Saudi Labour Disputes to Proceed to Court if Settlement Not Reached in 21 Working Days

 

Labour disputes that cannot be settled amicably within 21 working days will be referred to court, according to the Ministry of Human Resources and Social Development (MHRSD).

The ministry highlighted its electronic 'Friendly Settlement' service for resolving labour disputes between workers and employers. In the initial phase of processing electronically filed labour dispute petitions, this service aims to facilitate a resolution. If no settlement is reached within 21 days of the first session, labour offices will electronically transfer the case to labour courts.

Under this system, efforts are made to reconcile differing viewpoints through mediation, seeking an amicable solution that satisfies both parties whenever possible. If no resolution is achieved within 21 working days from the first session, the case will be automatically referred to the labour court.

The ministry has streamlined its friendly settlement services on its official website, allowing for electronic case submission and formalisation. The system also enables plaintiffs and defendants to access case details before the hearing session.

Additionally, remote reconciliation sessions can be conducted, ensuring high governance standards and eliminating human interference in scheduling appointments.

The ministry's Friendly Settlement unit specialises in handling labour disputes related to employment contracts, wages, rights, work injuries, compensation, terminations and disciplinary actions against workers.

Lawsuits for friendly settlement can be initiated through the ministry's unified application or website, requiring proof of identity, nationality, residency, or passport, along with evidence of the contractual relationship from the plaintiff (worker/employer).

This service is available at the labour office within the jurisdiction of the workplace and the relevant settlement office. Lawsuits must be acknowledged and verified for non-malicious intent.

Notifications via text messages and emails are sent to all involved parties upon acceptance of the lawsuit. Details regarding the hearing date are also communicated through these channels.

If the plaintiff fails to attend, the case will be set aside with the option to reopen it within 21 working days. If the defendant misses the initial session, their ministry services will be suspended, and a new session will be scheduled.

Repeated absences by the defendant allow the worker to change employers without the current employer's consent, and the case will proceed to the labour courts.

In cases where a settlement is reached, a settlement agreement will be drafted and made available for printing through the claims service. If no agreement is reached after the second session, the lawsuit is transferred to the labour courts, with session dates determined later by the Ministry of Justice.

The lawsuit is considered closed within the friendly settlement unit, and clients can print and submit reports through the Najiz system at the Ministry of Justice.

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