When an employment relationship in Türkiye breaks down, the dispute is governed primarily by Labour Act No. 4857 and channelled through a strict procedural regime under the Labour Courts Act No. 7036. For a foreign company employing staff here, the danger is rarely the underlying facts; it is the deadlines, the burden of proof and the compensation formulas that turn an ordinary dismissal into a costly claim. We defend employers at every stage, from the compulsory mediation table to final judgment in the labour courts, and we prepare the records that decide these cases long before anyone files.
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This page sits within our wider employment offering for foreign employers. It is the litigation and dispute-resolution end of that work; for the day-to-day framework of hiring, contracts and lawful exits, see our labour and employment practice and our page on termination and severance.
Mediation Comes First, Always
Since 1 January 2018, mediation has been a precondition to litigation for almost every monetary employment claim under Law No. 7036: severance pay (kıdem tazminatı), notice indemnity (ihbar tazminatı), overtime, annual-leave pay, bonus and reinstatement. An employee who sues without first applying to a mediator has the case dismissed on procedural grounds. The narrow exception is a claim arising from a work accident or occupational disease, which proceeds directly to court.
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For the employer, this is an opportunity rather than a hurdle. The mediation stage is the single best chance to close a matter on controlled terms before the reinstatement clock and litigation costs erode leverage. Our approach to the compulsory stage is set out in detail in our guide to workplace mediation and labour litigation, and the mechanics of the process itself in our note on mandatory mediation in Turkish law.
A settlement reached at mediation must be drafted with the same care as a court pleading. Its scope is set by the parties, and once agreement is reached no action can be brought on the matters agreed (Mediation in Civil Disputes Act No. 6325, Art. 18, applied through Art. 3 of Law No. 7036); any claim left outside the agreement stays open. A release (ibraname) signed outside mediation is tested against Article 420(2) of the 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 rest on a payment made in full relative to the entitlement and through a bank; a release lacking any of these is absolutely null and void, and one that does not reflect the true amount is only a receipt for the sum it records (Article 420(3)). Under Article 37 a party who signed under duress is not bound, provided this is asserted within one year of the duress ending (Article 39). A loosely worded document therefore leaves the employer exposed to the rest of the claim years on.
The Claims We Defend
Most employer-side litigation clusters around a handful of claim types, each with its own evidential centre of gravity.
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| Claim | What decides it | Employer’s defence |
|---|---|---|
| Overtime (fazla çalışma) | Hours above 45/week, capped at 270/year | Signed working-time logs and payslips |
| Annual leave (yıllık ücretli izin) | Accrued days unpaid on exit | Countersigned leave forms |
| Reinstatement (işe iade) | Validity of the dismissal, Arts. 18-21 | Written, provable valid reason and procedure |
| Mobbing (CO Art. 417) / equal treatment (Art. 5) | Pattern of conduct and response | A prompt, documented investigation |
| SGK disputes | Registration, declared wage, service | A clean, reconciled premium record |
The pattern is consistent: these cases are won on records, not on rhetoric. Where working-time logs, payslips, leave forms and social-security filings are complete and countersigned, the employer controls the narrative. Where they are thin, the court fills the gaps with witness evidence and estimates that usually run against the employer.
A recurring version of these claims 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.
Reinstatement: The Highest-Exposure Claim
The claim that most surprises foreign employers is reinstatement. In a workplace with 30 or more employees, a worker with at least six months’ service on an indefinite-term contract can only be dismissed for a valid reason (geçerli sebep) connected to conduct, capacity or business needs, and only after the correct written procedure. If the reason is inadequate, the dismissal is invalid.
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The remedy is severe. Under Arts. 18-21 of Labour Act No. 4857, an invalid dismissal obliges the employer to re-employ the worker or, failing that, to pay job-security compensation of four to eight months’ wages; in either case the worker also receives up to four months’ wages and other entitlements for the idle period. The employee must apply to mediation within one month of the notice and, if that fails, file at the labour court within two weeks, so the timetable moves quickly once the notice is served.
Where the dismissal is for misconduct under Art. 25/II, the six-working-day window in Art. 26 is unforgiving. Acting after it has passed, however serious the misconduct, turns a defensible termination into an unjustified one.
Prevention Through Records
The most valuable work we do in this area happens before any claim exists. After a dispute closes, and better still before one begins, we repair the contracts, working-time systems, leave records and SGK filings that produced the exposure. A file assembled after the decision to dismiss rarely convinces a Turkish labour court; one built contemporaneously, in the ordinary course of business, usually does. For a foreign company, that discipline is the difference between a claim that settles cheaply at mediation and one that ends in reinstatement plus several months’ wages.
Related Practice Areas & Strategic Legal Guides
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- Employment Contracts & Workplace Policies: Compliant contracts, remote work policies, and non-compete covenants for foreign employers.
- Termination & Severance Under Turkish Law: Severance pay calculation (Kıdem), valid termination grounds, and defending reinstatement claims.
- Workplace Disputes & Labor Litigation: Mandatory labor mediation and Labor Court defense across Istanbul.
- Legal Matters in Istanbul for Foreign Clients and Companies: Labor law compliance, work permits, and cross-border employer representation.