Mandatory Mediation In Labour Disputes – An Overview

On 1 January 2018 applying to a mediator was made a prerequisite when filing a lawsuit concerning monetary claims by employees or employers arising out of employment contracts, collective labour agreements or reinstatement claims. As a result, parties must now apply for mediation before filing a lawsuit; otherwise, the lawsuit will be rejected due to the absence of a prerequisite.

Mandatory mediation was introduced to accelerate legal proceedings and lower the costs in employment disputes. Mediators must finalise the mandatory mediation process within three weeks from the date of appointment with a one-week discretionary extension. As a result, the timeframe is much shorter than a case filed before the courts. Mediator fees are also lower when compared with attorney fees in disputes that take place before the employment courts.