WORKER COMPENSATION RIGHTS AND TYPES IN TURKEY

Protecting workers’ rights and ensuring safe working conditions in the business world are of great importance for maintaining industrial peace and enhancing social welfare. In this context, enabling workers to receive the value of their labour and safeguarding their entitlements under worker compensation rights in Turkey contribute to the continuation of employment relationships in compliance with the law. Among the rights included within workmen compensation in Turkey, severance pay is one of the most significant financial guarantees provided to employees upon the termination of their employment contracts.

Severance pay arises as a right granted to employees by law in the event of termination of the employment relationship in Turkey. However dismissal compensation in Turkey is not limited solely to severance pay upon dismissal; it may also arise in various other circumstances regulated under labour law. These rights aim to protect the economic and social security of employees throughout their working life and are regulated within the framework of Turkish labour law and relevant legal legislation.

Nevertheless, entitlement to dismissal compensation in Turkey does not arise in every specific case; in order for employees to acquire any compensation rights, including severance pay, the conditions stipulated by law must be fulfilled. Therefore, even in cases of dismissal in Turkey, the legal requirements set forth under labour law must be met for the right to severance pay to arise.

WHAT IS REDUNDANCY PAY IN TURKEY?

Redundancy pay in Turkey is a type of compensation paid to employees upon the termination of their employment contracts within the scope of Turkish contract law, and it holds a significant place among worker compensation rights in Turkey. However, redundancy pay in Turkey is not required to be paid to the employee in every dismissal situation.

For an employee to be entitled to such compensation, the conditions stipulated under labour law must be fulfilled. For example, in order to qualify for severance pay in Turkey, the employee must have worked for a certain period under the same employer, and the reason for dismissal must fall within the situations specified under the labour law.

Redundancy pay in Turkey is applied in accordance with the relevant provisions of the Labour Law and the Turkish Code of Obligations and differs from material or moral compensation claims. For instance, a compensation claim arising from medical malpractice is based on tort or contractual liability under a contract for services, while a compensation claim due to a defective product is pursued under the provisions of the Consumer Protection Law. In contrast, employment compensation rights in Turkey arise only if the conditions set out in the Labour Law are met and these compensations represent the employee’s special rights arising from the employment contract.

Nevertheless, if the necessary conditions regulated under labour law are not present, the right to redundancy pay in Turkey does not arise. Therefore, it is of great importance for employers to act in compliance with their legal obligations during the dismissal process in Turkey and to observe the compensation rights of employees.

On the other hand, even if there is no dismissal, an employee’s right to compensation in Turkey may arise due to different legal reasons. For example, if an employee suffers harm as a result of a workplace accident or occupational disease, the employer may be obliged to pay compensation. Additionally, if the employer engages in workplace mobbing or fails to provide working conditions in accordance with legal regulations, the employee may also acquire worker compensation rights in Turkey.

In conclusion, worker compensation rights are important legal protections arranged either to cover damages suffered by employees or to provide financial security upon termination of employment. However, in order for all compensation rights, including redundancy pay in Turkey, to arise, the conditions specified under labour law must be fulfilled.

WHAT ARE DISMISSAL COMPENSATIONS AND WORKER RECEIVABLES IN TURKEY?

Dismissal compensations and worker receivables are different concepts regulated separately under Turkish labour law. Worker compensation rights in Turkey refer to the financial rights that arise when an employee leaves the job or is dismissed by the employer and must be paid to the employee.

In this context, dismissal compensation in Turkey is a type of compensation calculated based on legal regulations such as labour laws or employment contracts and paid to the employee. The amount of redundancy pay in Turkey varies depending on factors such as the employee’s length of service, performance at the workplace, and reason for termination.

On the other hand, worker receivables in Turkey cover the wages and other financial rights that an employee can claim from the employer in return for their service. Worker receivables in Turkey include payments such as wages, bonuses, overtime pay, and annual leave pay, which the employee earns during the employment period and must be paid by the employer. These receivables are calculated and paid based on the conditions stipulated in labour laws and employment contracts. Unlike dismissal compensation in turkey, claiming worker receivables does not depend on dismissal.

Differences between dismissal pay in Turkey and worker receivables:

• Definition Difference: Redundancy pay in Turkey is a type of compensation paid upon the termination of the employment contract due to dismissal or resignation. In contrast, worker receivables refer to wages, bonuses, overtime pay, and annual leave pay earned by the employee in return for their service.
• Reasons for Arising: Dismissal pay in Turkey arises upon the termination of the employment contract, while worker receivables arise based on work performed during the continuation of the employment relationship.
• Legal Basis: Employment termination compensation in Turkey is based on rights arising from termination regulated under labour laws or employment contracts. Worker receivables, however, stem from provisions in labour laws and employment contracts regarding wages and additional payments.
• Calculation Method: Redundancy pay in Turkey is calculated based on the employee’s length of service, reason for termination, and conditions set forth in labour law. Worker receivables are calculated based on the days, hours, and wages worked by the employee.
• Payment Time: Employment termination compensation in Turkey is paid upon the termination of the employment contract. Worker receivables, on the other hand, are paid during the employment period on the payment dates specified under labour law or in the contract.

1- TYPES OF DISMISSAL COMPENSATION IN TURKEY

In labour law, the dismissal of an employee not only results in the termination of the employment contract but also grants the employee various compensation rights in Turkey. Dismissal compensations in Turkey are regulated in different types depending on factors such as the employee’s length of service, the reason for dismissal, and the employer’s method of termination. Below is a brief explanation of the main types of dismissal compensation provided under Turkish labour law.

• Severance Pay

Severance pay in Turkey is compensation paid to an employee who has worked for the same employer for a certain period and whose employment contract ends for reasons specified by law. Severance pay represents the rights the employee has earned during their period of service and provides financial security in cases such as resignation, retirement, or justified termination.

• Notice Pay

Notice pay is compensation that one party must pay to the other if they fail to comply with the notice period required by law during the termination of the employment contract. The length of the notice period depends on the employee’s length of service at the workplace, and failure to observe this period results in the obligation to pay notice compensation.

• Job Security Compensation (Compensation for Not Reinstating and Salary for Idle Periods)

Under job security provisions, an employee has the right to file a lawsuit in Turkey for reinstatement if dismissed without valid cause. If the court orders reinstatement but the employer fails to allow the employee to resume work, the employee is entitled to compensation ranging from at least four to a maximum of eight months’ salary. Additionally, if the employee wins the case and is reinstated, they may claim up to four months’ salary for the idle period between the court decision and the actual return to work. These compensations aim to protect employees from unfair dismissal under job security rules.

• Bad Faith Compensation

Bad faith compensation in Turkey arises when employees not covered by job security provisions are dismissed maliciously by the employer. In cases of bad faith termination, the employer must pay the employee three times the amount of the notice pay.

• Compensation Due to Work Accident or Occupational Disease

A work accident refers to an incident causing harm to an employee due to a sudden and external factor occurring at the workplace or during the execution of work. Occupational disease refers to health damages suffered over time due to the nature of the employee’s work. If the employer fails to take necessary precautions, they are liable to pay both material and moral compensation to the employee for work accidents or occupational diseases.

• Union Compensation

Union compensation applies when the employer terminates the employment contract due to the employee’s union membership or union activities. In this case, the employer is required to pay the employee compensation equal to at least one year’s salary. This compensation serves as a constitutional safeguard for the protection of union rights.

• Compensation for Discrimination

The employer cannot discriminate against an employee based on language, race, color, gender, disability, political opinion, philosophical belief, religion, or sect. In cases of violation of the principle of equal treatment in Turkey, the employee may be awarded compensation of up to four months’ salary. This compensation can be claimed separately from other severance payments if the employee is dismissed in Turkey.

2- TYPES OF WORKER’S CLAIMS IN TURKEY

In Turkish labour law, the receivable rights of employees are not limited to wages alone but encompass all rights and benefits they acquire during their period of employment. Worker receivables in Turkey are regulated to ensure that employees receive full and complete compensation for their labor, serving as an important legal mechanism that protects both the economic security of workers and workplace harmony.

The main types of worker receivables that employees can claim under Turkish labour law are outlined below.

• Wage Receivable

One of the worker’s most fundamental rights in Turkey, the wage due is the payment for the labor provided to the employer. According to the Labour Law, the employer is obliged to pay the worker the rightful wage on time and in full in return for the work performed. The wage receivable in Turkey must be paid regularly every month during the worker’s employment period. If the employer delays or underpays the wage in Turkey, the worker can legally claim the owed wage.

• Overtime Pay

Overtime pay is regulated by Article 41 of Labour Law No. 4857 and related regulations. Before requiring overtime work in Turkey, the employer must obtain the worker’s consent. For work hours exceeding 45 hours per week, workers are paid 50% more than their normal hourly wage as overtime pay in Turkey. Additionally, the total overtime hours in a year cannot exceed 270 hours. If overtime pay is included in the worker’s salary, any hours exceeding this limit must be calculated and paid separately.

• Weekly Rest Day Pay

According to the Turkish Labour Law, for a worker to be paid for a weekly rest day in Turkey, the condition of working a certain number of days before the rest day must be fulfilled. If the employer suspends work on a rest day without a compelling reason, the non-working days of the week are considered paid weekly rest days, and the worker must be compensated accordingly.

• National Holiday and General Holiday Pay

Employers are obliged to pay double wages to workers who work on national and general holidays. These days are considered holidays for workers, subject to special laws.

• Annual Leave Pay

Regulated by Article 53 of the Labour Law, annual leave pay in Turkey is a right that arises if the worker has worked for at least one year at the workplace. The amount of paid annual leave depends on the worker’s seniority, and if the employer does not grant the leave, the worker is entitled to annual leave pay.

• Other Payments (Bonus, Premium, Child Allowance, etc.)

Additional payments such as bonuses, premiums, and child allowances may be provided based on the worker’s performance or workplace success criteria in Turkey. Bonuses are regulated in favor of the worker and cannot be deducted, while any changes unfavorable to the worker require written consent. These additional payments are binding for the workplace if they become a workplace practice, even if not explicitly stated in the employment or collective bargaining agreement.

WHAT ARE THE CONDITIONS FOR RECEIVING TERMINATION COMPENSATION IN THE PRIVATE SECTOR IN TURKEY?

The conditions for receiving dismissal compensation in the private sector in Turkey are shaped by the legal norms within labor law and the circumstances under which the employment contract is terminated. Workers in Turkey must act in accordance with the relevant provisions of Labor Law No. 4857 in order to obtain compensation rights in the private sector.

The reasons for terminating the employment contract and the manner in which this termination occurs directly affect the worker’s right to receive severance pay in Turkey. If the conditions for compensation set forth in the law are not met, the worker may be completely deprived of the right to compensation or face partial loss of rights. Therefore, in the processes of receiving dismissal compensation in the private sector in Turkey, it is essential to pay attention to the method of termination of the employment contract and the relevant articles of the Labor Law.

The conditions for receiving dismissal compensation in the private sector can be generally summarized as follows:

1. Termination of Employment Due to Health, Military Service, or Retirement

When an employee’s contract ends for justified reasons such as health conditions, military service, or retirement, the conditions for receiving employment termination compensation in Turkey are considered fulfilled. However, to validate these reasons, the relevant documents must be submitted to the employer.

2. Female Employees Leaving Work Due to Marriage

Female employees who leave work because of marriage must submit a written application to the employer within one year from the date of marriage, providing proof of their marital status. The termination of the employment contract due to marriage must be clearly stated, and when these conditions are met, female workers gain their worker compensation rights in Turkey.

3. Resignation Due to Pregnancy or Childbirth

Women who resign because of pregnancy or childbirth are considered to have voluntarily quit and are therefore not entitled to severance pay.

4. Changes in Working Conditions and Employer’s Obligation to Notify

Employers must notify employees in writing about any changes in working conditions in Turkey. If the employee rejects the changes and the employer fails to notify the employee in writing within six working days, the employee gains the right to claim employment termination compensation in Turkey.

In this context, protecting and enforcing worker compensation rights in Turkey in the private sector requires careful attention to the legal regulations governing employment termination conditions and seeking legal support when necessary.

HOW MANY YEARS OF WORK ARE REQUIRED TO RECEIVE WORKMEN COMPENSATION IN TURKEY FROM THE WORKPLACE?

To answer the question of how many years of work are required to receive workmen compensation in Turkey from the workplace, it is necessary to differentiate between severance pay and notice pay.

In the Turkish labor law system, a worker’s right to severance pay arises upon fulfilling the condition of at least one uninterrupted year of service at the workplace. When the worker completes one full year of employment in Turkey, the legal right to claim severance pay becomes valid. If the employment contract ends before this period is completed, the claim for severance pay is not applicable.

There is no predetermined mandatory period of work for notice pay in Turkey. Notice pay arises when the employment contract is terminated or when the employee exercises the right to immediate termination for just cause. If the notice period is not granted to the employee, the employee is entitled to notice pay in Turkey.

On the other hand, the right to severance pay may also arise due to retirement in Turkey. According to the Social Insurance and General Health Insurance Law, workers who have reached a certain number of premium days and length of service are entitled to claim severance pay in Turkey. The entitlement to severance pay based on retirement varies depending on the worker’s total length of service and premium days.

The relevant conditions are as follows:

• For those insured before September 8, 1999, at least 15 years of insurance and 3600 premium days are required.
• For those insured between September 9, 1999 and April 30, 2008, at least 25 years of insurance and 4500 premium days are required.
• For those insured after May 1, 2008, at least 25 years of insurance and 5400 premium days are required.

An important point is that the worker does not need to complete these premium days and insurance periods at the same workplace; it is sufficient that the overall conditions are met. Workers who fulfill these requirements can claim severance pay on the grounds of retirement in Turkey.

CONDITIONS FOR RECEIVING REDUNDANCY PAY IN TURKEY WHEN VOLUNTARILY LEAVING A JOB

The worker compensation rights in Turkey for an employee who resigns voluntarily vary depending on the reason for resignation and the working conditions. Typically, when an employee decides to terminate the employment contract in Turkey, they submit a written resignation letter to express their intent. However, whether the employee becomes entitled to any dismissal compensation in Turkey depends on the underlying reasons for the resignation.

If the employee resigns with just cause, they may be entitled to compensation similar to dismissal compensation in Turkey. In such cases, the employee must meet the criteria for just cause termination as defined under the Turkish Labor Law. For instance, significant and unfavorable changes in working conditions by the employer, serious health and safety risks in the workplace, or the employer’s failure to pay wages regularly may be considered valid grounds for just cause resignation in Turkey.

On the other hand, if an employee resigns voluntarily without a justified reason, they are not entitled to dismissal compensation in Turkey. At this stage, it is crucial that the employee acts in compliance with the provisions of the labor law when terminating the employment contract in Turkey.

Moreover, if the employee resigns without observing the notice period and without a valid reason, the employer has the right to claim notice compensation from the employee. Therefore, complying with the legal notice periods helps the employee avoid potential legal risks.

In conclusion, the eligibility for compensation for employees who resign voluntarily in Turkey depends on the legitimacy of the resignation and compliance with the termination provisions under the Labor Law. It is essential that employees fully understand their rights during this process and, if necessary, seek support from a qualified labor law attorney in Turkey.

WHAT ARE THE CONDITIONS FOR RECEIVING SEVERANCE AND NOTICE COMPENSATION UPON DISMISSAL IN TURKEY?

The dismissal compensation in Turkey refers to key legal mechanisms designed to protect an employee’s financial rights when their employment contract is terminated. Under Turkish labor law, the most common types of compensation awarded in such cases are severance compensation and notice compensation.

Severance compensation in Turkey is granted when an employee has worked for a specific period in the same workplace, while notice compensation in Turkey arises if either the employer or the employee terminates the employment contract without complying with the legally required notice periods. The conditions and scope of these compensation types are determined by the employee’s length of service, the reason for termination, and the legal procedures governing the termination process.

It is important to note that worker compensation rights in Turkey may vary across different professions, as not all employees are covered under the same legal regulations. For instance, seafarers are subject to the Maritime Labor Law, and their severance and notice compensation rights differ from those under Labor Law No. 4857. Similarly, professional athletes, who are bound by Sports Contracts, are not entitled to severance or notice compensation under the general labor law.

Therefore, job security and dismissal compensation entitlements in Turkey must be evaluated based on the specific legislation applicable to each profession.

1- WHAT IS NOTICE COMPENSATION IN TURKEY?

In Turkey, notice compensation refers to a type of compensation regulated under Article 17 of the Turkish Labor Law, which becomes applicable when an employer terminates the employment contract without complying with the legally required notice period based on the employee’s length of service. As the employee’s tenure increases, the required notice period the employer must observe also increases. The calculation of notice compensation in Turkey is based on the length of the notice period owed to the employee.

In Turkey, the legal notice periods depending on the duration of employment are as follows:

• 2 weeks (14 days) for employees who have worked less than 6 months
• 4 weeks (28 days) for those who have worked between 6 months and 1.5 years
• 6 weeks (42 days) for those who have worked between 1.5 years and 3 years
• 8 weeks (56 days) for those who have worked more than 3 years

If the employer fails to comply with the applicable notice period, they are required to pay the employee the amount of salary equivalent to that notice period as notice compensation. This amount reflects what the employee would have earned had they worked during the notice period. Therefore, notice compensation in Turkey serves as a financial safeguard for the employee when an employment contract is terminated without proper notice.

• What Are the Legal Notice Periods for Termination in Turkey?

Notice periods for termination in Turkey refer to the required duration of prior notification before an employment contract can be lawfully ended. Both the employee and the employer are obligated to provide this notice when they intend to terminate the contract. This regulation ensures the protection of both parties and allows for an orderly and fair termination process.

Key features of notice periods in Turkey include:

1. They apply to indefinite-term employment contracts in Turkey.
2. For fixed-term employment contracts in Turkey, no notice period is required at the end of the contract unless otherwise stated.
3. According to Article 17 of the Labor Law, the notice periods are set as 2, 4, 6, or 8 weeks, depending on the employee’s seniority.
4. These periods may be extended through individual or collective labor agreements.
5. The employer may choose to terminate the contract immediately by paying the employee compensation equal to the notice period.
6. If either party fails to observe the notice period in Turkey, they must pay compensation equal to the salary for the applicable notice period—this is known as notice compensation.

In summary, legal notice periods in Turkey are critical for ensuring that employment relationships are terminated fairly and orderly and help prevent potential disputes between the parties.

• When Is Notice Compensation Earned in Turkey?

As part of dismissal compensation in Turkey, notice compensation becomes due when the employer terminates the employment contract without observing the legally required notice period. The employee may also be liable for notice compensation if they resign without just cause and without respecting the required notice period.

If an employee leaves the job without observing the notice period and does not provide valid justification, and the employer fails to pay compensation accordingly, the employee can claim notice compensation in Turkey. Likewise, if the employer dismisses the employee without observing the notice period, the employee becomes entitled to receive compensation equal to the duration of the notice period.

To answer the question “When is notice compensation earned in Turkey?”—the entitlement arises at the moment the employment termination is issued without notice. If the employer dismisses the employee without notice, the compensation becomes immediately due, and the employee has the right to claim it.

• When Is Notice Compensation Paid in Turkey?

The question “When is notice compensation paid in Turkey?” arises when either the employee or the employer ends the employment contract without observing the statutory notice periods. According to Paragraphs 4 and 5 of Article 17 of the Labor Law, the party who fails to comply with the notice requirement is obligated to pay the other party the amount equivalent to the unserved notice period.

If the employer chooses not to allow the employee to work through the notice period, they must pay the full amount of notice compensation in advance at the time of dismissal. This allows for the immediate termination of employment while ensuring the employee is financially protected.

This practice enables a quick and clear separation and ensures that the employee does not suffer financial loss as a result of sudden termination.

2- WHAT IS SEVERANCE COMPENSATION IN TURKEY?

In Turkey, severance compensation is a financial entitlement paid to an employee after a certain period of service, in cases where the employment contract is terminated by the employer without just cause. Governed by the Turkish Labor Law and related regulations, this compensation reflects the employee’s dedication and service to the workplace.

The main purpose of severance compensation in Turkey is to financially support employees who find themselves unemployed through no fault of their own. To qualify, the employee must have worked for at least one full year for the same employer.

This compensation is paid when:

• The employer terminates the employment contract without valid legal grounds,
• The employee retires, is conscripted for military service, or resigns due to marriage (in the case of female employees) or other reasons permitted under law.

However, if an employee resigns voluntarily without just cause, they are not entitled to severance compensation in Turkey. The severance payment in Turkey is calculated based on the employee’s total length of service and gross monthly salary. As such, it serves as an important financial safeguard based on the employee’s working period.

• How is Severance Compensation Calculated in Turkey?

As a form of dismissal compensation in Turkey, severance pay is calculated as 30 days of gross wage for each full year of employment. If the employee has worked for more than a full year, the extra days are calculated proportionally.

Steps for Calculating Severance Pay in Turkey:

1. Determine the Gross Salary: This includes the base salary and all regular benefits (e.g., meal allowance, transportation fees, regular bonuses, etc.).
2. Calculate Total Service Time: All uninterrupted periods of employment with the same employer are counted. Gaps are included unless the employee worked for another employer in between.
3. Calculate Daily Gross Wage: Divide the employee’s gross monthly wage by 30 to find the daily wage.
4. Multiply by Service Years: Multiply the daily gross wage by 30 for each full year. Add the proportional amount for incomplete years.
5. Sum the Amounts: Add all the calculated values for the total severance compensation.
6. Apply the Severance Cap: Check whether the calculated amount exceeds the legal severance pay ceiling. If not, only a stamp tax is deducted.
7. Income Tax Considerations: If the employer chooses to pay above the legal cap, the excess amount is subject to income tax, and the employer is responsible for withholding the tax. Income tax rates range between 15% and 40%, based on the total tax base. Severance compensation is not subject to VAT in Turkey.

Thus, the answer to “How is severance compensation calculated in Turkey?” depends on the employee’s service time, last gross wage, and the legal compensation ceiling.

• What Does Severance Compensation Include?

Severance compensation is one of the most significant forms of worker compensation rights in Turkey and reflects the full financial entitlements earned by the employee during their tenure. In addition to base salary, the following regular payments are included in the compensation calculation.

Included in Severance Compensation Calculation in Turkey:

• Meal allowance
• Cash register compensation
• Food aid
• Fuel aid
• Housing allowance
• Clothing allowance
• Family allowance
• Child allowance
• Dividends
• Transportation aid
• Health aid
• Hygiene items (e.g., towels, soap)
• Work fatigue compensation
• Financial responsibility compensation
• Religious holiday bonuses
• Lodging (housing) allocation
• Incentive bonuses
• Monthly premiums

Not Included in the Calculation:

• Annual leave pay
• Marriage allowance
• Weekend pay
• One-time holiday bonuses
• Sick pay
• Public holiday pay
• Vacation bonuses
• Travel allowances
• Irregular (non-continuous) bonuses
• Job search allowance
• Per diems
• One-off bonuses

Other Important Points:

1. In fixed-term contracts, severance compensation is not paid upon contract expiration in Turkey.
2. If an employee worked intermittently or across multiple workplaces of the same employer, the total duration is added together.
3. Unpaid leave periods are excluded from the calculation.
4. If the employer unilaterally changes work conditions, the employee may resign within a reasonable time and still qualify for severance compensation.

• What Are the Conditions for Receiving Severance Compensation in Turkey?

The conditions for entitlement to severance compensation in Turkey are clearly defined in the Labor Law. They include:

1. Condition of Being Subject to Turkish Labor Law: In order for an employee to be entitled to severance pay under Turkish labor law, the employment must either take place in Turkey or be subject to the provisions of Turkish labor legislation. As a general rule, if the employee works in a foreign country, the labor laws of that country will apply. However, if there is a bilateral social security or labor agreement between Turkey and the relevant country, the provisions of that agreement should also be examined. On the other hand, if a foreign company provides services in Turkey, Turkish labor law provisions will apply even if the employee receives their salary from abroad.
2. Being an Employee: One of the basic conditions for receiving severance pay is that the employee must have entered into an employment contract with the employer within the scope of Labor Law No. 4857. There is no distinction between written and verbal employment contracts. However, certain occupational groups are not considered employees under the law, and therefore are not entitled to severance pay. The employer may be a company established in Turkey under Commercial Law, a branch of a foreign company, liaison office, a merchant, or a natural person.
3. One-Year Minimum Employment Requirement: The employee must have worked continuously for at least one year at the employer’s workplace or workplaces. If the employee has worked for less than one year, it is not possible to claim severance pay. Even if the employee has worked at different workplaces or companies owned by the same employer, all such periods are taken into account when calculating the one-year duration.
4. Justified Termination Condition: In order to be entitled to severance pay, the employment contract must be for an indefinite term. If the employer terminates the contract without just cause, the employee becomes entitled to severance pay. However, in fixed-term employment contracts, the employee cannot claim severance pay upon completion of the job or fulfillment of contract conditions. Nevertheless, if the employee terminates a fixed-term contract for just cause, they may still be entitled to severance pay.

To qualify for severance pay, the conditions specified under the Labor Law must be fulfilled, and the correct Social Security Institution (SGK) termination code must be reported by the employer. In cases where these conditions are not met, the employee cannot claim severance pay in Turkey.

• How to Claim Seniority Pay in Turkey?

In Turkey, severance pay (seniority pay) is a right that can only be claimed under specific conditions set out by Turkish labor legislation. The nature of the employment contract—whether fixed-term or indefinite—is not determinative on its own. What matters is that at least one of the conditions for severance entitlement defined under the Turkish Labor Law must be fulfilled.

To be eligible for severance pay in Turkey, the employment contract must be terminated based on limited and specific grounds provided under the law. Termination may occur either by the employer or the employee for legally justified reasons. Additionally, in the event of the employee’s death, the severance pay becomes directly payable to the rightful heirs.

So, how can an employee claim seniority pay, which is legally considered a form of compensation for dismissal in Turkey?

A) Termination of the Employment Contract by the Employer in Accordance with Article 25 or Article 17 of Law No. 4857

• Health Reasons

If an employee is absent from work for three (3) consecutive business days or a total of five (5) business days in a month due to illness or disability caused by the employee’s own intent or irregular lifestyle, or if the employee is determined to have an incurable illness by the Health Board, the employee may be entitled to seniority pay in Turkey if other conditions are also met.

However, if the employer terminates the employment contract without notice for a period exceeding the notification periods specified in Article 17 of Law No. 4857 during the employee’s illness, accident, childbirth, or pregnancy, the right to severance pay arises. In the case of childbirth and pregnancy, this period begins from the expiration of Article 74 of Law No. 4857.

• Acts Contrary to Ethics, Good Faith and Similar Cases

According to the Labor Law, situations that violate the rules of morality and good faith, which entitle the employer to terminate the employment contract for just cause, include the employee deceiving the employer, making statements or behaving in a way that offends the honor and dignity of the employer or their family, sexually harassing another employee, provoking or assaulting the employer or other employees, engaging in conduct incompatible with honesty and loyalty, committing fraud, committing a crime in the workplace, being absent without excuse, insisting on not performing their duties, endangering workplace safety or causing serious damage to the employer, and disclosing personal data or trade secrets without authorization. In such cases, the employer may terminate the employment contract without notice.

• Compelling Reasons

If there is a compelling reason that prevents the employee from working in the workplace for more than one week, the employee may be entitled to seniority pay in Turkey if the employer terminates the employment contract, subject to other conditions being met. As long as the compelling reason continues, the employee always has the right to terminate the contract.

• Termination by the Employer in Accordance with Article 17 of the Labor Law

If the employer terminates the employment contract based on Article 17 of Law No. 4857, the employee is entitled to severance pay as employment termination compensation in Turkey. If the employer terminates the employment contract in compliance with the notification periods or in advance, the employer is obligated to pay redundancy payment to the employee.

B) Termination of Employment by the Employee for Reasons Stated in Article 24 of the Law

• Health Reasons

If the nature of the work covered by the employment contract poses a risk to the employee’s health or life due to health reasons, the employee has the right to terminate the employment contract immediately. Additionally, if the employee contacts a contagious disease or a disease incompatible with their work due to close contact with the employer or another employee, the employee also has the right to terminate the employment contract immediately. In these cases, the employee is entitled to dismissal compensation in Turkey.

• Acts Contrary to Ethics, Good Faith and Similar Cases

If the employer provides false information during the employment contract, deceives the employee, makes remarks that offend honor and dignity, engages in sexual harassment, insults the employee, incites the employee to commit a crime, makes baseless allegations that damage the employee’s reputation, or fails to take necessary measures when the employee faces sexual harassment, the employee has the right to terminate the employment contract before its expiration or without waiting for the notice period. In this case, the employee is entitled to workmen compensation in Turkey as termination compensation.

• Compelling Reasons

If compelling reasons arise that necessitate the cessation of work at the workplace for more than one week, such as earthquakes, fires, or the government taking over the workplace, the employee has the right to terminate the employment contract in Turkey.

C) Resignation Due to Compulsory Military Service

The Turkish Labor Law stipulates worker compensation rights for employees resigning due to compulsory military service. Whether the compulsory military service period is long or short does not affect the entitlement to redundancy pay in Turkey. Short-term military service obligations are considered equivalent to compulsory military service. Furthermore, whether the compulsory military service occurred before or after the establishment of the employment contract has no effect on the calculation of the dismissal compensation in Turkey for the credited military service.

However, if an employee is mobilized for reasons other than compulsory military service, their contract is suspended and therefore redundancy payment is not paid. Therefore, if the specified suspension period in the law elapses, the contract is considered terminated by the employer, and in this case, the employee is entitled to termination compensation in Turkey.

D) Resignation Due to Retirement

The Turkish Labor Law stipulates that if an employee terminates their employment contract to receive old-age, retirement, or disability pension or lump sum payment from the institution or funds established by law, they are entitled to workmen compensation in Turkey. However, if an employee resigns to receive income or pension from privately held insurance or funds, they are considered to have resigned, and therefore, they are not entitled to worker compensation rights in Turkey.

For the employee to be entitled to redundancy payment in Turkey, it is not sufficient for them to terminate the employment contract; they must also prove that they are entitled to old-age, retirement, or disability pension or lump sum payment and have applied for it. This document should prove the application made to the relevant social security institution.

E) Death of the Employee

Under Labor Law No. 4857, if an employee with at least one year of seniority passes away, the employee’s legal heirs are entitled to severance pay in Turkey. In this case, it does not matter whether the employee’s death occurred at the workplace or outside of it, nor does it affect the entitlement to severance pay whether the death resulted from the employee’s own fault or negligence.

Therefore, the employee’s death does not constitute a forfeiting reason for severance pay, and the employer has the obligation to pay this compensation to the heirs. However, if an heir disclaims the inheritance in Turkey, they lose their status as an heir and cannot receive the deceased employee’s severance compensation.

• The Statute of Limitations Period for Severance Pay in Turkey

The statute of limitations period for severance pay was reduced from 10 years to 5 years by the amendment made to Labor Law No. 4857 on October 12, 2017 in Turkey. According to the added article in the Labor Law, a 5-year statute of limitations period was introduced for severance pay claims, and this regulation applies to limitation periods starting from the date the amendment entered into force.

Accordingly, currently, a 5-year statute of limitations exclusively applies to redundancy pay claims in Turkey, and the limitation period begins to run from the date the employment contract ends in a manner entitling the employee to severance pay. Therefore, severance pay claims that are not requested within 5 years from the termination date of the employment contract are considered to be time-barred.

IS SUDDEN RESIGNATION A BARRIER TO CLAIMING DISMISSAL COMPENSATION IN TURKEY?

Resignation in Turkey is one of the legal grounds terminating the employment contract, and even in cases of sudden resignation, certain validity requirements must be met. Resignation is a unilateral declaration of intent and becomes effective once the employee’s resignation letter is received by the employer.

If a reason is stated in the resignation letter, the employee is bound by that reason and cannot legally rely on a different justification later. Furthermore, conditional resignations in Turkey are generally considered invalid; if the employer accepts the condition, this situation is regarded not as resignation but as a mutual termination agreement (conciliation).

As emphasized in the rulings of the Supreme Court, it is necessary to evaluate whether the reason stated by the employee in the resignation letter aligns with the actual underlying cause of the resignation in Turkey. Courts investigate whether the resignation is based on a justified reason, and for example, it is considered unusual for a long-serving employee to resign without claiming any rights. Consequently, it is important for the employee to have a just and valid cause when terminating the employment contract, especially when forced to resign suddenly, in order to be eligible for worker compensation rights in Turkey, including dismissal compensation in Turkey.

There are some situations where an employee who suddenly resigns cannot claim dismissal compensation in Turkey:

• Employee Abandonment: If the employee arbitrarily terminates the employment contract without any reason, they are not entitled to redundancy pay in Turkey.
• Employee Leaving the Workplace Without Notice: If the employee leaves the workplace without any notification, this clearly expresses their intention to terminate the employment contract, and they lose the right to claim severance pay in Turkey.
• Employee Starting Another Job: If the employee resigns to start a new job elsewhere, they cannot claim severance pay in Turkey due to this choice.

Employees deciding to resign suddenly should consider the above situations carefully and evaluate their wrongful termination rights in Turkey correctly.

DOES RESIGNATION NULLIFY EMPLOYMENT TERMINATION COMPENSATION ENTITLEMENT IN TURKEY?

Resignation nullifies the right to severance pay in Turkey. However, if resignation letters are signed under pressure or conditional, employees may still be entitled to severance pay. For this to be valid, certain conditions must be met.

• Signature on a Blank Paper at the Time of Hiring: It is common in Turkey for employers to have employees sign a blank paper upon hiring and later fill it in as a resignation letter or similar document. Such resignation letters are invalid. However, the employee must prove how such a resignation letter was created, using witnesses or evidence.
• Processing the Resignation Letter at a Later Date: There are cases where the employee submits a resignation letter, but the employer does not accept it. If the employee continues to work with the employer who has not accepted the resignation, the resignation letter cannot be later used by the employer as a valid resignation in Turkey.
• Contradictory Evidence and Statements to the Resignation Letter: Even if the employee submitted a resignation letter, if the employer makes contradictory statements in court defense, the resignation letter becomes invalid.
• Comparison Between the Actual Reason and the Resignation Letter: The employee may simply state “I resign” in the resignation letter without providing detailed reasons. The court may investigate the real reason for the resignation, and if the employee has a just cause for termination, the resignation may be disregarded.

Considering these circumstances, it’s important for employees to carefully approach resignation letters and, if necessary, seek legal assistance from a worker compensation lawyer in Turkey to protect their rights.

IS IT POSSIBLE TO SEIZE DISMISSAL COMPENSATIONS IN TURKEY?

The enforcement of seizure measures on worker claims varies depending on the nature of the claim in Turkey. Wages and salary claims are subject to partial seizure under Article 83 of the Enforcement and Bankruptcy Law. Accordingly, only one-quarter of the employee’s salary can be seized. However, this restriction does not apply to alimony claims such as child support and divorce alimony, where the entire salary may be seized.

On the other hand, regarding severance pay, notice pay, and annual leave remuneration, the established jurisprudence of the Supreme Court holds that these payments are not considered wages in Turkey. As explicitly stated in the Supreme Court’s 12th Civil Chamber decision dated December 26, 2016 (Case No. 2015/26339, Decision No. 2016/25442), the entire amounts of severance pay, notice pay, and annual leave remuneration owed to the employee by the employer may be seized, and these claims are not subject to partial seizure under Article 83 of the Enforcement and Bankruptcy Law.

In conclusion, while only one-quarter of wages and wage-like payments may be seized, the full amounts of dismissal-related claims such as severance pay, notice pay, and annual leave remuneration can be subject to seizure through enforcement proceedings without limitation in Turkey. Therefore, while enforcement offices limit wage seizures in practice, they may apply seizure on dismissal compensations and annual leave claims without any restriction.

IS WORKER COMPENSATION DIVIDED BETWEEN SPOUSES IN DIVORCE CASES IN TURKEY?

According to the Turkish Civil Code, the legal property regime between spouses is the participation in acquired property regime. Under this regime, the assets acquired by the spouses during the marriage are considered acquired property, and upon divorce process, the other spouse is entitled to a claim for participation in this acquired property.

Regarding worker compensations, redundancy pay in Turkey, notice pay, and annual leave remuneration earned by the employee in return for their work are generally considered part of the acquired property. However, the key factor is the portion of these compensations corresponding to the period worked during the marriage. The parts related to service periods before the marriage are regarded as the personal property of the spouse.

In this context:

• Dismissal pay in Turkey is shared only in proportion to the length of service during the marriage. The portion earned from work done before the marriage is not shared.
• Notice pay and annual leave remuneration related to the period worked during the marriage are included in the property regime settlement.
• If the spouses have a marriage contract, a prenuptial agreement, or a mutual divorce agreement that provides otherwise, the division will be governed by such agreement.

In conclusion, worker compensation rights in Turkey are not entirely considered personal property in divorce cases. Worker claims earned during the marriage period can be claimed by the other spouse in a property regime settlement lawsuit.