Arbitration is a method aims to resolve disputes fairly and reliably within a reasonable period of time, at more affordable costs, by the arbitrators chosen by the parties with their free will. In many countries of the world, employees and employers prefer arbitration instead of long and costly courts.

In this way, MAC aims to resolve disputes by taking into account the unique rules, realities and maritime traditions of the maritime sector.

A significant portion of the world's maritime fleet, including Turkey, consists of ships flying the flags of the countries we call FOC (Flag of Convenience). Disputes between Turkish national seafarers working on FOC vessels, and the owners/operators of these vessels often remain virtually unresolved due to the fact that seafarers cannot be included in the Social Security System and due to deficiencies or inadequacies in the national legislation and legal system, and both seafarers and ship owners or operators suffer.

Arbitration is based on ITF conventions, MLC 2006 and other relevant ILO conventions and relevant international legislation. In this way, disputes can be resolved in a much more equitable and reliable manner and much faster (within a maximum of 6 months).

Maritime is an international sector by nature and is subject to international rules rather than national legislation. Arbitration is a judicial process conducted according to international rules and customs required by maritime law.

The parties have the opportunity to determine the rules of procedure, the applicable law, the seat of arbitration, the language of arbitration and the arbitral tribunal. The awards rendered in arbitration are final and easy to enforce.

It helps to resolve disputes in a short period of time and at low cost, instead of a lengthy court process.

It ensures a fairer resolution of disputes when the parties are led by arbitrators specialised in their field. Some maritime disputes require specialised knowledge to resolve. "Ad hoc" arbitration offers industry-specific remedies, allowing the parties to reach a fairer settlement.

In the maritime industry, "national" legal systems are insufficient, and approaches that allow alternative dispute resolution methods are increasingly being adopted both internationally and nationally. Among these alternative dispute resolution methods, the arbitration system has an important place. In many legal systems, arbitration was already established on a legal basis even before other alternative methods were regulated. In addition to international arbitration, the rules governing arbitration systems operating at the national level have also been harmonised with international regulations. In terms of national legislation, there is no distinction between the awards rendered by the arbitrators in the arbitration process and the enforceability of these awards.

Examples of national and international laws or regulations regulating the arbitration process include the "International Arbitration Law No. 4686" issued by the Republic of Turkey and the "ICC 2021 Arbitration Rules" published by the ICC (International Court of Arbitration). When these laws and regulations are analysed, it will be seen that Arbitration is a legally valid practice and alternative solution management in our country (provided that the necessary conditions are met).

Of course, it is not obligatory for either seafarers or ship owners or operators to submit to Arbitration. However, if the seafarer is working on a FOC vessel with an ITF contract on board and there is an "arbitration clause" in the Individual Seafarer’s Employment Agreement signed between the seafarer and the ship owner/operator, then both the seafarer and the employer are obliged to apply to Arbitration, i.e. MAC, in case of a dispute under the ITF contract.

If the parties meeting these conditions apply to Arbitration to resolve their dispute and the arbitration panel makes a final award, both parties are obliged to comply with the award. If requested or if the enforcement of the award is required, the party seeking recognition and enforcement of the arbitral award shall file a petition with the competent court. The competent court for the recognition and enforcement of arbitration awards is the Civil Court of First Instance.

Currently, only seafarers (Turkish or foreign nationals) working on FOC vessels with an ITF contract and the owners or operators of such vessels (and other parties, if any) can apply to Arbitration. In addition, the Seafarer’s Employment Agreement signed between the ship owner/operator and the seafarer must contain provisions that fulfil or require arbitration.

The arbitration process is conducted by MAC (Maritime Labor Mediation and Arbitration Centre). Therefore, individuals or legal entities wishing to apply for arbitration should apply to MAC.

Applications to MAC can be made online via the website www.denizciliktahkim.org, by e-mail to info@denizciliktahkim.org or by visiting the Turkish representative office in person.

A claim petition/form (Request for Arbitration) must be filled out when filing an application. Along with this Request for Arbitration, information and documents regarding the dispute subject to the request must also be submitted. These information and documents can be submitted online, by e-mail or in person.

After the application is submitted, the MAC Council will examine the application and accept it if it meets the necessary conditions. Following the Council's acceptance of the application, the applicant party shall pay the application fee (€200). The applicant will then select the arbitrators. The applicant has the right to select/appoint at least one and at most three arbitrators. The applicant may select arbitrators from the published list of arbitrators. The applicant is then required to pay the arbitrator fee(s).

If the applicant is a marine employee and a member of DAD-DER/ITF, the application and referee fee can be paid by DAD-DER. This will be decided by the DAD-DER executive board.

After the applicant's process is completed, the Council notifies the other party and asks it to submit the necessary information and documents, to select an arbitrator and to pay the arbitrator's fee(s). After the other party completes this process, the Council convenes the arbitral tribunal and the judgement process begins. After the arbitral tribunal completes the proceedings and reaches a final award, the Council communicates this award to the parties.

The applicant person or legal entity must first provide personal information. These are the applicant's full name, address, company name, title or duties, and other contact details.

Then, the applicant must specify the nature of the dispute that led to the claim or claims in the case and define the characteristics, state the issues on which these claims are based, and submit information, documents and evidence proving/supporting the claim. In the meantime, the applicant should also submit to the MAC Council the individual employment agreement or similar agreements containing the arbitration clause.

Lastly, the applicant must indicate the amounts of the claims, the results of the claims and, in the case of claims that can be measured in money, what they are and/or the monetary value corresponding to them.

In case of any difficulties in submitting the information and documents required for the application and/or in case of any need for assistance in any matter, the applicant and the opposing party may contact the MAC Turkey representative office or communicate online.

The most important issue for the functioning of the arbitration process is undoubtedly the selection of arbitrators. Ultimately, the arbitration will function and find its meaning with the award of the arbitral tribunal consisting of selected arbitrators. In this respect, the selection of arbitrators is mandatory.

In order to select the arbitrators, the parties may choose the arbitrators they deem appropriate by referring to the published list of arbitrators. The arbitrators shall be independent of the disputing parties and shall remain independent throughout the arbitration process. Otherwise, the Council may request the selection of a new arbitrator.

The parties may select at least one and at most three arbitrators from a list of impartial arbitrators who fulfil the aforementioned conditions and each of whom is an expert in his/her field, reputable and prominent in the maritime industry. The number of arbitrators selected by the parties must be equal. The arbitrator who will preside over the arbitral tribunal shall be selected and appointed by the Council.

Arbitration is fee-based. These can be summarized as an application fee, an arbitrator's fee and other costs incurred during the proceedings.

The application fee is €200 and is payable by the applicant.

The arbitrator's fee is €150 per arbitrator and is paid separately by both parties, depending on the number of arbitrators selected.

Other costs that may arise during the proceedings are miscellaneous expenses, administrative costs, fees of experts appointed by the arbitral tribunal and legal costs incurred by the parties for the arbitration.

The Council and/or the arbitral tribunal shall determine the amount of these costs and the proportion to be paid by whom. In addition, if necessary, the Council may request an advance on costs from the parties.