Mandatory Mediation in Turkey: Which Disputes Require Mediation Before Litigation?

Introduction

Mandatory mediation in Turkey has become a central part of the country’s civil justice system. In many private law disputes, a claimant cannot immediately file a lawsuit before the competent Turkish court. The claimant must first apply to a registered mediator and complete the mediation procedure.

This requirement is commonly described as mandatory mediation, compulsory mediation or mediation as a condition of action. Under Turkish procedural law, completing the mediation stage is not merely a recommendation. For disputes expressly covered by legislation, it is a procedural prerequisite for filing a valid lawsuit.

The purpose of mandatory mediation is to encourage parties to resolve their disputes more quickly, reduce litigation costs, preserve commercial and personal relationships and decrease the workload of Turkish courts. However, mandatory mediation does not mean that the parties are required to settle. The obligation is to apply to mediation and participate in the process in accordance with the law. No party can be forced to accept an offer or sign a settlement agreement.

The legal framework is mainly based on Law No. 6325 on Mediation in Civil Disputes. Additional provisions appear in Law No. 7036 on Labour Courts, the Turkish Commercial Code, Law No. 6502 on Consumer Protection and other legislation.

This guide explains which disputes require mandatory mediation in Turkey, how the procedure works, which claims are excluded, what happens if mediation is not completed and why legal representation is important.

What Is Mandatory Mediation Under Turkish Law?

Mandatory mediation is a pre-litigation procedure that must be completed before bringing certain civil lawsuits.

The Turkish expression “dava şartı olarak arabuluculuk” means mediation as a condition of action. A condition of action is a procedural requirement that must exist before a court can examine the merits of a claim.

Where a dispute falls within the scope of mandatory mediation, the claimant must:

1. Apply to the competent mediation office;
2. Participate in the mediation procedure;
3. Obtain the final mediation report;
4. Attach the report to the statement of claim when filing a lawsuit.

If the claimant files a lawsuit without first applying to mediation, the court must dismiss the case on procedural grounds due to the absence of a condition of action. The claimant is not generally given additional time to commence mediation after filing the lawsuit.

Where mediation was completed but the claimant merely failed to attach the final report, the court may grant a definitive period of one week for submission of the document. If the claimant fails to submit it within that period, the case may be dismissed procedurally.

Is Settlement Compulsory in Mandatory Mediation?

No. Mandatory mediation does not mean compulsory settlement.

Parties are required to complete the preliminary mediation stage, but they remain free to:

• Accept or reject settlement proposals;
• Make counteroffers;
• Attend joint or separate meetings;
• Continue or terminate negotiations;
• Sign or refuse to sign a settlement agreement.

The mediator cannot issue a judgment, impose a payment obligation or determine which party is legally right. The mediator’s function is to facilitate communication and help the parties explore a negotiated resolution.

If no settlement is reached, the mediator prepares a final report confirming that the parties did not agree. The claimant may then proceed with litigation.

Legal Basis of Mandatory Mediation in Turkey

The general rules on mandatory mediation are contained in Article 18/A of Law No. 6325 on Mediation in Civil Disputes.

Specific categories of mandatory mediation are regulated under:

• Article 3 of Law No. 7036 on Labour Courts;
• Article 5/A of the Turkish Commercial Code;
• Article 73/A of Law No. 6502 on Consumer Protection;
• Article 18/B of Law No. 6325;
• Additional sector-specific legislation.

The Turkish mediation framework applies to private law disputes over matters that the parties may freely dispose of. It may also apply to disputes containing a foreign element, provided that the subject matter is legally suitable for mediation.

Matters concerning criminal liability, administrative sanctions, personal status or other rights over which the parties cannot freely dispose are generally outside the scope of civil mediation.

Employment Disputes Subject to Mandatory Mediation

Employment law was the first major field in which mandatory mediation was introduced in Turkey.

Under Article 3 of Law No. 7036 on Labour Courts, applying to mediation is a condition of action for lawsuits concerning employee or employer receivables and compensation arising from legislation, individual employment agreements or collective bargaining agreements.

Mandatory employment mediation applies to many common employment claims.

Severance Pay Claims

An employee claiming severance pay must normally apply to mediation before filing a lawsuit.

Severance pay may arise where an employment contract is terminated under circumstances recognised by Turkish labour law, including certain terminations by the employer, retirement, military service, marriage-related termination by a qualifying female employee and termination by the employee for just cause.

During mediation, the parties may negotiate:

• The employee’s total length of service;
• The applicable gross wage;
• Regular monetary and in-kind benefits;
• The reason for termination;
• The severance pay ceiling;
• Payment by instalments;
• Interest and payment dates.

Notice Compensation

Claims for notice compensation are also subject to mandatory mediation.

An employee may claim notice compensation where an indefinite-term employment contract is terminated without observing the required notice period and without a legally justified reason for immediate termination.

An employer may also claim notice compensation from an employee who leaves employment without observing the applicable notice period, unless the employee had a lawful right to terminate immediately.

Unpaid Salary and Wage Claims

Claims for unpaid salary, wage differences, bonuses, commissions and similar employment receivables require mediation before litigation.

This may include claims concerning:

• Monthly wages;
• Underreported salaries;
• Payments made outside payroll records;
• Performance bonuses;
• Sales commissions;
• Premiums;
• Meal and transportation benefits;
• Contractual allowances.

Overtime, Weekly Rest and Public Holiday Pay

Employees frequently bring claims for:

• Overtime compensation;
• Weekly rest day pay;
• National holiday pay;
• General holiday pay;
• Additional compensation for night work.

These claims are covered by mandatory mediation where they arise from an employment relationship.

The mediator does not determine whether overtime was actually performed. Nevertheless, the parties may evaluate workplace records, witness evidence, payroll documents, entry-exit records, electronic correspondence and litigation risks while negotiating.

Annual Leave Pay

Unused annual leave pay arising upon termination of employment is also subject to mandatory mediation.

The parties may dispute the employee’s period of service, the number of leave days used, the validity of signed leave forms and the wage applicable at the termination date.

Reinstatement Claims

An employee alleging invalid termination must apply to mediation within one month from notification of the termination.

If no settlement is reached, the employee must file a reinstatement lawsuit within two weeks from the date of the final mediation report. These are strict forfeiture periods, and failure to comply may result in loss of the right to seek reinstatement.

If the parties settle a reinstatement dispute, they must clearly determine:

• The date on which the employee will return to work;
• The amount of compensation for the period of unemployment;
• The amount payable if the employee is not reinstated.

If these essential matters are not included, the agreement may not constitute a legally valid reinstatement settlement.

Negative Declaratory and Restitution Actions in Employment Matters

Following legislative amendments, mandatory mediation also applies to certain actions for:

• Annulment of objection;
• Negative declaratory relief;
• Restitution of money paid;
• Employment-related compensation or receivables.

Accordingly, a party cannot avoid mandatory mediation merely by formulating the claim as a negative declaratory action rather than a direct payment action.

Employment Disputes Excluded from Mandatory Mediation

Claims arising from occupational accidents and occupational diseases are specifically excluded from the mandatory mediation requirement under Article 3 of Law No. 7036.

The exclusion covers:

• Material compensation arising from an occupational accident;
• Non-pecuniary damages;
• Compensation arising from occupational disease;
• Related determination actions;
• Related recourse actions.

Such disputes may still be suitable for voluntary mediation, but mediation is not a statutory precondition to litigation.

Commercial Disputes Subject to Mandatory Mediation

Mandatory commercial mediation entered into force on 1 January 2019.

Under Article 5/A of the Turkish Commercial Code, mediation is required in commercial lawsuits involving claims for the payment of money or compensation.

The mandatory requirement may apply to disputes between:

• Commercial companies;
• Merchants;
• Banks;
• Insurance companies;
• Manufacturers;
• Suppliers;
• Distributors;
• Agents;
• Freight and logistics companies;
• Contractors;
• Shareholders;
• Business partners.

The dispute must first qualify as a commercial action under the Turkish Commercial Code or another applicable statute. It must then fall within the monetary or compensatory scope of Article 5/A.

Commercial Debt Claims

Claims for unpaid commercial invoices, purchase prices, service fees and contractual debts are among the most common cases subject to mediation.

Examples include:

• Unpaid product invoices;
• Service agreement receivables;
• Consultancy fees;
• Construction payments;
• Technology and software service fees;
• Franchise payments;
• Agency commissions;
• Distribution agreement receivables.

Commercial Compensation Claims

Contractual compensation claims may also require mediation.

These may include claims for:

• Breach of a commercial agreement;
• Delay in delivery;
• Defective performance;
• Non-performance;
• Unlawful termination;
• Loss of profit;
• Penalty clauses;
• Damage to goods;
• Failure to comply with exclusivity obligations.

Insurance Disputes

Many insurance disputes are classified as commercial actions.

Claims against insurance companies for monetary compensation may therefore be subject to mandatory commercial mediation, depending on the parties, insurance relationship and competent court.

However, special procedures applicable to insurance arbitration and consumer disputes must also be considered.

Banking and Finance Disputes

Monetary disputes involving banks, financial institutions and customers may fall within either commercial or consumer mediation rules.

The correct classification depends on whether the customer acted for a commercial or professional purpose.

A corporate loan dispute may constitute a commercial dispute, while a personal consumer loan dispute may be governed by consumer law.

Company and Shareholder Disputes

Not every shareholder dispute is automatically subject to mandatory mediation.

A shareholder’s monetary claim against a company may be covered, while corporate actions concerning annulment of a general assembly resolution, dissolution or registration may require a separate assessment.

The decisive factors include:

• Whether the dispute is a commercial action;
• Whether the claim concerns payment of money or compensation;
• Whether the parties may freely dispose of the subject matter;
• The specific remedy requested.

Annulment of Objection, Negative Declaratory and Restitution Actions

Mandatory commercial mediation also covers certain commercial actions seeking:

• Annulment of an objection to enforcement proceedings;
• A declaration that no debt exists;
• Restitution of money paid through enforcement;
• Payment of commercial receivables.

The substance of the dispute, rather than merely the title of the lawsuit, must be examined.

Consumer Disputes Subject to Mandatory Mediation

Under Article 73/A of Law No. 6502 on Consumer Protection, mediation is a condition of action for most disputes heard by consumer courts.

A consumer transaction generally involves a person acting for non-commercial and non-professional purposes and a seller or service provider acting commercially or professionally.

Defective Goods

Claims arising from defective goods may require mediation where the dispute falls outside the jurisdiction of the consumer arbitration committee and must be brought before a consumer court.

Examples include disputes concerning:

• Vehicles;
• Electronic devices;
• Furniture;
• Household appliances;
• Residential property;
• Online purchases;
• Imported products.

A consumer may seek repair, replacement, price reduction, refund or compensation, depending on the circumstances.

Defective Services

Disputes concerning defective services may also be subject to mandatory mediation.

Examples include:

• Private hospital services;
• Private education services;
• Tourism services;
• Repair and maintenance services;
• Internet and communication services;
• Professional services;
• Package travel agreements.

Consumer Credit and Banking Disputes

Consumer loan, credit card and individual banking disputes may require mediation before a consumer court action.

The legal classification of the transaction is crucial. Where the loan was used for business purposes, commercial mediation rules may apply instead.

Property and Construction Consumer Disputes

Consumers purchasing residential property from developers may bring claims concerning:

• Late delivery;
• Defective construction;
• Missing facilities;
• Failure to transfer title;
• Contract cancellation;
• Refund of payments;
• Compensation.

Many of these disputes require mandatory consumer mediation before litigation, subject to statutory exceptions and the nature of the requested relief.

Exceptions to Mandatory Consumer Mediation

Not every consumer dispute requires mediation.

The following are generally excluded:

• Disputes falling within the monetary jurisdiction of consumer arbitration committees;
• Objections against consumer arbitration committee decisions;
• Certain actions brought by public authorities or consumer organisations;
• Certain proceedings specifically excluded under consumer legislation.

Where the claim falls within the consumer arbitration committee’s jurisdiction, the consumer must normally apply to the committee rather than directly to a mediator or court.

Because the monetary jurisdiction thresholds may be updated, the current threshold applicable on the application date must be checked.

Rental Disputes Subject to Mandatory Mediation

As of 1 September 2023, disputes arising from rental relationships generally require mediation before litigation.

Article 18/B of Law No. 6325 covers rental disputes except for proceedings concerning the non-judicial eviction of rented property under the Enforcement and Bankruptcy Law.

Rent Determination Cases

A landlord or tenant seeking judicial determination of rent must first apply to mediation.

The parties may negotiate:

• The new monthly rent;
• The date from which the rent will apply;
• Inflation adjustments;
• Comparable property values;
• The condition and location of the property;
• Gradual rent increases.

Rent Adjustment Cases

Where extraordinary circumstances allegedly make the existing rent unfair or excessively burdensome, a party may seek adjustment of the agreement. Such disputes generally require mandatory mediation.

Eviction Cases

Most court actions seeking eviction are subject to mandatory mediation.

These may include eviction based on:

• Personal need of the landlord;
• Need of a new owner;
• Reconstruction or major renovation;
• Two justified notices;
• Breach of contractual obligations;
• An enforceable written evacuation undertaking;
• Expiry of a ten-year extension period.

However, special non-judicial enforcement proceedings for eviction under the Enforcement and Bankruptcy Law are expressly excluded from Article 18/B.

Unpaid Rent Claims

Claims for unpaid rent may be subject to mandatory mediation where pursued through a lawsuit.

A landlord may, however, have the option of initiating enforcement proceedings depending on the nature of the debt and chosen legal remedy.

Deposit Disputes

Disputes concerning return of a rental deposit also require mediation before filing a lawsuit.

The parties may dispute:

• Damage to the property;
• Unpaid rent;
• Utility bills;
• Common expenses;
• Contractual deductions;
• Currency of the deposit;
• Interest accrued on a bank-held deposit.

Common Expenses and Maintenance Obligations

Disputes concerning maintenance, repairs, service charges and common expenses may arise from both rental law and condominium law.

The applicable mandatory mediation category depends on the legal basis of the claim and the parties involved.

Partition and Dissolution of Co-Ownership

Article 18/B also requires mediation before actions concerning the partition of movable or immovable property and dissolution of co-ownership.

These disputes frequently arise between:

• Heirs;
• Family members;
• Joint purchasers;
• Former spouses;
• Former business partners;
• Co-owners of land or buildings.

The parties may agree on:

• Physical division;
• Sale to one co-owner;
• Sale to a third person;
• Payment of equalisation compensation;
• Allocation of different assets to different owners;
• A timetable for voluntary sale.

Where the settlement concerns real property, statutory form and land registry requirements must be observed. Certain agreements may also require an enforceability annotation from the competent court.

Agricultural land may be subject to additional restrictions concerning minimum parcel sizes, transfer and division. Therefore, a settlement that appears commercially reasonable may nevertheless be legally unenforceable if it violates mandatory agricultural land rules.

Condominium Law Disputes

Disputes arising from the Condominium Law are subject to mandatory mediation before litigation.

This category includes claims concerning:

• Unpaid common expenses;
• Apartment management decisions;
• Use of common areas;
• Parking spaces;
• Roofs, gardens and terraces;
• Unauthorised alterations;
• Elevator and façade expenses;
• Appointment or dismissal of managers;
• Nuisance caused by another unit owner;
• Allocation of maintenance costs.

Both unit owners and apartment management bodies should complete mediation before filing covered lawsuits.

Neighbourhood Law Disputes

Neighbourhood disputes governed by Turkish property law are also included within Article 18/B.

Examples include:

• Excessive noise;
• Smoke or odour;
• Water leakage;
• Tree branches or roots;
• Unlawful interference with property;
• Construction-related disturbance;
• Obstruction of access;
• Boundary-related use problems;
• Excessive vibration;
• Interference exceeding ordinary tolerance.

Mediation may be particularly effective in these cases because the parties often continue living or operating businesses near one another after the dispute ends.

Rental, co-ownership, condominium and neighbourhood disputes were added to the mandatory mediation framework through Article 18/B.

How to Apply for Mandatory Mediation in Turkey

The application must generally be made to the mediation office located in the jurisdiction of:

• The opposing party’s residence;
• One of the opposing parties’ residences where there are multiple respondents;
• The place where work was performed in employment disputes;
• The court that would have jurisdiction over the dispute, depending on the applicable special rule.

Where no mediation office exists, the application may be made through the designated court registry.

The applicant should provide:

• Full identity or company information;
• Address and contact details;
• Information about the opposing party;
• A concise description of the dispute;
• The claims to be negotiated;
• The amount claimed, where known;
• Relevant agreements and documents.

The mediation office appoints a mediator from the official register unless the parties jointly agree on a registered mediator.

How Long Does Mandatory Mediation Take?

The statutory completion period differs by dispute category.

In employment disputes, the mediator must normally conclude the procedure within three weeks from appointment. This may be extended by a maximum of one week in compulsory circumstances.

Different periods may apply to commercial, consumer, rental and other disputes.

The mediator terminates the process where:

• The parties reach a settlement;
• The parties fail to reach a settlement;
• One or both parties cannot be contacted;
• A party fails to attend;
• Continuation becomes legally or practically impossible.

A final mediation report is then prepared.

Limitation Periods and Forfeiture Periods

During mandatory mediation, limitation periods are suspended and statutory forfeiture periods do not run from the date of application until preparation of the final report.

This protection prevents a party from losing the right to sue merely because mediation is continuing.

However, parties should not postpone their application until the last possible day. Questions concerning the beginning of mediation, the identity of the correct respondent and the scope of the application may still create serious limitation risks.

In employment disputes, the statutory protection expressly applies from application to the mediation office until the date of the final report.

Consequences of Failing to Attend the First Meeting

A party who fails to attend the first mediation meeting without a valid excuse may face consequences concerning litigation expenses and lawyers’ fees.

Under the current employment mediation provision, a party whose unjustified absence causes termination of the process may be held responsible for half of the litigation expenses otherwise payable by the opposing party, even where the absent party later succeeds wholly or partly. Only half of the statutory lawyers’ fee may be awarded in favour of that party.

Where both parties fail to attend, each party’s litigation expenses may remain on that party.

The precise consequences must be examined according to the applicable statute and its wording on the relevant date, as these provisions have been subject to legislative and constitutional developments.

A party receiving an invitation should therefore not ignore it. Where personal attendance is impossible, participation through an appropriately authorised lawyer should be considered.

Can a Lawyer Represent a Party?

Yes. Parties may participate:

• Personally;
• Through a legal representative;
• Through a lawyer;
• In certain employment disputes, through an employee authorised in writing by the employer.

The power of attorney should contain the necessary authority to settle, release claims, accept obligations and sign mediation documents.

Legal representation is particularly important because a settlement may contain broad waivers that prevent future litigation.

A lawyer may assist by:

• Classifying the dispute correctly;
• Determining whether mediation is mandatory;
• Identifying the competent mediation office;
• Calculating the claim;
• Assessing evidence;
• Identifying limitation risks;
• Conducting negotiations;
• Drafting payment and default clauses;
• Limiting releases;
• Ensuring enforceability.

Mediation Settlement Agreements

Where the parties settle, the terms must be recorded clearly in writing.

A well-drafted agreement should include:

• Full identification of the parties;
• Description of the dispute;
• Settlement amount;
• Payment schedule;
• Bank account and currency;
• Interest and default consequences;
• Delivery or performance obligations;
• Allocation of taxes and expenses;
• Treatment of pending lawsuits or enforcement proceedings;
• Scope of release;
• Confidentiality;
• Enforcement provisions.

Parties cannot generally file a new lawsuit concerning matters resolved by a valid mediation settlement.

For this reason, phrases such as “all claims have been released” should not be used without defining precisely which claims and periods are covered.

Enforceability of a Mediation Agreement

A valid mediation settlement is binding on the parties.

Depending on the method of execution, the agreement may qualify as a document equivalent to a court judgment or may require an enforceability annotation.

Where the agreement is signed by the parties, their lawyers and the mediator in accordance with statutory conditions, separate court approval may not be required for ordinary monetary obligations.

Special rules apply to agreements concerning real property, registration, transfer of ownership or establishment of limited real rights.

The parties should ensure that the agreement is not merely valid as a contract but also suitable for direct enforcement if the debtor fails to perform.

What Happens When No Settlement Is Reached?

If the parties do not settle, the mediator prepares a final report.

The claimant may then file a lawsuit before the competent court and attach the final report to the statement of claim.

The court is not informed about confidential settlement offers or statements made during negotiations. The lawsuit is decided on the basis of admissible evidence and applicable law.

Documents that existed independently before mediation do not become inadmissible merely because they were used during negotiations.

Mandatory Mediation for Foreign Individuals and Companies

Foreign individuals and companies may participate in mandatory mediation in Turkey.

A foreign party may act through a Turkish lawyer under an appropriate power of attorney. Depending on the country of execution, the power of attorney may require:

• Notarisation;
• Apostille;
• Consular legalisation;
• Sworn translation into Turkish.

International disputes may raise additional issues concerning:

• Applicable law;
• Jurisdiction;
• Foreign currency;
• Taxation;
• Authority of company representatives;
• Recognition and enforcement;
• Parallel foreign proceedings;
• International arbitration clauses.

A foreign company should confirm that the signatory has sufficient corporate authority to enter into a binding settlement.

Conclusion

Mandatory mediation in Turkey applies to a broad and expanding range of disputes. The principal categories include employment receivables and reinstatement claims, monetary commercial disputes, consumer court disputes, rental disputes, partition and dissolution of co-ownership, condominium disputes and neighbourhood law disputes.

Completing mediation is a procedural condition for filing a lawsuit in these areas. A claimant who files directly before the court may face procedural dismissal without examination of the merits.

Nevertheless, mandatory mediation does not compel the parties to settle. Each party remains free to reject proposals and continue to litigation after the final report is issued.

Because the scope of mandatory mediation depends on the legal classification of the dispute, the parties, the remedy requested and applicable exceptions, a detailed legal assessment should be carried out before taking action. Incorrect classification may lead to loss of time, unnecessary costs and procedural dismissal.

Professional legal assistance is particularly important in high-value employment claims, commercial debts, real estate disputes, consumer cases and cross-border matters. A Turkish mediation lawyer can ensure compliance with procedural requirements, protect limitation periods, prepare an effective negotiation strategy and draft a settlement agreement capable of enforcement.

Disclaimer: This article is intended for general information only and does not constitute legal advice. Turkish mediation law, procedural rules, fee tariffs and statutory thresholds may change. Each dispute should be assessed according to its specific circumstances and the legislation in force on the relevant date.