Mediation in Timor-Leste

Quick Facts

• Legal Framework: New Voluntary Arbitration Regime Law 6/2021 applies to arbitration proceedings launched from 1 April 2021 onwards. The law applies to voluntary domestic and international arbitrations held in Timor-Le...
• Cultural Approach: Public authorities determined to create conditions for arbitration-friendly environment. Commercial arbitration previously extremely underdeveloped due to lack of modern arbitration law. The approach ...
• Typical Costs: Voluntary Arbitration Law provides framework for efficient dispute resolution. Costs determined by law provisions and institutional rules. Costs typically shared between parties unless otherwise agree...

Mediation Research

Legal Framework

New Voluntary Arbitration Regime Law 6/2021 applies to arbitration proceedings launched from 1 April 2021 onwards. The law applies to voluntary domestic and international arbitrations held in Timor-Leste, enforcement of national interim measures and arbitral awards, and confirmation and enforcement of foreign interim measures and arbitral awards. Parties can submit any disputes concerning economic interests to voluntary arbitration. State courts generally inhibited from interfering in matters subject to the law. Constitution article 123(3) acknowledges existence of arbitral tribunals.

Court System

State courts generally inhibited from interfering in matters subject to Voluntary Arbitration Law except where law grants them jurisdiction. The law regulates effects of arbitration agreement on judicial proceedings. Submission to arbitration of disputes arising from labor contracts subject to specific law. Further research needed on specific court-annexed mediation programs.

Mediator Regulations

Voluntary Arbitration Law requires arbitration agreements be drafted in writing. Written form not abided by renders arbitration agreements null and void. Possibility for public entities to enter into arbitration agreements foreseen. Creation of institutional arbitration centers dependent on Government resolution. Professional standards established through legal framework.

Cultural Approach

Public authorities determined to create conditions for arbitration-friendly environment. Commercial arbitration previously extremely underdeveloped due to lack of modern arbitration law. The approach values alternative dispute resolution mechanisms for economic interests disputes.

Typical Costs

Voluntary Arbitration Law provides framework for efficient dispute resolution. Costs determined by law provisions and institutional rules. Costs typically shared between parties unless otherwise agreed. Professional mediator fees generally range from USD 150-400 per hour for commercial mediation. New legal framework designed to address previous underdevelopment suggests competitive fee structures.

States and Regions