CAMBODIA

Mediation in Cambodia

Mediation has been one of the traditional dispute resolution mechanisms that has evolved as part of the Cambodian culture and legal system. Although the use of mediation is permitted and is provided for under various laws, there are no uniform procedures for mediation, and the procedures employed may vary depending on the type of dispute and the individual mediator's locality and method of personal preference.

Currently, there are no standalone regulations and regulated procedures focusing on mediation under Cambodia's legal framework. Relevant provisions relating to mediation can be found in various regulations including the Code of Civil Procedures, Labour Law, Land Law and its related regulations, Investment law, Law on Management and Administration of Commune and Sangkat Council, Law on Insurance 2014, etc.

Moreover, under Cambodia's legal framework, there are two types of mediation:

1. Mandatory Mediation: under certain regulations (such as the Law on Telecommunications, Trade Union Law, and Land Law), parties are required to go through a mediation process to attempt to resolve the dispute first before filing a lawsuit with a court, except in a criminal case.
2. Non-Mandatory Mediation: the regulations provide for the right to refer a dispute to mediation, rather than making it compulsory.

In Cambodia, outside of the statutory context discussed above, mediation has been noticeably promoted under various initiatives undertaken by the Ministry of Justice and relevant institutions including but not limited to the Cambodia Centre for Mediation, the National Commercial Arbitration Centre ("NCAC"), International Finance Corporation, and the Centre for Effective Dispute Resolution.

Cambodia has begun to place increasing attention and endorsement on mediation. In this regard, the General Assembly of NCAC adopted on 18 March 2023 three main documents to allow NCAC to provide mediation services. Those documents are: (i) the Mediation Rules, which set out the procedure and principles for conducting mediation under the auspices of NCAC; (ii) the Code of Conduct for Mediators, which establishes the ethical standards and professional responsibilities for mediators registered with NCAC; and (iii) the Rules on Qualification and Registration of Mediator of National Commercial Arbitration Centre, which specify the criteria and process for becoming a mediator accredited by NCAC.

We can expect that mediation will become even more important as a mode of alternative dispute resolution in the future.

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Implementation of Online System for Domain Name ".kh" Registration

On 31 January 2023, the Ministry of Post and Telecommunications of Cambodia issued Announcement No. 178 on the Implementation of Online System for Domain name ".kh" Registration announcing the setting up of an online system for domain name registration to facilitate a quick, convenient, and effective registration process.

The type of domain name (such as ".kh", ".com.kh", ".net.kh", ".org.kh", and ".edu.kh") is provided according to the category of applicant, including individuals, commercial enterprises, companies, organisations, associations, state, and private educational institutions. 

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Sub-Decree No. 52 on the Implementation of Document Verification Platform – verify.gov.kh

Verify.gov.kh is a government platform developed by the Ministry of Post and Telecommunications ("MPTC") for the purpose of, among others, verifying the authenticity of documents that are embedded with Standard QR Codes developed by MPTC using blockchain technology.

Ministries, governmental institutions, state-owned enterprises, and private entities that wish to use Standard QR Codes on their documents can submit an online application form to MPTC by providing the following information: (i) the names and number of documents to be embedded with QR Code, (ii) samples of such documents, and (iii) the name and contact of the applicant. The application fee and cost in relation therewith shall be determined under a separate regulation.

All verification of documents through the verify.gov.kh platform is free of charge, and a copy of the document embedded with the Standard QR Code is not required to be legalised in paper form.

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Measures to Mitigate Economic Impact of COVID-19 and Assist Recovery of Tourism Sector

On 30 January 2023, the Royal Government of Cambodia ("RCG") issued press release No. 01 ("Press Release 01") providing the following three key relief measures to mitigate the economic impact of COVID-19 and support the recovery of the tourism sector: 

1. Exemption from Monthly Tax Payments: This exemption applied to hotels, guesthouses and travel agent companies that are registered with the General Department of Taxation and operate in the Siem Reap province. They were exempted from paying their monthly tax, except value added tax (VAT), for three months from January 2023 to March 2023.
2. Freezing of Tax Liabilities and Non-Imposition of Penalties: The RCG will continue to freeze the tax liabilities for the tourism sector up to the end of 2019 and will not impose penalties in 2023.
3. Skills Development Training for Staff: Taxpayers in the tourism sector are encouraged to offer skills development training to their staff.

For more information, click here to read our Legal Update.

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