Arbitration

What is the default time limit for an Israeli arbitrator to deliver the award?

Three months. The First Schedule to the Arbitration Law 5728-1968 sets default procedural rules that apply unless the parties agree otherwise, and it requires the arbitrator to make the award within three months of the day they began hearing the dispute or were required to act. The parties can lengthen or shorten this in their arbitration agreement, and the arbitrator or the court can extend it. Missing the deadline does not automatically void the award, but it can be a ground to ask the court to remove the arbitrator.

The Arbitration Law builds in a set of fallback rules through its First Schedule, which fills any gaps the parties left in their agreement. One of those rules gives the arbitrator three months to render the award, counted from when the hearing began or the arbitrator was first required to act. Because these are default rules, they yield to anything the parties expressly agreed, so a contract that sets a six-month timetable or its own procedure displaces the three-month figure entirely. The period can also be extended, either by the arbitrator within the limits the law allows or by the District Court on application, which is common in complex commercial cases that simply cannot conclude in a single quarter. The arbitration process is therefore more flexible in practice than the headline number suggests.

For parties this matters most as a tool for keeping an arbitration moving rather than as a strict guillotine on the award. An arbitrator who blows through the deadline without an extension has not necessarily produced a worthless award, but the delay can support an application to the court to remove them and appoint a replacement. The practical advice is to address timing in the arbitration clause itself, setting a realistic deadline and a clear mechanism to extend it by agreement, so that neither side can later weaponise a missed date. Foreign parties used to institutional rules with their own timetables should check whether those rules, rather than the First Schedule, govern. Building in sensible deadlines at the drafting stage avoids both unnecessary delay and tactical challenges later.

⚖ In Practice
  • Governing law: First Schedule, Arbitration Law 5728-1968 (default procedural rules)
  • Default deadline: three months from when the arbitrator began hearing the dispute or was required to act
  • Can be changed: yes, by the parties' agreement; extendable by the arbitrator or by the District Court (Beit Mishpat Mechozi)
  • Effect of delay: not an automatic ground to void the award, but a possible ground to remove the arbitrator
  • Drafting tip: set a realistic deadline and an extension mechanism in the arbitration clause to prevent tactical disputes

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


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