Dismissal Compensation in Turkey: Conditions, Amount and Payment Time

An employee dismissed in Turkey receives severance pay if they have worked for the same employer for at least one year and the contract was terminated on a ground other than conduct contrary to morality and good faith, and receives notice pay if their indefinite-term contract was terminated without the notice period and without just cause; this dismissal compensation in Turkey is due on the day the contract ends. Dismissal compensation is the collective name for the severance pay, notice pay and job security compensation paid to an employee whose employment contract ends, provided the conditions set out in Labour Law No. 4857 and Article 14 of Law No. 1475, which remains in force, are met. Not every dismissal gives rise to compensation; whether an employee receives compensation when dismissed depends on the employee’s length of service, the type of employment contract and who terminated the contract and on what ground.

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

Under Turkish law, an employee’s right to compensation is not limited to dismissal; it may also arise in other circumstances regulated under labour law, such as a work accident, an occupational disease, discrimination or a union-related dismissal. These rights aim to protect the economic and social security of employees throughout their working life; however, for any compensation right, including severance pay, to arise, the conditions stipulated by Turkish law must be fulfilled in the specific case.

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 dismissal compensation rights in Turkey. However, redundancy pay is not required in every dismissal; for example, to qualify for severance pay in Turkey, the employee must have worked for at least one year under the same employer and the contract must end on one of the grounds listed by law.

1. How Does Dismissal Compensation in Turkey Differ From Other Compensation Claims?

In Turkey, dismissal compensation 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 based on general provisions. These compensations represent the employee’s special rights arising from the employment contract and arise only if the conditions set out in Turkish employment legislation are met:

• Claims Based on Tort or Contract: A compensation claim arising from medical malpractice in Turkey is based on tort or liability under a contract of mandate.
• Claims Arising From Consumer Transactions: A compensation claim due to a defective or incompletely delivered product is pursued under Consumer Protection Law No. 6502 in Turkey.
• Employment Compensation: Severance pay, notice pay and job security compensation, by contrast, arise only when the termination and service conditions laid down in Turkish employment legislation are met.

2. Can Compensation Rights Arise in Turkey Without a Dismissal?

Even if there is no dismissal, an employee’s right to compensation in Turkey may arise due to different legal reasons. If an employee suffers harm as a result of a workplace accident or occupational disease, the employer may be obliged to pay material and moral compensation; workplace mobbing in Turkey or the employer’s failure to provide working conditions in accordance with legal regulations may also give rise to dismissal compensation rights in Turkey. It is therefore of great importance for employers to act in compliance with their legal obligations both during the dismissal process in Turkey and throughout the employment relationship, and to observe the compensation rights of employees.

What Are the Differences Between Dismissal Pay in Turkey and Worker Receivables?

In Turkey, dismissal compensation arises from the termination of the employment contract, while worker receivables refer to the wages and additional payments an employee earns in return for their work during the employment period. Dismissal compensations and worker receivables are different concepts regulated separately under Turkish labour law, and claiming worker receivables does not depend on dismissal.

Employee 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. Dismissal compensation is calculated based on legal regulations such as labour laws or employment contracts, and its amount varies depending on the employee’s length of service, last wage and the reason for termination. Worker receivables, on the other hand, include wages, bonuses, overtime pay and annual leave pay, which the employee earns during the employment period and must be paid by the employer.

Under Turkish law, the two types of payment differ in terms of definition, reason for arising, legal basis, calculation method and payment time. The points and table below summarise these differences:

• Definition Difference: Redundancy pay in Turkey is a type of compensation paid upon the termination of the employment contract due to dismissal or resignation. Worker receivables, in contrast, 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 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, last wage and reason for termination; worker receivables are calculated based on the days, hours and wages worked by the employee.
• Payment Time: Employment termination compensation in Turkey becomes due upon the termination of the employment contract; worker receivables are paid during the employment period on the payment dates specified under labour law or in the contract.

Types of Dismissal Compensation in Turkey

In Turkish labour law, the dismissal of an employee not only results in the termination of the employment contract but also grants the employee different compensation rights depending on the manner and reason of termination. 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; the main types are explained below.

1. Severance Pay

Severance pay in Turkey is compensation paid to an employee who has worked for the same employer for at least one year and whose employment contract ends for one of the 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 termination by the employer, justified termination by the employee, retirement, compulsory military service or a female employee leaving due to marriage.

2. Notice Pay

Under Turkish law, notice pay is compensation that the party terminating an indefinite-term employment contract must pay to the other party if it fails to comply with the notice period required by law. 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.

3. Compensation for Non-Reinstatement and Salary for the Idle Period

In Turkey, an employee covered by job security has the right to file a lawsuit in Turkey for reinstatement if dismissed without a valid reason. To benefit from job security, as a rule, at least thirty employees must work at the workplace, the employee must have at least six months of seniority and must work under an indefinite-term contract; the employee must apply to a mediator within one month of receiving the termination notice.

If the court orders reinstatement but the employer does not allow the employee to resume work, the employee is entitled to non-reinstatement compensation of at least four and at most eight months’ wages. Additionally, if the employee wins the case, whether or not they are reinstated, they may claim up to four months’ wages for the idle period until the decision becomes final. These compensations aim to protect employees from invalid dismissal under job security rules in Turkey.

4. Bad Faith Compensation

Bad faith compensation in Turkey arises when an employee not covered by job security provisions is dismissed by the employer through an abuse of the right of termination. In cases of bad faith termination, the employer must pay the employee three times the wage corresponding to the notice period as bad faith compensation.

5. Compensation Due to Work Accident or Occupational Disease

Under Turkish law, 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, while an occupational disease refers to health damage suffered over time due to the nature of the employee’s work. If the employer fails to take the necessary occupational health and safety measures, it is liable to pay both material and moral compensation to the employee for work accidents or occupational diseases.

6. Union Compensation

Union compensation in Turkey applies when the employer terminates the employment contract due to the employee’s union membership or union activities. In this case, under Law No. 6356 on Trade Unions and Collective Labour Agreements, the employer is required to pay the employee union compensation of not less than one year’s wages; this compensation reflects, within the employment relationship, the constitutional safeguard of freedom of association.

7. Compensation for Discrimination

Under Turkish law, the employer cannot discriminate against an employee in the employment relationship based on language, race, colour, gender, disability, political opinion, philosophical belief, religion, sect or similar reasons. In cases of violation of the principle of equal treatment, the employee may claim appropriate compensation of up to four months’ wages in addition to the rights of which they were deprived; this compensation can be claimed separately from other payments if the employee is dismissed in Turkey.

The table below shows at a glance the main types of compensation a dismissed employee can claim in Turkey, the conditions under which they arise and their amounts. Each compensation is subject to its own conditions, and more than one may be claimed together in a specific case.

Types of Worker’s Claims in Turkey

In Turkish labour law, worker receivables cover not only wages but all wage-related rights and benefits the employee acquires during the period of employment. Worker receivables in Turkey are regulated to ensure that employees receive full and complete compensation for their labour, 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.

1. Wage Receivable

One of the worker’s most fundamental rights in Turkey, the wage receivable is the payment for the labour provided to the employer. According to the Turkish Labour Law, the employer is obliged to pay the worker the rightful wage on time and in full, at least once a month. If the employer delays or underpays the wage, the worker can legally claim the owed wage in Turkey.

2. Overtime Pay

In Turkey, overtime pay is regulated by Article 41 of Labour Law No. 4857 and the Regulation on Working Hours under the Labour Law. Before requiring overtime work in Turkey, the employer must obtain the worker’s written consent under Article 9 of that Regulation. For work exceeding 45 hours per week, workers are paid 50% more than their normal hourly wage, and total overtime in a year cannot exceed 270 hours.

Where the employment contract provides that overtime pay is included in the salary, this arrangement is valid in Turkey only up to 270 hours a year. Any hours exceeding this limit must be calculated and paid separately.

3. Weekly Rest Day Pay

According to the Turkish Labour Law, a worker who has worked during the six working days preceding the rest day is given an uninterrupted rest of at least 24 hours within each seven-day period (weekly rest day) and is paid for that day without working. Certain periods listed in the law, such as days on which the employer suspends work at the workplace without a compelling and economic reason, are counted as worked days when calculating weekly rest day pay.

4. National Holiday and General Holiday Pay

In Turkey, workers who do not work on national and general holidays are paid their full wage for that day, while workers who work on these days receive an additional day’s wage. This payment, known in practice as “double pay”, results from national and general holidays being paid holidays for workers, subject to special laws.

5. Annual Leave Pay

The right to paid annual leave in Turkey, regulated by Article 53 of the Labour Law, arises once the worker has worked at the workplace for at least one year, including the probation period. The leave period depends on seniority: it cannot be less than 14 days for those with one to five years of service, 20 days for those with more than five and less than fifteen years, and 26 days for those with fifteen years or more.

Under Turkish law, annual leave cannot, as a rule, be converted into money during employment and must actually be used. When the employment contract ends for any reason, however, annual leave pay in Turkey for unused leave is paid to the worker or their heirs based on the last wage.

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

In Turkey, additional payments such as bonuses, premiums and child allowances may be provided on the basis of the employment contract, a collective agreement or workplace practice, and may depend on the worker’s performance or workplace success criteria. Bonuses that have become continuous are a working condition in the worker’s favour and cannot be removed unilaterally by the employer; any changes unfavourable to the worker require written consent. These additional payments are binding on the employer if they have become a workplace practice, even if not explicitly stated in the employment or collective bargaining agreement.

The table below summarises the main worker receivables under Turkish law, their legal basis and calculation principles. These receivables are independent of dismissal compensation and can be claimed even if the worker does not leave the job.

What Are the Conditions for Receiving Termination Compensation in the Private Sector in Turkey?

To receive severance pay in the private sector in Turkey, the worker must have worked for the same employer for at least one year and the employment contract must end on one of the grounds listed by law; notice pay arises when an indefinite-term contract is terminated without observing the notice period. Workers in Turkey must act in accordance with the relevant provisions of Labour Law No. 4857 to obtain compensation rights in the private sector; the reason for and manner of termination directly affect the right to compensation.

If the conditions for compensation set forth in Turkish law are not met, the worker may be completely deprived of the right to compensation or face a 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 Labour Law. The conditions for receiving dismissal compensation in the private sector can be summarised as follows:

1. Termination of the Employment Contract by the Employer in Turkey

Under Turkish law, if the employer terminates the employment contract with notice (Labour Law Art. 17) or for a just cause other than conduct contrary to morality and good faith (Art. 25/I, III, IV), an employee with at least one year of service is entitled to severance pay. In a termination based on conduct contrary to morality and good faith (Art. 25/II), neither severance pay nor notice pay is paid.

2. Termination by the Employee for Just Cause in Turkey

If the employee in Turkey terminates the employment contract immediately for health reasons, conduct contrary to morality and good faith or compelling reasons listed in Article 24 of the Labour Law, they are entitled to severance pay. Non-payment of wages, unpaid social security premiums, unpaid overtime and mobbing are the most common just causes in practice.

3. Termination of Employment Due to Health, Military Service or Retirement in Turkey

When an employee’s contract in Turkey ends for statutory reasons such as health conditions, compulsory military service or retirement, the conditions for receiving employment termination compensation in Turkey are considered fulfilled. However, to prove these reasons, the relevant documents (medical report, military dispatch document, letter from the social security institution) must be submitted to the employer.

4. Female Employees Leaving Work Due to Marriage in Turkey

Under Turkish law, a female employee who terminates her employment contract of her own will within one year from the date of marriage is entitled to severance pay. The termination of the employment contract due to marriage must be clearly stated in the notice and proven to the employer with documents such as a marriage certificate or civil registry record; when these conditions are met, the female worker gains her severance pay right, but since she leaves of her own will, she cannot receive notice pay.

5. Resignation Due to Pregnancy or Childbirth in Turkey

Turkish law does not provide a special severance pay right based on pregnancy or childbirth. Therefore, women who resign because of pregnancy or childbirth are, as a rule, considered to have voluntarily quit and are not entitled to severance pay; the situation is assessed differently if leaving is based on a working condition that endangers the worker’s health or on another just cause listed by law.

6. Material Changes in Working Conditions and Employer’s Obligation to Notify in Turkey

Under Turkish law, an employer may make a material change to working conditions established by the employment contract or workplace practice only by notifying the employee in writing. A change that the employee does not accept in writing within six working days is not binding on the employee; in that case, the employer may terminate the contract by explaining in writing that the change is based on a valid reason and by observing the notice period, and the employee becomes entitled to severance and notice pay.

If the employer actually changes working conditions to the employee’s detriment without their consent, the employee may terminate the employment contract for just cause. In this case as well, the employee retains the right to claim employment termination compensation in Turkey.

7. Death of the Employee in Turkey

In Turkey, the employment contract ends automatically upon the death of an employee with at least one year of seniority, and severance pay is paid to the employee’s legal heirs. The details of this subject are explained below under the heading “Death of the Employee“.

The table below shows whether the employee is entitled to severance and notice pay under Turkish law depending on the reason the employment contract ends. For severance pay, the condition of at least one year of service must also be met in every case.

In this context, protecting and enforcing dismissal 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. In particular, the content of the termination notice and the exit code reported to the SGK play a decisive role in proving the reason for termination in any future lawsuit in Turkey.

How Many Years of Work Are Required to Receive Dismissal Compensation in Turkey from the Workplace?

To receive severance pay from the workplace in Turkey, an employee must have worked for the same employer for at least one year; no minimum period of work is required for notice pay. The answer to the question of how many years of work are required to receive dismissal compensation in Turkey therefore depends on the type of dismissal compensation claimed.

In the Turkish labour law system, a worker’s right to severance pay arises upon fulfilling the condition of at least one year of service at workplaces belonging to the same employer. 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.

Notice pay in Turkey, on the other hand, arises when an indefinite-term contract is terminated without observing the notice period, and entitlement is independent of the length of service. If the employer terminates the contract without observing the notice period, it must pay notice pay even to an employee with one day of service; by contrast, no notice pay arises when the employee terminates the contract immediately for just cause.

1. Can an Employee Dismissed Before Completing One Year Receive Compensation in Turkey?

In Turkey, an employee dismissed before completing one year cannot receive severance pay; however, if the employer terminated the contract without observing the notice period, the employee is entitled to notice pay. The notice period is two weeks for an employee with less than six months of service and four weeks for one with six months to one and a half years of service; if the employer neither grants this period nor pays the wage for it in advance, the employee may claim compensation equal to the wage for that period.

An employee who has completed six months of service and works under an indefinite-term contract at a workplace with thirty or more employees also benefits from job security under Turkish law and may seek reinstatement against a termination not based on a valid reason. In a termination during the probation period, however, the parties are not obliged to observe the notice period and the employee cannot receive notice pay; wages and other receivables for the days worked are paid in every case.

2. How Many Premium Days Are Required for Retirement-Based Severance Pay in Turkey?

On the other hand, the right to severance pay may also arise due to retirement in Turkey. Under Turkish social security legislation, workers who have completed the insurance period and premium days required apart from the age condition may leave their jobs with a letter obtained from the institution and claim severance pay; the entitlement varies depending on the date the worker was first insured. 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 first insured between September 8, 1999 and April 30, 2008, either 7000 premium days or at least 25 years of insurance and 4500 premium days are required.
• For employees working under an employment contract who were first insured on or after May 1, 2008, 7200 premium days are required; no separate minimum insurance period applies to this group.

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 fulfil these requirements and have at least one year of service with the same employer can claim severance pay on the grounds of retirement in Turkey.

Conditions for Receiving Redundancy Pay in Turkey When Voluntarily Leaving a Job

In Turkey, an employee who leaves voluntarily can receive compensation only if the resignation is based on a just cause listed in Article 24 of the Labour Law or on a statutory ground such as retirement, compulsory military service or a female employee’s marriage. Typically, when an employee decides to terminate the employment contract, they submit a written resignation letter to express their intent; however, whether the employee becomes entitled to any dismissal compensation depends on the underlying reasons for the resignation.

1. Can an Employee Who Resigns for Just Cause Receive Compensation in Turkey?

If the employee resigns with just cause in Turkey, they may be entitled to severance pay similar to dismissal compensation. In such cases, the employee must rely on one of the just causes for termination defined under the Turkish Labour Law; for instance, significant and unfavourable 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.

2. Can an Employee Who Resigns Without Just Cause Receive Compensation in Turkey?

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 labour law when terminating the employment contract; receivables such as wages for the days worked, overtime and unused annual leave pay must nevertheless be paid upon resignation.

3. Does an Employee Who Resigns Have to Pay Notice Compensation in Turkey?

If the employee resigns in Turkey without observing the notice period and without a valid reason, the employer has the right to claim notice compensation equal to the wage for the notice period from the employee. Therefore, complying with the legal notice periods helps the employee avoid potential legal risks.

4. Can an Employee Who Leaves by a Mutual Termination Agreement Receive Compensation in Turkey?

Under Turkish law, a mutual termination agreement (ikale) is a contract by which the employee and the employer end the employment relationship by mutual consent, and it does not by itself give rise to severance pay or notice pay. The payments agreed by the parties in the mutual termination agreement are paid to the employee; the agreement should clearly state which receivables the employee waives and what they receive in return.

In the practice of the Turkish Court of Cassation, where the offer of mutual termination comes from the employer, the employee must obtain a reasonable benefit from the agreement, that is, an additional payment on top of severance and notice pay; where the offer comes from the employee, whether severance and notice pay are paid depends on the parties’ agreement.

In its decision dated March 10, 2020 (Case No. 2016/33187, Decision No. 2020/4662), the (now closed) 22nd Civil Chamber of the Turkish Court of Cassation likewise held that, where the offer comes from the employer, the employee must be provided with an additional benefit on top of the statutory compensation, and that a mutual termination agreement that does not fully cover severance pay is invalid. A mutual termination agreement concluded without a reasonable benefit or with a defect in the employee’s consent may be deemed invalid, in which case the termination is treated as a termination by the employer.

The table below summarises which compensation the employee is entitled to under Turkish law in the main situations where they leave of their own will. In every case, the employee’s receivables for wages, overtime and unused annual leave pay are reserved.

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 Labour Law. It is essential that employees fully understand their rights during this process and, if necessary, seek support from a qualified labour law attorney in Turkey.

Is Sudden Resignation a Barrier to Claiming Dismissal Compensation in Turkey?

In Turkey, sudden resignation is not a barrier to severance pay if the resignation is based on a just cause under Article 24 of the Labour Law; a sudden resignation without just cause, however, eliminates the right to compensation. Resignation is a unilateral declaration of intent terminating the employment contract and becomes effective once the employee’s resignation letter is received by the employer; even in cases of sudden resignation, certain validity requirements must be met.

If a reason is stated in the resignation letter, the employee is, as a rule, bound by that reason and cannot rely on a different justification later; where no reason is stated, the real reason for the resignation may be proven in court. Furthermore, conditional resignations in Turkey are generally considered invalid; if the employer accepts the condition, the situation is regarded not as resignation but as a mutual termination agreement (ikale).

As emphasised in the rulings of the Turkish Court of Cassation, 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. Courts investigate whether the resignation is based on a justified reason; 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 employee compensation rights in Turkey, including dismissal compensation.

In Which Cases Can an Employee Who Resigns Suddenly Not Claim Compensation in Turkey?

There are some typical situations in Turkey where an employee who suddenly resigns cannot claim severance pay. What these situations have in common is that the employee’s departure is not based on a just cause listed by law:

• 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. An employee leaving for a just cause should state that cause clearly in the termination notice in order to avoid difficulties of proof later.

Does Resignation Nullify Employment Termination Compensation Entitlement in Turkey?

In Turkey, a resignation not based on just cause nullifies the right to severance pay; however, resignation letters obtained under pressure or made conditional do not prevent the employee from receiving severance pay. For a resignation letter to be considered invalid, one of the following situations must exist and be proven by the employee:

• 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. Such resignation letters are invalid; however, the employee must prove how such a resignation letter was created, using witnesses or other 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 for the employer who has not processed the resignation, the resignation letter cannot later be used by the employer as a valid resignation.
• Contradictory Evidence and Statements to the Resignation Letter: Even if the employee submitted a resignation letter, if the employer relies in its court defence on a termination reason that contradicts the resignation, the resignation letter is disregarded.
• 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 had a just cause for termination, assess the departure as a justified termination.

Considering these circumstances, it is important for employees in Turkey to approach resignation letters carefully and, if necessary, seek legal assistance from a dismissal compensation lawyer in Turkey to protect their rights. Pre-printed resignation letters prepared by the employer, in particular, should be read carefully before being signed.

What Are the Conditions for Receiving Severance and Notice Compensation Upon Dismissal in Turkey?

In Turkey, severance compensation arises when the employee has worked for the same employer for at least one year and the contract ends on one of the grounds listed by law, while notice compensation is claimed when the party terminating an indefinite-term contract fails to comply with the statutory notice periods. Dismissal compensation refers to key legal mechanisms designed to protect an employee’s financial rights when the employment contract is terminated, and the most common types under Turkish labour law are severance compensation and notice compensation.

The conditions and scope of these compensation types are determined by the legal rules on the employee’s length of service, the reason for termination and the termination process. As not all employees are covered by the same legislation, the same rules do not apply in every profession. Seafarers are subject to the Maritime Labor Law No. 854, and their severance and notice compensation rights differ from those under Labour Law No. 4857. Similarly, professional athletes in Turkey, who are bound by Sports Contracts, are as a rule not entitled to severance or notice compensation under the general labour law; job security and dismissal compensation entitlements in Turkey must therefore be evaluated based on the specific legislation applicable to each profession.

1- WHAT IS NOTICE COMPENSATION IN TURKEY?

In Turkey, notice compensation is the compensation paid under Article 17 of the Turkish Labour Law by the party terminating an indefinite-term employment contract without complying with the notice period determined according to the employee’s length of service. As the employee’s tenure increases, the 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.

If the employer fails to comply with the applicable notice period, it is required to pay the employee the amount of salary equivalent to that notice period as notice compensation. This amount reflects the all-inclusive gross wage the employee would have earned 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.

a. What Are the Legal Notice Periods for Termination in Turkey?

Notice periods for termination in Turkey are the periods of prior notification required before an employment contract can be lawfully ended, ranging from two to eight weeks depending on the employee’s seniority. Both the employee and the employer are obliged to observe this period when they intend to terminate an indefinite-term contract; this regulation ensures the protection of both parties and an orderly and fair termination process.

Key features of notice periods in Turkey include:

• Scope: Notice periods apply to indefinite-term employment contracts in Turkey.
• Fixed-Term Contracts: Fixed-term employment contracts in Turkey end automatically at the end of the contract term without any notice obligation.
• Statutory Periods: Article 17 of the Labour Law sets the notice periods at 2, 4, 6 or 8 weeks depending on the employee’s seniority.
• Extension: These periods are minimums and may be extended through individual or collective labour agreements.
• Payment in Advance: The employer may terminate the contract immediately by paying the employee the wage for the notice period in advance.
• Sanction: If either party fails to observe the notice period, it 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. It is advisable to give the termination notice in writing and document the date of service in order to prove when the notice period started.

b. When Is Notice Compensation Earned in Turkey?

In Turkey, entitlement to notice compensation arises at the moment an indefinite-term employment contract is terminated without observing the statutory notice period. If the employer dismisses the employee without notice, the employee becomes entitled to compensation equal to the wage for the notice period, and this receivable becomes due at the moment of dismissal.

The same rule applies to the employee. If the employee leaves the job without just cause and without observing the notice period, the employer can claim notice compensation equal to that period from the employee. By contrast, no notice compensation arises when the employer terminates the contract immediately for just cause under Article 25 of the Labour Law or the employee does so under Article 24 of the Turkish Labour Law.

c. When Is Notice Compensation Paid in Turkey?

According to Paragraphs 4 and 5 of Article 17 of the Turkish Labour Law, the party who fails to comply with the notice requirement is obliged to pay notice compensation equal to the wage for the unserved notice period on the date the contract ends. If the employer chooses to terminate the contract by paying compensation instead of granting the notice period, it must pay the wage for the notice period in advance at the time of dismissal.

This practice enables a quick and clear separation and ensures that the employee does not suffer financial loss as a result of sudden termination. Unlike severance pay, notice compensation in Turkey is subject to income tax and stamp tax.

2- WHAT IS SEVERANCE COMPENSATION IN TURKEY?

In Turkey, severance compensation is compensation equal to thirty days’ wages for each full year of service, paid to an employee who has worked for the same employer for at least one year when the employment contract ends on one of the grounds listed by law. Governed by Article 14 of Law No. 1475, which remains in force, this compensation reflects the employee’s dedication and service to the workplace; its main purpose is to financially support employees who find themselves unemployed.

Severance compensation is paid when the employer terminates the employment contract for a reason other than conduct contrary to morality and good faith, or when the contract ends for statutory reasons such as the employee’s termination for just cause, retirement, compulsory military service or a female employee’s marriage. However, if an employee resigns voluntarily without just cause, they are not entitled to severance compensation in Turkey; the severance payment is calculated based on the employee’s total length of service and gross wage.

a. How Is Severance Compensation Calculated in Turkey?

In Turkey, severance pay is calculated as 30 days of gross (all-inclusive) wage for each full year of employment, and the periods exceeding a full year are paid proportionally at the same rate. As a form of dismissal compensation in Turkey, severance pay is calculated on a wage that cannot exceed the severance pay ceiling in force on the date the employment contract is terminated.

In its decision dated January 12, 2026 (Case No. 2025/9282, Decision No. 2026/11), the 9th Civil Chamber of the Turkish Court of Cassation emphasised that the general ceiling is the ceiling in force at the moment of termination and that a calculation exceeding this mandatory ceiling cannot be relied upon.

The steps for Calculating Severance Pay in Turkey are as follows:

1. Determine the All-Inclusive Gross Wage: First, the employee’s last gross wage is determined. Regular benefits measurable in money (e.g., meal allowance, transportation fees, regular bonuses) are added to the gross wage.
2. Calculate Total Service Time: The years, months and days the employee worked at workplaces belonging to the same employer are calculated. If the employee worked intermittently at the same employer’s workplaces, periods for which severance pay was not previously paid are added together.
3. Apply the Severance Cap: The all-inclusive gross wage is compared with the severance pay ceiling in force on the termination date; any amount exceeding the ceiling is disregarded.
4. Calculate Full Years: For each full year, 30 days of all-inclusive gross wage, i.e. one month’s gross wage, is taken as the basis.
5. Calculate Remaining Periods: For the months and days exceeding a full year, a proportional calculation is made over the annual amount (monthly gross wage × remaining days / 365).
6. Sum the Amounts: The amounts calculated for full years and remaining periods are added together to find the gross severance compensation.
7. Income Tax Considerations: Only stamp tax is deducted from severance pay paid within the legal ceiling, and no income tax is charged. 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 cumulative tax base. Severance compensation is not subject to VAT in Turkey.

b. What Does Severance Compensation Include in Turkey?

In Turkey, in addition to the base wage, other regular payments made to the employee that are measurable in money are taken into account when calculating severance compensation. Severance compensation is one of the most significant forms of dismissal compensation rights in Turkey and reflects the financial entitlements earned by the employee during their tenure; the payments included and excluded are listed below.

1- Included in Severance Compensation Calculation in Turkey:

2- Not Included in the Calculation:

3- Other Important Points:

• Expiry of Fixed-Term Contracts: When a fixed-term employment contract in Turkey ends automatically upon expiry of its term, severance compensation is, as a rule, not paid.
• Intermittent Work: If an employee worked intermittently or across multiple workplaces of the same employer, the total duration for which severance pay was not previously paid is added together.
• Unpaid Leave: Unpaid leave periods are excluded from the calculation.
• Unilateral Change of Working Conditions: If the employer unilaterally changes working conditions to the employee’s detriment, the employee may terminate the contract for just cause within a reasonable time and still qualify for severance compensation.

c. What Are the Conditions for Receiving Severance Compensation in Turkey?

To receive severance compensation in Turkey, the employee must be a worker subject to Turkish labour law, must have worked for the same employer for at least one year, and the employment contract must end on one of the grounds listed by law. The conditions for entitlement to severance compensation in Turkey are as follows:

1. Condition of Being Subject to Turkish Labor Law: In order for an employee to be entitled to severance pay under Turkish labour law, the employment must either take place in Turkey or be subject to the provisions of Turkish labour legislation. As a general rule, if the employee works in a foreign country, the labour laws of that country will apply; however, if there is a bilateral social security or labour 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 labour law provisions will apply even if the employee receives their salary from abroad.
2. Being an Employee: The employee must have entered into an employment contract with the employer within the scope of Labour Law No. 4857 or Law No. 1475; 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 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 together when calculating the one-year duration.
4. Termination on a Statutory Ground: The employment contract must end through termination by the employer for a reason other than conduct contrary to morality and good faith, termination by the employee for just cause, compulsory military service, retirement, a female employee’s marriage or the employee’s death. This condition applies to both indefinite-term and fixed-term contracts; if a fixed-term contract is terminated before its expiry unjustly by the employer or for just cause by the employee, the employee may also claim severance pay. However, when a fixed-term employment contract ends automatically upon completion of the job or expiry of its term, the employee, as a rule, cannot claim severance pay.

To qualify for severance pay in Turkey, the conditions specified under the Labour Law must be fulfilled; in practice, it is also important that the correct Social Security Institution (SGK) termination code is reported by the employer. The exit code reported to the SGK does not on its own extinguish the right to severance pay; if it is proven that the stated reason for termination is untrue, the employee may claim the compensation through the courts in Turkey.

d. How to Claim Seniority Pay in Turkey?

In Turkey, severance pay (seniority pay) is a right that can only be claimed when the employment contract ends on one of the grounds exhaustively listed in Article 14 of Law No. 1475. 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 by law is fulfilled. Termination may occur either by the employer or the employee for legally justified reasons, and in the event of the employee’s death, the severance pay right passes directly to the rightful heirs. The cases in which seniority pay, legally considered a form of compensation for dismissal in Turkey, can be claimed are as follows:

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

• Health Reasons (Art. 25/I): If an employee contracts an illness or disability caused by their own intent, disorderly lifestyle or addiction to alcohol and the resulting absence lasts more than three consecutive working days or more than five working days in a month, or if the Health Board determines that the employee’s illness is incurable and that their working at the workplace is inappropriate, the employer may terminate the contract. In these terminations, the employee is entitled to seniority pay in Turkey provided the other legal conditions are met.
• Termination During Illness, Accident, Childbirth and Pregnancy: Where the employee cannot work due to illness, accident, childbirth or pregnancy, the employer’s right to terminate without notice arises only after the absence exceeds the notice period applicable to the employee’s seniority by six weeks; in childbirth and pregnancy, this period begins at the end of the period set out in Article 74 of Law No. 4857. If the employer terminates the contract for this reason, the employee has the right to claim severance pay.
• Acts Contrary to Morality, Good Faith and Similar Cases (Art. 25/II): In situations such as the employee deceiving the employer, making statements or behaving in a way that offends the honour and dignity of the employer or their family, sexually harassing another employee, 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 authorisation, the employer may terminate the employment contract without notice. In a termination based on these grounds, the employee is not entitled to severance or notice pay; the employer must exercise this right within six working days of learning of the conduct and in any case within one year of the act.
• Compelling Reasons (Art. 25/III): If a compelling reason arises that prevents the employee from working at the workplace for more than one week and the employer terminates the employment contract, the employee is entitled to seniority pay in Turkey, subject to the other conditions being met.
• 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. Even if the employer terminates the contract in compliance with the notice periods or by paying the wage for the notice period in advance, it is obliged 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 endangers the employee’s health or life, the employee has the right to terminate the employment contract immediately. Additionally, if the employer or another employee with whom the employee is in constant close and direct contact contracts a contagious disease or a disease incompatible with the employee’s work, the employee may terminate the contract without waiting for the notice period and is entitled to dismissal compensation in Turkey in the form of severance pay.
• Acts Contrary to Morality, Good Faith and Similar Cases: If the employer deceives the employee by giving false information when the employment contract is concluded, makes remarks that offend the employee’s honour and dignity or insults the employee, engages in sexual harassment, assaults 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 at the workplace and reports it, the employee has the right to terminate the employment contract before its expiry or without waiting for the notice period. In such cases, the employee is entitled to employee compensation in Turkey as termination compensation.
• Non-Payment of Wages and Non-Application of Working Conditions: The failure to calculate or pay the employee’s wage in accordance with the law or the contract, or the failure to apply working conditions, also gives the employee the right to terminate for just cause under Turkish law. In practice, unpaid overtime and underpaid social security premiums are also assessed within this scope.
• 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 seizure of the workplace by public authorities, the employee has the right to terminate the employment contract immediately.

C) Resignation Due to Compulsory Military Service

Article 14 of Law No. 1475 in Turkey provides that employees who terminate their employment contracts due to compulsory military service are paid severance compensation. Whether the compulsory military service period is long or short does not affect the entitlement to redundancy pay in Turkey; short-term military service is also within the scope of compulsory military service.

Paid (bedelli) military service, however, is disputed: in its decision dated November 5, 2015 (Case No. 2014/15064, Decision No. 2015/31360), the 9th Civil Chamber of the Turkish Court of Cassation upheld by majority a judgment awarding severance pay to an employee who left for paid military service, while the dissenting opinion argued that an employee who discharges the obligation by paying its price cannot benefit from this right. The specific situation should therefore be assessed before leaving work on the ground of paid military service.

As a rule, time spent in military service is not counted towards severance pay; however, under the practice of the Turkish Court of Cassation, for an employee leaving a public institution or body on retirement, the military service period that has been credited (purchased) is added to the length of service even if it was performed before the employment began. In its decision dated June 13, 2016 (Case No. 2015/11854, Decision No. 2016/17580), the 22nd Civil Chamber of the Turkish Court of Cassation held that the military service performed and credited by the employee before starting work must be added to the period on which severance pay is based.

However, if an employee is called up for reasons other than compulsory military service, such as manoeuvres, their contract is not terminated but only suspended, and severance pay is not paid during the suspension. If the suspension period specified in the law elapses, the contract is deemed terminated by the employer, and in this case the employee is entitled to termination compensation in Turkey.

D) Resignation Due to Retirement

Under Turkish law, an employee who terminates the employment contract in order to receive an old-age, retirement or disability pension or a lump sum payment from the social security institutions or funds established by law is entitled to severance compensation. In this case, the employee’s termination is not a resignation but is based on a right arising from social security legislation. However, if an employee resigns to receive income or a pension from private insurance companies not established by law, they are considered to have resigned and therefore are not entitled to employee compensation rights in Turkey.

For the employee to be entitled to redundancy payment in Turkey, it is not sufficient to terminate the employment contract; they must also prove that they are entitled to an old-age, retirement or disability pension or a lump sum payment and that they terminated the contract for this reason. Within this obligation, the application made to the relevant social security institution or fund, or the letter obtained from the institution, must be submitted to the employer.

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 in Turkey. However, if an heir disclaims the inheritance in Turkey, they lose their status as an heir and cannot receive the deceased employee’s employment compensation claims.

e. The Statute of Limitations Period for Severance Pay in Turkey

In Turkey, the statute of limitations for severance pay is five years, starting from the date the employment contract ends in a manner entitling the employee to severance pay. This period, previously applied as ten years, was reduced to five years by Additional Article 3 added to Labour Law No. 4857 by Labour Courts Law No. 7036, and the rule applies to limitation periods starting after it entered into force on October 25, 2017.

Under the same article, the limitation period for other compensations linked to the termination of the employment contract (such as notice pay and bad faith compensation) and for annual leave pay is also five years. Therefore, severance pay claims that are not requested within five years from the termination date of the employment contract are considered to be time-barred under Turkish law.

f. How Much Is Dismissal Compensation in Turkey? Sample Calculation

In Turkey, the compensation a dismissed employee receives is found by calculating severance pay and notice pay separately and adding them together. For example, for an employee with an all-inclusive gross wage of TRY 40,000 who is dismissed without notice after working for 3 years and 6 months, the calculation is as follows:

In this example, since the wage is below the severance pay ceiling in Turkey, severance pay is calculated on the full wage; had the wage exceeded the ceiling, severance pay would be calculated on the ceiling. Notice pay is not subject to the ceiling and is calculated on the entire all-inclusive gross wage.

When Is Dismissal Compensation Paid in Turkey?

In Turkey, a dismissed employee’s severance and notice pay become due on the date the employment contract ends and must be paid on that date; the law does not grant the employer any additional 15- or 30-day waiting period. In a termination with notice, the employment contract ends at the end of the notice period, so the compensation is also paid on that date.

1. When Is Severance Pay Paid in Turkey and What Interest Applies If It Is Late?

Under Turkish law, severance pay is a receivable that must be paid on the day the employment contract ends in a manner entitling the employee to severance pay. In case of late payment, the highest interest rate applied by banks to one-year deposits is charged from the termination date, and under the practice of the Court of Cassation the employee does not need to send the employer a separate notice for this interest. Severance pay may be paid in instalments only with the employee’s express consent.

2. When Are Notice Pay and Other Receivables Paid in Turkey?

In Turkey, notice pay and unused annual leave pay must also be paid on the date the employment contract ends; statutory interest applies to these receivables, running from the date the employer is placed in default by a formal notice or, failing that, from the filing date of the lawsuit.

In its decision dated January 14, 2013 (Case No. 2010/38450, Decision No. 2013/255), the 9th Civil Chamber of the Turkish Court of Cassation also held that the highest deposit interest applies to severance pay from the termination date, while statutory interest applies to notice pay and annual leave pay from the date of default. Wages are paid at least once a month, and the employee may refuse to work if the wage is not paid within twenty days of the payment date for a reason other than force majeure; the highest interest rate applied to deposits is also charged on late wages.

3. What Can an Employee Do If the Employer Does Not Pay Compensation in Turkey?

In Turkey, if the employer does not pay severance, notice or other employee receivables, the employee must apply to a mediator before filing a lawsuit under the mandatory mediation rules. Under Labour Courts Law No. 7036, applying to a mediator is a precondition for lawsuits concerning employee or employer receivables and compensation based on the law or an individual or collective labour agreement, and for reinstatement claims.

If an agreement is reached in mediation and the agreement document is signed jointly by the parties, their lawyers and the mediator, it is deemed a document with the effect of a court judgment without the need for an enforceability annotation; otherwise, an enforceability annotation must be obtained from the court before enforcement proceedings can be initiated if the employer does not pay. If no agreement is reached, the employee may file a lawsuit in the Turkish labour court on the basis of the final minutes; for reinstatement claims, this period is two weeks from the date of the final minutes.

4. Can a Dismissed Employee Also Receive Unemployment Benefit in Turkey?

A dismissed employee in Turkey may receive unemployment benefit separately from severance and notice pay if they meet the conditions of Unemployment Insurance Law No. 4447. For this, the employee must become unemployed through no will or fault of their own, must have paid at least 600 days of unemployment insurance premiums in the last three years, must have worked continuously with premiums during the last 120 days before leaving, and must apply to the Turkish Employment Agency (İŞKUR) within thirty days of the end of the employment contract.

Unemployment benefit cannot be received if the employee is dismissed on grounds of conduct contrary to morality and good faith or resigns without just cause in Turkey. The benefit period is 180, 240 or 300 days depending on the number of premium days paid in the last three years.

In Which Cases Can an Employee Be Dismissed Without Compensation in Turkey?

In Turkey, dismissal without compensation occurs when the employer terminates the employment contract without notice on grounds of conduct contrary to morality and good faith listed in Article 25/II of the Labour Law, and no severance or notice pay is paid in such a termination. Apart from this, dismissal before the employee completes one year, termination during the probation period and the expiry of a fixed-term contract are also cases that do not give rise to severance pay.

1. What Are the Grounds for Dismissal Without Compensation in Turkey?

Under Turkish law, the main cases in which the employer may end the employment contract without paying severance and notice pay are as follows:

• Conduct Contrary to Morality and Good Faith (Art. 25/II): Deceiving the employer, insult, sexual harassment, assault, theft, unexcused absence and insisting on not performing duties; this termination is generally reported to the SGK with code 29.
• Termination During the Probation Period: During the probation period, which may be up to two months (up to four months by collective agreement), the parties may terminate the contract without notice and without compensation.
• Less Than One Year of Service: An employee who has not completed one year cannot receive severance pay but receives notice pay if notice was not given.
• Expiry of a Fixed-Term Contract: When the contract ends automatically upon expiry of its term, severance and notice pay do not, as a rule, arise.

2. Which Rights of an Employee Dismissed Without Compensation Continue in Turkey?

In Turkey, the receivables of an employee dismissed without compensation for wages, overtime, weekly rest, public holidays and unused annual leave for the period worked do not lapse, and the employer is obliged to pay them. If the employee believes that the reason for termination is untrue, they may claim severance and notice pay through mediation and litigation; in that case, the burden of proving the reason for termination lies with the employer.

3. What Is the Procedure for Dismissing an Insured Employee in Turkey?

Under Turkish law, when dismissing an insured employee, the employer must give the termination notice in writing and, for an employee covered by job security, state the reason for termination clearly and precisely. Before a termination based on the employee’s conduct or performance, the employee’s defence must be obtained; otherwise the termination may be deemed invalid.

The employer must also submit the employment termination notification to the Social Security Institution within ten days of the employee’s departure and report the exit code corresponding to the reason for termination in Turkey. In a termination where the notice period is not observed, notice pay, severance pay if its conditions are met, and other employee receivables must be paid on the termination date.

Is It Possible to Seize Dismissal Compensations in Turkey?

In Turkey, no more than one-quarter of an employee’s monthly wage may be seized under Article 35 of Labour Law No. 4857, while severance pay and notice pay, which are not considered wages, may be seized in full. The enforcement of seizure measures on worker claims varies depending on the nature of the claim; annual leave pay is subject to the one-quarter limit both during employment and, under the practice of the Court of Cassation, after the contract ends.

Wage and salary claims are subject to partial seizure: Article 83 of the Turkish Enforcement and Bankruptcy Law provides that salaries and wages may be seized after deducting the amount necessary for the subsistence of the debtor and their family, and that the amount seized may not be less than one-quarter, while Article 35 of Labour Law No. 4857 provides that no more than one-quarter of an employee’s monthly wage may be seized. In practice, therefore, one-quarter of the employee’s salary is seized in Turkey. Since Article 35 of the Labour Law reserves the rights of creditors of maintenance claims such as child support and divorce alimony, the one-quarter limit does not apply to salary seizures for maintenance claims.

Regarding severance pay and notice pay, the Turkish Court of Cassation holds that these payments are not considered wages and are not subject to the one-quarter limit. In the Chamber’s reversal judgment adopted by the Assembly of Civil Chambers of the Court of Cassation in its decision dated December 23, 2009 (Case No. 2009/490, Decision No. 2009/599), it was held that, since there is no provision deeming payments such as severance pay and notice pay to be wages, they may be seized in full. For annual leave pay, however, the period in which the employee continues to work is distinguished from the termination of the employment contract.

When an employee in Turkey takes annual leave while still employed, Article 57 of Labour Law No. 4857 requires the leave pay to be paid in advance or as an advance payment before the leave begins. Since this payment replaces the wage for that period, it is subject to the one-quarter seizure limit, and the enforcement office cannot seize the entire leave pay.

When the employment contract ends, the pay for unused annual leave is paid as a lump sum based on the wage on the termination date under Article 59 of the Turkish Labour Law. Unlike severance and notice pay, this lump-sum receivable retains its wage character under Turkish law. In its decision dated October 15, 2012 (Case No. 2012/12254, Decision No. 2012/29333), the 12th Civil Chamber of the Court of Cassation held that, for wage, annual leave, overtime and public holiday receivables, the seizure exceeding one-quarter must be lifted. Therefore, if the entire leave pay due after termination has been seized, a complaint may be filed with the enforcement court for the portion exceeding one-quarter.

In conclusion, while no more than one-quarter of wages, wage-like payments and, under the practice of the Court of Cassation, annual leave pay may be seized, the full amounts of severance pay and notice pay arising from dismissal can be subject to seizure through enforcement proceedings in Turkey. Therefore, while enforcement offices in Turkey limit wage seizures in practice, they may apply seizure on severance pay and notice pay without the one-quarter limit.

Is Employee Compensation Divided Between Spouses in Divorce Cases in Turkey?

In Turkey, upon divorce, the portion of employee compensation corresponding to the period worked during the marriage is considered acquired property and is included in the calculation of the other spouse’s participation claim in the liquidation of the property regime. 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 in return for their labour during the marriage are considered acquired property, and upon the divorce process in Turkey, the other spouse is entitled to a claim for participation in this acquired property.

Regarding dismissal 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:

• Severance Pay: 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: Those related to the period worked during the marriage are included in the property regime settlement.
• Different Agreements: 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, employee 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.