Mediation and arbitration are two alternative dispute resolution pathways that allow parties to reach a settlement outside of court — in a faster, more discreet, and more cost-effective manner. While court proceedings can drag on for years and cost tens of thousands of shekels, an average mediation process concludes within 3 to 5 meetings, and arbitration is usually resolved within just a few months. In Israel, there is increasing demand for these services due to the heavy burden on the justice system and the desire of businesses, couples, and family members to preserve their relationships even after a dispute.
What is mediation? In mediation, a neutral third party — the mediator — helps the parties reach a mutually agreed-upon solution themselves. The mediator does not judge or rule, but rather guides a structured discussion that allows each party to be heard, understand the other party's true interests, and formulate a creative solution that benefits both sides. The mediation agreement, once signed, holds the status of a court judgment. What is arbitration? In arbitration, the parties authorize the arbitrator to rule on the dispute in a binding manner, similar to a judge but through a private, more flexible, and quicker process. The arbitrator's award can be submitted for court approval and has full legal standing.
When should you turn to a mediator or arbitrator? Business disputes between partners, neighborhood disputes, divorce and custody, inheritance disputes, contractual disagreements, employment conflicts, and partnership dissolutions – these are classic examples where an alternative process is preferable to courtroom litigation. In many cases, it is recommended to combine a mediator with lawyers who will legally support the parties, or with business consultants w…
Tips for choosing a professional
Verify mediator certification
In Israel, a certified mediator is one who has completed at least 60 hours of training and is recognized by the Courts Administration. Ask to see their certificate before starting the process.
Match expertise to the dispute
A family mediator for divorce disputes, a business mediator for partner conflicts, a mediator with an engineering background for construction disputes. Specific expertise is crucial for success.
Check practical experience
Ask how many successful mediation processes they have led in recent years. Practical experience of 50+ processes indicates true expertise.
Agree on costs in writing beforehand
The fee agreement should include: hourly rate, expected hours, whether there is a separate charge for travel, and who pays – usually, the expense is split equally.
Maintain neutrality
If the mediator was recommended by only one party, ensure there are no prior personal or business connections. Absolute neutrality is fundamental to the process.
Arrive with openness to compromise
Mediation only works when there is a genuine desire to resolve – not just to win. Define your true interests in advance, not just your positions.
Frequently asked questions
What is the difference between mediation and arbitration?
In mediation, the mediator helps the parties reach a mutual agreement themselves – they do not rule or judge. In arbitration, the parties authorize the arbitrator to make a binding decision on the dispute, similar to a judge. The arbitrator's award can be submitted to court for approval and has full legal force.
How long does an average mediation process take?
Most mediation processes conclude within 3 to 5 meetings, each lasting 2-3 hours, over a period of 4 to 8 weeks. This is significantly shorter than a legal process which can take years.
Is a mediation agreement legally binding?
Yes. After the parties have signed the mediation agreement, it can be submitted to the court for approval, and it then has the full force of a binding judgment.
How much does a mediation process cost?
The cost of mediation in Israel generally ranges from 600 to 1,500 NIS per hour, divided between the parties. A full process will typically cost between 5,000 to 20,000 NIS in total – a saving of tens of thousands of shekels compared to court proceedings.
Is the mediation process confidential?
Yes, absolute confidentiality. Anything said in the mediation room cannot be testified about in court if the mediation fails. This is one of the main advantages of the process – you can speak openly without fear.
When is arbitration preferable to mediation?
When parties want a binding and quick ruling but wish to avoid court, or when it's a technical-professional dispute that requires an arbitrator with a specific background such as engineering, medicine, or accounting, instead of a general judge.
Do you need a lawyer in mediation?
It's not mandatory, but highly recommended – especially in complex disputes. A lawyer can guide you, ensure your rights are protected, and assist in drafting the final mediation agreement so that it stands up to legal scrutiny.