Following the current trend of alternative dispute resolution, Kingdom of Cambodia has made progress on establishment 02 active institutions which is not ad-hoc: the Arbitration Council for labor matter and National Commercial Arbitration Center for commercial matter.
1. The Arbitration Council (AC)The Arbitration Council is one part of alternative system for the amicable resolution of labor dispute established under Chapter XII of the Labor Law of Cambodia adopted in 1997 (the “Labor Law 1997”). This Law allows unions and employers to include procedures for the resolution of disputes in their collective bargaining agreements. Where this does not occur, the Labor Law 1997 provides such procedures. Some of these processes are voluntary and other such as the arbitration procedures is mandatory. The Prakas No. 099 on Arbitration Council dated 21 April 2004 (“Prakas No. 099”) is to detail the organization and functioning of the AC.
As related in its official website, the AC makes representation as below:
According the Prakas No. 099, the AC is an independent institution whose role is to resolve the collective labor dispute through conciliation and arbitration. It is a tripartite structure, composing of 30 Arbitrators: 10 Arbitrators representing the Ministry in charge of Labor, 10 Arbitrators representing unions, and 10 Arbitrators representing employer.
(1) Dispute is an Individual Dispute or a Collective Dispute (Art. 302 of Labor Law 1997); and
(2) Dispute is a Rights Dispute or an Interest Dispute (Art. 300 of Labor Law 1997).
A panel of the arbitration hearing composed of 03 arbitrators. The party, the union and the employer, must choose one Arbitrator from their list and the two arbitrators must select the third Arbitrator as a chairman.
During the hearing, the Party will be asked to choose whether Binding Award or Non-Binding Award. Binding Award is the decision of the Arbitration penal which goes into force immediately after rendering; conversely, the Non-Binding Award allows any party to the dispute to notify in writing to the Minister in charge of Labor within 08 working days and then bring the case to the competent court for final decision.
Every decision of the AC will be rendered within 15 days after the case is received.
2. The National Commercial Arbitration Center (NCAC)As part of its World Trade Organization ("WTO") accession negotiations in 2003, Kingdom of Cambodia agreed to put in place a number of new laws in line with its commitment to provide an improved regulatory environment for trade and investment. In acknowledgment of the important role that dispute resolution plays in the development of a modern trading economy, the Law on Commercial Arbitration has been included as a priority in this package of reforms. The Law on Commercial Arbitration was passed by Cambodia’s National Assembly in 2006; establishing a framework for the private arbitration of business disputes that follows international practices.
Following consultations with representatives of the business communities and development partners, a Sub-Decree on the Organization and Functioning of a National Arbitration Center was passed by the Council of Ministers on July 24, 2009. It is to wait until 2013 when NCAC was officially launched to promote the settlement of commercial dispute by means of arbitration (.. ). Ensure the high quality standards of arbitration maintained in the Kingdom of Cambodia (…)”. NCAC adopted its own Arbitration Rules to administer the dispute settlement proceeding in 2014.
As related in the local news in August 2018, NCAC has received 11 cases since its fully operation in 2014.
This information contained herein has been prepared for general informational purposes only and shall not constitute legal, accounting, tax, career or other professional advice of any kind. If you would like further information regarding the above or would like to discuss these issues, please contact us: info@hml.com.kh.
Following the current trend of alternative dispute resolution, Kingdom of Cambodia has made progress on establishment 02 active institutions which is not ad-hoc: the Arbitration Council for labor matter and National Commercial Arbitration Center for commercial matter.
1. The Arbitration Council (AC)
The Arbitration Council is one part of alternative system for the amicable resolution of labor dispute established under Chapter XII of the Labor Law of Cambodia adopted in 1997 (the “Labor Law 1997”). This Law allows unions and employers to include procedures for the resolution of disputes in their collective bargaining agreements. Where this does not occur, the Labor Law 1997 provides such procedures. Some of these processes are voluntary and other such as the arbitration procedures is mandatory. The Prakas No. 099 on Arbitration Council dated 21 April 2004 (“Prakas No. 099”) is to detail the organization and functioning of the AC.
As related in its official website, the AC makes representation as below:
According the Prakas No. 099, the AC is an independent institution whose role is to resolve the collective labor dispute through conciliation and arbitration. It is a tripartite structure, composing of 30 Arbitrators: 10 Arbitrators representing the Ministry in charge of Labor, 10 Arbitrators representing unions, and 10 Arbitrators representing employer.
(1) Dispute is an Individual Dispute or a Collective Dispute (Art. 302 of Labor Law 1997); and
(2) Dispute is a Rights Dispute or an Interest Dispute (Art. 300 of Labor Law 1997).
A panel of the arbitration hearing composed of 03 arbitrators. The party, the union and the employer, must choose one Arbitrator from their list and the two arbitrators must select the third Arbitrator as a chairman.
During the hearing, the Party will be asked to choose whether Binding Award or Non-Binding Award. Binding Award is the decision of the Arbitration penal which goes into force immediately after rendering; conversely, the Non-Binding Award allows any party to the dispute to notify in writing to the Minister in charge of Labor within 08 working days and then bring the case to the competent court for final decision.
Every decision of the AC will be rendered within 15 days after the case is received.
2. The National Commercial Arbitration Center (NCAC)
As part of its World Trade Organization ("WTO") accession negotiations in 2003, Kingdom of Cambodia agreed to put in place a number of new laws in line with its commitment to provide an improved regulatory environment for trade and investment. In acknowledgment of the important role that dispute resolution plays in the development of a modern trading economy, the Law on Commercial Arbitration has been included as a priority in this package of reforms. The Law on Commercial Arbitration was passed by Cambodia’s National Assembly in 2006; establishing a framework for the private arbitration of business disputes that follows international practices.
Following consultations with representatives of the business communities and development partners, a Sub-Decree on the Organization and Functioning of a National Arbitration Center was passed by the Council of Ministers on July 24, 2009. It is to wait until 2013 when NCAC was officially launched to promote the settlement of commercial dispute by means of arbitration (.. ). Ensure the high quality standards of arbitration maintained in the Kingdom of Cambodia (…)”. NCAC adopted its own Arbitration Rules to administer the dispute settlement proceeding in 2014.
As related in the local news in August 2018, NCAC has received 11 cases since its fully operation in 2014.
This information contained herein has been prepared for general informational purposes only and shall not constitute legal, accounting, tax, career or other professional advice of any kind. If you would like further information regarding the above or would like to discuss these issues, please contact us: info@hml.com.kh.