It has become mandatory to seek mediation before filing a lawsuit in disputes arising between employers and employees. The requirement was introduced because of the large number of employment-related cases brought to the courts. If a party goes directly to court without first applying to a mediator and it is later determined that mediation was not attempted, the case will be dismissed. When a claim is dismissed for that reason, the parties must apply to mediation within two weeks. However, if mediation is attempted and the dispute cannot be resolved, a lawsuit may be filed. To initiate court proceedings after mediation, the claimant must present a written petition signed by the mediator that confirms an agreement could not be reached.
What Is Mediation?
Mediation is a voluntary dispute-resolution process in which an impartial mediator helps the employer and employee who cannot reach an agreement to find common ground. The mediator facilitates discussion, identifies the core issues, and assists the parties in drafting and signing a mutually acceptable settlement agreement that sets out the agreed terms.
In Which Situations Should Parties Go to a Mediator?
An employee may seek mediation for disputes involving severance pay, notice pay, compensation for bad-faith termination, discrimination damages, trade union-related claims, unpaid wages, overtime pay, payment for annual leave, weekly rest pay, and pay for national or public holidays. Employers may request mediation over issues such as notice pay, penalty clauses, recovery of advances, and claims for training expenses. For either party to be eligible for mediation, the dispute must arise from the employment relationship.
How Do You Apply for Mediation?
One of the parties should apply in person to the Mediation Office located in the jurisdiction where one of the parties is based. The mediation office registers the request and assigns a mediator according to the applicable regulations and procedures.
Who Pays Mediation Costs?
Mediation costs are shared equally between the employee and the employer who initiated the mediation. The mediator or the mediation center will provide an itemized breakdown of fees and related expenses, and the parties are expected to divide the costs according to the determined share.
How Long Does Mediation Take?
Under the mandatory mediation rules, the mediator is required to conclude the mediated proceedings within three weeks from the date of application. If necessary, the mediator may request a single extension of up to one additional week. This time limit aims to provide a rapid resolution and reduce the backlog of labor disputes in the courts.
What Are the Benefits of Using a Mediator?
Mediation offers a faster and often less expensive alternative to long court proceedings. By encouraging direct communication under the guidance of a neutral mediator, mediation helps identify the root causes of the dispute and fosters negotiated solutions that are acceptable to both parties. This approach reduces legal costs, shortens the time to resolution, and helps preserve the working relationship when possible. In addition, mediated settlements are typically confidential and can be tailored to the specific needs of the parties in ways that a court judgment may not allow.
Overall, mandatory mediation for employment disputes seeks to relieve pressure on the judicial system while providing a practical, efficient path for employers and employees to resolve conflicts arising from their working relationship.