Reinstatement Lawsuit

What is a Reinstatement Lawsuit? (In Turkish Law)

A reinstatement lawsuit is a type of legal action that allows an employee to challenge the termination of their employment contract if they believe it was unjust. Pursuant to Article 20 of the Labor Law, if the employee thinks that the termination was made without valid reasons, they have the right to object to this wrongful termination.

The primary goal of this lawsuit is to prevent the employer from abusing their right to terminate and to protect the employee from unjust dismissals. However, a reinstatement lawsuit can only be filed under certain conditions. The most important of these conditions are:

• The employee must be covered under the Labor Law,

• The workplace must have at least 30 employees,

• The employee must have an indefinite-term employment contract,

• The employee must have at least six months of service,

• The employee must not be an employer representative,

• The termination of the employment contract must not be based on a valid reason,

• The mediation application must be made within 1 month of the termination of the employment contract.

When Should a Reinstatement Lawsuit Be Filed?

The time limits set for filing a reinstatement lawsuit are definitive, and missing these deadlines results in the loss of the right to file the lawsuit. In other words, the time limits specified for this lawsuit are statutory deadlines, and failing to comply with them will nullify the right to sue. According to the Labor Law:

• Mediation Application: The employee must first apply for mandatory mediation. The mediation process must be initiated within 1 month of receiving the termination notice. (See: Article 20 of the Labor Law, No. 4857)

• Lawsuit Filing Deadline: If the mediation process fails, the employee must file the reinstatement lawsuit within 2 weeks from the date the final mediation report is issued. (See: Article 20 of the Labor Law, No. 4857)

These deadlines aim to ensure the employee's right to file a lawsuit while also protecting the employer from prolonged legal uncertainty.

Where and Which Court Should the Reinstatement Lawsuit Be Filed?

Reinstatement lawsuits are heard in labor courts. If there is no labor court in the relevant jurisdiction, the case may be filed in civil courts of first instance acting as labor courts.

The jurisdiction for filing the lawsuit is regulated under Article 6 of the Labor Courts Law No. 7036. According to this provision:

• The competent court is the court of the defendant's residence at the time the lawsuit is filed, or the court of the place where the work was performed or the transaction occurred.

• If there are multiple defendants, the court of residence of any one of the defendants is also competent.

• Jurisdiction agreements contrary to these provisions are invalid.

Trial Procedure

Reinstatement lawsuits are subject to an expedited trial procedure introduced by the Labor Law. According to Article 7 of the Labor Courts Law No. 7036, "The simplified trial procedure applies in labor courts." This ensures a faster resolution of cases compared to other trial procedures.

• Duration of the Case: Although not always realized in practice, labor courts should resolve cases within 2 months. In practice, this period can extend to approximately 1 year.

• Appeal Process: If the court decision is appealed, regional courts of appeal must finalize the case within 1 month. This process can extend to 4–6 months in practice.

Compensation in Reinstatement Lawsuits

If the court rules in favor of the employee in a reinstatement lawsuit, they may also be entitled to compensation, including:

• Compensation for Lost Wages: The employer must pay the employee up to 4 months' wages and other entitlements if the employee is not reinstated.

• Non-Reinstatement Compensation: If the employer refuses to reinstate the employee despite the court decision, the employee is entitled to compensation ranging from a minimum of 4 months' wages to a maximum of 8 months' wages.

The amount of compensation depends on factors such as the employee's seniority, the circumstances of the termination, and the employer's fault. Each case is evaluated on its merits by the court.

When determining compensation amounts, factors such as the employee's salary before termination, length of service, and the employer's degree of fault in the termination are taken into consideration. The court evaluates these criteria in each specific case to reach a decision. Regarding the determination of non-reinstatement compensation, the Yargıtay 9. Hukuk Dairesi clarified the issue with its decision numbered 2015/6315 E., 2015/13291 K. According to the referenced Supreme Court precedent:

• For employees with seniority between 6 months and 5 years, non-reinstatement compensation is determined as 4 months' salary;

• For employees with seniority between 5 years and 15 years, the amount is 5 months' salary;

• For employees with seniority exceeding 15 years, the amount is 6 months' salary;

• Depending on the reason for termination, this amount can increase to a maximum of 8 months' salary.

General Overview

Reinstatement lawsuits play a crucial role in maintaining the balance in employee-employer relationships. Through these lawsuits, employees are protected against unjust dismissals, while employers are discouraged from engaging in arbitrary practices. Proper handling of legal procedures ensures the protection of both parties' rights.

For this reason, seeking assistance from an expert legal professional before filing a reinstatement lawsuit is critically important for the smooth progression of the process. İNEVİ Law Firm, with its team specialized in labor law, provides services across many regions of Turkey, acting as representatives for both employees and employers.

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