Workplace Conflict Resolution

Six deadlines in a single table

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Discussion to resolve a labor dispute before it goes to court.

The resolution of workplace conflicts follows two entirely different paths. Individual disputes go to the competent court, with a three-year statute of limitations. Collective disputes follow a mandatory sequence: up to 10 days of mediation, then up to 10 days of conciliation, and only then arbitration, which must be completed within three weeks.

This page shows how the two are distinguished, what the deadlines are, who resolves them, and what happens before the matter goes to court.

Read also: Workplace Conflicts and Defense: The Complete Guide

Conflict resolution begins with distinguishing them.

Article 188 defines collective conflict. It is any conflict between several employees or trade unions on one side, and one or more employers or their organizations on the other side.

ElementIndividual conflictCollective conflict
The partiesAn employee and an employerSome employees or unions and the employer
ObjectiveIndividual rights under the contract and the CodeCollective interests and collective contract
RoadCompetent courtMediation, conciliation, arbitration
DeadlineThree years, or 180 days to leave.10 days, 10 days, 3 weeks

Conflicts related to the interpretation or application of the law are, in principle, reviewed by the court or the Arbitration Court, pursuant to Article 191(2), even when they are collective.

Resolution of individual conflicts

There is no mandatory preliminary procedure under the Code here. What matters are the deadlines, because they expire quickly.

ClaimDeadlineArticle
Rights from the employment relationship3 years from the birth of the right203, point 1
Absence without reasonable cause180 days from the end of the notice period146, point 2
Abusive motive discovered later30 days since discovery146, point 2
Immediate unjustified solution180 days since the relationship ended155, point 4
Disciplinary measure1 year after the measure was taken203, point 1
Compensation requested by the employer6 months from the date of notification203, point 2

Caution: Article 203, paragraph 3, imposes a consequence that businesses often overlook. The employer is deemed to have waived any right arising during the relationship if, by the end of the contract, he has not notified the employee in writing of his reservations and claims.

Read also: The removal procedure and its deadlines

Collective conflict resolution, step by step

The code establishes a mandatory sequence. No step is skipped.

Step 1. The intermediary. It is initiated at the request of any interested party to the minister responsible for labor or to the State Labor Inspectorate. It intervenes without delay. The procedure is mandatory and lasts up to 10 days, in accordance with Article 192.

Step 2. The Conciliation Office. It is initiated when the mediator declares a failure. The parties are required to appear and participate in the hearings. The office submits a settlement proposal. The procedure is mandatory and lasts up to 10 days, pursuant to Article 193.

Step 3. The Arbitration Court. In the event of a failure to reach an agreement, both parties may jointly resort to arbitration. They freely select one or three arbitrators from a list provided by the ministry. Arbitration is completed within three weeks, in accordance with Article 194.

The Arbitration Court's decision is an enforceable title under the rules of the Civil Procedure Code. The arbitrators are paid by the parties, while the conciliation procedure is free of charge.

Who solves it and where?

The Conciliation Office is established in each county and is responsible for conflicts that arise within it. The National Conciliation Office is located in Tirana and handles conflicts that affect more than one district. It is composed of the chairperson, two representatives from the most representative trade unions, and two representatives from employers' organizations.

When conflict resolution is determined by a collective bargaining agreement

Article 195 allows the parties to appoint themselves as a mediator, a conciliation office, or an arbitration tribunal to resolve disputes.

In this case, the mediator and the state conciliation office are not liable, except when the mechanism provided for in the agreement cannot be activated in a timely manner.

For services of vital importance, Article 196 makes arbitration mandatory and final after mediation and conciliation, with three arbitrators. If the parties cannot agree, the arbitrators are selected by lot by the court within five days.

Read also: The collective bargaining agreement and its contents

Special protection for union representatives

Article 181, paragraph 4, establishes a rule that completely changes the removal procedure for this category.

The employer's termination of the contract with the trade union's representatives without the organization's consent is invalid. The organization may withhold consent when the termination violates the principle of equal treatment or when it seriously harms and makes impossible the normal functioning of the union.

The employer's request must be answered within eight days. The employer may terminate the contract only if he obtains consent or if a court finds the refusal to grant it to be unfounded.

Read also: Discrimination and harassment at work

Conflict resolution begins before conflicts arise.

Most of the individual conflicts we see didn't start as legal disputes. They started as a missing document.

1. The contract with all the elements of Article 21 has been signed and delivered.

2. Additional documents for any change in pay or position, instead of oral agreements.

3. Hour evidence and leave records, updated month by month.

4. Payroll statement for each period, with additions and withholdings separately itemized.

5. The written complaints procedure, which provides the employee with an internal avenue before the external one.

6. Written notice of reservations and claims before the contract expires, pursuant to Article 203, paragraph 3.

Read also: Documents required for an inspection

When the dispute concerns wages or allowances, the figures are first checked at Invoice and payment terms, because there is the first evidence of calculation.

The mistakes we see in conflict resolution

  • The 180-day departure period is confused with the general three-year period.
  • The employer does not notify his reservations in writing and is deemed to have waived them.
  • In a collective dispute, arbitration is required without first going through mediation and conciliation.
  • The parties did not appear at the conciliation office session, even though they are required to do so.
  • The union representative leaves without seeking the organization's consent, which renders the settlement invalid.
  • There is no internal appeals procedure, so any dispute immediately goes outside.
  • Oral agreements are not formalized and are reopened later.

Conflict Resolution, Frequently Asked Questions

How long does mediation in a collective conflict last?

Up to 10 days. The procedure is mandatory, pursuant to Article 192, paragraph 3.

How long does the reconciliation procedure take?

Up to 10 days and it is also mandatory, according to Article 193, paragraph 7. It is free of charge.

How long does arbitration take to complete?

Within three weeks of the Arbitration Court being set in motion, pursuant to Article 194, paragraph 4.

Is arbitration mandatory?

Not as a rule. It is required by both parties jointly. The exception is for services of vital importance, where arbitration is mandatory and final, pursuant to Article 196.

Within what time frame can a dismissal from work be appealed?

Within 180 days of the end of the notice period, or within 30 days of discovering the abusive motive.

What is the general statute of limitations?

Three years from the birth of the right, for both the employee and the employer, according to Article 203, paragraph 1.

Can a union representative be removed?

Only with the approval of the trade union organization, or when a court finds the refusal to grant it to be unfounded. Without this, the settlement is invalid.

Who appoints the mediator?

The minister responsible for labor or the administrative authority authorized by him, pursuant to Article 188/a.

Legal basis

  • Law No. 7961, dated July 12, 1995, the Labor Code, as amended, inter alia by Law No. 9125/2003 and No. 136/2015. The articles used are 146, 155, 181, 188, 188/a, 189, 190, 191, 192, 193, 194, 195, 196 and 203. Consolidated text at the Official Publications Center
  • The enforcement of the arbitral award is governed by the Code of Civil Procedure.
  • Labor legislation and mediation at the Inspectorate. State Labor Inspectorate

Almost every individual dispute that ends up in court begins with a missing document, not a genuine disagreement, and then the deadlines run against the person who lacks evidence. As external economists, we keep contracts, addenda, and records in order so that the conflict has nowhere to take hold, as part of the monthly subscription.

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