How Are Labor Disputes Settled in Saudi Arabia?

تسوية الخلافات العمالية في السعودية بين العامل وصاحب العمل وطرق حل النزاعات وفق نظام العمل السعودي

Translation of the attached article:

Employment relationships witness many disputes between employers and workers, and their causes vary between working conditions, financial rights, or contract termination. Therefore, settling labor disputes has become an essential step through which the Saudi Labor Law seeks to find an effective and quick solution before the dispute moves to the labor court.

The Ministry of Human Resources and Social Development undertakes this role by first requiring both parties to attempt reconciliation in order to preserve rights and prevent the dispute from reaching the court.

In this article, we will explain how to settle labor disputes, the most important tips to ensure successful settlement, and the best firm with specialized lawyers to help you in this type of case.

How Are Labor Disputes Settled in Saudi Arabia?

Labor disputes can be settled by filing a labor complaint electronically through the Ministry of Human Resources and Social Development website by following these steps:

  1. Access the ministry’s website and log in using the user’s National Single Sign-On account.
  2. From the electronic services list, choose the amicable settlement service for labor disputes.
  3. Enter the details of the dispute parties accurately, including the employer, worker, and establishment details.
  4. Write the details of the complaint subject and clarify the claims related to the dispute and their reasons.
  5. Upload the necessary documents in a clear electronic format to support the complaint.
  6. Complete the legal forms required by the electronic system and submit the request after reviewing it.
  7. After submitting the request, the complainant receives a notification with the request number to complete the subsequent procedures.

If the dispute is due to delayed salaries, refusal to pay allowances, or any due 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 required documents and procedures.

Common Mistakes When Settling Labor Disputes

There are some mistakes that people may make when settling labor disputes, which may prevent reaching a satisfactory agreement for both parties. The most prominent of these mistakes include:

Poor Preparation or Absence of Documents:

Good preparation before the settlement session is one of the most important factors that help prove rights and reach a fair agreement between the two parties.

If the worker or employer attends the session without preparing the necessary documents, such as the employment contract, salary slips, correspondence, or any evidence proving the validity of the claim, it becomes difficult for the competent authority to accurately assess the dispute.

Lack of evidence or poor organization may also lead to postponing settlement sessions until the documents are completed, or weakening the position of the applicant, which reduces the chances of reaching an amicable settlement within a short period.

Lack of Seriousness or Absence of One Party:

Failure by the employer or worker to attend the sessions, or dealing with them without seriousness, reduces the chances of reaching an amicable solution within the specified time.

Lack of cooperation in providing the required information or documents may also lead the competent authority to end the settlement stage and refer the dispute to the labor court to complete judicial procedures.

If the settlement stage ends without reaching an agreement, you may need to know how to file a case against a company, so that you understand the steps required to move to litigation and claim your rights legally.

Refusing Concessions or Lack of Flexibility:

Amicable settlement aims to find a solution that achieves a level of balance between the interests of both parties. This requires flexibility in negotiation and willingness to make reasonable concessions within limits that do not affect legal rights.

If each party insists on implementing all their demands without discussing alternatives or attempting to reach a middle ground, the chances of a successful settlement become limited, and the dispute may continue before the court.

Lack of Clarity in the Dispute or Weak Drafting of the Request:

One of the reasons that hinder successful settlement is the inability of one party to clarify the nature of the dispute or define their claims accurately.

Presenting the facts in an unorganized way, or submitting general and unspecified claims, may make it difficult for the competent authority to understand and assess the case.

Lack of Legal Experience or Seeking Assistance from a Non-Specialized Lawyer:

Some parties may be unaware of their rights or the legal procedures that must be followed, which leads to mistakes that affect their legal position during the settlement.

Seeking assistance from a lawyer who is not specialized in labor cases may also result in submitting incorrect claims, overlooking due rights, or accepting settlements that do not achieve the client’s real interest.

Tips That Help Ensure Successful Labor Dispute Settlement

Below are a set of tips that should be followed when submitting labor dispute settlement to ensure its success:

Good Preparation Before the Session:

All documents related to the dispute should be collected before the session date, such as the employment contract, salary slips, attendance and departure records, and any correspondence or documents proving the rights subject to the claim. It is also preferable to arrange these documents clearly so they can be presented easily when needed, because the strength of evidence directly affects the course of settlement procedures.

Commitment to Attending Sessions:

Attending all settlement sessions on the scheduled dates helps speed up the process of considering the dispute and shows the party’s seriousness in reaching an amicable solution. Positive interaction with the competent authority, answering its inquiries, and submitting the required documents on time also help bring viewpoints closer and avoid procedural delays.

Clarifying Claims Accurately:

The more specific, clear, and evidence-supported the claims are, the easier it becomes for the competent authority to understand the nature of the dispute and discuss suitable solutions. Therefore, it is recommended to present the facts in a logical sequence, specify the rights being claimed accurately, and avoid general or unclear claims that may affect the course of settlement.

If the reason for the dispute is termination of the employment contract without a legitimate reason, it is important to learn about compensation for arbitrary dismissal, so that you can determine your rights and the claims that may be raised during settlement or before the court.

Seeking Assistance from a Specialized Lawyer:

A lawyer specialized in labor cases helps assess the legal position correctly, prepare the necessary documents and requests, and provide advice during settlement sessions. The lawyer also explains the client’s rights and obligations and works to avoid legal mistakes that may affect the outcome of the dispute or lead to the loss of some rights.

Clearly Documenting the Settlement Agreement:

When an agreement is reached between the worker and the employer, it must include all agreed clauses clearly and specifically, with the rights and obligations of each party, the implementation mechanism, and the agreed dates. The more accurate and clear the agreement is, the less likely new disputes will arise regarding its interpretation or enforcement in the future.

To understand how the mechanism for deciding labor disputes in the Kingdom has developed, you can learn about labor dispute resolution committees, their previous role, and how jurisdiction transferred to labor courts while maintaining the amicable settlement stage before litigation.

Why Is It Recommended to Deal with Nawaf bin Awad Al-Harbi Law Firm?

Nawaf bin Awad Al-Harbi Law Firm is considered one of the distinguished Saudi firms in the field of law and legal consultations. It provides integrated legal services that cover the various needs of individuals and institutions and adheres to the highest modern standards adopted in the legal profession in the Kingdom.

The firm’s team includes a group of consultants and lawyers specialized in labor cases, who are capable of representing clients before labor courts and amicable settlement offices efficiently and skillfully. The most prominent features of the firm include:

  • Extensive experience in labor cases, whether during amicable settlement stages or litigation before courts.
  • Using innovative methods in legal mediation, which helps resolve labor disputes quickly and avoid fines and prolonged judicial problems.
  • A focus on client satisfaction and fast completion of their cases.

Contact now with the best labor cases lawyer in Saudi Arabia to obtain legal support in settling labor disputes, starting from studying the dispute, preparing documents, and negotiating during amicable settlement, through to representing you before the labor court when needed to protect your rights according to the Saudi Labor Law.

Conclusion

Labor disputes can be settled electronically through the ministry’s website, making it easier for employers and workers to settle any disputes between them. This step is essential before the dispute reaches the court and prolongs the time required to resolve it. Seeking assistance from a lawyer specialized in labor cases will greatly help you succeed in your case and obtain your rights.

Frequently Asked Questions

What Is Meant by Labor Dispute Settlement Under the Saudi Labor Law?

Labor dispute settlement is a stage that any labor dispute must pass through before it is referred to the labor court. The purpose of this settlement is to resolve the dispute between the employer and the worker through mediation sessions supervised by the Labor Office.

Is Amicable Settlement Mandatory Before Litigation?

Yes. The Saudi Labor Law requires going through amicable settlement first, and a case is not accepted by the labor court without a settlement report or a failure-to-settle report issued by the Ministry of Human Resources.

What Happens When Settlement Fails?

If no agreement is reached within 21 working days from the date the settlement request is submitted, the settlement office issues an official failure-to-settle report proving that negotiations have failed.

The case is then referred automatically, or through a special referral form, to the competent labor court to proceed with legal litigation procedures and decide the dispute according to the provisions of the Saudi Labor Law.