Newsletter: New Regulatory Framework for the Arbitration Council in Cambodia

PREAMBLE:

On April 13, 2026, the Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 098/26 on the Arbitration Council, repealing the long-standing Prakas No. 099 (2004). This marks a significant development in Cambodia’s labour dispute resolution mechanism, reshaping the role and structure of the Arbitration Council after more than two decades.  

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KEY PROVISIONS

A. Stricter Qualifications for Arbitrators

To enhance the quality and credibility of arbitral awards, the new Prakas introduces higher eligibility standards (Article 4):

• Minimum age of 28 years.
• A Bachelor of Laws or equivalent degree is mandatory.  
• Completion of a certificate program from the National Institute of Labour.  
• At least 5 years of legal experience, or 2 years in labor dispute resolution.
• Independence safeguards: candidates must not be civil servants, police, or military personnel, nor have served as enterprise owners, directors, or managers of professional organizations within the past two years.

These credential requirements aim to ensure that arbitrators possess both legal expertise and institutional independence, strengthening confidence in the Council’s decisions.

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2. Structural Expansion

The Arbitration Council has been expanded from a minimum of 15 members to at least 30 members, reflecting the growing demand for labour dispute resolution. Additionally, the Secretariat has been relocated to the 18th Floor, National Social Security Fund (NSSF) Head Office Building, Phum Samraong, Sangkat Khmuonh, Khan Sen Sok, Phnom Penh (Rule 1.1 of the Appendix).

This expansion underscores the government’s commitment to institutional capacity and accessibility.

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3. Jurisdiction & Validity of Awards

The Council has been broadened:

• It now has authority to resolve individual labour disputes as a first instance, particularly for employees with special legal protection under the Law on Trade Unions.
• Arbitral awards in interest disputes that substitute for Collective Bargaining Agreements are now valid for three years (previously one year).
• Awards are explicitly categorized as binding or non‑binding (Articles 33, 39, and 44).

This change provides greater stability for employers and employees, reducing the frequency of renegotiations and reinforcing the enforceability of awards.

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4. Key Deadlines to Remember

• Parties have eight calendar days to oppose a non-binding award after notification. 
• The Council must issue its award within 15 working days of receiving the case file (Article 34 and 36).
• Arbitrators appointed under the old Prakas who do not meet the new criteria will be designated as “Honorary Arbitrators,” without authority to resolve active cases (Article 45).

These deadlines emphasize efficiency and predictability, ensuring disputes are resolved within a clear timeframe.

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PRACTICAL IMPLICATIONS FOR EMPLOYERS

Employer and HR Professional should:

• Review internal labor dispute policies to align with the new three-year validity period for arbitral awards
• Update compliance procedures to reflect the eight-day opposition timeline.
• Anticipate a more professionalized arbitration process, with stricter qualifications for arbitrators.

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CONCLUSION

The issuance of Prakas No. 098/26 represents a major regulatory milestone in Cambodia’s labour law landscape. By strengthening arbitrator qualifications, expanding the Council’s structure, and extending the validity of awards, the MLVT has reinforced the Arbitration Council as a cornerstone of labour dispute resolution.

For employers, HR practitioners, and legal professionals, these changes demand proactive compliance and strategic adaptation to ensure smooth operations under the new framework.

Should you have any inquiries regarding the impact of these regulatory changes may affect your operations, or if you require representation before the Arbitration Council, please reach out to our legal team at ILAW Cambodia Law Office.

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Disclaimer: This newsletter is for informational purposes only and does not constitute legal advice.

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