Labor conciliation proceedings: Can an agreement be reached before going to labor court?
How the pre-lawsuit settlement attempt works
When a dispute arises between an employee and a company, and either party decides to take action within the labor jurisdiction, it is generally mandatory — prior to filing any court claim — to attempt a labor conciliation or mediation procedure before the competent public body, with the aim of reaching an agreement between the parties.
What is the labor conciliation hearing?
The labor conciliation hearing is a prior and, as a general rule, mandatory step before filing a claim before the Social Courts (Juzgados de lo Social). Its purpose is to facilitate the out-of-court resolution of labor disputes, encouraging settlement between the parties and avoiding, where possible, the initiation of judicial proceedings.
The competent body for labor conciliation has different names depending on the Autonomous Community where it is located. For example:
- In Catalonia, it is called CMAC.
- In Madrid, SMAC.
- In Valencia, TAL.
- In Andalusia, SERCLA.
What does labor conciliation involve?
Labor conciliation is an administrative procedure in which the employee and the employer appear before a specialized body in their Autonomous Community in order to negotiate an out-of-court agreement that may resolve the existing dispute.
According to Article 63 of the Law Regulating the Social Jurisdiction (Ley Reguladora de la Jurisdicción Social), the attempt at conciliation is an essential prerequisite for filing a claim before the Social Court:
Article 63. Prior conciliation or mediation.
An attempt at conciliation or, where appropriate, mediation before the relevant administrative service or the body assuming these functions shall be a prerequisite for the processing of the proceedings. Such bodies may be established through interprofessional agreements or collective bargaining agreements referred to in Article 83 of the Revised Text of the Workers’ Statute, as well as through professional interest agreements referred to in Article 13 and Article 18.1 of the Self-Employed Workers’ Statute.
Although conciliation is generally mandatory, Article 64 of the same law sets out certain exceptions. Among the most relevant are proceedings relating to:
- Social Security matters.
- Challenges to collective dismissals brought by employee representatives.
- Vacation entitlement and electoral matters.
- Geographical mobility.
When can the procedure be initiated?
Dismissal:
When an employee has been dismissed, they must initiate the procedure by filing a conciliation claim (papeleta de conciliación). The deadline for filing is 20 working days from the effective date of dismissal.
Salary claims:
In cases of unpaid wages or disputes regarding outstanding amounts, the employee must also initiate the procedure by filing the conciliation claim. The time limit is 12 months from the date the amounts became due.
Substantial modification of working conditions:
In cases related to professional classification, disciplinary sanctions, or substantial modification of working conditions, this prior conciliation step is likewise required.
What is the procedure?
1. Submit the conciliation ballot.
The form collects the information necessary to address the dispute, including company details, employee details, and the reason for the complaint.
The form can be submitted either online or in person, by appointment.
2. Receipt of the summons.
Once the ballot has been submitted, the relevant body in each autonomous community will issue a summons for the conciliation hearing, which will contain the date and time when the parties must appear for conciliation.
3. Holding of the conciliation hearing.
On the appointed date, both parties must appear in person or through a legal representative. It is advisable to provide relevant documentation to support the claim, such as contracts, annexes, payslips or other supporting documents. During the hearing, the reasons for the dispute will be presented and negotiations will take place in an attempt to reach a satisfactory agreement for both parties.
4. Failure of the parties to appear.
If the employee fails to appear at the conciliation hearing without a valid reason, the proceedings will be deemed not to have commenced and will be closed. If the company fails to attend, the conciliation attempt will be deemed to have taken place and the employee may file a claim directly with the Labour Court.
5. Completion of reconciliation.
If the parties reach an agreement, the conciliator drafts a report setting out the agreement reached. Once the report has been drafted, both parties must sign it, assuming that it has the same validity as a court ruling.
If no agreement is reached by both parties, the proceedings will end without a settlement and the employee may file a lawsuit in the labor courts.
The Employment Advisory Department is at your disposal to answer any questions or provide clarification you may have regarding the Conciliation Act. Please do not hesitate to contact our team for any advice you may need.
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