With the entry into force of Labor Courts Law No. 7036 in 2018, applying to a mediator before filing suit became mandatory for many disputes between employees and employers. This arrangement is intended to give the parties an opportunity to reach a settlement before litigation, but it also functions as a significant precondition for litigation — failure to comply can lead to the dismissal of a case filed directly.
Below is a general overview of which claims require mandatory mediation, how the process works, and which lawsuits are excluded from its scope.
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For Which Claims Is Mandatory Mediation a Precondition for Litigation?
Under Article 3 of Law No. 7036, applying to a mediator before filing suit is a precondition for litigation in claims for employee or employer receivables and compensation based on law or an individual or collective employment agreement, as well as in lawsuits filed with a reinstatement claim. This scope covers a wide range of claims, including severance pay, notice pay, overtime pay, annual leave pay, and wage receivables.
A lawsuit filed directly, without first applying to a mediator, is dismissed by the court on procedural grounds for lack of a precondition for litigation. This dismissal is issued without even reaching an assessment of the merits of the claim, which makes following the correct sequence of steps important.
Are Any Lawsuits Excluded From Mandatory Mediation?
The legislature has excluded certain labor lawsuits from the scope of mandatory mediation. Chief among these are material and moral damages claims arising from a workplace accident or occupational disease, along with related actions for determination, objection, and recourse. These lawsuits may be filed directly with the labor court without going through mediation.
Service determination lawsuits, filed to establish periods of unregistered employment, are also outside the scope of mediation because they are determination actions concerning public order. Wage and compensation claims relating to the same period, however, are a separate matter and do require a mediation application.
How Is a Mediation Application Filed?
The application is filed with the Mediation Bureau located at the employee's or employer's place of residence or the place where the work is performed, or, where no such Bureau exists, with the clerk's office of the designated civil court of peace. The Bureau assigns a mediator from the registered list of mediators; the parties may also agree on a common mediator of their own choosing.
How Does the Mediation Process Work?
The assigned mediator brings the parties, and their attorneys if any, together to conduct negotiations. The mediator generally concludes the process within three weeks of assignment; in exceptional circumstances, this period may be extended by a maximum of one additional week. The negotiations end with the parties either reaching or failing to reach an agreement, which is recorded in minutes.
If the parties reach an agreement, the settlement document carries the force of a court judgment without a separate enforceability endorsement, provided that under Article 18 of Law No. 6325 it is signed jointly by the parties, their attorneys, and the mediator; a settlement signed without attorneys requires an enforceability endorsement from the civil court of peace. If no agreement is reached, the parties are given "final minutes," which are attached to the petition when the lawsuit is filed.
Under Article 3 of Law No. 7036, a party who fails to attend the first meeting without a valid excuse is held liable for all litigation costs even if they partly or wholly prevail in the subsequent lawsuit, and no attorney's fee is awarded in their favour. Where no agreement is reached, the mediator's fee for the first two hours is paid from the Ministry of Justice budget; any time beyond that is shared equally by the parties.
What Effect Does a Mediation Application Have on Limitation Periods?
Filing a mediation application tolls any running limitation or preclusive period. The period resumes running once the mediation activity ends with the preparation of the final minutes. Calculating these periods correctly is decisive in reinstatement claims in particular: the employee must apply to a mediator within one month of being served the termination notice, and must file suit with the labor court within two weeks of the date on which the minutes recording the failure to agree were drawn up.
What Problems Commonly Arise During Mediation?
Common problems encountered in practice include receivable items being incompletely or incorrectly identified before negotiations, one party failing to attend the negotiations at all, and the settlement minutes being signed without their scope being sufficiently clarified. Approaching the negotiations well prepared and correctly calculating the receivable items claimed matter for the process to proceed properly.
In İzmir, the mediation application is filed with the İzmir Mediation Bureau at the İzmir Courthouse in Bayraklı; where the workplace falls within the Karşıyaka judicial district, the bureau at the Karşıyaka Courthouse is competent. If no agreement is reached, the lawsuit is filed with the labour courts at the same courthouses. Anyone seeking information on employment receivables and the mandatory mediation process may review our İzmir employment lawyer page; our office in Konak provides support in labour law matters across İzmir.
Av. Mehmet Yücesoy
İzmir Attorney & Legal Consultancy
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