NEWSLETTER-2017

350 NEWSLETTER 2017 brought to mediation are concluded through negotiations that lasted for one day or less. Although some are of the opinion that bringing monetary limits for the disputes or negotiation obligations may decrease the workload of the courts, the legislator has prepared the Draft Law on Labor Courts (“Draft Law”) in order to reduce the amount of workload of the labor courts, and the amount of the labor law disputes brought be- fore the judicial authorities. In addition, relevant legislation has been amended, accordingly. Planned Amendments The new legislation mandates application to mediate as a pre- condition before filing a lawsuit, especially in some labor law dis- putes. Since mediation is an alternative dispute resolution method, the parties are not obliged to agree once they apply to the mediator, and they have the right to claim rights before the court should they fail to reach an agreement before the mediator. However, it has been set forth in the Draft Law that the non- participating party of the mediation without a valid excuse shall be obliged to pay all of the litigation expenses even, if the judgment is rendered in favor of the absent party. It has been also stipulated that non-attendance and relevant issues shall be addressed by the mediator in the official report. As per Draft Law, as a pre-condition to file a lawsuit, employees and employers are required to apply for a mandatory mediation be- fore filing a lawsuit for any receivables (excluding disputes relating to material or immaterial indemnity claims arising from a disability due to work accidents and recourse actions regarding the same) as well as re-employment lawsuits. Such claims should have arisen due to employment related matters. As well, the Draft Law amends Articles 20 and 21 of the Labor Law, which are regarded as “labor protection,” stipulating that the par- ties are required to apply for mediation as a pre-condition before filing a lawsuit. It has been also set forth that the parties may appeal the

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