The labour dispute committee is an extra-judicial body of the Labour Inspectorate which settles disputes. You may also go to court to resolve a dispute, but labour dispute committees usually resolve the issue faster and the service is free of charge for everyone.
Lately, there has been a significant increase in the number of petitions submitted to the labour disputes committee. In the first 4 months of this year, 729 petitions were received – an increase of 29% or 162 petitions compared to the same period last year.
What does a session of the labour dispute committee entail? When submitting a petition, the petitioner has already completed the necessary preliminary work. They have considered the claim and its justification, gathered the necessary evidence, such as an employment contract and written communications, and considered the perspective of the opposing party. Before the session, the parties have to be aware of the claims and evidence presented by the other party, allowing for sufficient time for the preparation of arguments and evidence in response. If the petition is unclear, the labour dispute committee sets a time limit by a ruling for the elimination of the omissions and specifies what needs to be revised.
Now that the session time has been arranged, all that remains is to show up on the assigned day.
Labour disputes are resolved by a three member panel of a labour dispute committee. The parties take a seat behind the tables. The chairman of the labour dispute committee outlines the procedure and allows each side to present their position.
‘Please elaborate on your position,’ the chairman of the labour dispute committee says, and poses clarifying questions to gather necessary information from the petitioner’s statement. After 20 minutes of explanations, the floor is given to the opposing party. After both parties have been heard, there is an opportunity for each party to ask questions and later to express their final position.
It is not only employees that turn to the labour dispute committee, but also employers. However, in 88% of cases it is the employee who initiates the recourse. Employers mostly contact the labour dispute committee in connection with disputes over the cancellation of employment contracts or claims for the compensation for proprietary damages caused by employees. The most common claims made by employees include disputes over the cancellation of employment contracts and non-payment of wages and holiday pay. In the case described above, the employer had also failed to pay wages.
The chairman of the labour dispute committee aims to provide both parties with the possibility of resolving the dispute through compromise. This is not always possible, but last year a remarkable 31% of decisions ended with a compromise. ‘Employment relationships are inherently emotional, and both parties often feel that they have been treated unjustly,’ explains Katrin Nirk, chairman of the labour dispute committee.
If a compromise cannot be reached, the labour dispute committee will make a decision on the same day and announce to the parties within ten business days. The decision is based on law and reason, but if either party is dissatisfied with it, they have 30 calendar days to appeal the decision to court. The decision is considered to have entered into force 30 days after receipt. If the parties have reached a compromise, it cannot be changed later.
Learn more about how to get help in case of a labour dispute here.
