Meanchey province after the company suddenly announced its closure without prior notice. However, the dispute was amicably resolved hours later.
According to the meeting minutes …, ML agreed to make wage and benefit payments in two phases to the workers. The first batch of payment consists of wages, set for April 28, while the remaining wages and benefits would be settled in the second phase on May 28.
Employees under fixed-duration contracts (FDC) would receive their final monthly wage, payment for unused annual leave, and a five percent contract completion bonus.
Workers under unspecified-duration contracts (UDC) would be paid their final salary, payment for unused annual leave, seniority indemnity for the first semester, and notice pay.
If the company is unable to pay workers’ wages and benefits on time, it will transfer its assets to the Labor Ministry for liquidation to settle payments to workers.
The company also agreed to continue paying National Social Security Fund (NSSF) contributions for nine pregnant workers until they give birth.
The meeting minutes stated that the workers “accepted the proposed resolution, agreed to maintain public order, and would not file further complaints”.
… Am Sam Ath, operations director of the rights group Licadho, said many Cambodians rely on jobs in the garment sector but continued factory closures could severely impact workers’ livelihoods, even more so as tens of thousands have recently returned from Thailand amid border tensions…