Legislation Details
- Full Title: Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes
- Law Type: Federal Decree-Law
- Law Number: (40) of 2023
- Issued Date: 28 Sep 2023
- Effective Date: 29 Dec 2023
- Official Gazette: No. 760
- Sector: Justice and Judiciary
- Status: Active
- Number of Articles: 108
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates mediation and conciliation as alternative dispute resolution methods for civil and commercial disputes in the UAE. It establishes mediation and conciliation centers, defines the procedures and requirements for mediation and conciliation, and outlines the rights, obligations, and prohibitions for mediators and conciliators. The law aims to promote the amicable settlement of disputes and reduce the burden on the court system. It is significant for businesses and individuals in the UAE as it provides a faster, more flexible, and potentially less costly alternative to litigation. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023)
What is the scope and purpose of this law?
The law applies to all civil and commercial disputes in the UAE where settlement is possible, as long as it does not contradict applicable legislation, public order, or public morals. It covers both domestic disputes and international commercial disputes where the parties agree for the law to apply. The purpose of the law is to provide an alternative, amicable method for resolving civil and commercial disputes through mediation and conciliation. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 8)
What are the key definitions under this law?
The law provides the following key definitions:
- State: The United Arab Emirates
- Council: The Federal Judicial Council
- Department: The Federal Judicial Inspection Department
- Center: A Mediation and Conciliation Center
- Parties: Parties to disputes referred to Mediation or Conciliation
- Mediation: An optional and alternative method for amicable settlement of civil and commercial disputes
- Court-Ordered Mediation: Mediation ordered by a competent court
- Consensual Mediation: Mediation directly sought by the parties
- Mediation Agreement: A written agreement between the parties to resort to mediation
- Mediator: A natural or legal person engaged to perform a mediation mission
- Private Mediator: A mediator not listed in the Mediator Lists
- Conciliation: An alternative method for amicable resolution of disputes
- Conciliator: A person appointed or assigned to settle a dispute by way of Conciliation
- Settlement: Reconciliation reached by the parties through Mediation or Conciliation
(Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: 1. Mediation and conciliation procedures must be confidential, and the information disclosed during these processes cannot be used in court or disclosed without the consent of the parties. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 5) 2. Mediators and conciliators are prohibited from serving as arbitrators, experts, or attorneys in the same dispute, and from testifying against a party to the dispute, with some exceptions. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 6) 3. Parties must enter into a written mediation agreement that defines the subject of the dispute and the appointment method of the mediator. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 9) 4. Mediators must be listed in the Mediator Lists created by the Department or local judicial authority. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 10)
What licensing, registration, or approval requirements exist?
The law does not specify any licensing, registration, or approval requirements for individuals or entities to provide mediation or conciliation services. However, it does state that the Department or local judicial authority shall create lists of registered mediators, known as the "Mediator Lists". (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 10) The law also allows for the establishment of private mediation centers or the licensing of foreign mediation center branches, subject to a Cabinet resolution that determines their rules of procedure, license conditions, licensing authority, and registration of mediators. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 2(4))
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the governance and enforcement of this law include: 1. The Federal Judicial Council (the Council), which may establish mediation and conciliation centers and issue regulations governing their operation. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 2(1-2)) 2. The Federal Judicial Inspection Department (the Department), which shall develop the general policies of the mediation and conciliation centers and may monitor their work. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 2(5)) 3. The Supervising Judge, who oversees the mediation and conciliation centers. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 1) 4. The local judicial authorities, which may also establish mediation and conciliation centers and issue regulations governing their operation. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 2(1-2))
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Federal Decree-Law.
What fees, charges, or financial provisions are specified?
The law does not provide any details on specific fees, charges, or financial provisions related to mediation or conciliation under this legislation.
What exemptions or exceptions apply?
The law states that mediation may not be used in cases where conciliation has already been sought, pursuant to the provisions of this Decree-Law. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 7(1)) Additionally, the law specifies that a dispute may not be referred to conciliation as long as mediation has been sought to settle the subject thereof, in accordance with the provisions of this Decree-Law. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 7(2)) The law also states that mediation may not cover disputes that cannot be settled through conciliation, as per Article 28. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 8(1))
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms for resolving disputes that may arise under this legislation. The focus of the law is on providing mediation and conciliation as alternative dispute resolution methods for civil and commercial disputes, rather than on resolving disputes related to the application of the law itself.
What are the key deadlines and time limits?
The legislation does not provide any specific deadlines or time limits related to the mediation or conciliation processes.
How does this law interact with other UAE legislation?
This Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes repeals any provisions that contradict it. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 43) The law also references the following related legislation: - Federal Law No. (1) of 1972, on the Competences of Ministries and the Powers of Ministers, as amended - Federal Law No. (17) of 2016, Establishing Mediation and Conciliation Centers in Civil and Commercial Disputes, as amended - Federal Law No. (6) of 2021, on Mediation for Settlement of Civil and Commercial Disputes (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Preamble)
When did this law come into effect?
This Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes was issued on 28 September 2023 and will come into effect on 29 December 2023. (Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes, 2023, Art. 44)
Source Documents
This article analyses Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.