WHAT IS NOTICE PAY IN TURKEY?
Notice pay in Turkey is a type of dismissal payment that becomes payable when termination notice periods are not observed in indefinite-term employment contracts. Under Article 17 of the Turkish Labour Law, the party wishing to terminate the employment contract must comply with the statutory notice periods; otherwise, they are obliged to pay notice compensation equal to the employee’s wage for the notice period.
Notice pay in Turkey is calculated based on the employee’s length of service and may be owed by either the employer or the employee. Its primary purpose is to provide the employee with a reasonable period to find a new job or to give the employer time to recruit a replacement, thereby preventing grievances arising from abrupt terminations.
WHO IS ENTITLED TO NOTICE COMPENSATION IN TURKEY?
Notice compensation in Turkey is paid to employees working under indefinite-term employment contracts whose contracts are terminated. However, if an employee terminates the contract without complying with the notice period, the employer also has the right to claim notice compensation in Turkey.
Thus, notice pay in Turkey is a reciprocal right granted to both employees and employers and is applicable only to indefinite-term contracts. There is no notice compensation entitlement under fixed-term employment contracts. To prevent loss of legal rights, it is crucial to obtain professional legal support in Turkey in such matters.
WHEN DOES AN EMPLOYEE BECOME ENTITLED TO NOTICE PAY IN TURKEY?
Notice pay in Turkey becomes due when an indefinite-term employment contract is terminated without observing statutory notice periods. In such cases, the party that fails to comply with the notice obligation must pay notice compensation equal to the wage for the relevant notice period. Therefore, if either party terminates the contract without notice, liability for notice pay arises.
HOW TO CLAIM NOTICE COMPENSATION IN TURKEY?
To claim notice compensation in Turkey, there must be a termination by the employer without observing the statutory notice period. If the employer does not pay, the employee must first apply for mandatory mediation and, if unresolved, can file a lawsuit in the labour courts to recover the payment. The employee must exercise this right within the legal limitation period, calculated from the date of termination notification.
CONDITIONS FOR NOTICE PAYMENT IN TURKEY
For entitlement to notice payment in Turkey, the employee must be working under Labour Law coverage for a company established in Turkey or the foreign branch, liaison office, sole proprietorship, or commercial enterprise of a foreign company operating in Turkey.
Additionally, the employment contract must be indefinite-term, and termination must occur without observing notice periods and outside the scope of immediate termination for just cause. If the employer terminates the contract with valid or invalid reasons without complying with notice periods, the employee acquires the right to claim notice payment in Turkey.
HOW TO BECOME ENTITLED TO NOTICE COMPENSATION IN TURKEY?
The right to notice pay in Turkey arises automatically if the terminating party does not comply with the statutory notice periods upon termination of an indefinite-term employment contract. In other words, if the party whose employment contract is terminated proves that the employment was ended without complying with the notice period, they become entitled to notice compensation. This right does not depend on any minimum length of service but arises directly based on whether notice periods were observed.
IS NOTICE COMPENSATION PAID IN EVERY OCCUPATION?
Notice compensation applies to all employees working under indefinite-term employment contracts within the scope of the Turkish Labour Law, regardless of their occupational field. However, for seafarers under the Turkish Maritime Labor Law and press employees under the Press Labour Law, notice compensation provisions are regulated separately in their respective laws. In sports law in Turkey, there is no specific regulation regarding notice compensation. Therefore, as different occupational groups may be subject to different legal frameworks, obtaining professional legal support before initiating proceedings is of utmost importance.
CAN AN EMPLOYEE WHO RESIGNS CLAIM NOTICE PAY IN TURKEY?
Notice pay in Turkey is a type of payment that the party failing to observe the notice periods must pay to the other party. In cases where the employee resigns, since the employer is not the party terminating the contract, the employee does not have the right to claim notice pay in Turkey.
CAN THE EMPLOYER CLAIM NOTICE COMPENSATION FROM THE EMPLOYEE IN TURKEY?
If the employee does not comply with the notice period when terminating the contract, the employer may claim notice compensation from the employee. According to the Labour Law, notice compensation is payable by the party who fails to comply with the notice period. Thus, if an employee terminates an indefinite-term employment contract in Turkey without observing the statutory notice period, the employer can claim notice compensation corresponding to that period. Notice compensation in Turkey is therefore not only a right protecting employees but also serves a protective function for employers.
CAN AN EMPLOYEE RECEIVE NOTICE PAY IN TURKEY BEFORE 6 MONTHS OF SERVICE?
Under the Turkish Labour Law, there is no minimum length of employment service requirement to become entitled to notice pay in Turkey. However, for employees with less than 6 months of service, the notice period is determined as 2 weeks. Therefore, if an employee with less than 6 months of service under an indefinite-term contract is dismissed without observing this 2-week notice period in Turkey, they become entitled to notice compensation for that period.
WHAT ARE THE NOTICE PERIODS IN TURKEY?
Notice periods in Turkey are the statutory durations that the terminating party must provide to the other party in cases of termination of indefinite-term employment contracts. According to Article 17 of the Labour Law:
- For employees with less than 6 months of service: 2 weeks
- For employees with 6 months to 1.5 years of service: 4 weeks
- For employees with 1.5 to 3 years of service: 6 weeks
- For employees with more than 3 years of service: 8 weeks
These are minimum notice periods in Turkey; they can be extended by employment contracts but cannot be reduced.
HOW MUCH NOTICE COMPENSATION IS PAID IN TURKEY?
Notice compensation in Turkey is paid in an amount equal to the wages for the notice period that should have been worked but was not. It is calculated based on the employee’s gross wage, including not only the basic salary but also other regular and continuous payments such as meal allowances, transportation, and bonuses. The total compensation is determined by multiplying the employee’s daily gross wage by the number of days in their notice period.
HOW IS NOTICE PAYMENT CALCULATED IN TURKEY?
When calculating notice payment in Turkey:
- Determine the statutory notice period based on the employee’s length of service.
- Calculate the employee’s daily gross wage, adding all regular and continuous benefits.
- Multiply the daily wage by the total number of days in the notice period (weeks x 7 days) to determine the total notice compensation.
For example, if the employee has a 4-week notice period, the notice pay is calculated as 28 days of gross wages.
The Notice Pay Calculation Tool can be used to accurately calculate notice pay in Turkey.
IS NOTICE PAYMENT CALCULATED BASED ON NET OR GROSS IN TURKEY?
When calculating notice compensation in Turkey, the employee’s last gross remuneration including all continuous benefits is taken as the basis. This gross remuneration includes the employee’s base salary plus all regular and continuous monetary benefits.
As emphasized in the Court of Cassation’s decisions (9th Civil Chamber, 15.01.2001, E.2000/348, K.2001/102), continuous benefits such as meal allowances, transportation fees, regularly paid bonuses, and health insurance are included in the gross remuneration. However, payments such as annual leave pay, national holiday pay, overtime pay, and non-continuous premiums are not included in the calculation of notice pay in Turkey.
ARE DEDUCTIONS MADE FROM NOTICE PAY IN TURKEY?
Under the Income Tax Law, notice pay in Turkey is not exempt from tax. Therefore, income tax and stamp tax are deducted from the notice payment amount. The tax liability rests with the employer, who is obliged to withhold these taxes from the payment. However, notice compensation is not subject to VAT in Turkey.
Furthermore, as notice compensation in Turkey is a payment made due to termination of the employment contract, it is not subject to social security premium deductions. As a result, the net notice compensation paid to the employee is the gross amount minus income tax and stamp tax. To ensure accurate calculations of these deductions, it is advisable to seek professional tax consultancy in Turkey.
HOW MUCH IS THE NOTICE PAY FOR AN EMPLOYEE WITH 1 YEAR OF SERVICE IN TURKEY?
For an employee with 1 year of service in Turkey, the statutory notice period is 4 weeks under the Turkish Labor Law. Therefore, the notice compensation payable equals 28 days of the employee’s gross remuneration including continuous benefits. To determine the net amount, income tax and stamp tax are deducted from this gross total, while no social security premium is deducted. In summary, the notice pay in Turkey is calculated by multiplying the employee’s gross daily wage by 28.
WHEN IS NOTICE COMPENSATION PAYABLE IN TURKEY?
Notice pay in Turkey becomes due and payable on the date the termination notice is given and the employment contract ends. Legally, the party who fails to observe the notice period in Turkey must pay notice compensation immediately. In practice, employers usually pay notice compensation on the termination date; however, if unpaid, the employee may claim it through mediation in Turkey and subsequent litigation. Notice pay in Turkey is considered a debt payable at the time of termination.
IN WHICH CASES IS NOTICE COMPENSATION NOT PAID TO THE EMPLOYEE IN TURKEY?
Notice payment in Turkey is regulated under the Turkish Labour Law No. 4857 and cannot be claimed if the statutory conditions are not met. If the employer terminates the employment contract for just cause under Article 25, the employee cannot claim notice pay in Turkey. Such just causes include breach of moral and good faith rules, abuse of employer’s trust, committing fraud, fighting at the workplace, insulting behaviour, damaging employer’s property, or unauthorised absenteeism.
Similarly, if an employee terminates the contract with just cause in Turkey, they are not entitled to notice payment. Additionally, if the employer grants the employee the notice period appropriately during termination, the obligation to pay notice compensation does not arise.
Notice compensation is also not payable in the following cases in Turkey:
- Termination during the probation period
- Fixed-term employment contracts
- Employee’s death
Moreover, if the workplace is transferred, the employment contract does not terminate automatically, and thus notice compensation is not payable. If the parties mutually agree in writing to terminate the employment contract, no notice compensation right arises. Lastly, underpayment of social security premiums may constitute a just cause for termination, but in such cases, the termination is based on just cause, and notice pay in Turkey cannot be claimed.
WHAT IS THE STATUTE OF LIMITATIONS FOR NOTICE PAY IN TURKEY?
Under the amendment introduced by the Labour Courts Law No. 7036, claims for notice pay in Turkey are subject to a 5-year statute of limitations. This period starts from the date of termination of the employment contract. Therefore, the employee must apply for mediation and subsequently file a lawsuit within 5 years from the date of termination to claim notice compensation. If a lawsuit is filed after the expiration of this period and the employer raises the statute of limitations defence, the court will reject the notice compensation claim.
HOW MANY DAYS’ NOTICE IS REQUIRED TO RESIGN OR TERMINATE EMPLOYMENT IN TURKEY?
The period that parties must notify each other in advance in cases of resignation or wrongful termination is called the notice period in Turkey. According to the Turkish Labour Law No. 4857, the notice period varies based on the employee’s length of service. Specifically:
- For employees with less than 6 months of service: 2 weeks
- For employees with 6 months to 1.5 years of service: 4 weeks
- For employees with 1.5 to 3 years of service: 6 weeks
- For employees with more than 3 years of service: 8 weeks
These periods obligate the party wishing to terminate the employment to provide written notice to the other party before resignation or dismissal.
IS SALARY PAID TO THE EMPLOYEE DURING THE NOTICE PERIOD IN TURKEY?
According to the Labour Law No. 4857, during the notice period, the employer is obliged to pay the employee their full salary and all other entitlements without any deductions. The notice period in Turkey is a time during which the employment relationship continues, and the employee is required to work as usual. Therefore, the employer must pay the employee’s salary during this period. If the employer does not allow the employee to work the notice period, then the employer becomes obligated to pay notice compensation instead.
DOES AN EMPLOYEE HAVE THE RIGHT TO JOB SEARCH LEAVE DURING THE NOTICE PERIOD IN TURKEY?
According to the Labour Law and the Turkish Code of Obligations No. 6098, employees have the right to job search leave during the notice period in Turkey. Pursuant to Article 421 of the Turkish Code of Obligations, the employer is obliged to grant the employee at least two hours of job search leave per day throughout the notice period.
During this time, the employee may use the job search leave during hours determined by the employer or, with the employer’s consent, use it collectively. By law, no deduction can be made from the employee’s salary for using job search leave. If the employer does not allow the employee to use this leave, it must pay the employee double the wage corresponding to this period.
IS THE EMPLOYEE OBLIGED TO WORK DURING THE NOTICE PERIOD IN TURKEY?
The notice period in Turkey is a time during which the employment relationship between the employee and the employer continues, and both parties’ mutual obligations remain in force. The employee is obliged to work during the notice period. This requirement aims to protect the employer’s rights and prevent potential operational disruptions. Therefore, it is mandatory for the employee to continue working at the workplace throughout the notice period in Turkey.
WHAT CAN THE EMPLOYEE DO IF THE EMPLOYER FAILS TO COMPLY WITH THE NOTICE PERIOD IN TURKEY?
Under Labour Law No. 4857, the employer is required to observe the statutory notice period when terminating an employment contract. If the employer fails to comply with the notice period in Turkey, the employee has the right to claim notice compensation. The employee can first send a formal notice to the employer demanding payment of the notice compensation. If the employer does not pay within the period specified in the notice, the debt becomes due and payable, and the employee may initiate legal proceedings or enforcement proceedings to collect the notice pay in Turkey.
DOES NOTICE COMPENSATION PASS TO THE HEIRS IN CASE OF THE EMPLOYEE’S DEATH?
Since the employee’s death results in the automatic termination of the employment contract in Turkey, the heirs do not have the right to claim notice compensation under Turkish inheritance law. The purpose of notice compensation is to compensate for the sudden loss of income due to termination of the employment contract. In cases of death, the employment contract ends automatically rather than by termination. Therefore, in the event of the employee’s death, the heirs cannot claim notice pay in Turkey.
DO FOREIGN EMPLOYEES HAVE THE RIGHT TO NOTICE COMPENSATION?
Foreign employees working in Turkey under a valid work permit are also entitled to notice payment under Labour Law No. 4857. When their employment contracts are terminated by the employer, they are entitled to the same notice periods and notice payment as Turkish employees. This right ensures protection of foreign employees under the principle of equality in labour law, preventing discrimination under Foreigners Law. For foreigners, obtaining assistance from an English-speaking lawyer in Turkey is essential to ensure that they are fully aware of their rights under Turkish employment law.
CAN EMPLOYEES WHO RECEIVE THEIR SALARY FROM ABROAD CLAIM NOTICE COMPENSATION?
For employees residing in Turkey but receiving their salaries from abroad, entitlement to notice compensation depends on which country’s law governs the employment contract. If the employee is working in Turkey on behalf of an employer operating in Turkey and their employment contract is subject to Turkish Labour Law, receiving salary from abroad does not eliminate the right to notice pay in Turkey. In this case, they can claim notice payment under Turkish law. However, if the employment contract is governed by the law of another country, provisions regarding notice compensation will be assessed according to that country’s employment law.
WHAT HAPPENS IF THERE IS A DISPUTE BETWEEN THE EMPLOYEE AND THE EMPLOYER REGARDING THE AMOUNT OF NOTICE PAY IN TURKEY?
If a dispute arises between the employee and the employer regarding the amount of notice pay in Turkey, legal assistance should be sought, and an application for mandatory mediation must be made. Under Law No. 7036 on Labour Courts, mediation is a prerequisite for litigation in labour receivables disputes. If the parties cannot reach an agreement during mediation, the employee or employer may file a lawsuit before the labour court. The court will evaluate the evidence presented and decide on the entitlement to notice pay and its amount. Strict attention should be paid to deadlines, statute of limitations, protection of personal data, and obtaining support from an employment law attorney in Turkey, as these factors are critical for a successful legal process.