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Hungary

10 November 2016

Hungary: Alternative Dispute Resolution Service launched in Hungary

A free Alternative Dispute Resolution Service (ADR Service) has been launched in 2016 under an EU-funded project managed by Hungarian social partners. The ADR Service will assist employers, trade unions and employee representatives on collective labour law conflicts in order to settle collective disputes.

The ADR Service, sponsored by the EU for the next three years will be available in local offices in all the seven regions of Hungary. The members of the ADR Service are specialized labour lawyers, who have been selected by the social partners on professional criteria and listed on the project’s website (jogpontok.hu). The members of the ADR Service will assist employers, trade unions and employee representatives on collective labour law conflicts in order to settle collective disputes. 

The Labour Mediation and Arbitration Service (MKDSZ), founded in 1997, was the forerunner of this new ADR Service. However, the legal status of MKDSZ had never been clarified by law and the mandate of MKDSZ expired and was not renewed after 2010. Therefore, this new ADR Service will be the continuation of the work on settling and managing collective labour conflicts between employers and employee representations, particularly trade unions.

The members of the Service will provide the following types of aid: labour law advice, mediation, conciliation and arbitration. Arbitration is compulsory in certain cases listed by the Labour Code. In all the other cases, the procedure of the ADR Service is initiated by one or both parties.

The parties of the conflict may include, in particular, trade unions, works councils, group of employees or employer(s). Besides large companies, the project will strive for providing services for small and medium sized companies as well. At the same time, the activities of the ADR Service extend to private as well as public sector employment. It should be noted, that the ADR Service focusses exclusively on collective labour conflicts, therefore individual and/or labour law (legal) disputes are excluded from its scope.

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