Starting a mediation under Law 159(I)/2012 suspends limitation for its whole duration, and time resumes on termination. What is said in it is protected twice over: section 24 makes a statement before the mediator inadmissible as evidence against anyone, and section 23 stops the mediator producing material from it. A settlement can be declared enforceable as a judgment under section 32. Employment disputes that are not cross-border are outside the Law entirely.
Mediation is often described as an alternative to litigation, which undersells what the statute actually does. The Certain Aspects of Mediation in Civil Disputes Law, 159(I)/2012, gives a mediation three things a private settlement meeting does not have: a clock that stops, evidence that cannot be used afterwards, and an agreement a court can be asked to enforce as though it were a judgment.
Where it applies, and the exclusions that surprise people
Section 3(1) applies the Law to civil disputes, including cross-border ones. Section 3(2) then takes three categories out, and the second catches people out regularly:
- civil disputes, cross-border or not, concerning rights and obligations the parties are not free to decide under the applicable law;
- employment disputes that are not cross-border, and the subsection is emphatic: they are excluded whether or not they raise rights the parties cannot freely decide;
- tax, customs or administrative disputes, and disputes concerning state liability for acts or omissions in the exercise of state authority.
Section 4(1) defines a cross-border dispute as one where at least one party is domiciled or habitually resident, or trades or works, in a Member State different from that of any other party, judged at the date the parties agreed to mediate after the dispute arose, or the date a Member State court ordered the referral, or a mediation obligation arose under a Member State's law, or the parties were called before a court for the information session.
Who may mediate
Section 5(1) allows mediation to take place at any time, including within court proceedings, and only by a person registered in the Register of Mediators. The Law distinguishes: for a commercial dispute the mediator must be registered under section 7(a)(i) or (ii); for a civil dispute that is not commercial, under section 7(a)(i) and having filed with the Minister a certificate of having completed a mediator training programme and a certificate of continuing professional training under section 12.
Section 5(3) adds a point worth using: mediation may be carried out for part of a dispute rather than all of it. The Register is kept by the Minister under section 6 and published on the Ministry of Justice website under section 7(2), so the mediator's standing can be checked before anyone signs.
What a court can and cannot do about it
Section 15(1) gives a court before which proceedings are running, at any stage before judgment, two powers. It may call the parties to attend for information about how mediation works and whether their dispute could be resolved that way. And, on the joint application of all parties, or on one party's application with the express consent of the rest, having regard to all the circumstances, it may adjourn the proceedings for a mediation to take place.
Section 15(2) settles the limit of that power in one line: where any party does not agree to mediate, the court proceeds with the case. A party can be required to hear about mediation. It cannot be ordered into one.
The clock stops
Section 17 fixes the moment: the date the mediation begins is the date the mediation agreement is signed.
Section 27(1) is the provision that makes mediation safe to attempt. Commencement of the mediation under section 17 suspends the limitation period or the preclusive period for the whole duration of the process. Section 27(2): where the mediation fails, the suspended period continues to run from the date of termination. Section 27(3) preserves the limitation provisions of international agreements to which the Republic is a party.
This is the answer to the client who wants to talk but is watching a deadline. The scheme works with the general law: section 13(d) of the Limitation of Actionable Rights Law 66(I)/2012 suspends limitation for as long as a mediation taken to have begun under the applicable law continues, and section 27 here is where that beginning is defined. The periods themselves are set out in limitation periods in Cyprus.
What cannot come out afterwards
Two provisions protect the process, and they do different work.
Section 23(1) binds the mediator and anyone else involved administratively or otherwise, unless the parties agree otherwise: they must not produce, in any civil proceedings or arbitration, any material arising from or connected with the mediation. There are two exceptions only: where it is necessary for overriding public policy reasons of the Republic, chiefly to secure the protection of the best interests of children or to avoid the risk of harm to a person's physical or psychological integrity; and where disclosing the content of the agreement reached is necessary to apply or enforce it.
Section 23(2) makes the duty outlast the role: it continues after the mediator ceases professional activity, both while registered and after removal from the Register for any reason.
Section 24 is broader and it is the one to explain to a nervous client. Notwithstanding any other law, and subject to section 23, a statement made before a mediator during the mediation is not admissible as evidence against any person before the court. It is not a rule about what the mediator may say; it is a rule about the statement itself.
Section 25(2) closes a related gap. Where a mediator resigns, or the parties agree to end the appointment, or one party terminates it, that does not amount to an admission of the allegations made.
How it ends
Section 28(1) lists seven ways the process terminates: by the parties concluding a settlement agreement; by the drawing up of minutes recording that no agreement was reached; by the parties agreeing to discontinue; where one party ceases to consent to its continuation; where the mediator judges that continuing has become pointless or impossible; where the mediator judges the settlement the parties have reached to be unlawful; and where the mediator judges that the settlement in prospect could not be accepted by the court. Under section 28(2) termination of the process terminates the mediator's own appointment.
Section 29 imposes a retention obligation that matters for later disputes: all documents concerning the mediation are kept by the mediator for at least seven years from termination.
The settlement, and making it bite
Section 30(1) requires the mediator, where agreement is reached on all or part of the dispute, to draw up a written settlement agreement containing the mediator's details, the place and time of the mediation, the parties' details, the details of those who took part, the mediation agreement as to the matters in section 16, the terms the parties reached, and the date it was concluded.
Section 30(2) contains the clause worth insisting on: the settlement agreement may also provide that the parties consent to any party filing an application for enforcement under section 32. Putting that consent in the agreement removes the need to go back for it later. Under section 30(3) the agreement is signed by hand by the mediator and the parties, and under section 30(4) the mediator provides each party with a copy.
Where no agreement is reached, section 31 requires the mediator to draw up minutes recording that, signed by the mediator and, if they wish, by the parties, with a copy to each.
Enforcement as a judgment
Section 32(1) allows an application to enforce the settlement to be filed jointly by all parties, or by one party with the express consent of the others, unless that consent was already given in the settlement agreement itself.
Section 32(3) gives the court two options. It may declare all or part of the settlement enforceable in the same manner as a judgment or order, with the same force, and in that case a judgment may be issued with the content of the settlement. Or it may reject the application if it considers the content contrary to law, or not enforceable, or that the dispute cannot be resolved by mediation. A rejection on those grounds is appealable in the same way as a judgment, under section 32(4).
Section 32(5) answers the venue question: the competent court is the one with jurisdiction over the particular dispute under the laws of the Republic, regardless of where the mediation took place. Under section 32(2) the court may require a duly certified Greek translation where the settlement is in another language.
Questions we are asked
Will mediating cost me my deadline?
No, and that is the point of section 27. Commencement of the mediation, which under section 17 is the date the mediation agreement is signed, suspends the limitation period or preclusive period for the whole duration of the process. If the mediation fails, the suspended period continues to run from the date of termination. It does not restart, so the time already elapsed still counts, but the mediation itself costs you nothing in days.
Can the other side use what I say in the mediation against me?
Section 24 says not: notwithstanding any other law, a statement made before a mediator during the mediation is not admissible as evidence against any person before the court. Section 23 separately stops the mediator and anyone involved producing material from the mediation in any civil proceedings or arbitration, with only two exceptions, overriding public policy reasons chiefly concerning children or physical or psychological integrity, and disclosure necessary to apply or enforce the agreement reached.
Can a court order us to mediate?
It can order you to be informed about it, not to do it. Section 15(1) lets the court at any stage before judgment call the parties to attend for information about mediation, and adjourn the proceedings for a mediation on the joint application of all parties or one party's application with the express consent of the rest. Section 15(2) then provides that where any party does not agree, the court proceeds with the case.
We are in an employment dispute. Does this Law apply?
Only if it is cross-border. Section 3(2)(b) excludes employment disputes that are not cross-border disputes, and it says so whether or not they raise rights and obligations the parties are free to decide. Cross-border is defined in section 4(1) by reference to a party being domiciled, habitually resident, trading or working in a different Member State at one of four specified dates.
Is the settlement just a contract, or can we enforce it?
It can be enforced. Under section 32(3) the court may declare all or part of the settlement enforceable in the same manner as a judgment or order and with the same force, and may issue a judgment with the content of the settlement. The application is filed jointly, or by one party with the express consent of the others, and section 30(2) allows that consent to be built into the settlement agreement itself, which is worth doing at the time rather than negotiating later.
Can the court refuse to enforce it?
Yes, on three grounds in section 32(3)(b): that the content is contrary to law, that it is not enforceable, or that the dispute cannot be resolved by mediation. A rejection on those grounds may be appealed in the same way as a judgment under section 32(4). The mediator has a related duty under section 28(1): the process terminates if the mediator judges the settlement unlawful or judges that it could not be accepted by the court.
What happens if the other side walks out?
The process terminates under section 28(1)(d), which covers a party ceasing to consent to its continuation, and under section 28(2) the mediator's appointment ends with it. Nothing is conceded by that: section 25(2) provides that a mediator's resignation, the parties' agreement to end the appointment, or one party's termination of it does not amount to an admission of the allegations made. The limitation clock resumes from the date of termination under section 27(2).
Can we mediate only part of the case?
Yes. Section 5(3) provides that mediation may be carried out for part of a dispute or for the whole of it, and section 30(1) contemplates a settlement agreement resolving all or part of the dispute. Narrowing a case by agreement on the parts that are not really in issue is often more valuable than attempting the whole of it.
How do we know the mediator is qualified?
Check the Register. Section 5(1) allows mediation to be conducted only by a person registered in the Register of Mediators, with different registration routes for commercial and other civil disputes, and section 6 makes the Minister responsible for keeping it. Section 7(2) requires the Register to be published on the Ministry of Justice and Public Order website, so it can be checked before anything is signed.
How long does the mediator keep the papers?
At least seven years from termination of the process, under section 29. That matters where a settlement later has to be applied or enforced, since section 23(1)(b) permits disclosure of the content of the agreement where that is necessary for its application or enforcement.
This article is for general information only and does not constitute legal advice. Laws and their application can change, and individual circumstances differ. For advice on your own matter, contact Klitos Platis at klitos@kleanthousplatis.com or telephone +357 22 680 330.

Klitos Platis
Advocate, Partner
Kleanthous & Platis LLC, Nicosia · Published 22 August 2026
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