How does amicable settlement work in a labor dispute?

What is amicable settlement?

The Rules define amicable settlement as the stage before a labor claim is brought before the judiciary, during which an attempt is made to reconcile the employer and the worker amicably before the claim goes to the labor courts. A conciliator (مصلح) in the amicable settlement department of the labor office that covers the workplace handles it.

The stage rests on Royal Decree No. (M/14) dated 22/2/1440H (31 October 2018) which, as the preamble of the ministerial decision records, requires that before a labor claim is filed with the labor court the claimant applies to the labor office so it can take the steps needed to settle the dispute amicably. No article of the Labor Law governs this stage today: Article 220, which used to, was repealed with Part 14 in 2013.

“The amicable settlement department must work to resolve the dispute before it within a period not exceeding (21) working days from the date of the first settlement session. If reconciliation is not possible, the claimant must file a statement of claim with the competent labor court under the procedures approved by the Ministry of Justice.”

Rules and Procedures Governing Amicable Settlement in Labor Disputes, Article 13, adopted by Ministerial Decision No. 91285 dated 20/6/1445H (2 January 2024), as published by the Ministry. Unofficial translation; the Arabic text is the reference.

Who does it apply to?

The service page lists employers and workers as beneficiaries, and its basic condition is an employment contract between the worker and the employer. Under the Rules, the amicable settlement department hears all labor disputes, including:

• Disputes over employment contracts, wages, entitlements, work injuries and compensation for them.
• Disputes arising from dismissal.
• Disputes over disciplinary penalties imposed by the employer, or requests to be relieved of them.
• Disputes of workers subject to the Labor Law, including government workers.

This explainer does not cover domestic workers: Article 7 of the Labor Law excludes them, and the English version of the service page adds the condition that the worker is not classified as a domestic worker. It does not cover jobs under the Civil Service system or a military system either, as each has its own rules.

What is needed to apply?

• The employment contract if there is one, or anything that proves the contractual relationship between the worker and the employer.
• The documents the type of claim requires.
• If an agent files: a Sharia power of attorney that allows the agent to attend the amicable settlement department, with the right to settle, release and waive.
• The right settlement office: jurisdiction lies with the labor office whose area covers the workplace.

Time limits worth knowing

• First session: within no more than ten working days of registering the claim (Rules, Article 12).
• Settlement period: no more than 21 working days from the first session (Article 13). With a Sunday to Thursday working week this is roughly four calendar weeks if no public holidays fall inside it (estimate).
• If the claimant is absent: the claim is archived, and the claimant may ask for it to continue within the 21-working-day period. After that period a new claim is needed (Article 15).
• If the defendant is absent: if the defendant misses the session without an acceptable excuse despite proven notification, the department may issue a record that the dispute could not be settled (Article 16).
• The 12-month limit: the English version of the service page lists filing the complaint within 12 months among its conditions, without stating clearly when that period starts. In the Labor Law, Article 234 bars claims before the labor courts after 12 months from the end of the employment relationship, unless the claimant has an excuse the court accepts or the defendant acknowledges the right. More on the labor claim time limit page.

What comes out of the settlement?

If the conciliator reaches an outcome that ends the dispute, a settlement record is drawn up, signed by the conciliator and the parties or their representatives, endorsed with the enforcement formula, and made in three copies. The Rules state that settlement records, once ratified by the competent amicable settlement department, are enforceable instruments under paragraph (3) of Article 9 of the Enforcement Law. A settlement record is void if a party has not ratified it through the approved verification means, or if a party's representative has no legal right to settle.

The Rules also require the settlement record to respect Article 8 of the Labor Law:

“Any condition contrary to the provisions of this Law is void, and any release or settlement of the worker's rights arising under this Law made while the employment contract is in force is void, unless it is more beneficial to the worker.”

Labor Law, Article 8, as published by the Bureau of Experts at the Council of Ministers (not changed by the 2025 amendments). Unofficial translation; the Arabic text is the reference.

If no agreement is possible, the conciliator issues a record with a summary of the dispute and the reason the parties did not agree, then a record that the dispute could not be settled, and the claimant must then file a statement of claim with the competent labor court.

Other points from the Rules

• Confidentiality: settlement procedures and sessions are confidential. Attendance is limited to the conciliator, the parties and people the conciliator accepts, such as interpreters.
• Attendance: the parties attend in person or through their legal representative. Where a party is a public legal person, its statutory representative or deputy must attend.
• Collective claims: where three or more workers bring claims against one establishment, they must choose one or more people, no more than three, to represent them in filing and at the sessions, and the Labor Inspection and Work Environment Development agency is notified.
• Violations: if the conciliator finds that the claim involves a breach of the Labor Law or its regulation, the department may notify the Labor Inspection and Work Environment Development agency.

A general example with hypothetical dates

Suppose an employment relationship ended at the end of March 2026 and the worker's final dues were not paid. The worker files for amicable settlement online, the claim is registered the same day, and the first session is held within ten working days at most. The 21-working-day limit runs from that first session. If the parties agree, a settlement record is drawn up; if not, a record that settlement failed is issued, and the worker may then take the claim to the labor court, keeping in mind that the Article 234 limit in this example ends around the end of March 2027.

A hypothetical example for illustration only. It does not describe any real case.

Common misconceptions

• “You can go straight to the labor court.” Royal Decree (M/14) requires the claimant to apply to the labor office for amicable settlement before filing a labor claim.
• “Amicable settlement has a fee.” The Ministry lists it as a free service.
• “You must attend the labor office in person.” The Rules allow amicable settlement to be conducted remotely through communication means approved by the Ministry.
• “Any settlement a worker signs during the contract is binding, whatever it says.” Article 8 voids any release or settlement of the worker's rights during the contract unless it is more beneficial to the worker.
• “A settlement record is just a friendly note.” Once ratified, it is an enforceable instrument under the Rules.

Official channels

• MHRSD: Friendly Settlement for Labor Disputes service page, where applications start.
• Decision adopting the Rules and Procedures Governing Amicable Settlement in Labor Disputes, with the text of the Rules (Arabic).
• The Ministry's unified number: 19911, for questions about the service or an open request.
• Labor Law on the Bureau of Experts site, for Articles 7, 8 and 234, and the status of Article 220.

I reviewed these sources on 28 September 2026.