Amicable Settlement of Labor Disputes: How Does the Stage Before the Labor Court Work?

What is amicable settlement?

It is a first stage for considering disputes between a worker and an employer, offered electronically by the Ministry of Human Resources and Social Development (HRSD) through the Wadi platform, with the aim of reaching a solution acceptable to both parties before moving to the labor courts.

How is the request submitted?

The request is submitted electronically with the details of both parties, the claims and the available documents. Among the service requirements, the Ministry lists attaching the employment contract, if any, or proof of the contractual relationship. To organize your documents beforehand, read How to prepare a labor dispute file before a consultation.

How long does settlement take, and what comes next?

Settlement sessions are held within a set period, usually 21 working days from the first session. If the parties agree, the agreement is documented; if reconciliation is not possible, the file is referred electronically to the competent Labor Court to continue hearing it.

Watch the time limit for hearing the claim

Article 222 of the Labor Law sets a period of twelve months from the end of the employment relationship for hearing labor claims; so do not delay filing the request while waiting for verbal promises of a settlement.

How do you prepare for the settlement session?

• Define your claims precisely, and list each amount separately with how it is calculated.
• Arrange the supporting documents for each claim in chronological order.
• Know in advance the minimum you will accept in a settlement.
• Do not sign a settlement record or a release before reading its wording and understanding its effect on your other rights.

Steps for filing an amicable settlement request through the Wadi platform

The amicable settlement request begins electronically through the e-services portal of the Ministry of Human Resources and Social Development, and many users know the service by the name Wadi platform. The service is available to both the employee and the employer, and the Ministry provides it free of charge. The steps usually proceed as follows:

• Logging in to the Individuals portal if the claimant is an employee, or the Businesses portal if the claimant is an employer.
• Choosing the amicable settlement service, then filing a lawsuit.
• Filling in the claimant's and defendant's details, choosing the settlement office, and entering the employment details.
• Selecting the case subjects from the main and sub-categories, and specifying each request separately.
• Attaching the supporting documents, then affirming that the case is not filed in bad faith, and submitting the request.

After submission, specialists review the request, and both parties are notified of the hearing date by SMS; hearings may be held remotely. The status of the request can be tracked from the case list in the user’s account.

What happens if one of the parties does not attend the settlement session?

The effect differs depending on the absent party and the stage of the request:

• Absence of the claimant: The case is shelved, and he has the right to reopen it as long as the period does not exceed 21 working days, as stated by the Ministry in the service description.
• Employer's absence: The Ministry of Justice explains in its FAQs that the Amicable Settlement Department may suspend the employer's services if he fails to attend the first settlement session.
• Settlement not reached within the period: The competent Amicable Settlement Department refers the case to the Labor Court to hear it.

It is therefore advisable for each party to follow up on incoming messages and hearing dates, bearing in mind the limitation period for hearing a labor action referred to above.

Settlement in Amicable Settlement or a Judgment from the Labor Court?

Amicable settlement is not an alternative path chosen by one party instead of litigation, but rather the first stage in considering a labor dispute, as the Ministry describes it. Nevertheless, the effect of a conciliation differs from the effect of a judgment:

• Nature of the outcome: in settlement, the two parties agree on the resolution with the conciliator’s assistance, while in court, a judgment is issued after considering the claims and evidence.
• Duration: Settlement is limited to 21 working days from the first session, while the duration of a court case varies depending on the dispute and the progress of hearings.
• Force of the Minutes: The Ministry of Justice states that the minutes issued by the conciliator at the Amicable Settlement Department constitute an enforcement instrument, so its enforcement can be requested if the other party does not comply with it.
• Flexibility of the Solution: Settlement allows solutions the two parties agree on, such as scheduling amounts, while a judgment is limited to the requests proven before the court.

Accepting or rejecting a settlement offer is a decision based on an assessment of the documents and the value of the claims, not merely on the desire to end the dispute.

Common requests in amicable settlement

Common claims include unpaid wages, the end-of-service award, compensation for unlawful termination of the contract, unused leave pay, and the service certificate. Each claim has a different legal basis and calculation method; the award is calculated under the rules for calculating the end-of-service award, while compensation for termination is governed by Article 77 of the Labor Law. The more specific each claim is as to its amount and basis, the clearer its discussion at the settlement session will be.

Before signing the settlement record

• Make sure the minutes state the agreed amounts precisely, along with the payment date and method.
• Read the discharge wording carefully, and determine whether it covers all rights or only specific claims.
• Record any non-financial obligations in the minutes, if any, such as delivering the service certificate.
• Keep a copy of the minutes, as it is the document relied on when requesting enforcement.

If you need to have your position assessed before the session or after referral to the court, see the Labor & Employment Disputes service.

Frequently asked questions

How Long Does Amicable Settlement Take on the Wadi Platform?

The Ministry of Human Resources and Social Development has set the amicable settlement period at 21 working days from the date of the first session. If the two parties reach agreement within that period, a conciliation report is drawn up, and if conciliation fails, the case is referred to the competent Labor Court to complete its hearing.

What happens if the employer does not attend the amicable settlement session?

The Ministry of Justice explains that the Amicable Settlement Department may suspend the employer's services if they fail to attend the first settlement session. If settlement is not reached within the specified period, the case is referred to the Labor Court and continues to be heard there under litigation procedures.

Is the Settlement Record in Amicable Settlement Binding?

Yes, the Ministry of Justice states that the minutes issued by the conciliator at the Amicable Settlement Department constitute an enforcement instrument. This means the beneficiary party can request its enforcement if the other party fails to comply with what was agreed, so its wording should be read carefully before signing.

Can a labor lawsuit be filed directly without amicable settlement?

The Ministry describes amicable settlement as the first stage in the process of hearing labor dispute cases; the labor case therefore begins with a request through the service, and is then referred to the Labor Court if settlement is not reached. The request should be submitted within twelve months of the end of the employment relationship.

Can a dismissal under Article 80 be raised in amicable settlement?