Standard legal mechanisms for resolution of labour disputes consist of protecting workers’ rights before an employer and a competent court. Protection of workers’ rights may be also exercised before a state administration body competent in the field of labour inspection issues, trade unions issues and similar labour issues.

Protection of workers’ rights in a procedure at the employer

This mechanism for protecting workers’ rights is called ‘internal’ protection. It is used when an employer has failed to provide for the employment rights of an employee, or is violating any of their guaranteed rights, and/or an employer has passed a written decision violating the employment rights of an employee. In such circumstances, a worker may submit a ‘request’ for remedy of violation or lodge a ‘complaint’ in order to protect their rights (within a period of eight days upon receipt of the decision by the employer violating their rights), and the employer may ‘act’ or ‘fail to act’ upon the request of the employee within additional period of eight days.  In case of violation, protecting the rights of workers at the employer is mandatory as a preliminary procedure prior to bringing proceedings to a competent court.

Protection of workers’ rights at a competent court

This mechanism for protecting workers’ rights is called ‘external’ protection.  In order to bring proceedings to a competent court to protect workers’ rights, preliminary proceeding must be observed at the employer first. An  exception to this are cases of claiming damages or discriminating against an employment applicant. Workers may bring proceedings to court not later than 15 days upon receipt of dissatisfactory response by the employer to their complaint.

The 15 day period is preclusive, so workers may only initiate proceedings in a competent court (first instance court competent for first instance civil procedures) within this period.  Labour disputes are initiated by bringing civil actions into a court of law.

Regulations for alternative mechanisms for resolution of labour disputes (LLR, Law on Amicable Settlement of Labour Disputes, collective agreements) use the sentence ‘amicable resolution of individual and collective labour relations’. The terms used imply the tendency of the regulations towards amicable settlement and out of court procedure.  The analysis of the legal framework for amicable resolution of labour disputes refers to two basic mechanisms for resolution of individual and collective labour disputes – amicable settlement and arbitration.

Amicable settlement as a mechanism for resolution of labour disputes

According to the Law on Amicable Settlements of Labour Disputes, settlement is a mechanism used only  for amicable resolution of collective labour disputes . It implies participation of a neutral third party (conciliator) in the mediation between the two opposing parties, in order to reach an agreement on amicable settlement of a collective labour dispute.

A conciliator is an individual providing assistance of parties to a collective dispute in order to facilitate an agreement for dispute resolution. They may participate in the settlement of parties in the process of collective bargaining, in collective disputes and disputes in activities of general interest (primarily in cases of strike in activities of general interest or in activities where interruption of work may threaten lives and health of people or cause large scale damage).

The procedure for amicable settlement is led by a Settlement Board whose members are representatives of the parties in the dispute, and the conciliator. In the settlement procedure, the conciliator assists the parties to reach a mutually acceptable agreement, without imposing solutions for the dispute. The settlement procedure is completed by a Recommendation (adopted by the Settlement Board or the Conciliator). The Recommendation is not obligatory for the parties to the dispute, however, it implies certain legal consequences. If parties to the dispute accept the Recommendation, they conclude an Agreement for dispute resolution.

Arbitration as a mechanism for resolution of labour disputes

According to the Law on Amicable Settlements of Labour Disputes, arbitration is a mechanism used only for amicable resolution of certain individual labour disputes. Individual labour disputes that may be subject to arbitration include disputes regarding termination of employment contract and failure to pay salary. Individual labour disputes imply participation of a third neutral party (arbitration), aiming at reaching a binding solution for the subject of dispute.

Arbiter is an individual who decides upon the subject of individual dispute. The arbiter leads the arbitration procedure and passes a decision regarding the subject of dispute. The decision is binding and enforced on the day of its receipt by the parties, without any possibility for complaint.

According to the LLR, arbitration is also possible in cases of a collective labour disputes. Resolution of collective labour disputes by arbitration is possible if it is defined in a collective agreement. Collective agreements may also define other specific issues significant for arbitration (composition, procedure, and other issues). The decision made by arbitration is final and binding for both parties, and no complaint against it is allowed at a competent court.