Business Glossary /
Saudi Labor Law
An alternative dispute resolution method allowing employment disputes to be resolved outside formal court proceedings in Saudi Arabia.
Employment arbitration in Saudi Arabia is an alternative dispute resolution mechanism that allows employers and employees to resolve disputes through a neutral arbitrator rather than through the Ministry of Human Resources or labor courts. Saudi Arabia's Arbitration Law (Royal Decree M/34) allows arbitration clauses to be included in employment contracts, though labor law matters must meet specific criteria to be arbitrable. Arbitration can offer faster resolution and greater confidentiality than court proceedings. However, it requires both parties to agree to the process either in the contract or at the time of dispute. Inclusive Solutions advises clients on dispute resolution strategy including when arbitration may be the preferred approach.
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