The Ministry of Labour and Vocational Training (“MLVT”) issued Prakas No. 098/26 K.B/Br.K.V.K dated 13 April 2026 on the Arbitration Council (the “Prakas”). The Prakas updates the framework governing the composition, functioning, and procedures of the Arbitration Council, Cambodia’s specialized body for resolving labour disputes, and repeals the previous Prakas No. 208 SKBY dated 21 April 2004.
The Prakas takes effect from the date of signature.

Composition of the Arbitration Council
The Arbitration Council shall have a minimum of 30 members, appointed annually by the Minister of Labour and Vocational Training, with appointments made at least 14 working days before the end of the existing mandate. Members serve a one-year mandate and may be reappointed.
The members are drawn in equal thirds from three sources: one-third proposed by the MLVT, one-third proposed by the employers’ professional organization that is a permanent member of the Labour Advisory Committee, and one-third proposed by the workers’ professional organization that is a permanent member of the Labour Advisory Committee.

Composition of the Arbitration Panel
Each labour dispute is resolved by a dedicated arbitration panel of three members selected from the Arbitration Council: one arbitrator chosen by the employer party, one arbitrator chosen by the worker/union party, and one chairperson selected from the MLVT-proposed members by agreement of the two arbitrators selected by the parties.
Where the two arbitrators cannot agree on the selection of the chairperson, the secretariat of the Arbitration Council shall select the chairperson by a draw from the MLVT-proposed members. Separately, where the parties to the dispute cannot agree on the selection of the arbitrator they are entitled to nominate, the secretariat shall likewise select that arbitrator by a draw.
An award issued by an arbitration panel is considered an award of the Arbitration Council.

Jurisdiction
The arbitration panel renders decisions on individual disputes and collective labour disputes submitted to it after conciliation by a labour inspector or conciliator has resulted in non-conciliation, in accordance with Article 309 of the Labour Law.
The panel’s authority is limited to the issues contained in the report of non-conciliation. Within the scope of the Labour Law and the Prakas, the panel may order remedies including reinstatement of a dismissed worker, immediate payment of amounts due, immediate cessation of a strike or lockout, cessation of unlawful acts, and compensation for damages as appropriate.

Arbitration Proceedings
The language of the proceedings is Khmer; parties intending to use another language, or with non-Khmer-speaking witnesses, must arrange a qualified interpreter.
During the proceedings, the parties must suspend dispute measures such as strikes and lockouts.
The arbitration panel has broad authority to investigate the economic situation of the enterprise and the social conditions of the workers, to determine the admissibility and weight of evidence, and to examine witnesses. Members of the arbitration panel are bound by confidentiality and must withdraw where their impartiality or independence is in doubt.

Binding and Non-Binding Awards
The Prakas provides for two types of arbitral award: binding and non-binding.
A binding award becomes final and must be implemented immediately. For a non-binding award, each party may file an objection with the Minister of Labour and Vocational Training, via registered letter or other accepted means, within 8 calendar days of receiving notification of the award; if an objection is filed, the award cannot be enforced, and where the matter is a dispute over rights, the parties may bring the case to the competent court for final resolution.
A non-binding award becomes final if no objection is filed within this period. The objection mechanism does not apply where the parties have agreed in writing not to object before notification, or where they are bound by a collective agreement specifying non-objection.

Awards Relating to Interest Disputes
An arbitral award resolving an interest dispute replaces a collective agreement and has an effective duration of 3 years from the date it becomes final, unless the parties agree on a new collective agreement to replace it. Once final, the award is registered in accordance with the procedure for the registration of collective agreements and has the same effect as a collective agreement.

Enforcement
Where a party fails to comply with a final award, the other party may apply to the competent court for an execution order.
A final award may be rejected by the court only on limited grounds, including improper involvement of the parties in the selection of the arbitrator or in the proceedings, failure to follow the award-issuing procedures under the Labour Law, or an award that exceeds the authority granted by the Labour Law.

Transitional Provisions
As a first phase, the arbitration panel shall resolve individual disputes concerning rights related to individuals who receive special protection under the Law on Trade Union. The resolution of other individual disputes by the arbitration panel will be determined by a subsequent decision of the Minister of Labour and Vocational Training.

For Assistance
Employers operating in Cambodia should familiarise themselves with the updated arbitration framework, in particular the rules on panel selection, the distinction between binding and non-binding awards, and the 8-day objection period for non-binding awards.
Companies involved in, or anticipating, individual or collective labour disputes should consult with their legal advisors to understand their rights and obligations under the new Prakas.