Mediation in Employee Receivables Claims

In disputes concerning employee receivables such as severance pay, notice pay or overtime wages, applying to a mediator before filing a lawsuit is a statutory requirement.

Why Is Mediation a Precondition for Litigation?

Under Article 3 of Labour Courts Law No. 7036, having applied to a mediator is a precondition for lawsuits concerning employee or employer receivables and compensation claims arising from an individual or collective employment contract, as well as reinstatement claims. If a lawsuit is filed directly without first applying to a mediator, the court dismisses it on procedural grounds for lack of this precondition.

How Does the Process Work?

The application is made to the mediation office affiliated with the Ministry of Justice, and a mediator is assigned to the parties. The mediator brings the parties together to try to resolve the dispute; meetings may take place at one party's workplace or at the mediator's office. Mediation is, as a rule, completed within three weeks of the application, extendable by one further week where necessary.

If a Settlement Is Reached

If the parties reach a settlement in mediation, the resulting settlement record is treated as an enforceable instrument and can be the subject of enforcement proceedings. The amount and payment terms set out in the settlement record are binding on the parties.

If No Settlement Is Reached

If mediation does not result in a settlement, a copy of the final record can be attached to the statement of claim and a lawsuit filed with the labour court within two weeks. If this deadline is missed, a fresh application to a mediator is required.

Practical Recommendations

Before attending the mediation meeting, clearly identify the receivable items and amounts you are claiming; this facilitates negotiation and clarifies the scope of any lawsuit that may follow if no settlement is reached. It is advisable to enter the process with a lawyer to ensure the accuracy of the receivables calculation.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.