What Arbitration Representation Means
Arbitration is a route expressly provided for labour disputes by the Georgian Labour Code: an individual employment dispute must be resolved in compliance with the conciliation procedures established by law and/or by applying to a court or arbitration, and the same holds for collective disputes. Arbitration is thus a lawful form of hearing a labour dispute, and representing a party in it is a task as demanding as full court representation.
The essence of arbitration lies in the parties' agreement: in an individual dispute the parties may agree to refer the dispute to arbitration, while in a collective dispute that agreement may be reached at any stage of the dispute. Representation in arbitration therefore consists of two stages — achieving the arbitration agreement and presenting the party's position within the terms of the agreement reached.
How the Move to Arbitration Happens
The move happens inside the dispute framework, which is born of written notice: one party sends the other written notice of the commencement of the conciliation procedures, stating precisely the ground of the dispute and the demands. In an individual dispute the other party must communicate its decision in writing within 10 calendar days of receipt, and the parties' written decision becomes part of the existing contract. If no agreement is reached within 14 calendar days of receipt, either party may apply to the court.
In a collective dispute — between an employer and a group of employees (not fewer than 20 employees) or between an employer and an employees' association — the procedure involves direct negotiations or mediation, and referral to arbitration may occur at any stage. The choice of arbitration is also time-limited: a claim arising from the Code may be brought within 1 year from knowing of the violation of the right, and that period does not restart upon entering arbitration.
The strategic choice of arbitration is thus always made against the alternative: a party choosing arbitration deliberately declines an open court hearing in favour of a confidential and usually faster consideration. It is an informed choice rather than a forced step, and before the arbitration agreement is signed the representative owes the client an honest comparison of both roads — their timelines, costs and consequences.
What a Representative Does in Arbitration
Representation means full management of the party's position: framing the facts and the demands, gathering and presenting evidence, agreeing on the composition of the arbitrators and the procedural rules, and working on the draft final award. The precision of the subject of the dispute matters especially: increasing a demand or changing the subject of the dispute during its consideration is prohibited, so the demands must be fully and correctly framed before the move to arbitration.
What Does Not Apply in Georgia
Georgia's Labour Code has no separate labour-arbitration statute, and compulsory arbitration does not exist — arbitration reaches the dispute only by agreement of the parties. Likewise inapplicable are the institutions of American arbitration practice: mass-arbitration procedures and the rules of specialised arbitration administrations designed for employment disputes. Questions of arbitration not regulated by the Code are resolved under the general rules of Georgian legislation.
The procedural calendar is equally precise: the other party must communicate its decision in writing within 10 calendar days of receiving the notice; if no agreement is reached within 14 calendar days of receipt, a party may apply to court, and where a party evaded participation in the conciliatory procedures, the burden of proving the factual circumstances of the dispute shifts to it. A written decision reached becomes part of the existing employment contract, and neither party may increase its demand or change the subject of the dispute during the proceedings. The parties may also agree to transfer the dispute to arbitration. Court action is time-barred: under Article 74 of the law a person may apply to court within 1 year from when it learned, or should have learned, of the violation of the right.
Frequently Asked Questions
Below we answer the questions most frequently asked about arbitration.
Can a dispute be sent to arbitration at one party's request?
No — arbitration is possible only by agreement of the parties: in an individual dispute the parties agree to it, in a collective dispute it may be achieved at any stage.
When does arbitration enter the picture?
Within the dispute framework, after the written notice: in an individual dispute the reply period is 10 calendar days, and after 14 calendar days without agreement the court route opens.
What restriction applies to demands in arbitration?
Increasing a demand or changing the subject of the dispute during its consideration is prohibited — the demands must be fully framed before the move to arbitration.
What limitation period governs the dispute?
A claim arising from the Code may be brought within 1 year from knowing of the violation of the right.
How We Help on Legal.ge
The advocates of Legal.ge offer the full cycle of arbitration representation: we assess whether referring the dispute to arbitration is advisable, draft the arbitration agreement, frame the demands so that no increase is later needed, gather the evidence and represent you at every arbitration hearing. Contact us — the arbitration agreement often predetermines the outcome of the dispute.