Cambodia Advances Reforms to Strengthen Labour Dispute Resolution System

Efforts to improve the prevention and resolution of labour disputes in Cambodia are gaining momentum following new research outlining potential reforms to strengthen industrial relations and dispute settlement mechanisms.

The findings were presented during a Research Validation and Consensus-Building Workshop on Strengthening Labour Dispute Prevention and Resolution Mechanisms, held on 5 March 2026 in Phnom Penh. The event brought together government officials, employers, workers' representatives, and international partners to review the research and discuss practical policy improvements.

Workshop to Review Research and Build Consensus

The workshop aimed to validate research findings and collect feedback from key stakeholders on proposed reforms to Cambodia's labour dispute resolution system.

It was organised with support from the ILO-Korea Partnership Programme (ILO/KORP) in collaboration with the Korea Labour and Employment Service (KLES). The initiative forms part of a broader effort to strengthen social dialogue and labour dispute prevention mechanisms in Cambodia.

Participants discussed how to improve the effectiveness of current systems while ensuring fair and accessible dispute resolution for workers and employers.

Proposed Reforms to Strengthen Dispute Resolution

The research recommends several measures to strengthen Cambodia's labour dispute management system, including improvements to legal frameworks and institutional structures.

Key proposals include:

• Strengthening legal and institutional frameworks governing labour disputes

• Improving the fairness and quality of conciliation and arbitration procedures

• Expanding data systems to better monitor and track labour disputes

• Enhancing mechanisms for dispute prevention and early intervention

One of the central proposals is the creation of a Labour Dispute Conciliation and Mediation Center, which would help streamline dispute resolution processes.

Another option being explored is expanding the mandate of the Arbitration Council so that it can handle both conciliation and arbitration. Pilot models of these reforms aim to improve efficiency, accessibility, and trust in Cambodia's labour dispute resolution system.

Collaborative Effort Between Government and Social Partners

Shin Hochul, Chief Technical Advisor of the ILO-Korea Partnership Programme, noted that this research-driven initiative represents a new approach for Cambodia.

"This kind of research-based approach to labour dispute improvement is being attempted in Cambodia for the first time," Shin said.

He described the work as the result of a year-long collaborative effort involving Cambodia's government, employers, and workers to identify practical solutions for improving dispute management.

"Over the past year, the ILO-Korea Partnership Programme and Cambodia have been walking this path together, step by step," he said.

"The direction may be clear, but the practical steps will ultimately need to be shaped by Cambodia."

Focus on Preventing Labour Disputes

Sovann Vannaroth, Permanent Secretary of State at Cambodia's Ministry of Labour and Vocational Training (MLVT), noted that dispute settlement rates have improved in recent years.

However, she emphasized that the government's long-term goal is to prevent disputes before they arise, rather than relying solely on dispute resolution mechanisms.

"The main purpose of today's workshop is not only to review and consult on technical and policy issues raised by the research team," Vannaroth said.

"It is also an important opportunity for all of us to implement important working methods to respond in a timely manner in accordance with the needs of the tripartite parties—the Royal Government, employers and workers."

Operational Challenges Remain

According to Shin Yong Hoon, a Korean labour attorney who presented the research findings, Cambodia already has established legal mechanisms for handling labour disputes.

These include:

• Conciliation services provided by the Ministry of Labour and Vocational Training

• Arbitration through the Arbitration Council

However, operational challenges remain, particularly in areas such as data collection and monitoring systems, which can limit the ability of authorities to analyse labour disputes and design effective prevention strategies.

Regional Support for Labour Market Institutions

The initiative is part of the ILO-Korea Partnership Programme, which is funded by the Government of the Republic of Korea through the Ministry of Employment and Labour.

The programme operates in five countries across Asia and the Pacific, providing technical assistance, policy advice, and capacity-building support.

Its broader objective is to promote decent work, effective labour market institutions, and stronger social dialogue, in line with the principles of the International Labour Organization (ILO).