Union of Chambers and Commodity Exchanges of Turkey

Mandatory term starts in arbitration


28.12.2017 / Ankara



A new era is commencing in business world. As of 1st January 2018 arbitration system for labour disputes is becoming cause of action. ​

TOBB President M. Rifat Hisarcıklıoğlu said that the practice shall prevent time and energy loss for employees as well as employers.

Regulation which makes arbitration system cause of action for labour disputes is becoming effective by 1st January 2018.

Giving a review in relation with the matter The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğl has underlined that by arbitration becoming cause of action shall be a new breath of fresh air for business world.

Thanking to everybody those who contributed to new regulation Hisarcıklıoğlu also said as TOBB they shall be doing their fair share of work for the success of the system.

-Matters resolved by arbitration cannot be subject again

Hisarcıklıoğlu indicating that hence forth employee and employer who come to an agreement as a result of arbitration talks would not be able to make the resolved matters subject again, also stated that such regulation shall provide significant time save for business world.

TOBB President Hisarcıklıoğlu, “While both employees and employers are being providing for, they shall stop getting involved with such problem instead they would be able to use their energy, potential and time for other matters.”

-Confidentiality during arbitration process shall prevent establishment of precedents 

Underlining that practice of precedent within standard proceedings pose as a major problem for business world Hisarcıklıoğlu mentioned that because the letter of agreement shall be classified within arbitration, such case shall no longer pose as a problem.

Reminding that all the parties as well as arbitrator were obliged to comply with confidentiality Hisarcıklıoğlu urged that regulation should be mastered in details by business world.

Stating that business lawsuits required to tackle for years due to long prosecution processes would come to end Hisarcıklıoğlu also talked about the functionality of “Time is the essence” remark within business world.

Hisarcıklıoğlu stated that during the arbitration process employees and employers fail to work out a solution then arbitrator would be entitled to offer a solution.

-Within the new regulation how the system would proceed?

Hisarcıklıoğlu outlined the system in consideration of new regulations as follows “for the disputes based on employee reinstatement claim with due in and compensations arbitration becoming cause of action then parties shall attempt arbitration, if they fail to come to an agreement by arbitration then they would be able to apply to court.

System will proceed through arbitration bureaus at the courthouses. Arbitrator shall finalise arbitration application in 3 weeks.

In the event of parties failing to come to an agreement, fee for first two hours will be covered by Ministry of Justice budget.

In the event of termination of arbitration activity due to one of the parties failing to attend the first meeting, the party who fail to attend to the meeting shall be stated in the final official report and even be justified shall still be responsible for all court expenses.”

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