Friday, April 8, 2016

COMPULSORY ARBITRATION IN LABOR DISPUTES

The new legislation is on the way to prevent parties filing a lawsuit in Labor Courts for their claims of wages and re-employment.
In today’s complex business world, settling the grievances and disputes between employers and employees is an important issue, and many countries are introducing alternative dispute resolution enabling the parties to reach out-of- court settlements which are time saving and less costly in comparison with litigation.

In order to lessen the heavy burden of labor courts, Turkish government prepared a “Labor Courts Law Draft, which stipulates that the parties will be obliged to resort to arbitrator in the first place instead of litigation process for their labor disputes and conflicts.
Workers' claims arising from employment contract and collective bargaining agreements and re-employment claims shall be referred to arbitration before initiating a lawsuit. Unless the parties reach an agreement they may resort to labor courts.
Parties may choose, by a mutual agreement, an arbitrator recorded in “registry of arbitrator.” Application should be made to arbitrator office where the opposite party established. And the arbitrator finalizes the claims within 3 weeks or in case of force major in 4 weeks at the most.
Arbitrator will inform and invite the parties for a meeting through every communication instruments possible and send the final report to the arbitrator office at the end of the negotiation.
Parties may join the negotiations themselves, or by their legal representatives or their lawyers.
The expert that can contribute to reconciliation may be kept available in the negotiation.
During the period between resorting the arbitrator and the final report is prepared, period of limitation and statutory limitation will rest.
The law draft has been sent to relevant state institutions and organizations for taking their opinion on the matter and expected to in the Parliament oncoming weeks; we continue to keep you on the developments.


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