What is alternative dispute resolution (ADR) in Cambodia?

Any disputes arrising between individuals might be resolved through judicial mechanisms (the court system) or alternative mechanisms outside the court system. The resolution of disputes through mechanisms other than the court system is referred to as “Alternative Dispute Resolution” (ADR).
Alternative Dispute Resolution can be conducted through various methods, including negotiation, mediation, conciliation, or arbitration. Among these methods, some are entirely based on the mutual agreement of the disputing parties, whether with or without the assistance of a third party (such as negotiation, mediation, or conciliation).
Other methods involve a binding decision rendered in a manner similar to a court judgment (such as labor arbitration and commercial arbitration).

Negotiation

Negotiation is the simplest form of dispute resolution outside the court system. It can be conducted directly between the disputing parties or through their representatives. The parties propose and exchange settlement options until they reach an agreement on a solution that leads to the resolution of the dispute.

Generally, negotiation is considered the best first option and the most popular method because it is a faster process and ensures the confidentiality of the parties. Usually, before initiating formal proceedings with other adjudication mechanisms, most parties attempt to negotiate first, either directly or through their representatives.

Conciliation or mediation

Conciliation or mediation is a method of dispute resolution through negotiation with the assistance of a third party who must remain neutral toward both disputing parties. This third party, who facilitates the conciliation or mediation process, does not have the authority to impose a solution on the disputing parties. All decisions remain under the authority and consent of the disputing parties.

The third party acts as a facilitator to help the disputing parties communicate and negotiate with each other. The role of the third party can be either active or less active, depending on whether the process is classified as conciliation or mediation. However, in practice, the terms “conciliation” and “mediation” are often used interchangeably, both in legal frameworks and in actual implementation.

Arbitration (Labor/Commercial)

Arbitration is a form of dispute resolution outside the court system, conducted by a neutral third party (an arbitrator or arbitration panel) who has the authority to make a binding decision on the dispute. The arbitrator renders a decision after reviewing the facts, applicable laws, evidence, and hearing arguments from the disputing parties.

Arbitration is commonly used for complex disputes, such as joint venture disagreements and commercial disputes, among others.

ព្រឹត្តិបត្តិបត្តិច្បាប់ និងយុត្តិធម៌លេខ ១ បោះពុម្ភផ្សាយដោយក្រសងួយុត្តិធម៌ កាលពីខែមករា ឆ្នាំ២០២៥។

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