Court with Jurisdiction in Non-Compete Cases

Jurisdictional Conflict in Non-Compete Cases

Normally, all disputes between employees and employers are handled by Labor Courts. However, non-compete clauses . This is because the nature of the clause falls under different branches of law, both during and after the termination of the employment contract.

While the Employment Contract is Still in Effect: The employee's duty of loyalty, specifically the obligation not to compete, falls under the scope of the Labor Law.
After the Employment Contract Termination: The employment relationship between the parties has ended, leaving only an independent contract concluded in accordance with Articles 444-447 of the Turkish Code of Obligations (TBK).

This distinction forms the basis of the question of whether the case will be heard in the Labor Court or the Commercial Court of First Instance.

Competent Court: Commercial Court of First Instance or Labor Court?

According to the current approach of the Supreme Court and the legislator, non-compete agreements are "the source of the dispute" and "the status of the parties".

Jurisdiction of the 1st Commercial Court of First Instance

According to Article 4 of the Turkish Commercial Code (TTK), legal disputes arising from matters related to the commercial enterprises of both parties are considered commercial disputes. More importantly, however, Article 4/1-c of the TTK the non-competeclauses (Articles 444-447) of the Turkish Code of Obligations as "absolute commercial disputes."

According to this regulation, non-compete clause violation cases filed after the termination of an employment contract must be heard in the Commercial Court of First Instance , even if the parties to the case are "employee" and "employer," because the matter is considered an absolute commercial case . The court, in resolving the dispute, will base its decision not on the Labor Law, but on the provisions of the Turkish Code of Obligations and the Turkish Commercial Code.

2. The Jurisdiction of the Labor Court

If the anti-competitive behavior occurs while the employment contract is still in effect, this is considered a "breach of the duty of loyalty." Disputes arising during the employment contract are directly subject to labor law, and the competent court the Labor Court.

The Court of Cassation's Established View on Determining Jurisdiction

The Supreme Court adopts the following principle when resolving disputes: "If the service contract between the parties has terminated as of the date of the lawsuit, and the lawsuit is based on a non-compete agreement within the scope of Article 444 of the Turkish Code of Obligations, this lawsuit is an absolute commercial lawsuit."

Although some regional courts have argued in the past that these cases should be heard in the Labor Court due to the worker being the weaker party, the Supreme Court's General Assembly of Civil Law and relevant chambers have definitively established that the legal provision (Turkish Commercial Code Article 4/1-c) is clear and that the Commercial Court of First Instance, being a specialized court, has jurisdiction.

Consequences of Choosing the Wrong Court of Competence

Filing a lawsuit in the wrong court is a procedural error that significantly prolongs the trial process. According to the Code of Civil Procedure (HMK), "jurisdiction" is a matter of public order and must be considered ex officio by the court at every stage of the proceedings.

Decision of Lack of Jurisdiction: When the court determines that it does not have jurisdiction, it issues a "Decision of Lack of Jurisdiction".
Time Loss: After the decision of lack of jurisdiction becomes final, a request to transfer the case to the competent court (e.g., from the Labor Court to the Commercial Court) must be made within a strict two-week period. Otherwise, the case will be considered not filed.
The Mediation Problem: In commercial cases (Commercial Court of First Instance) and labor cases (Labor Court), mediation is a prerequisite for filing a lawsuit. However, commercial mediation and labor law mediation are subject to different registries and procedures. Filing a lawsuit in the wrong court increases the risk that the prerequisite mediation process will also be conducted incorrectly.

Mediation and Duty Relationship in the 2026 Implementation

As of 2026, non-compete agreements . Since the competent court is the Commercial Court of First Instance, the plaintiff employer or employee must apply for mediation under the "Commercial Dispute" category before filing a lawsuit. Applications made under labor law categories may lead to the dismissal of the case on procedural grounds due to the lack of a prerequisite for filing a lawsuit after a decision of lack of jurisdiction.

Conclusion

non-compete disputes arise from an employment relationship, they fall within the scope of commercial law because they only become effective after the termination of that relationship. According to the explicit provisions of the Turkish Commercial Code, the competent court for claims, damages, and penalty clauses arising from these agreements the Commercial Court of First Instance. Initiating the case in the correct court and through the correct mediation process is vital to prevent significant loss of time and rights. The technical review by these specialized courts is essential both to protect employers' trade secrets and to oversee unfair restrictions on employees' freedom to work.

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