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Commercial Dispute Resolution
At this time, commercial disputes in Cambodia are generally resolved through self-help measures. The courts are perceived by private sector and non-government organization (NGO) representatives as uniformly unreliable, plagued by corruption, and lacking in commercial sophistication and political independence. In 2006, Cambodia enacted a Commercial Arbitration Law that presented an attractive alternative to the court system. However, some concerns remain over the independence of the commercial arbitration board created by the law.
One positive development in Cambodia’s commercial dispute resolution landscape is the Labor Arbitration Council, which since 2004 has had the authority to resolve collective labor disputes. The Arbitration Council has gained the respect of both labor and employers, and has reduced the number of unauthorized strikes and a significant decreased the time it takes to resolve a labor dispute. The success of the Labor Arbitration Council makes it a promising regional model, although donors assert that they would like to see the Council become self-sustaining.
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