Details of Termination of Employment Contracts in Turkey

Our Turkish employment attorneys are prepared to represent employees and employers in the termination of employment contracts. Our Turkish labor employment law lawyers also represent our clients in both unionized and union-free, administrative proceedings, arbitration, and in litigation.

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Legalixa represents clients across the spectrum of labor and employment matters, including allegations of wrongful termination, employment discrimination, and non-competition violations. We also have extensive experience in matters arising in representation proceedings, collective bargaining negotiations, arbitrations, and litigation in labor courts.

Termination of Employment Contracts

Termination With Valid Reasons: We always recommend our clients specify valid reasons while terminating employment contracts because an employee whose employment contract was terminated can file;

  • a reinstatement claim or
  • a compensation claim for bad faith damages.

According to Article 18 of the Turkish Labor Act, the employer, who terminates the contract of an employee engaged for an indefinite period, who is employed in an establishment with thirty or more workers and who meets a minimum seniority of six months, must depend on a valid reason for such termination connected with the capacity or conduct of the employee or based on the operational requirements of the establishment or service.

  • Reinstatement claims can only be filed against a Company that employs 30 or more 30 employees and by employees that have at least 6 months of length of service.
  • In cases where employment contracts of employees -who fall outside the scope of Article 18, (e.g. if there are less than 30 people employed in the Company)- are terminated by the employer, the employee will be able to file a lawsuit demanding compensation which amounts to three times the worker’s salary of the notice period claiming that the employer has terminated the contract with bad faith. To prevent such a lawsuit, an employer should specify a valid reason for terminating an employment contract.

Market stagnation, market share loss, raw material shortage, decrease in sales possibilities, the decline in sale resources, implementation of new technologies, close down of several departments, etc. can be deemed as valid reasons for termination based on the operational requirements of the management, establishment, or service.

Termination of Employment Contracts in Turkey

Notice Period and Notice Pay

Before terminating a continual employment contract made for an indefinite period, a notice to the other party must be served by the terminating party. The contract shall then terminate:

  1. whose employment has lasted less than six months, at the end of the second week following the serving of notice to the other party;
  2. whose employment has lasted for six months or more but for less than one-and-a-half years, at the end of the fourth week following the serving of notice to the other party;
  3. whose employment has lasted for one-and-a-half years or more but for less than three years, at the end of the sixth week following the serving of notice to the other party;
  4. whose employment has lasted for more than three years, at the end of the eighth week following the serving of notice to the other party.

These are minimum periods and may be increased by contracts between the parties. You can choose to ignore the notice period. The party who does not abide by the rule to serve notice shall pay compensation covering the wages that correspond to the term of notice.

Please note that, while calculating the notice pay, gross salary with material benefits that are provided to the employee regularly shall be taken into account.

Severance Pay

Upon termination of the employment contract on grounds other than stated in Article 25 (termination of the contract by the employer with rightful reasons) of the 4857 numbered Labor Act, the employee becomes entitled to severance pay.

In case any labor contract is terminated for a reason that qualifies for severance pay, severance pay amounting to gross wages of 30 days for every full year of employment will be granted. For periods of more than one year, this will be proportioned and included in the calculation.

Along with wages paid to the employee, severance pay calculations take into account the gross amounts of all money and material benefits that are provided regularly (travel allowance, food allowance, condition of regularity, bonus payments, etc.).

The amount of severance pay paid for each full year of employment is limited by a severance pay upper limit in effect on the date of termination. (For 2020, 6.730.15 TL.)

While terminating an employment contract annual leave and overtime work of an employee (the first 270 hours of overtime work are included in the salary) shall also be paid by the employer.

Reach us for Termination of Employment Contracts

Legalixa Law is a solution-oriented law firm that empowers clients to meet the diverse and changing demands of today’s global market. Since 1992, our lawyers have been helping clients with complex legal challenges and maximizing opportunities for success.

Our law firm is now one of the leading Labor Employment law firms in Istanbul, Turkey. You may reach us for Termination of Employment Contracts through our Contact page.