Workplace Disputes & Labor Litigation

We defend employers through the compulsory mediation stage and before the labour courts on overtime, annual-leave, reinstatement, mobbing and social-security claims, and build the records that keep those disputes from arising in the first place.

Av. Onur ÇalışıcıIstanbul Bar reg. no 83426 · Updated July 2026

In brief

  1. Nearly every monetary employment claim in Türkiye must pass through mandatory mediation under Law No. 7036 before a court will hear it; skip that step and the case is dismissed on procedural grounds.
  2. Reinstatement is the highest-exposure claim: an invalid dismissal in a workplace of 30 or more staff can cost four to eight months' wages plus up to four months' idle-period pay under Arts. 18-21 of Labour Act No. 4857.
  3. Overtime, annual-leave and wage claims are usually won or lost on records, so working-time logs, payslips and signed leave forms are the employer's first line of defence.
  4. Under Art. 26, a just-cause termination for conduct contrary to morality and good faith (Art. 25/II) cannot be exercised once six working days have passed since the employer learned of the conduct, and in any event one year after it occurred (the one-year limit does not apply where the worker gained a material benefit).
  5. Mobbing claims (employer's duty under Art. 417 of the Code of Obligations) and equal-treatment claims under Art. 5 of the Labour Act turn on documented complaints and the employer's response, not on the employer's good intentions.

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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ClaimWhat decides itEmployer’s defence
Overtime (fazla çalışma)Hours above 45/week, capped at 270/yearSigned working-time logs and payslips
Annual leave (yıllık ücretli izin)Accrued days unpaid on exitCountersigned leave forms
Reinstatement (işe iade)Validity of the dismissal, Arts. 18-21Written, provable valid reason and procedure
Mobbing (CO Art. 417) / equal treatment (Art. 5)Pattern of conduct and responseA prompt, documented investigation
SGK disputesRegistration, declared wage, serviceA 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.


Show the 4 points

Key figures

No. 7036
Labour Courts Act making mediation compulsory since 2018
4-8 mo.
Job-security compensation for an invalid dismissal
6 working days
Window to act on a just-cause termination for misconduct (Art. 26)
1 month
Deadline to start mediation on a reinstatement claim
Interactive Employment Tool

Severance & Notice Pay Calculator (Law No. 4857)

Calculate statutory severance pay (Kıdem Tazminatı) and notice indemnity (İhbar Tazminatı) under Turkish Labor Law No. 4857 and Law No. 1475.

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This tool on its own page Severance and notice pay calculator

How we handle a workplace dispute

  1. Assess exposure and evidence

    We map the claim against Labour Act No. 4857, gather contracts, working-time records, payslips and SGK filings, and value the realistic downside before responding.

  2. Prepare the mediation file

    We build the employer's position and supporting documents for the compulsory mediation stage, where most severance, notice, overtime and leave claims can still settle on controlled terms.

  3. Negotiate a settlement

    We represent you at mediation to close the matter cleanly, with a settlement whose terms are drafted clearly and completely.

  4. Litigate at the labour court

    Where mediation fails, we defend reinstatement, wage, overtime and mobbing claims before the labour courts with a clean procedural record.

  5. Fix the underlying process

    After the file closes we repair the contracts, policies and record-keeping that produced the dispute, so the same claim does not recur.

Frequently asked questions

Do we have to mediate before an employee can sue us?

For almost every monetary employment claim, yes. Under Art. 3 of the Labour Courts Act No. 7036, in force since 1 January 2018, mediation is a precondition to filing suit for severance, notice indemnity, overtime, annual-leave pay, bonus and reinstatement. If an employee sues without first mediating, the court dismisses the case on procedural grounds. The main exception is a claim arising from a work accident or occupational disease, which goes straight to court.

What does a reinstatement claim cost the employer?

In a workplace with 30 or more employees, an employee with at least six months' service on an indefinite-term contract can challenge a dismissal made without a valid reason. If the court finds the dismissal invalid under Arts. 18-21 of Labour Act No. 4857, the employer must re-employ the worker within one month of the worker's application; if it does not, it owes job-security compensation of four to eight months' wages. In either case the worker is paid up to four months' wages and other entitlements for the idle period until the judgment becomes final. The employee must first apply to mediation within one month of the notice and, if that fails, file at the labour court within two weeks.

How are overtime and annual-leave claims proved?

They are decided largely on records. Overtime above the 45-hour weekly limit is paid at the hourly wage increased by 50 percent, requires the worker's consent and may not exceed 270 hours a year in total; accrued-but-unused annual leave is paid out on termination. Where the employer keeps signed working-time logs, payslips and leave forms, the claim can be contained. Where records are thin, courts may rely on witness evidence and estimates, which usually favours the employee.

An employee alleges mobbing. What is our exposure?

Under Art. 417 of the Code of Obligations the employer must take the measures needed to protect workers from psychological and sexual harassment, and damage caused by breaching that duty is compensated under the rules on contractual liability. A breach of the equal-treatment duty under Art. 5 of Labour Act No. 4857 entitles the worker to appropriate compensation of up to four months' wages plus the rights withheld. Where the conduct falls within the just-cause grounds of Art. 24/II, the employee can also terminate immediately and claim severance pay. These claims turn on what was documented: complaints received, how they were investigated, and what the employer did in response. A prompt, recorded investigation is the strongest defence; silence is the weakest.

The dismissal was for serious misconduct. Can we still be sued?

Yes, and the deadlines matter. Just-cause termination for the employee's misconduct under Art. 25/II carries no notice and no severance, but under Art. 26 the right cannot be exercised once six working days have passed since the employer learned of the conduct, and in any event one year after it occurred (unless the worker gained a material benefit). Miss the window, or fail to prove the conduct, and the termination is treated as unjustified: the employer then faces notice and severance claims and, where job security applies, a reinstatement claim. We assess the cause and the timing before the termination, not after.

How do SGK disputes arise in employment claims?

Under the Social Insurance Law No. 5510 the employer must register each employee, file the monthly premium declaration and pay the premiums. Employees often add claims over unrecorded service, understated wages or undeclared work, which feed back into severance and notice calculations and can trigger administrative fines and premium liability from the institution. We reconcile the SGK record with the payroll before it becomes the centrepiece of the employee's case.

This page is general information, not legal advice. For advice on your specific situation, speak with a lawyer.

Av. Onur Çalışıcı

The lawyer on your file

Av. Onur Çalışıcı

Founding Attorney · Istanbul Bar Association · Bar reg. no 83426

Lex lata is Latin for “the law as it is”. The office was founded by Av. Onur Çalışıcı, and you deal with Av. Çalışıcı directly from the first meeting to the end of the matter. With foreign clients we write in English and explain what each Turkish document says.

Write to us with what happened and which documents you have. We will read it and get back to you. You can write in English or Turkish.

Last reviewed: July 2026 · LinkedIn: linkedin.com/in/onurcalisici

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