Upon examining the German model of labour judicature, analyzing the presumptions of its origin and development, and numerous positive-law solutions of German labour legislation, it can be concluded that the specialized judiciary for resolving labour disputes has numerous advantages in comparison to the courts of general jurisdiction, primarily from the aspect of social peace, fairness, legal safety and the rule of law. The Federal Republic of Germany falls into the group of countries with the best developed labour dispute resolution system. In FR Germany, labour disputes are adjudicated within a three-tiered system, which includes courts of special jurisdiction. Thus, labour judicature provides a range of solutions that contribute to a high level of efficiency in resolving labour disputes. The efficiency of labour judiciary is based on the principles of acceleration of the procedure, procedure concentration, prohibition of reversing the case for retrial, and an active role of the court. Due to these features, the German labor judicature system is often taken as an example which serves as a model for conceptualizing labor judiciary systems in other countries through the world. However, it is generally known that each country has a range of socio-political and socio-economic features. Thus, non-critical acceptance of peculiarities of foreign legislative solutions often leads to more damage than benefit. For this reason, when analyzing the potentials of the institutionalization of labour courts into the judicial system of the Republic of Serbia, it is first necessary to establish the principles of organization of labour judiciary which could be common to these two countries and, then, to establish the basic principles that could be used as the cornerstone of domestic institutionalization. Thereupon, on the basis of historical analysis of our labour judiciary as well as socio-political and socio-economic circumstances in our country, we should decide on individual operative solutions acceptable for our country.