5. If the parties accept the recommendation of the mediator or conciliation body, their agreement is recorded in writing and has the effects of a collective agreement. In the event of a failure of the attempt at conciliation and the expiry of a period of forty-eight hours after the registration of the disagreement, the Ombudsman sends the text of the reasoned and signed recommendation to the Minister of Labour, accompanied by a report on the dispute and the reasons given by the parties to the Mediator for rejection. (b) in the event of a dispute of the nature of Section 54 (a) [the interpretation or application of an employment contract, collective agreement or arbitration award] at the end of 14 days after receipt of the report, the parties have not reached an agreement and a party has asked the Court to rule or the parties have agreed to refer the matter to arbitration. However, the fact that a transaction procedure has taken place or will take place is not confidential, unless the parties agree otherwise. The labour inspector in charge of the case summons the parties within two weeks and tries to reconcile them. The parties must then choose their arbitrator. In Germany, the term “conciliator” is not a term protected by law. Therefore, in principle, any person can act as a conciliator. That is why it is incumbent on you to find someone who shows the necessary qualities to help the parties resolve their individual dispute. Several institutions are able to assist the parties in this selection. Some of them publish lists of conciliators on their websites. These pages may or may not indicate the individual skills and experiences of the individuals cited.
6. The transaction contract covered in paragraph 6 becomes binding on the parties at the time of its signing, unless otherwise stated in the agreement. In the absence of such an agreement, the Centre appoints the Ombudsman. Article 5 also codifies the Centre`s long-standing practice of making available to the parties, at their request, a list of potential mediators in a case in which the parties can then choose their preferred candidate to be appointed by the Centre. (c) a recommendation to the parties, which may take the form of an advisory arbitration award. This procedure may also be initiated by the Minister of Labour on written and reasoned request from one of the parties or on his own initiative. If the parties fail to agree on the appointment of a mediator, the mediator is chosen by the management authority from a list of respected persons appointed because of their moral authority and economic and social competence. The argument that the transaction agreement is not sufficiently persuasive. The Court found that under Section 74, a transaction agreement would have the status and effect “as if it were an arbitral award”; Therefore, legal fiction gave the same status and effect as an arbitration award to a transaction agreement concluded in the conciliation procedure and certified by the conciliator.
In other words, the transaction contract can be imposed as an arbitration award and it is not necessary for a party to a new procedure to be initiated in order to obtain an order concerning that decree. However, this does not mean that the transaction agreement will no longer be entered into voluntarily between the parties and will become an arbitral award; it has only the status and effect of a distinction under the law.