Reform Introduces Requirement To Mediate Before An Employment Claim

New legislation came into force in January 2018 that will require employees to submit to mediation before commencing most employment-related claims.

The Labor Courts Act No. 7036 (Act) aims to ease the judiciary's workload and accelerate the judicial process in employment cases. The most significant changes include the following:

• Mandatory mediation is introduced for both employers and employees prior to initiating lawsuits. 
• There is a new obligation on courts to provide calculations for damages in reinstatement cases.
• The time period for bringing an employment claim has been reduced, although it still stands at five years. 

Mandatory Mediation

Mandatory mediation will be required before an employee (or employer) can initiate a lawsuit relating to money claims, compensation from the Labor Act, employment agreements, collective bargaining agreements, or reinstatement claims.