The resolution of disputes related to matters covered by the Social Security Institution — such as employment, monthly payments, and retirement pensions — generally requires filing a lawsuit in the labor courts, with very limited exceptions. However, under Law No. 7036, in certain cases it is necessary to submit a formal application to the Social Security Institution (SGK) before initiating court proceedings.
Should You File a Lawsuit or Apply to SGK?
Employees and pensioners can often face various problems with their monthly payments, social rights, or similar issues arising from their workplace or the SGK. Individuals experiencing these problems may be uncertain about how to assert their rights. Except for a few narrow exceptions, disputes arising under SGK regulations or other social security legislation must be brought before the courts. Under the Labor Courts Law No. 7036, however, certain matters require that an application be made to the SGK before filing a lawsuit.
At the same time, in some situations it is possible to go directly to the labor court without first applying to SGK. This rule does not apply only to employers; it applies to employees, retirees, beneficiaries of deceased insured persons, and in short anyone affected by SGK’s actions or who benefits from SGK procedures and practices.
Situations Requiring an SGK Application Before Filing Suit
The circumstances in which an application must be made to SGK prior to taking the matter to court are set out in Article 4 of the Labor Courts Law No. 7036. According to this provision, disputes arising from the Social Insurance and General Health Insurance Law No. 5510 and other social security legislation generally require an application to the Social Security Institution before a lawsuit may be filed, except for claims seeking determination of mandatory insurance periods due to employment under a service contract. Applications submitted to the institution must be responded to within sixty days; if the institution does not respond within that period, the request is deemed rejected. Bringing a lawsuit against the institution therefore depends on the claim being rejected or deemed rejected. The time during which the application is pending before the institution is not counted when calculating statutes of limitation and forfeiture periods.
Accordingly, for disputes related to SGK procedures and social security regulation, individuals must first submit a written objection to the SGK (a petition) and await the institution’s response. If SGK does not respond within 60 days or rejects the application, the applicant may then file a suit in the labor court. If an applicant files suit without first applying to the SGK when required, the court may dismiss the case on procedural grounds for lack of a condition of action.
Circumstances Where You May File in Court Without Applying to SGK
The same law also specifies situations where lawsuits may be brought to the labor court without prior application to SGK. For example, claims to establish employment periods in cases of undocumented employment, underreporting of days worked, or reporting a lower wage to SGK can generally be taken directly to court without first applying to the institution. If an employee lacks documentary proof showing they worked without social insurance or were reported for fewer days or at a lower wage, then even applying to SGK would be unlikely to produce a result without litigation. In service determination actions, filing suit without first applying to SGK is permitted, and SGK may become a party to the case at the stage of determining insurance, premiums, and similar issues.
Additionally, actions seeking annulment of a notified payment order do not require prior application to SGK. Administrative fines imposed by SGK are not subject to prior application to the institution before filing suit; objections to administrative fines applied under Law No. 5510 should be brought before administrative courts rather than labor courts, so such matters fall outside the scope of Labor Court proceedings.