Employee quits, refuses to repay loan

Question: I am an employer. A year ago, I gave one of my employees a loan on the condition that he would repay this loan within two years. A month ago, this employee submitted his resignation and had already received his full labour rights.

Currently, I have asked him to return the loan, but he refuses and says that according to the loan contract, the debt will not be due until two years hence. How can I get my money back now? Should I file a labour case or cicil case?

Answer: You have to file a case in front of the Labour Court without waiting, in case the loan had been given to him from the company on behalf of his capacity as an employee.

This means that the employment relationship was the reason for such loan and thus, the labour courts should be eligible for the case which should be raised within two years from the date of termination of the employment relationship, pursuant to Article 54 of the Labour Federal Law which states that litigation concerning any of the rights accrued under this Decree-Law may not be considered after two years from the date of termination of employment.

In case you had given him this loan personally, then the civil courts will hear you case.

You have to file the case after two years if such condition is mentioned in the loan agreement on the account that the dates and terms of the loan agreement should be implemented for the recovery of the loan, according to what is mentioned in Article 246 of the Civil Transactions Law.

The contract shall be implemented according to the provisions contained therein and in a manner consistent with the requirements of good faith.