Workplace dispute resolution in Türkiye runs on a two-stage pathway: compulsory mediation first, the labour courts second. Since 1 January 2018, applying to a mediator has been a condition precedent (dava şartı) under Article 3 of the Labour Courts Act No. 7036 for most employee and employer money claims and for every reinstatement claim; file suit without the mediation minutes and the labour court dismisses the case on procedural grounds without reaching the merits. The mediator must conclude the process within three weeks of appointment, extendable by a maximum of one further week, so the gateway is normally cleared inside a month. The one statutory carve-out, in force as at July 2026, is a claim for pecuniary or non-pecuniary damages arising from a work accident or occupational disease, which goes straight to the labour court.
For a foreign company employing staff in Türkiye, the moment a relationship sours the question is rarely who is right in the abstract — it is which pathway the dispute now runs down, and who holds the paper that will decide it. Turkish labour disputes follow a defined route: almost every claim must pass through mandatory mediation (zorunlu arabuluculuk) before a court will look at it, and once in court the outcome turns far less on argument than on records. This guide maps that pathway for an employer, from the mediation gateway to the labour-court process, the claims that recur, and the documents that quietly determine each of them. It is the litigation companion to our overview of employing staff in Türkiye.
The Mediation Gateway
Since 1 January 2018, the Labour Courts Act No. 7036 has made mediation a compulsory precondition for most employment disputes. Before an employee or an employer may file suit over a money claim — severance pay (kıdem tazminatı), notice indemnity (ihbar tazminatı), overtime, unpaid wages, bonus or annual-leave pay — and before any reinstatement claim, the parties must first go through mediation. A lawsuit filed without a mediation record is dismissed on procedural grounds, without the court ever reaching the merits. This is not a formality to be resented; as we explain in our guide to mandatory mediation in Turkish law, it is an early opportunity to settle on controlled terms before costs and reinstatement clocks erode both sides’ leverage.
There is one clear exception the foreign employer should hold in mind. A claim arising from a work accident (iş kazası) or an occupational disease (meslek hastalığı) goes straight to the labour court; mediation is not required. The rationale is that these claims often turn on expert medical and causation evidence unsuited to a rapid settlement forum.
The mediation itself is fast. The mediator is appointed from an official registry and must, as a rule, conclude the process within three weeks, extendable by one further week. Sessions are confidential and without prejudice, so nothing said in them can be used later in court. If the parties settle, the agreement is recorded in the mediation minutes and carries the force of a court judgment — directly enforceable, no separate lawsuit needed.
Attendance is not optional in practice. Under the rule in force as at July 2026, a party that fails to attend the first meeting without a valid excuse bears half the litigation costs even if it goes on to win the case, and half the attorney’s fee under the Minimum Attorney Fee Tariff is awarded against it.
Do not treat mediation as a box to tick before the “real” fight. Once a claim reaches the labour court, the employer is defending on the record it built months or years earlier; there is nothing left to fix. The negotiating room is widest at mediation and narrows with every step after it.
Timelines and the Labour-Court Process
If mediation fails, the mediator issues minutes recording that fact, and the dispute moves to the specialised labour courts (iş mahkemeleri). Deadlines here are short and strictly enforced.
| Stage | Deadline | Consequence of missing it |
|---|---|---|
| Start mediation on a reinstatement claim | Within 1 month of the dismissal notice | Reinstatement remedy is lost |
| File the reinstatement suit after failed mediation | Within 2 weeks of the mediation minutes | Reinstatement remedy is lost |
| Money claims (severance, notice, overtime, leave) | Governed by their own limitation periods, but mediation must precede suit | Suit dismissed on procedural grounds |
A first-instance labour case commonly runs through an exchange of pleadings, witness hearings and — in wage, overtime and severance disputes — an expert report (bilirkişi raporu) that recalculates the sums from the parties’ documents. The first-instance judgment can then be appealed to the regional court of appeal (bölge adliye mahkemesi / istinaf), and, where the value or subject-matter threshold permits, to the Court of Cassation (Yargıtay). The process is not quick, which is itself an argument for resolving matters at mediation.
The Claims That Recur
Most labour files, whatever their label, are built from a familiar set of claims. A single dismissal often generates several at once.
- Severance and notice. Where the termination qualifies, severance is calculated per full year of service and capped at a ceiling that the Ministry of Treasury and Finance resets every six months. That severance ceiling is 73.729,87 TRY per full year of service for the second half of 2026 (1 July – 31 December 2026), up from 64.948,77 TRY for the first half of 2026. Notice indemnity follows the graduated periods in Article 17 of Labour Law No. 4857: as at July 2026, two weeks for service of under six months, four weeks from six months to one and a half years, six weeks from one and a half to three years, and eight weeks beyond three years. These are statutory minimums — a contract may increase them, and an employer may terminate immediately by paying the notice-period wage in advance. Which of these is owed depends entirely on how the employment ended — the subject of our detailed note on severance and notice pay in Türkiye.
- Overtime (fazla çalışma). As at July 2026, weekly working time is capped at 45 hours; work above that line is overtime, paid at the normal hourly wage increased by 50%, requires the employee’s consent, and may not exceed 270 hours in a year. Where the contract sets weekly hours below 45, hours worked above the contractual average but still within 45 are “work at extra hours” and carry a 25% uplift instead. These claims are almost always about proof: without signed working-time records, the hours are proved by other evidence, such as witness testimony.
- Unused annual leave. Accrued but untaken leave is paid out on termination, calculated on the final wage — a line employers routinely underestimate. The statutory minimums in force as at July 2026 are 14 days a year for one to five years’ service (five included), 20 days for more than five and less than fifteen years, and 26 days for fifteen years or more, with a 20-day floor regardless of seniority for employees aged 18 or younger and those aged 50 or older.
- Reinstatement (işe iade). Available, as at July 2026, to an employee with at least six months’ seniority in a workplace employing 30 or more employees, on an indefinite-term contract, where the dismissal lacked a valid reason under Articles 18 to 21 based on the employee’s capability or conduct or on the requirements of the undertaking, workplace or work. Where the employer runs more than one workplace in the same branch of activity, the employee count is taken across all of them. This claim carries substantial exposure, and it flows directly from how the dismissal was executed — see terminating an employee in Türkiye.
- Mobbing and discrimination. Systematic psychological harassment, and breaches of the equal-treatment duty in Article 5 of Labour Law No. 4857, give rise to compensation independent of any termination claim.
One recurring claim asks the court to treat the claimant as the principal employer’s worker from the outset, a question examined in subcontracting and when contractor workers become yours.
How Records Decide the Outcome
The decisive feature of Turkish labour litigation, and the one foreign employers most often underestimate, is the allocation of the burden of proof (ispat yükü). The employer must prove that wages, overtime and leave were paid, and that any dismissal rested on a valid or just cause. It proves these things with documents: the written contract, signed payslips, bank transfer records, leave request forms, and working-time logs.
Where those documents do not exist, the consequence is stark. The employee’s account of unpaid overtime, untaken leave or the true wage, supported by witness testimony, then meets no documentary answer, because the employer failed to keep the records Article 75 of Law No. 4857 obliged it to keep. A missing payslip does not merely weaken the defence; it can hand the point to the other side. This is why the file assembled quietly during the employment, not the argument assembled hastily after the claim, tends to decide the case.
A signed release is tested against Article 420(2) of the Turkish Code of Obligations: it must be in writing, signed at least one month after the contract ended, state the type and amount of the claim expressly, and be backed by a payment made in full relative to the entitlement and through a bank. A release lacking any of these elements is absolutely null and void, and under Article 420(3) a document that does not reflect the true amount is only a receipt for the sum it records, leaving an employer that thought the matter closed exposed to the rest of the claim years later.
Practical Strategy for the Foreign Employer
The strategic lesson is that the litigation is won or lost long before it starts. Three habits do most of the work. First, keep the records the law assumes you keep: contracts in writing, wages through the bank, overtime and leave logged and signed. Second, before any dismissal, document the valid or just cause and observe the deadlines — the six-working-day window for just cause, the notice periods, the written statement of grounds. Sequencing these correctly alongside the wider compliance picture, from company formation to day-to-day HR, keeps exposure contained. Third, treat mediation as the main event, not a hurdle: it is where a well-documented employer converts its record into an early, enforceable settlement.
Where a claim cannot be settled, the same discipline carries into court. Our workplace disputes and litigation practice represents foreign employers through mediation and the labour courts, and our broader labour and employment team helps put in place the contracts and records that make those disputes more defensible in the first place. For an employer operating a Western at-will assumption in a protective jurisdiction, that groundwork is not overhead — it is often what determines whether a dispute stays within a range the business can absorb.
