What Is Amicable Settlement of Labor Disputes?

التسوية الودية للخلافات العمالية في السعودية بين العامل وصاحب العمل قبل اللجوء إلى المحكمة العمالية

Translation of the attached article:

Amicable settlement of labor disputes is one of the most important methods provided by the Saudi Labor Law to resolve disputes between the worker and the employer in a faster and more flexible way. It gives both parties an opportunity to reach an agreement that serves their interests without the need to resort directly to court.

The importance of this stage is not limited to reducing time and costs; it also helps preserve professional relationships whenever possible, while ensuring that each party obtains their rights according to the applicable regulations.

In this article, we will explain what is meant by amicable settlement of labor disputes, its steps, and the best legal firm experienced in resolving labor disputes.

What Is Amicable Settlement of Labor Disputes?

Amicable settlement of labor disputes is the first mandatory stage stipulated by the Saudi Labor Law before resorting to labor courts. Its purpose is to resolve disputes between the employer and the worker peacefully.

The procedures begin after the complaint is officially registered with the amicable settlement offices affiliated with the Ministry of Human Resources and Social Development, where both parties or their representatives are summoned to attend discussion sessions.

During these sessions, negotiation is conducted directly or through the ministry’s mediation, in an attempt to bring viewpoints closer and reach an agreement satisfactory to both parties.

The amicable settlement period extends for no more than 21 days from the date the dispute is registered. If an agreement is reached, an official settlement report approved by the ministry is issued, and it is considered an enforceable instrument that can be legally relied upon.

If no agreement is reached within the specified period, a failure-to-settle report is prepared to clarify the reasons for non-settlement, and the ministry then officially refers the dispute to the labor court to proceed with the case according to legal procedures.

If the amicable settlement ends without reaching an agreement and the dispute is referred to court, you may need to learn about how to file a case against a company, so that you understand the procedures for claiming your rights before the competent judicial authority.

How to File an Amicable Settlement Request for Labor Disputes Electronically

An amicable settlement request for labor disputes is filed electronically to make it easier for employers and workers to submit complaints without the need for personal attendance. Below, we explain the necessary steps for filing an amicable settlement request electronically:

  1. Access the services platform affiliated with the Ministry of Human Resources and Social Development.
  2. Log in through the National Single Sign-On.
  3. Choose the amicable settlement service for labor disputes from the available services.
  4. Fill in the contract data and the details of both parties.
  5. Enter the dispute and claim details, then attach the documents that support the request.
  6. Submit the request and follow it up electronically.
  7. After the request is submitted, a settlement session date is scheduled for both parties to attempt to reach an amicable solution before the case is referred to the labor court if no agreement is reached.

If the subject of the dispute relates to delayed salaries, refusal to pay allowances, or other financial rights, you may need to know about filing a complaint for non-payment of financial entitlements, so that you can start claiming your rights with the necessary documents and procedures.

Advantages of Amicable Settlement of Labor Disputes

Many people resort to amicable settlement of labor disputes before litigation because of its advantages, most notably:

  • Reducing effort and time by ending the dispute within a short period compared to litigation.
  • Preserving the employment relationship between the employer and the worker.
  • Avoiding judicial complications and the related expenses and procedures that may continue for years.

Services of Nawaf bin Awad Al-Harbi Law Firm in Labor Cases

Nawaf bin Awad Al-Harbi Law Firm is one of the leading firms in the field of labor cases in the Kingdom. It has extensive experience in providing legal solutions that protect the rights of both employers and workers alike. The firm is distinguished by offering specialized legal services, including:

Legal Representation Before Labor Courts:

The firm represents clients in various labor cases before the competent judicial authorities, starting from studying the dispute and assessing the legal position, through preparing the statement of claim and legal memoranda, attending hearings, and up to the issuance of the judgment and following up on its enforcement procedures.

Preparing and Drafting Employment Contracts:

The firm is keen to prepare and review employment contracts in compliance with the provisions of the Saudi Labor Law, while drafting clauses clearly to define the rights and obligations of each party.

Amicable Settlement of Disputes:

The firm provides legal support during the stages of negotiation and amicable settlement between the parties to the dispute by studying the case and providing amicable solutions that serve the interests of both parties whenever possible. This helps end the dispute without resorting to litigation and saves time, effort, and costs.

Providing Specialized Legal Consultations:

The firm provides specialized legal consultations in various labor cases, such as wages, end-of-service benefits, working hours, leaves, and termination of employment contracts, helping clients understand their rights and obligations and make appropriate decisions according to the provisions of the law.

Because disputes between the worker and the employer differ according to the subject of the claim, it is useful to learn about types of labor cases, so that you can determine the nature of your dispute and whether it relates to wages, contract termination, compensation, or other rights.

Following Up on Labor Office Complaints:

The firm helps clients prepare and follow up on complaints submitted to the competent authorities and represents them during amicable settlement sessions, while following up on all legal procedures. It also ensures that any agreement reached is legally documented to preserve the rights of all parties.

Managing Compensation Cases:

The firm handles cases related to labor compensation, whether arising from work injuries, unlawful dismissal, or other cases in which the law permits claiming compensation, while preparing legal claims and seeking to obtain the client’s due rights.

If the dispute results from ending the employment relationship without a legitimate reason, it is important to learn about compensation for arbitrary dismissal, so that you know the rights and compensation that may be claimed during settlement or after the dispute moves to court.

Continuous Support for Companies:

The firm provides legal solutions that help business owners reduce labor disputes before they occur by reviewing employment contracts and internal regulations and providing consultations related to compliance with the Labor Law. This helps build a stable work environment and reduce the legal risks that the establishment may face.

Contact us now if you need a lawyer specialized in labor cases.

Conclusion

Amicable settlement of labor disputes is the most suitable solution for those who want to resolve labor disputes without resorting to litigation. It is a fast and flexible solution that saves much of the effort and time spent in litigation, in addition to its other advantages. If you have any labor disputes, you should seek the help of an experienced and specialized law firm.

To understand the development of the authorities competent to hear labor disputes, you can learn about labor dispute resolution committees, their role and jurisdictions, and how judicial decision-making is currently within the jurisdiction of labor courts.

Frequently Asked Questions

What Is Meant by Labor Settlement?

Labor settlement is a legal procedure aimed at resolving disputes between the employer and the worker legally, whether through the competent authorities or amicably, with the aim of preserving rights and avoiding escalation of the dispute to the labor court.

How Long Do Amicable Settlement Procedures Take at the Labor Office?

The amicable settlement stage usually takes a legally specified period, often up to 21 days, during which sessions are held to attempt reconciliation. If no agreement is reached during that period, the claimant may refer the case to the labor court.

What Is the Importance of Resorting to Amicable Settlement Before Filing a Labor Claim?

Resorting to amicable settlement is a mandatory step in most labor disputes. It helps resolve disputes quickly and at a lower cost, and also gives both parties the opportunity to negotiate and reach a satisfactory solution without needing to resort to lengthy litigation procedures.