Kindly be informed that the Law on Labor Courts numbered 7036 is published and announced in the Official Gazette dated 25.10.2017. One of the most important amendments stipulated in Law is the introduction of a “mandatory mediation” procedure.

According to Article 3 of the Law, will become effective as of 1.1.2018, in cases of compensation claims raised by employees or employers based on individual or collective labor agreements and for reinstatement lawsuits, it is mandatory for the parties to submit their case to a mediator before filing a lawsuit. However, it is important to note that mandatory mediation does not cover or apply to the pecuniary and non- pecuniary damages that may arise from occupational illnesses and work-related accidents. According to the Law, in mandatory mediation cases, the mediator will be appointed either by the mediation office from a prepared list of mediators, by the commissions to be formed, or by the parties themselves. According to the Law, the mediator shall conclude the negotiations within three weeks, and this period may be extended for one week by the mediator in certain cases and particular circumstances. If the parties reach a settlement, the mediation fee will be paid equally, unless otherwise agreed. The mediation fee will be determined as per the minimum wage tariff for mediators. If the parties fail to reach a settlement, the fees corresponding to the first two hours of the meetings will be paid by the Treasury, while the fees corresponding to the remaining period will be paid equally by the parties, unless otherwise agreed.

According to the Law numbered 7036, the disputes in relation to General Health Insurance Law and other social security legislation, it is mandatory for the parties to apply to the Social Security Institution before the initiation of any legal case. In the event the Institution does not respond to the concerned application within 60 days, the request is deemed to be rejected. In order to initiate a case against the Institution the requests should be rejected or deemed to be rejected.

We also would like to note that, according to Law, annual leave payment claims as well as the below indemnification claims due to employment agreements are subject to 5 year statute of limitation;

a) Severance payment.
b) Indemnification claims due to termination of employment agreements without complying the notice requirement.
c) Indemnification claims due to bad faith.
d) Indemnification claims due to termination of employment agreements without complying the equaltreatment principle.

For further and detailed information about the Law and its’ application, please do feel free to contact us and we will be pleased to assit.

Kind regards,

ERDAL LAW FIRM

Feyza ERDAL
Mediator- Attorney at Law