ANANT Law Firm

On 13 April 2026, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas No. 098 on the Arbitration Council (“Prakas No. 098”), replacing Prakas No. 099 dated 21 April 2004.

Prakas No. 098 aims to align the Arbitration Council framework with the 2021 amendments to the Labour Law and further strengthen Cambodia’s labour dispute resolution mechanism.

The key developments under Prakas No. 098 are summarised below:

1. Expansion of Arbitration Council Jurisdiction to Individual Labour Disputes

One of the most significant developments is the expansion of the Arbitration Council’s jurisdiction beyond collective labour disputes to include certain individual labour disputes.

Individual labour disputes may be referred to the Arbitration Council where:

• Conciliation before the MLVT/ labour authority has failed; and
• Both disputing parties agree to submit the matter to the Arbitration Council.

During the initial implementation phase, only disputes involving specially protected employees/ workers may be referred to the Arbitration Council.

Under the Labour Law and the Law on Trade Unions, specially protected employees/workers include:

• Trade union leaders;
• Union founders;
• Employee representative (shop stewards);
• Election candidates; and
• Former employee representatives within the applicable protection period.

Prakas No. 098 also provides greater clarity on the procedures for obtaining labour inspector approval prior to dismissal or disciplinary action against protected employees/workers.

2. Increase in Number of Arbitrators

To accommodate the anticipated increase in labour disputes, particularly individual disputes, the number of arbitrators has been increased from 15 to 30 members. This amendment is intended to strengthen the Arbitration Council’s operational capacity and efficiency in dispute resolution.

3. Updated Eligibility Requirements for Arbitrators

The qualification and eligibility requirements for labour arbitrators have been updated and consolidated. Arbitrators are now required to obtain a labour arbitration certificate from the National Institute of Labour under the MLVT.

Arbitrators must not be:

• Civil servants;
• Judicial police officers; or
• Members of the armed forces.

These changes appear intended to reinforce professionalism, competency, and independence within the arbitration system.

4. Introduction of “Honorary Arbitrator”

A new category of “Honorary Arbitrator” has been introduced. Honorary Arbitrators will not directly adjudicate labour disputes but are expected to contribute institutional expertise and support the development of the Arbitration Council framework. Existing arbitrators may be designated as Honorary Arbitrators where:

• They no longer satisfy the qualification requirements under Article 4 of Prakas No. 098; or
• They voluntarily resign from their position as arbitrator.

5. Extension of Validity Period of Arbitral Awards

For disputes of interest, the validity and enforceability period of the Arbitration Council’s arbitral awards has been extended from one year to three years.
This amendment may provide greater long-term certainty and stability in industrial relations arrangements.

6. Practical Implications for Employers

Prakas No. 098 is expected to have significant implications for employers operating in Cambodia.
Employers should consider:

• Greater use of arbitration as an alternative dispute resolution mechanism for employment disputes;
• Increase scrutiny over disciplinary action involving protected employees and trade union representatives;
• Reviewing internal HR procedures and approval processes to ensure compliance with labour law requirements; and
• Strengthening documentation and dispute management practices to mitigate legal and operational risks.

Employers are encouraged to closely monitor the implementation of Prakas No. 098 and ensure that internal policies and practices remain compliant with Cambodia’s labour law framework.

The content shared here is for informational purposes only and should not be interpreted as legal advice. Legal matters can be complex and may vary based on individual circumstances. For personalised guidance on specific legal issues, we recommend consulting with our qualified legal professionals.