The Labour Law was promulgated in 1997 and falls within the jurisdiction of the Ministry for Social Affairs, Labour, Vocational Training and Youth Rehabilitation.

It contains many provisions relevant to the settlement of labour disputes and also assigns the Ministry for Social Affairs, Labour, Vocational Training and Youth Rehabilitation to issue Prakas, Notifications and Circulars, which either make new law or provide additional detail to the articles of the Labour Law. 

According to the Labour Law, the Arbitration Council is a mechanism to resolve collective disputes in cases where the dispute cannot be settled by means of conciliation. The Labour Law is pivotal to all decision making by the Arbitration Council.

"Article 1:

This law governs relations between employers and workers resulting from employment contracts to be performed within the territory of the Kingdom of Cambodia, regardless of where the contract was made and what the nationality and residences of the contracted parties are.

This law applies to every enterprise or establishment of industry, mining, commerce, crafts, agriculture, services, land or water transportation, whether public, semi-public or private, non-religious or religious; whether they are of professional education or charitable characteristic as well as the liberal profession of associations or groups of any nature whatsoever.

This law shall also apply to every personnel member who is not governed by the Common Statutes for Civil Servants or by the Diplomatic Statutes as well as officials in the public service who are temporarily appointed."