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Arbitration

Must an arbitrator in Israel give reasons for the award?

Usually yes. Under the Arbitration Law 5728-1968, the default rules in the First Schedule require the arbitrator to state the reasons for the award unless the parties have agreed otherwise. Parties are free to waive reasons in their arbitration agreement, but if they do not, an unreasoned award can be challenged. The reasoning duty is one of the few procedural protections the statute builds in by default.

The Arbitration Law 5728-1968 gives arbitrators wide freedom from formal rules of procedure and evidence, but it balances that with a set of default obligations contained in the First Schedule, which apply automatically unless the parties contract out of them. Among these defaults is the duty to give reasons for the award (nimukim). The reasons do not need to read like a court judgment, yet they must show the arbitrator addressed the parties' main arguments and explain the basis for the result. Because the parties can expressly agree that the arbitrator decides without giving reasons, the first question is always what the arbitration agreement actually says.

Where reasons are required and the arbitrator fails to give them, that omission can support an application to set the award aside under Section 24 of the Arbitration Law, which lists the limited grounds for challenge. For a party from abroad, this matters in two ways. First, when drafting the clause, decide deliberately whether you want a reasoned award, since reasons aid enforcement and any later challenge but can lengthen the process. Second, when you receive an award, check that it engages with your central arguments rather than simply announcing a winner, because a reasoned award is far easier to defend or attack on review. Silence on a key issue is a red flag worth raising quickly within the short challenge window.

⚖ In Practice
  • Governing law: Arbitration Law 5728-1968, First Schedule (default duty to give reasons); Section 24 (grounds to set aside)
  • Competent authority: the District Court (Beit Mishpat Mehozi) hears confirmation and setting-aside applications
  • Default rule: reasons are required unless the parties agreed the arbitrator may decide without them
  • Challenge window: an application to set aside must generally be filed within 45 days of receiving the award
  • Practical tip: state your choice on reasoned versus unreasoned awards expressly in the arbitration clause

From the full guide: The Arbitration Process in Israel, Step by Step

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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