The use of mediation in UAE has increased in recent years, allowing parties to concentrate on the business aspects of their dispute rather than the legal issues. With a few exceptions, this procedure can be applied to any disputed matter. Mediation has become more popular in the UAE’s civil law jurisdiction, where it is widely accepted and used in common law jurisdictions as well.

For these and other reasons, including financial concerns, several advocates contend that mediation ought to be regarded as a pre-trial procedure in every jurisdiction. Only when those in positions to use or advise on mediation emphasize its positive aspects—as opposed to the harsh notion that settlement is a compromise that benefits only one party—will the true benefits of the process become apparent. A company that actively advances this viewpoint and highlights the benefits of mediation over conventional litigation is Khairallah Law Firm.

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DIFC’s Role in Mediation in UAE: Exploring Dubai International Financial Centre’s Contribution to Mediation

Part 27 of the Rules of the DIFC Court (“RDC“) contains the rules that the DIFC Courts have established for alternative dispute resolution (ADR). The DIFC Court actively encourages parties to consider justice by reconciliation, including mediation and conciliation, as an alternative means of resolving disputes or specific issues within a dispute, while stressing its primary role as a forum for deciding civil and commercial cases. Hiring a mediation lawyer can help to streamline this procedure and guarantee strong legal counsel throughout the mediation process.

While Part 38.24 of the RDC grants the court discretion to consider efforts made to resolve the dispute when assessing costs, the DIFC Court will not compel parties to engage in justice by reconciliation as a precondition to litigation. However, it will, when appropriate, invite the parties to discuss justice by reconciliation at the Case Management Conference. In order to support and facilitate the parties’ use of justice through reconciliation, the court may also adjourn the case for a predetermined amount of time.

Furthermore, the DIFC-LCIA Arbitration Center has been offering mediation and arbitration services to Center users since February 2008, adhering to the guidelines specified in the LCIA mediation procedure.

UAE Mediation Panel of RICS

The RICS has been successfully promoting its mediation in Dubai services in the UAE, actively conducting training courses in Dubai to prepare members of the proposed RICS UAE President’s Panel of Mediators for its official launch at the joint-hosted RICS and Dubai Land Department Conference on 1 October 2012. This launch signifies the increasing demand for mediation in the region.

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Mediation Centers for Mediation in UAE

The law authorizes the opening of independent mediation centers in the United Arab Emirates and provides licenses to mediation centers abroad. In the future, a Cabinet Decision will provide more details about the licensing requirements and operating practices of these centers. A Code of Business Conduct for Mediators will also be released by the relevant Minister.

UAE Employment Mediation Legislation

New Law No. 20 of 2023 gives the MoHRE the power to decide employment disputes worth less than AED 50,000 as of January 1, 2024. According to the UAE Labour Law, this expansion expands the scope of employment mediation to include disputes between employers and employees.

The Amendment’s Applicability

Employers and workers as defined by the UAE Labour Law who have disagreements worth less than AED 50,000 are subject to the new procedure. It’s also crucial to remember that free zones maintain authority over disagreements falling under their purview, as determined by the procedures set forth in each one.

Claims Below AED 50,000

Starting January 1, 2024, the MoHRE can issue final decisions on disputes below AED 50,000, expanding the realm of mediation in UAE. Furthermore, it has jurisdiction over breaches of settlements previously reached before the MoHRE, regardless of the settlement value. If parties are dissatisfied with the MoHRE’s decision, they may file an appeal within 15 working days, with the Labour Court of Appeal acting as the appellate body.

Claims AED 50,000 and Above

If disputes exceed AED 50,000, they follow the existing procedure, which begins with mediation by the MoHRE and escalates to the Labour Court’s Court of First Instance if they remain unresolved.

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FAQ

1- What are the 3 types of mediation?

Mediation is a process with three varying degrees of formality, goals, mediator techniques, and outcomes. These styles, ranked from more formal to less formal, include: settlement conference, facilitative, and transformative.

2- What is the mediation process in business?

Mediation assists parties in a dispute to discover settlement options they can both accept, avoiding court proceedings. This process entails a neutral third-party (the mediator) conducting a meeting with the primary parties involved in the dispute.

3- What is the meaning of federal law in UAE?

At the highest level of the federal government, there exists a body of law comprising a constitution, enacted laws, and all court decisions related to them.

4- What type of law is in UAE?

The UAE has recently extended its legal system to include the common law practiced in Dubai International Financial Centre Courts (DIFC), alongside the existing dual system of civil and Sharia laws. The principles of the UAE’s laws primarily derive from Islamic Sharia.

Conclusion 

Mediation, employing a neutral third party, offers a positive and forward-thinking approach to resolving disputes. Encouraging parties to utilize mediation as a pre-trial process whenever feasible is crucial. This process serves as an excellent means to help to dispute parties find a resolution before costs escalate and the commercial relationship is irreparably damaged. For assistance with resolving your problems, contact Khairallah Law Firm, home to the best lawyers in Dubai.