Question 1

Who pays the mediation fee?

Accepted Answer

Unless otherwise agreed, the mediation fee is paid equally by the parties. If no agreement is reached, the first two hours of fees are covered by the Ministry of Justice budget.

Question 2

Is mediation mandatory?

Accepted Answer

In certain areas such as labor law disputes, commercial disputes, and consumer disputes, applying for mediation before filing a lawsuit is mandatory.

Question 3

How long does the mediation process take?

Accepted Answer

In mandatory mediation, the period is 3 weeks for labor disputes and 6 weeks for commercial disputes. The period can be extended by agreement of the parties.

Question 4

Are there VAT and withholding tax deductions in mediation?

Accepted Answer

Yes, mediation fees are subject to 20% VAT. Additionally, 20% income tax withholding is applied as freelance income.

Question 5

What is prosecution mediation?

Accepted Answer

Also known as conciliation, prosecution mediation is a process conducted during the investigation phase of certain crimes for the parties to reach a settlement. If a settlement is reached, no public prosecution is filed.

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