MEMORANDUM OF UNDERSTANDING AND COOPERATION IN HARMONIZATION OF METHODS FOR PEACEFUL SETTLEMENT OF LABOUR DISPUTES ("Off. Herald of RS - Treaties", No. 13/2019)

The Parties

- Agency for Peaceful Resolution of Labour Disputes of Republika Srpska (BiH),

- Agency for Peaceful Settlement of Labour Disputes of Montenegro,

- Ministry of Labour and Social Policy of North Macedonia,

- Agency for Peaceful Settlement of Labour Disputes of the Republic of Serbia

Having in mind the universal principles for amicable (extra-judicial) settlement of labour disputes as embedded in international labour standards;

Taking into account largely accepted practices in amicable settlement of labour disputes;

Drawing on the works and knowledge sharing within the Network of Agencies for Peaceful Settlement of Labour Disputes in Central and Eastern European countries;

Are determined to establish common ground for harmonization and further development of the methods of peaceful settlement of labour disputes and agree upon the following:

Article 1

This Memorandum of understanding and cooperation, in further text Memorandum, represents a framework for harmonization of methods in the area of peaceful settlement of labour disputes on the principles and process of the existing good practice and experiences of the signatories (in further text: the Parties), taking into account the specificities of the legal systems and legal practice of all signatories

Article 2

The Parties agree that, taking into account the content of the national legislation frameworks of the Parties, the term arbitration in peaceful settlement of labour disputes in the context of this Memorandum will mean to them a process in which the third neutral party - the arbiter, on the basis of an already given consent of the parties in dispute on the procedure and selection of the arbiter, and on the basis of evidences produces a mandatory and enforceable decision.

Article 3

The Parties agree that, taking into account the content of the national legislation frameworks of the Parties, the term mediation in peaceful settlement of labour disputes in the context of this Memorandum will mean to them a process in which the third neutral party - the mediator, on the basis of an already given consent of the parties in dispute on the procedure and selection of the mediator, assists the parties in dispute to reach by themselves a mutually acceptable solution of the dispute.

Article 4

The Parties agree that, taking into account the content of the national legislation frameworks of the Parties, the term med-arb in peaceful settlement of labour disputes in the context of this Memorandum will mean to them a two-stage process, which starts as a mediation aiming at the reaching of a mutually acceptable solution, and if within a given timeframe a mutually acceptable solution is not reached the second stage of the process immediately starts, in which the process becomes imminently transformed into arbitration, whereby a neutral third party - the arbiter, decides upon the outcomes of the dispute.

At the beginning of the second stage of the process the parties in dispute are allowed to choose another person as a neutral third party.

Before the med-arb process begins the parties in dispute have to be informed and to have agreed with the entire process, including the fact that if the first stagge is unsuccessful the process imminently includes the second stage in which the neutral third party - the arbiter, decides about the outcomes of the dispute.

Article 5

The Parties agree that the term conciliation in peaceful settlement of labour disputes will mean to them a process in which the third neutral party - conciliator, would assist the parties in dispute to reach an agreement and resolve the dispute themselves, or upon request of one of the parties in dispute would make a recommendation about the settlement of the dispute, whereby he/she would draft a written agreement on the basis of what was agreed.

Article 6

The Parties agree to exchange information related to the regulatory framework and practices of peaceful settlement of labour disputes, to enhance mutual and regional cooperation and conduct researches about the peaceful settlement of labour disputes.

Article 7

This Memorandum may be amended at any point in time by written consent of all Parties, whereby other potentially interested parties from other countries in the region may adhere to it.

Article 8

This Memorandum will have unlimited duration and enters into force on the date of signature.

The Memorandum shall be signed in English language.

Article 9

Any Party may withdraw from this Memorandum at any time by giving a three months prior written notice to the other Parties. The notice period shall begin on the day when the written notice has been received by all other Parties.

IN WITNESS THEREOF, the authorized representatives of the Parties have signed this Memorandum on 10 October 2019.

Stevo Škrbić
Acting Director of the Agency for Peaceful Resolution of Labour Disputes of Republika Srpska (BiH)

Zdenka Burzan
Director of the Agency for Peaceful Settlement of Labour Disputes of Montenegro

Mila Carovska
Minister of Labour and Social Policy of North Macedonia

Mile Radivojević
Director of the Agency for Peaceful Settlement of Labour Disputes of the Republic of Serbia