Mediation in North Macedonia

Quick Facts

• Legal Framework: Mediation and ADR are regulated by the Law on Mediation. International arbitration is regulated by a special Law on International Commercial Arbitration, while domestic arbitration is regulated by the...
• Cultural Approach: Mediation and ADR are not developed in North Macedonia despite appropriate regulatory framework. The low mediator density (2.5 per 100,000 vs regional average of 14) indicates limited adoption. Howeve...
• Typical Costs: The Permanent Court of Arbitration determines fee structures for arbitration services. Mediation costs are determined by mediator agreements and institutional practices. Mandatory mediation for small ...

Mediation Research

Legal Framework

Mediation and ADR are regulated by the Law on Mediation. International arbitration is regulated by a special Law on International Commercial Arbitration, while domestic arbitration is regulated by the General Law on Litigation. The Law on International Commercial Arbitration is based on UNCITRAL Model Law on International Commercial Arbitration of 1985. Mandatory mediation applies in cases between legal entities with value less than EUR 36,000 where the case is not subject to notary payment order.

Court System

Mediation can be voluntarily, contractual, or mandatory. If parties have agreed to mediation as a means of settling a dispute, they must try mediation before proceeding with other means. The only institutional arbitration venue is the Permanent Court of Arbitration within the Economic Chamber of North Macedonia, operating since 1993. The law allows for ad hoc arbitration. If settlement is reached during active court procedure, the settlement is delivered to the court for confirmation.

Mediator Regulations

North Macedonia has 2.5 mediators per 100,000 inhabitants, which is below the regional average of 14. In 2022, mediation was most often initiated for commercial and labour cases (362 and 405 cases respectively). Mediators are trained professionals facilitating voluntary and confidential processes. Professional standards are established through the Law on Mediation. Further development needed to increase mediator density.

Cultural Approach

Mediation and ADR are not developed in North Macedonia despite appropriate regulatory framework. The low mediator density (2.5 per 100,000 vs regional average of 14) indicates limited adoption. However, the Permanent Court of Arbitration has growing turnover as companies seek alternatives to inefficient court system. Cultural acceptance is developing but remains below regional averages.

Typical Costs

The Permanent Court of Arbitration determines fee structures for arbitration services. Mediation costs are determined by mediator agreements and institutional practices. Mandatory mediation for small value cases may have subsidized rates. Costs are typically shared between parties unless otherwise agreed. The growing use of arbitration suggests cost-effectiveness compared to litigation.

States and Regions