This country-specific Q&A provides an overview of the legal framework and key issues surrounding arbitration law in Turkey including arbitration agreements, tribunals, proceedings as well as costs, awards and the hot topics concerning this country at present.
This Q&A is part of the global guide to Arbitration.
For a full list of jurisdictional Q&As visit http://www.inhouselawyer.co.uk/index.php/practice-areas/arbitration/
What legislation applies to arbitration? Are there any mandatory laws?
Domestic arbitration in Turkey is governed by the Code of Civil Procedure. The current version of the Code of Civil Procedure, No. 6100, has entered into force in 2011. Code of Civil Procedure is applied to the disputes which have no foreign element; and the place of arbitration is agreed as Turkey.
Besides, the International Arbitration Law no. 4686, which entered into force in 2001 is applied to the international arbitrations in Turkey which includes foreign elements and the place of arbitration is Turkey. In fact, relevant parts of the Code of Civil Procedure of 2011 was prepared with the intention to harmonise the provisions of the previous Civil Procedure Law with the terms of the International Arbitration Law dated 2001.
Furthermore, the Law no. 4686 is applied to the disputes which the parties or arbitrator/arbitral tribunal agree on the application of this law to their dispute.
Finally, the International Private Law and Procedural Law no. 5718, having entered into force in 2007, regulates the principals and procedures with which foreign court and arbitration decisions are enforced in Turkey.
Is the country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?
The Republic of Turkey is a party to the New York Convention since 2 July 1992. Turkey had and still has two reservations to the general obligations of the Convention : the “reciprocity” and the “commercial” reservations. As a result of the reciprocity reservation, Turkey will only recognize and enforce arbitral awards made in other states that are signatories to the Convention.Similarly, the scope of recognition and enforcement must have ‘’commercial nature’’ under Turkish law, due to the ‘’commercial’’ reservation. Otherwise, it is possible to enforce the award according to the International Private Law and Procedural Law No. 5718.
What other arbitration-related treaties and conventions is the country a party to?
Turkey is a party to the European Convention on International Commercial Arbitration dated 1961, (as of 23 September 1991), and the Washington Convention on the Settlement of Investment Disputes dated 1965 (as of 27 May 1988).
Is the law governing international arbitration based on the UNCITRAL Model Law? Are there significant differences between the two?
The International Arbitration Law and the relevant provisions of the Code of Civil Procedure (both as “Local Law”) are substantially based on the UNCITRAL Model Law (“Model Law”). The significant differences between the Local Law and the Model Law can be explained as below:
- According to the Local Law, the award shall be rendered within one year as of the appointment of the sole arbitrator; or, in case of the arbitrators are more than one, as of the first meeting minutes of the arbitral tribunal, unless otherwise agreed by the parties. This one year time period, can be extended with the mutual agreement of the parties or by the civil court once one of the parties apply on.
- Although the Model Law states the arbitral tribunal shall apply the law which it determines to be appropriate unless the parties do not designate the law; the International Arbitration Law states that, the validity of the arbitration agreement shall be considered according to Turkish Law unless the parties designate the law to be applied to the arbitration agreement.
Are there any impending plans to reform the arbitration laws?
The Istanbul Arbitration Center (“ISTAC”) was established under the Law no. 6570 (ISTAC Law) as of 1 January 2015. The ISTAC Rules include fast-track rules for arbitration and it is a new approach to finalize the commercial disputes in Turkey. Additionally, the Istanbul Chamber of Commerce Arbitration Center (“ITOTAM”) has amended its ITOTAM Arbitration Rules as of 14 April 2016 by providing emergency and expedited arbitration rules.
A part of the Turkish judicial reform strategy is to allow disputes to be settled without the involvement of the State Courts, in an attempt to normalize their work-load. Therefore, legislation and the reform strategy is being altered to support alternative dispute resolution methods. There is no doubt that Arbitration is considered a major part of this approach, in addition to Mediation, Mandatory Mediation and different arbitral applications.
What arbitral institutions (if any) exist? Have there been any amendments to their rules or are there any being considered?
There are several arbitral institutions in Turkey : ITOTAM, ISTAC, Turkish Union of Chambers and Commodity Exchanges Court of Arbitration, the Arbitration Centres of Ankara Chamber of Industry and İzmir Chamber of Commerce, Arbitration Centre of Turkish Bar Associations. Additionally, several laws regulate different methods of arbitration designed to ease the work-load of the state judicial system : the Law on Customer Protection regulates Arbitration Committee for Consumer Problems, for example. The Turkish Football Federation undertakes arbitral function with its Dispute Resolution Board and Arbitration Committee. In the field of labor law, the High Council of Arbitrators of Turkey was established with the goal of creating an effective method to resolve disputes arising from collective labor agreements.
What are the validity requirements for an arbitration agreement?
The major requirement for an arbitration agreement according to the Local Law is that the arbitration agreement must be in written form. Furthermore, Parties’ consent to solve the dispute through arbitration must be explicit and devoid of any kind of doubt. The authorization of an arbitration centre or board can be done through an arbitration clause in the main agreement between the parties or a separate arbitration agreement. Either way, the authorization must be done by a written document executed by the parties or a document mutually exchanged by the parties such as a letter, telegram, telex or fax; or the defendant must not object to the existence of the arbitration agreement in case the claimant claims that there is an arbitration agreement in its claim statement. Besides, in case the arbitration agreement is signed by a representative, there must be a special authorization granted to the representative to execute the arbitration agreement.
Also, since the authority of arbitration centres are exceptional in comparison to the general authority of the Courts, it must be understood that such arbitration agreements are not applicable for matters held outside the suitability scope of arbitration. In other words, some matters cannot be solved by arbitration, whether there is an arbitration agreement fulfilling the requirements, or not.
Are arbitration clauses considered separable from the main contract?
Yes, they are. Arbitration clauses are considered separable from the main contract. Invalidity of the arbitration clause in the main contract does not cause the invalidity of the whole contract; and vice versa, any invalid provision of the main contract does not harm the valid and explicit arbitration intention of the parties written in the contract.
In fact, the authorization of arbitration does not necessarily have to be done within the contract regulating the commercial relationship between the parties, meaning that a separate agreement can be signed solely for the terms and conditions of arbitration.
Is there anything particular to note in your jurisdiction with regard to multi-party or multi-contract arbitration?
Turkish law does not specifically regulate the consolidation of claims arising from different contracts in one arbitral proceeding; however, there is no restriction regarding this issue. In case the arbitration rules which shall be applied to the dispute allow the consolidation, the claims arising from different contracts can be consolidated. If the parties desire to solve their separate disputes under one proceeding, the legislation offers no reason for the rejection of such a request.
How is the law applicable to the substance determined?
According to the International Arbitration Law no. 4686 the arbitral tribunal will constitute the award pursuant to the provisions of the agreements and chosen law by the parties. Unless otherwise agreed, if the parties specify any law under the agreement, it is accepted directly as the substantial law, not the conflicts of law or procedural law provisions. In case there is no such designation under the agreement, the arbitral tribunal shall apply the law of the state with the closest relation to the dispute.
As per Law no. 6100 (for domestic arbitrations), there is no provision regarding the designation of applicable law; since it is only applied to the disputes which have no foreign element.
Are any types of dispute considered non-arbitrable? Has there been any evolution in this regard in recent years?
Principally, disputes related to matters of public order, or matters on which the parties have no right of disposition are accepted as non-arbitrable. Arbitration in Turkish law is seen as a continuation of the freedom of will and contract of the parties. However, the Law no 5718 on International Private and Procedural Law does limit the freedom of contract when it comes to arbitration and jurisdiction of State Courts. For example, according to the Local Law, disputes in relation to the in rem rights of immovable properties located in Turkey are non-arbitrable. In contrast to commercial disputes being arbitrable under Turkish law, administrative, criminal, family, bankruptcy law issues and some labor law issues are considered as non-arbitrable. When uncertainy exists as to the applicability of arbitration, Turkish local courts and the Court of Appeals generally intend to apply Turkish laws to disputes; and to consider the disputes in relation to the public order are non-arbitrable.
In Turkish Law, arbitration agreements are executed to relieve the independent Courts of Turkey from their judicial authority, and to give such authority to arbitration institutions of the parties’ choice. These agreements can be either domestic or international, between Turkish or foreign parties, and they can authorize Turkish institutions of arbitration as well as international arbitration centres.
Arbitration agreements have two main effects : if allowed, they obstruct the judicial authority of the Courts to resolve disputes, and they allow arbitration centres to have such authority. As a result of the Courts’ authority deriving from their duty to install public order, the authority of arbitration centres are exceptional and Turkish Courts generally apply restrictive methods of interpretation to arbitration agreements.
Are there any restrictions in the appointment of arbitrators?
According to the Local Law, parties are free on the appointment of arbitrators. However, the number of arbitrators must be an odd number. Unless otherwise agreed by the parties, only real persons can be appointed as arbitrators. If only one arbitrator will be appointed and the parties cannot reach a compromise, a State Court will appoint the arbitrator upon request of either party. If three (or more) arbitrators will be appointed, each party appoints the same number of arbitrators and the appointed arbitrators choose the final arbitrator.
Unless one of the parties appoint the arbitrators or the appointed arbitrators choose the other arbitrator (within one month, according to the Law no. 6100 and 30 days according to Law no. 4686), the court will appoint the missing arbitrators. According to the Law no. 6100, if there will be an arbitral tribunal, at least one arbitrator must be a legal expert who has five year experience at least, in his/her own area.
Are there any default requirements as to the selection of a tribunal?
Unless otherwise agreed by the parties, only the real persons can be appointed as the arbitrators. According to the Law no. 4686, unless the parties designate the number of arbitrators, the arbitral tribunal will compromise of the three arbitrators. If the sole arbitrator will be appointed and the parties cannot reach a compromise, the court will appoint the arbitrator upon the request of one party. If three (or more) arbitrators will be appointed, each party appoints the arbitrators on the same number and the appointed arbitrators choose the other arbitrator. Unless one of the parties appoint the arbitrators or the appointed arbitrators choose the other arbitrator (within one month, according to the Law no. 6100 and 30 days according to Law no. 4686), the court will appoint the missing arbitrators. According to the Law no. 6100, if there will be an arbitral tribunal, at least one arbitrator must be a legal expert who has a minimum five year experience in his/her own area.
In case the parties are from different nations and the sole arbitrator will be appointed by the court, the court considers that the nation of the arbitrator will not be the same with one of the parties; and in case three arbitrators will be appointed, the court considers that the two of the arbitrators will not be the same nation with the one party. The procedure is the same for the appointment of the more arbitrators.
Can the local courts intervene in the selection of arbitrators? If so, how?
If a sole arbitrator will be appointed and the parties cannot reach a compromise, the Court will appoint the arbitrator upon the request of one party. If the parties or their chosen arbitrators cannot determine the final arbitrator for the third or final arbitrator, the Court will appoint the arbitrator, same as the appointment for a sole arbitrator. The procedure is the same for the appointment of the more arbitrators. The decisions of the court regarding the appointment of the arbitrator(s) cannot be appealed.
Can the appointment of an arbitrator be challenged? What is the procedure for such challenge? Has there been an increase in number of challenges in your jurisdiction?
Local Law specifies the disqualification/challenging provisions of the arbitrators. The arbitrators can be challenged, in case (i) the arbitrator does not have the required qualifications determined by the parties or (ii) there is a reason for challenge as determined by the parties under the arbitration procedure or (iii) there are justifiable reasons for questioning the impartiality of the arbitrator. Parties are free to determine the challenging procedure of the arbitrator. The relevant party may submit its written request to the other party regarding the challenge within thirty days as of the date that they become aware on the challenge reason (thirty days period is for international arbitrations regulated under the Law no. 4686, this period is two weeks for the domestic arbitrations regulated under the Law no. 6100). The relevant party submits its challenging request and its justification to the arbitral tribunal (for one or more arbitrators). In case this request is rejected, the relevant party applies to the court within thirty days (one month for the Law no. 6100) in order to request to cancel this decision or decide on the challenging request. In case the request is for challenging the sole arbitrator or the arbitral tribunal or the majority of the arbitral tribunal, it can only be claimed before the court; and the court decision is final and cannot be appealed. The same procedure on the appointment of the previous arbitrator is applied for the new one to be appointed.
What happens in the case of a truncated tribunal? Is the tribunal able to continue with the proceedings?
According to Article 421 of the Law no. 6100, the arbitrator whose duty has ended for whatever reason shall be replaced with the same method applied for the determination of the same arbitrator.
Are arbitrators immune from liability?
The relationship between the parties and the arbitrators is contractual. This contract is made once arbitrators accept their appointment. Therefore, the liability of the arbitrators can be assessed according to the general provisions of the Code of Obligations. The arbitrators must act in consideration of their duty of care. Local Law states that unless otherwise agreed by the parties, the arbitrator is obliged to compensate the parties’ damage arising from his/her failure to fulfill his/her duties without a valid reason. However, it must be noted that there are none other causes of the arbitrators’ liability.
Is the principle of competence-competence recognised? What is the approach of local courts towards a party commencing litigation in apparent breach of an arbitration agreement?
The principle of competence-competence is recognised in Turkish law. The arbitrator or the arbitral tribunal may decide on its/their own authority, including the resolution of objections regarding the existence or validity of the arbitration agreement. During this decision, the arbitration clause is assessed separately from other provisions of the agreement. The arbitration agreement does not become invalid automatically in case the sole arbitrator or the arbitral tribunal decides on the invalidity of the main agreement.
How are arbitral proceedings commenced? Are there any key provisions under the arbitration laws relating to limitation periods or time bars of which the parties should be aware?
Unless otherwise agreed by the Parties, the arbitration proceeding commences by submitting the request to the court or the person, institution or organization for the appointment of the arbitrators according to the agreement; or if the parties will appoint their arbitrators, by appointing the arbitrator(s) of the claimant and notify the counterparty to appoint its own arbitrator(s); or, if the names of the arbitrators are specified under the agreement, by receiving the request for resolving the dispute through arbitration by the counterparty. If one party has a preliminary injunction or provisional seizure decision given by the court, this party has to initiate the arbitral proceeding within thirty days (two weeks according to the Law No. 6100). Otherwise, the interim measure or provisional seizure will be automatically removed. Unless otherwise agreed by the Parties, the award will be constituted within one year by the sole arbitrator or the arbitral tribunal as of the appointment of the sole arbitrator or the first meeting of the arbitral tribunal. The period of the arbitral proceeding can be extended by the mutual agreement of the parties or by the court with the application of the one party in case there is no compromise. The court decision is final and cannot be appealed in this regard.
What happens when a respondent fails to participate in the arbitration? Can the local courts compel parties to arbitrate? Can they order third parties to participate in arbitration proceedings?
In case the respondent does not submit its response, the proceeding continues without considering this as the acceptance of the case or cognizance of the allegations of the claimant. In case one of the parties do not attend the hearing without a valid reason or abstain from submitting its evidences; the sole arbitrator or the arbitral tribunal can continue the proceeding and decide by considering the available evidences in the file. The local courts cannot compel the parties to arbitrate or order third parties to arbitration proceeding.
In what circumstances is it possible for a state or state entity to invoke state immunity in connection with the commencement of arbitration proceedings?
Under Turkish Law, states may not invoke state immunity in private law matters. Such immunity may be invoked in cases unrelated to private law cases. In Turkish judicial precedent, it is widely accepted that states are liable for their private law interactions. Taken into consideration the competence-competence principle and that states enter into international agreements regarding arbitration, it can be said that such immunity may be invoked in cases where the arbitration proceeding is unrelated to private law (i.e, an administrative law matter) or the state is not party to an arbitration agreement authorizing the arbitration institute.
In what instances can third parties or non-signatories be bound by an arbitration agreement or award?
Third parties or non-signatories cannot be bound by the arbitration agreement. Also, according to the Law No. 4686, the arbitral tribunal cannot decide on the interim measures or provisional seizures that are binding third parties.
What interim measures are available? Will local courts issue interim measures pending the constitution of the tribunal?
Either party is able to request for the interim measure or provisional seizure prior to the arbitral proceeding or during the arbitral proceeding from the court and the court can decide on such interim measure or provisional seizure. According to the Law no. 6100, unless the arbitral tribunal cannot act effectively, the application to the court is subject to the approval of the arbitral tribunal or the written agreement between the parties.
Unless otherwise agreed, the sole arbitrator or the arbitral tribunal can decide on a interim measure or provisional seizure upon request of the one party by requesting appropriate warranties from the requesting party. According to the Law no. 4686, the sole arbitrator or the arbitral tribunal cannot decide on the interim measures or provisional seizures that will be carried out by the enforcement bodies or the official authorities, besides they cannot decide on such measures which will bind third parties. Either party may apply to the court with the request of interim measures or provisional seizures in case the relevant party does not fulfill the award on the interim measure or provisional seizure constituted by the arbitral tribunal. The interim measure or provisional seizure constituted by the court prior to or during the arbitral proceeding will be removed once the award becomes enforceable or the rejection of the arbitral proceeding by the sole arbitrator or the arbitral tribunal.
Are there particular rules governing evidentiary matters in arbitration? Will the local courts in your jurisdiction play any role in the obtaining of evidence?
According to the Law No. 4686, parties submit their evidences within the period specified by the sole arbitrator or the arbitral tribunal. The sole arbitrator or the arbitral tribunal can apply to the court for the collection of the evidences. Under this circumstance, the court will apply the provisions of the Law no. 6100. According to the Law no. 6100, either party may apply to the court for the collection of the evidences with the approval of the sole arbitrator or the arbitral tribunal.
What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings?
Legal Profession Act No. 1136 regulates the ethical standards the attorneys are subject to. These ethical standards are also applied for the attorneys during the dispute resolution through the arbitration.
How are the costs of arbitration proceedings estimated and allocated?
Unless otherwise agreed by the parties, the fees of the arbitrators will be decided between the parties and the arbitral tribunal by considering the amount on the arbitration proceeding, specifications of the dispute and the term of the proceeding. The parties may also refer to the established rules or institutional arbitration rules for the arbitrators’ fees.
If there is no compromise between the parties or no provision in the agreement or no referral to the institutional rules, the arbitrators’ fees will be determined according to the fee tariffs published in the Official Gazette each year (separately for the domestic and the international arbitrations). Unless otherwise agreed by the parties, the arbitral tribunal may request advance payment from the parties equally (in international arbitrations, this advance payment can only be requested from the claimant). At the end of the proceeding, the costs of arbitration are sentenced to the unfair party, unless otherwise agreed by the parties.
Can pre- and post-award interest be included on the principal claim and costs incurred?
Parties may agree on the interests. Under Turkish law, the interests will be added to the costs if there is no compromise between the parties.
What legal requirements are there for the recognition of an award?
Turkey will recognize and enforce the arbitral awards made in other states that are signatories to the Convention, if the scope of recognition and enforcement of the award has commercial nature under Turkish law. Otherwise, it is possible to enforce the award according to the Turkish International Private Law No. 5718. According to the Law No. 5718, the awards can be recognised if (i) the judgment must have been given on matters not falling within the exclusive jurisdiction of the Turkish courts or, in condition of being contested by the defendant, the judgment must not have been given by a state court which has accepted himself competent even if there is not a real relation between the court and the subject or the parties of the dispute, (ii) the award is not clearly contrary to public order and (iii) the person against whom enforcement is requested was not duly summoned pursuant to the laws of that foreign state or to the court that has given the judgment, or was not represented before that court, or the court decree was not pronounced in his/her absence or by a default judgment in a manner contrary to these laws, and the person has not objected to the exequatur based on the foregoing grounds before the Turkish court.
Does the law impose limits on the available remedies? Are some remedies not enforceable by the local courts?
The arbitral tribunal cannot grant remedies on matters which are not requested by the parties and not in the compliance with the arbitration agreement. Additionally, punitive damages are not recognised under Turkish law and any arbitral award which includes punitive damages will be against the public order and will be result in the cancellation of the award.
Can arbitration proceedings and awards be appealed or challenged in local courts? What are the grounds and procedure?
The arbitration proceedings and awards cannot be appealed in local courts; however it is possible to initiate a cancellation action against the arbitral award in local court within one month (thirty days for international arbitrations).
An arbitral award only can be cancelled on the existence of these co nditions; (i) a party of the arbitration agreement was under incapacity; or the arbitration agreement is invalid; (ii) the constitution of arbitral tribunal is not in accordance with the parties' agreement, or, with the applicable law; (iii) the arbitral award is not constituted within the term of arbitration; (iv) the arbitral tribunal unlawfully found itself competent or incompetent; (v) the arbitral tribunal decided on an issue which is not subject to the arbitration agreement or did not decide on the whole request or exceeded its own authority; (vi) the arbitral proceedings are not in compliance with the parties' agreement with respect to the procedure, or, to the applicable law in case of no agreement provided that such non-compliance affected the substance of the award; (vii) the parties are not treated with equality; (viii) the award is contrary to public order, or (ix) the subject matter of the dispute is not appropriate to be resolve through arbitration under Turkish law.
Can the parties waive any rights of appeal or challenge to an award by agreement before the dispute arises (such as in the arbitration clause)?
According to the Law No. 4686, the parties may partially or wholly waive their right to file a cancellation action against the award. Additionally, parties which are abroad may waive their rights to file a cancellation action by adding a clear declaration to the agreement or make a further written agreement regarding the waiver.
To what extent might a state or state entity successfully raise a defence of state or sovereign immunity at the enforcement stage?
The Local Law allows that the Turkish state or the state entities to enter into arbitration agreements with other parties in case the matter is appropriate for arbitration. They become a party to an international arbitration. Although Turkish courts may enforce awards against a state or state entity, only commercial assets of the states can be enforced upon. The assets of the state cannot be subject to seizure under Turkish Law.
To what extent might a third party challenge the recognition of an award?
The enforcement of an arbitral award, same as the awards of a foreign court, cannot be directly done through enforcement offices in Turkey. The enforcement of such an award can be resolved by a Court decision. Therefore, the third party involved may present the Court of such a case with an intervention petition, and request to be a party to judgment, should they have a right to action.
Have there been any significant developments with regard to third party funding recently?
No specific regulation or restriction concerning third-party funding in arbitration is regulated under Turkish law.
Is emergency arbitrator relief available? Is this frequently used?
ISTAC has Emergency Arbitrator Rules (“Emergency Rules”) which are applied to the applications that are made to ISTAC for the appointment of an emergency arbitrator before the transmission of the file to the sole arbitrator or arbitral tribunal pursuant to Article 18 of the ISTAC Arbitration Rules. Emergency Rules are applied to the parties who are either signatories to the arbitration agreement taken as the basis for an application for the appointment of an emergency arbitrator, or successors of such parties. ISTAC’s emergency arbitrator is appointed within two days as of receiving the application by the Secretariat and the arbitrator constitutes its award within seven days as of the appointment. Furthermore, ITOTAM has also the Emergency Rules according to Article 30 of the ITOTAM Arbitration Rules.
ITOTAM’s emergency arbitrator is appointed within two days as of the application and the arbitrator constitutes its award within fifteen days as of the appointment. Both Emergency Rules are the recent regulations under Turkish law.
Are there arbitral laws or arbitration institutional rules providing for simplified or expedited procedures for claims under a certain value? Are they often used?
Unless otherwise agreed by the parties, the ISTAC Fast Track Arbitration Rules (“Fast Track Arbitration Rules”) are applied to the disputes where, as at the date of commencement of the arbitration, the total sum of the claims, and any counterclaims, do not exceed TRY 300.000. The parties may also agree that the Fast Track Arbitration Rules are applied where the amount in dispute exceeds this sum. Unless otherwise agreed by the parties, in cases where both the claims and any counterclaims exceed the sum of TRY 300.000 in the course of the arbitration proceedings, the Fast Track Arbitration Rules are still applied. Where the sum of the claims does not exceed TRY 300.000 upon a request of one of the parties, the Board, according to the facts and circumstances, may decide not to apply the Fast Track Arbitration Rules.
Have measures been taken by arbitral institutions to promote transparency in arbitration?
There is no specific regulation or intention by arbitral institutions to promote transparency in arbitration.
Is diversity in the choice of arbitrators and counsel (e.g. gender, age, origin) actively promoted? If so, how?
Parties are free to appoint their arbitrators according to the Local Law and there is no intention regarding the arbitrators’ gender, age, origin etc. However, in case the parties are from different nations and the sole arbitrator will be appointed by the court, the court considers that the nation of the arbitrator will not be the same with one of the parties; and in case three arbitrators will be appointed, the court considers that the two of the arbitrators will not be the same nation with the one party. The procedure is the same for the appointment of the more arbitrators. Also, according to the Law no. 6100, if there will be an arbitral tribunal, at least one arbitrator must be a legal expert who has five year experience at least, in his/her own area.
Have there been any developments regarding mediation?
Recently, a new regulation, namely the Law on Labor Courts has been accepted by the Congress on 12.10.2017, and has entered into force by publishing on the Official Gazette on 25.10.2017. Its provisions include a new addition to mediation regulation: mediation is now mandatory for labor cases. Application to mediation is now a ‘’cause of action’’, meaning that Labor Courts will now require such application to be made previously, before overseeing the dispute.
Have there been any recent court decisions considering the setting aside of an award that has been enforced in another jurisdiction or vice versa?