Article 3 of the Labor Courts Law No. 7036 has introduced mandatory mediation in employer-employee disputes as of January 1, 2018. This process must be carried out compulsorily before filing a lawsuit.
Scope of Mandatory Mediation
- Employee receivables (wages, overtime, annual leave).
- Severance and notice pay.
- Reinstatement cases.
- Work accident compensation.
- Union compensation.
Process
Litigation Condition (Obligation)
- A lawsuit cannot be filed without a report of disagreement.
- If a lawsuit is filed, it will be rejected due to "lack of a lawsuit requirement".
- Waste of time if mandatory mediation is neglected.
Reaching Agreement
- Written agreement document.
- Ability to enforce (such as a court decision).
- Enforcement proceedings in case of agreement violation.
- Tax advantage: the agreement fee is not tax-free like severance pay; Income tax applies.
Fees
- If agreement is reached: fee calculated based on the tariff.
- No deal: minimum wage.
- The tariff is updated annually.
- In cases where the minimum wage is raised, the right is still paid.
Supreme Court 9th HD — Established Approach
9. HD accepts that issues that cannot be agreed upon in compulsory mediation can be included in the case, a new claim/demand must first be submitted to mediation, and a new application for additional receivables is mandatory.
Reinstatement — Specialized Process
- Job security (4857 art.18 — 30+ workers).
- Mediation within 1 month from the notice of termination.
- In case of disagreement, litigation in two weeks.
- Reinstatement decision: Reinstatement within 1 month.
Practical Advice — Worker
Practical Advice — Employer
Compulsory mediation is the first filter of business cases. The process should be managed with Labor law lawyer.