Operating Rules and Procedures of Reconciliation Offices

The following terms and expressions – wherever they occur in these Rules – shall have the meanings assigned thereto, unless the context requires otherwise:

1. Statute: The Reconciliation Center Statute promulgated by the Council of Ministers Resolution no. (103), dated 8/4/1434H.

2. Rules: These rules, which are referred to in Article 9 of the Statute.

3. Center: The Reconciliation Center, established pursuant to the Council of Ministers Resolution no. (103), dated 8/4/1434H.

4. Ministry: The Ministry of Justice.

5. Minister: The Minister of Justice.

6. Secretary General: The Secretary General of the Center.

7. Reconciliation: A consensual means of settling disputes undertaken by reconciliation offices, whether in whole or in part.

8. Reconciliation Offices: The offices affiliated with the Center.

9. Reconciliation Officer: A person who undertakes reconciliation work in accordance with the provisions of the Statute.

10. Registered Reconciliation Officers: The reconciliation officers and agencies other than the Ministry employees from whom an office seeks assistance and who are registered in the record prepared for this purpose in accordance with the provisions of the Statute and the rules and decisions issued in implementation thereof.

11. Parties and Parties to the Reconciliation: All parties to the dispute subject of the reconciliation, whether they are two or more, not including the reconciliation officer.

12. Reconciliation Record: A paper or electronic document wherein is recorded the settlement agreed upon by the parties to the reconciliation and approved for implementation.

1. Reconciliation offices shall perform reconciliation work in the following:

a. Disputes referred thereto by courts; and

b. Disputes that the parties thereto or some of them refer to these offices whether initially or after starting to hear the dispute at any stage of the proceedings, provided that the judge considering the lawsuit is notified.

2. Reconciliation offices shall not perform reconciliation work in matters contrary to Islamic Shariah, matters over which the parties to the reconciliation have no right to engage in reconciliation, nor matters which breach the law.

A reconciliation officer shall, in performing his work, adhere to the values ​​of confidentiality, impartiality, professionalism, proficiency, integrity and other ethical principles associated therewith.

A reconciliation officer may not perform reconciliation work in cases that can affect his neutrality and independence except after disclosure to the office management and to all parties to the reconciliation and obtaining their acceptance in writing; these cases may, inter alia, include the following:

1. If the reconciliation officer, his spouse, relatives, or in-laws up to the fourth degree has an existing or potential interest in the dispute, such as a professional relationship or partnership with one of the parties, whether still existing or not, or his personal or financial interest in the reconciliation results, or any other reason that could affect his independence and impartiality.

2. If the reconciliation officer has previously pleaded on behalf of one of the parties to the dispute, issued a fatwa therein, considered same in the capacity of an expert or arbitrator, gave testimony therein, or initiated any investigation procedure therein.

A reconciliation officer shall not act as agent, plead, assume arbitration, or provide consultation to any of the parties to the reconciliation in the dispute wherein he performs the reconciliation work, even upon the conclusion thereof, except with the approval of the parties, and only as concerns actions that are considered complementary to the reconciliation work, such as guiding the parties to the method of implementation.

Reconciliation offices may seek the assistance of reconciliation officers other than the employees of the Ministry; these shall comprise employees from the government, private and non-profit sectors who meet the conditions and qualifications set out in Article 7 hereof upon their approval and registration in accordance with the provisions of these Rules. Offices may only seek assistance from a registered reconciliation officer.

1. For a reconciliation officer to be registered, he shall meet the following requirements:

a. Have full legal capacity;

b. Be of good conduct and behavior and be not convicted in a crime impinging on honor or integrity unless he has been rehabilitated;

c. Hold a university degree at a minimum;

d. Attend training courses, as determined by the Center;

e. Pass the test approved by the Center;

f. Pass the personal interview; and

g. Pass practical training by attending at least ten real-life reconciliation hearings with a reconciliation officer approved by the Center for the purpose of training.

2. For an agency to be registered for offering reconciliation services, the following conditions shall be met:

a. Have a valid license to perform its activities in the Kingdom for the duration of the registration period;

b. The activities that it is licensed to exercise shall have to do with reconciliation work; and

c. Have a suitable venue for holding reconciliation hearings as per the standards set by the Center.

3. The Deputy Minister may grant an exemption from one or more conditions pursuant to the previous qualifications and experience.

1. The Center shall prepare a register wherein the names of registered reconciliation officers are recorded. This register shall comprise the particulars of the registered reconciliation officers and the data affecting the type of lawsuits that can be referred to them, including their domicile, the types of lawsuits they can handle, and their qualifications and experiences. Said register shall be reported to all reconciliation offices, and its basic information shall be available for public access.

2. The Center shall prepare a register for recording the agencies whose assistance is sought by the Center; said register shall comprise the particulars of the managers of such agencies and the data of the reconciliation officers who perform reconciliation work therein.

3. Registration and deregistration shall be made by a decision of the Secretary-General upon the recommendation of a committee to be formed from among the Center’s personnel and other employees of the Ministry. Registration shall be valid for a period of three years, to be renewed for similar periods upon the request of the registered reconciliation officer taking into consideration his performance.

A registered reconciliation officer may charge fees for his reconciliation work from the parties thereto or some of them, pursuant to the following provisions:

1. Indicate same in the record of registered reconciliation officers;

2. The consent of the parties to the reconciliation after their notification of the amount of the fees;

3. This shall not affect the impartiality and independence of the registered reconciliation officer;

4. The registered reconciliation officer shall comply with the procedures and rules issued by the Center in this regard, including the rules pertaining to the amount of the fees and the disputes for which a financial consideration may be charged.

The Center shall activate the hiring of registered reconciliation officers, and shall contribute to developing and improving their efficiency, including:

1. Ensure electronic connection with registered reconciliation officers;

2. Provide the necessary training and qualification, whether directly or in partnership with government, private and non-profit sectors; and

3. Provide suitable places for registered reconciliation officers inside reconciliation offices, based on the available capabilities.

A registered reconciliation officer shall:

1. Comply with the provisions related to the reconciliation officer and the reconciliation procedures stated in the Statute and the Rules and in the decisions issued in implementation thereof, unless otherwise stipulated;

2. Undertake the annual minimum number of reconciliation requests referred to him by the reconciliation office, free of charge. The Center shall determine the minimum limit for each type of registered reconciliation officer upon registration; the reconciliation officer may accept any additional number of these requests;

3. Allow at least five trainees per year to attend reconciliation hearings carried out under his supervision upon being referred by the Center;

4. Pursue continuous education and development, by attending or participating in preparing and organizing training courses, conferences, or workshops in the field of reconciliation for no less than five hours annually; and

5. The registered agencies shall only permit a registered reconciliation officer to assume reconciliation work in the lawsuits referred thereto by the Center and shall ensure that said reconciliation officer adhere to the provisions of the Statute and the Rules.

Without prejudice to the private right and the penalties stipulated in other laws, the Secretary-General shall, pursuant to the recommendation of the committee formed under Article 8 hereof, have the power to temporarily or permanently suspend the approval of a registered reconciliation officer in the event that he violates the provisions of the Statute and the Rules or the decisions issued in implementation thereof, that he breaches his professional obligations and the values ​​of the reconciliation officer, or that he repeatedly requests to recuse himself for no good reason. Likewise, a reconciliation officer shall be removed from the register if he so requests.

1. A request for reconciliation shall be referred by courts pursuant to the approved form to the reconciliation office at the same court with which the lawsuit is filed. If said court has no reconciliation office, said request shall be referred to the reconciliation office specified by the Center.

2. If one of the parties, or more, files a request for reconciliation without a referral from the court, such party shall submit the request to the Center or the reconciliation office pursuant to the approved form; the reconciliation process shall be undertaken by the office to which the party has applied or by the agency named by the Center.

3. The request for reconciliation shall be recorded on the day of referral thereof, and shall be given a serial number.

4. The director of the competent reconciliation office or his designee shall refer the reconciliation request to the reconciliation officers from among the Ministry employees or the registered reconciliation officers, taking into account the interest and the instructions issued by the Center in this regard, and observing the wishes of the parties as possible.

1. Unless the Center stipulates otherwise in the dispute subject of the reconciliation, the reconciliation office shall set a date for the reconciliation hearing within a period not exceeding 14 days from the date of recording the reconciliation request. The parties to the reconciliation shall be notified of the date either by the reconciliation office or the party requesting reconciliation. Should the parties or one of them be absent for the hearing, the office shall set another date within seven days from the first date, and shall as much as possible observe that the new date be suitable for the parties. In the event that the parties or one of them are absent for the second time or that it was not possible to notify them, the reconciliation request shall be dismissed, and, in case of referral, the court which referred the request shall be notified.

2. Reconciliation hearings shall be held at the premises of the reconciliation office, and may be remotely held via electronic means, or at another appropriate venue, provided that the rules and conditions issued by the Center in this regard are observed.

1. Reconciliation hearings shall only be attended by the following:

a. The reconciliation officer;

b. The original parties to the reconciliation; they may delegate any person to attend on their behalf, provided that they grant that agent a power of attorney authorizing him to conduct the reconciliation. A legal person shall be represented by its legal representative, or his designee, who has the power to conduct the reconciliation on behalf thereof;

c. The agents of the parties to the reconciliation, even if their principals attend the hearing; and

d. Any person whose presence is accepted by all parties whether prior to or during the reconciliation.

2. Any person other than the reconciliation officers and their assistants who attend the reconciliation hearings shall sign a non-disclosure agreement and shall adhere to the manners of the reconciliation hearings.

1. The reconciliation officer shall, at the beginning of the hearing, verify the identity of the parties to the reconciliation, and their legal capacity to conduct the reconciliation.

2. The reconciliation officer shall be in charge of controlling the reconciliation hearings, and he shall ensure that the parties to the reconciliation reach a settlement of the dispute in compliance with the provisions of Islamic Shariah and the laws in force, as well as the values ​​stated in Article 4 hereof and the procedural guides issued by the Center. In the event of multiple disputes between the parties, even if they fall under different jurisdictions, the reconciliation officer shall endeavor to ensure that the parties reach a reconciliation that ends all such disputes.

3. The reconciliation officer may, for the purpose of reaching a reconciliation, meet during or prior to the hearing with one of the parties individually. He may also meet with the parties without their agents, provided that this meeting does not breach the reconciliation values ​, nor leads to a legal prohibition.

4. The reconciliation officer may not force the parties or some of them to accept the reconciliation.

5. The parties to the reconciliation shall abide by the manners of dialogue and the reconciliation officer’s instructions.

6. The reconciliation procedures and deliberations shall be conducted in the Arabic language, unless the parties agree otherwise, provided that the reconciliation record be written in the Arabic language.

7. A maximum of three hearings may be held for reconciliation, provided that the entire period from the start of the procedures does not exceed 30 days, with the exception of the following disputes:

a. Disputes for which the reconciliation office prescribes longer periods;

b. Other disputes in the event that the director of the reconciliation office approves the extension pursuant to a reason indicated by the reconciliation officer.

Reconciliation hearings shall be confidential; no information or documents circulated therein or reconciliation records resulting therefrom may be disclosed, presented as evidence, or used in giving testimony before the judicial authorities, dispute settlement committees and arbitration tribunals, except in the following cases and to such an extent as to achieve the purpose thereof:

1. Disclosure required for the enforcement of the reconciliation record;

2. If one of the parties to the dispute submits in the litigation or arbitration procedures the same documents and facts related to the subject of the dispute that he has submitted in the reconciliation hearings, or those that he had in his possession or to which he has access in a legitimate manner prior to the reconciliation hearings;

3. Disclosure of the reconciliation officer’s name or overall reference to the reconciliation procedures without giving details thereof;

4. Disclosure agreed upon by the parties to the dispute;

5. Exceptional disclosure pursuant to the provisions of a specific law;

6. Disclosure that prevents a crime from occurring; and

7. Disclosure of a violation committed by the reconciliation officer.

Reconciliation hall terminate in any of the following cases:

1. If the parties to the reconciliation reach a settlement of the dispute;

2. If one of the parties to the reconciliation is absent, in accordance with the provisions of Article 14 hereof;

3. If one of the parties to the reconciliation withdraws at any of the stages thereof;

4. If reconciliation is not possible by one of the parties thereto due to his death, the expiry of his legal personality, or any other reason;

5. If the reconciliation hearings exceed the number of hearings or periods provided for in Article 16; and

6. If the reconciliation officer finds it is useless to proceed with the reconciliation procedures, or if the parties repeatedly breach the reconciliation manners and procedures, he may retire, and shall accordingly report same to the director of the reconciliation office to decide whether to terminate or refer the reconciliation work to another reconciliation officer.

A reconciliation officer shall not draw up a record of the reconciliation hearings; he shall only draft the following:

1. If the reconciliation terminates without reconciliation, the reconciliation officer shall draft a record to that effect wherein the basic information shall be entered pursuant to the approved form. Such information shall comprise the date of the reconciliation hearings, the place where they are held, the names and particulars of the reconciliation officer and the parties to the reconciliation, the names of the persons who attended the hearing, and a summary of the dispute subject of the reconciliation without giving details of the hearing. The lawsuit shall be archived and, in the event of referral, the court which referred the lawsuit shall be notified.

2. If the reconciliation concludes with a settlement in part of the dispute, the reconciliation officer shall draw up a record indicating that the reconciliation has terminated without a complete settlement pursuant to the provisions of the previous paragraph. Further, a reconciliation record shall be drawn up wherein to enter the part of the dispute that has been settled. Said record shall be subject to the same provisions and procedures of the reconciliation record contained in Chapter Five. The lawsuit shall be archived and, in the event of referral, the court which referred the lawsuit shall be notified.

3. If the reconciliation concludes with a complete settlement, the reconciliation officer shall draw up a reconciliation record in accordance with the provisions of Chapter Five. In the event of referral, the court which referred the lawsuit shall be notified.

The reconciliation officer shall draw up a record wherein to state all the terms and conditions agreed upon by the parties to the reconciliation to terminate the dispute. Said record shall meet the following requirements:

1. The reconciliation conditions and the obligations of the parties shall be known and enforceable, and shall not contradict the provisions of Islamic Shariah or the laws in force.

2. The reconciliation record shall be drafted in accordance with the approved forms, if any, and shall include the following information:

a.      Date of reconciliation;

b.     Name of the reconciliation officer;

c.      Names and particulars of the parties to the reconciliation, including the identification number of the natural person, the license number of the legal person, and the power of attorney numbers of the agents;

d.     Summary of the dispute and the requests of the parties; and

e.      The settlement agreed upon by the parties and all the conditions, details and method of implementation thereof.

3. The reconciliation record shall be appended by the signatures of the reconciliation officer and the parties to the dispute or their agents who are authorized to conduct the reconciliation. An electronic signature shall be sufficient in case of electronic records as per the relevant laws.

1. The reconciliation record shall, upon being signed by the reconciliation officer and the parties, be approved by the director of the reconciliation office wherein the reconciliation took place, or by the Secretary General or his designee for the records issued by registered reconciliation officers and the electronic reconciliation records.

2. Subject to the confidentiality of the reconciliation hearings, the Center’s Secretary may delegate an administrative unit at the Center to monitor the quality of the reconciliation records and review same prior to the approval thereof.

3. The reconciliation record shall be binding on the parties to the reconciliation upon their signing thereof. It shall, upon the approval thereof, be deemed as a writ of execution to which the provisions of the writs of execution stipulated in the Enforcement Law shall apply.

4. Neither of the parties to the reconciliation shall have the right to revoke the reconciliation record after it has become binding, nor to invalidate same except with the approval of all parties or for a legal or Shariah requirement.

Each party shall be served a copy of the reconciliation record upon the approval thereof. The reconciliation offices and registered reconciliation officers shall send an electronic copy of the reconciliation record to the Center, and shall electronically keep such records to maintain their confidentiality and make them accessible when needed.

Should an interpretation of the reconciliation record be required, the person in charge of the approval thereof or any person designated by the Secretary General shall, upon consultation with the reconciliation officer, provide an interpretation. Said interpretation shall be made in writing, and shall be communicated to all parties. It shall, upon the agreement of the parties thereon, be deemed as complementary to the reconciliation record and shall be subject to the provisions thereof.

The procedures stated in these Rules, including drafting the reconciliation records electronically in accordance with the Electronic Transactions Law, may be digitized in whole or in part to maintain the confidentiality and reliability of the records and procedures.

The Secretary of the Center shall issue the decisions, controls, procedural guides and approved forms required to implement these Rules.

These Rules shall supersede the Operating Rules and Procedures of Reconciliation Offices issued by Ministerial Decision no. (53792), dated 27/7/1435H, and shall enter into force after 120 days from the date of approval thereof.