Amicable settlement (التسوية الودية) means resolving a dispute by agreement between the parties instead of a court judgment. The Ministry of Justice provides the Taradhi platform (منصة تراضي) for this, where online conciliation sessions are held under the supervision of accredited conciliators. Most importantly, a settlement agreement documented through it is an enforceable instrument: if it is breached, it can be enforced directly, as if it were a court judgment. This guide explains how amicable settlement works, when it is mandatory, and how to use it without giving up your rights.
Why settle amicably?
| Amicable settlement | Lawsuit | |
|---|---|---|
| Duration | Usually shorter: one session or a few | Longer: hearings and challenges |
| Cost | Lower | Higher |
| Outcome | Decided by the parties' agreement | Decided by the judgment |
| Relationship between the parties | Usually preserved | Usually affected |
| Force of the result | An enforceable settlement deed | An enforceable judgment |
How does the Taradhi platform work?
- Submitting the request: the applicant logs in to Taradhi with their Nafath account (the national unified sign-in) and specifies the type of dispute and the other party's details.
- Inviting the other party: the other party is notified of the request and invited to the session.
- The conciliation session: usually held remotely and run by a conciliator, who hears both parties and helps bring their positions closer without deciding between them.
- The settlement agreement: if the parties agree, the agreement is documented and a settlement deed is issued.
- If they don't agree: the request is closed, and each party keeps the right to go to court.
Which disputes are suitable for settlement?
- Family: maintenance, custody, visitation and other matters that can be settled.
- Financial and commercial: claims between individuals and companies, and contract and partnership disputes.
- Real estate: rental disputes, jointly owned property and division of property between heirs.
Some matters cannot be settled by their nature, such as the public right in criminal cases.
Amicable settlement in labour cases
Labour disputes first go through an amicable settlement stage at the Ministry of Human Resources and Social Development before they are referred to the labour court. The complaint is filed online and a settlement session is held between the employee and the employer. If they agree, the dispute ends. If they don't agree, or one of them is absent, the case is referred to the labour court. Read more on our labour cases service page.
How to negotiate in a settlement session without losing your rights
- Calculate your entitlement before the session: the full amount a court could award you, such as an end-of-service award or a financial claim.
- Decide the minimum you will accept before you go in, and don't decide it under pressure.
- Read the full wording of the agreement: the amount, how and when it will be paid, what happens if payment is late, and whether it includes a waiver of other claims.
- Be careful with the phrase "final release" (مخالصة نهائية) if you have other rights not mentioned in the agreement.
Sessions and agreements are in Arabic. If you don't read Arabic, make sure you understand the exact wording before you accept it.
If the other party breaches the settlement
A documented settlement deed is an enforceable instrument. If the other party does not pay what they committed to, you file an enforcement application with the Enforcement Court directly, without filing a new lawsuit.
Frequently asked questions
Is amicable settlement mandatory?
In labour cases, the complaint goes through amicable settlement first. In other cases, the court may refer the parties to conciliation in some disputes, such as family cases. In any case, you can request it voluntarily before filing a lawsuit.
Do I need a lawyer at a settlement session?
It isn't required, but a lawyer helps you assess your entitlement and draft the agreement so it is clear, enforceable and contains no waiver you didn't intend.
Can what I say in a settlement session be used against me in court?
Settlement sessions are based on confidentiality, to encourage both parties to negotiate. Even so, avoid admitting anything you don't want to be bound by.
Want to settle your dispute amicably?
The Usus Law Firm team represents you in conciliation and settlement sessions, drafts settlement agreements and follows them through to enforcement, in civil, family and commercial cases, in Riyadh and Tabuk.
Read also: Filing a labour case after amicable settlement.
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
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