Employment Litigation and Mediation
Most employment disputes now start with mandatory mediation before any lawsuit, and well-managed mediation can prevent long and costly litigation. We conduct mediation processes, reinstatement claims and employee receivables cases, and carry out and report risk assessments of your files.
What is mandatory mediation?
Under Labour Courts Law No. 7036, applying to a mediator before filing a lawsuit is mandatory for employee and employer claims and compensation based on the law, the employment contract or a collective agreement, and for reinstatement claims. Mediation is a precondition of the lawsuit; a lawsuit filed without applying to a mediator is dismissed on procedural grounds.
Mediation meetings are, as a rule, concluded within three weeks; in compelling cases this can be extended by up to one week. If the parties reach agreement, the settlement document has the force of a court judgment and no lawsuit can then be brought on the matters agreed.
What is a reinstatement claim?
An employee who has job security may seek reinstatement, claiming that their contract was terminated without a valid reason. To do so, they must apply to a mediator within one month of notification of the termination and, if no agreement is reached, file a lawsuit within two weeks of the final mediation report.
If the court orders reinstatement and the employer does not reinstate the employee within one month of their application, the employee is paid job security compensation of four to eight months’ wages. The employee is also paid up to four months’ wages and other entitlements for the idle period.
Scope
- Conducting mediation processes, reinstatement claims and employee receivables cases, and carrying out and reporting risk assessments
- Representing the employer in mediation meetings and setting the settlement strategy
- Regular reporting on the litigation portfolio
- Preventive recommendations addressing the source of recurring disputes
How We Work
- Reviewing the dispute, the termination process and the documents
- Calculating possible claims and assessing litigation risk
- Setting settlement limits with the company and conducting the mediation meetings
- If no agreement is reached, conducting the lawsuit and managing witnesses, documents and expert reports
- Regular reporting on case outcomes and costs
Team
Frequently Asked Questions
What happens if we do not attend the mediation meeting?
A party that fails to attend the first meeting without a valid excuse is recorded in the final mediation report, and in any subsequent lawsuit is held liable for all litigation costs even if it wins; no attorney's fees are awarded in its favour either. Mediation invitations should therefore always be taken seriously.
What is the limitation period for employee receivables?
The limitation period for employee receivables such as severance pay, notice pay, annual leave pay and overtime pay is five years. When the period starts may vary depending on the type of claim.
Is settling in mediation advantageous for the employer?
Often, yes. Taking into account the length of the lawsuit, interest, litigation costs and attorney's fees, a settlement based on a realistic risk assessment is usually less costly. The decision should depend on the strength of the documents on file and the calculated risk.
Do we have to reinstate the employee after a reinstatement judgment?
The employer may choose between reinstating the employee and paying job security compensation. The employee must apply to return to work within ten business days of the judgment becoming final; if the employer does not reinstate them within one month, it pays the compensation set by the court and the wages for the idle period.
Would you like to discuss this service? Schedule a meeting with us — the first meeting is free of charge.
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