Termination of Employment Contracts in Turkey

1. Grounds for Termination

The TLC does not provide a detailed list for the objective valid reasons to be applied to the employees covered by the job security provisions but sets forth general termination reasons whose context and content to be filled by the judiciary.

2. Collective Dismissals

An employer contemplates collective terminations for reasons of an economic, technological, structural or similar nature necessitated by the requirements of the enterprise, the establishment or activity, should provide the union shop-stewards, the relevant regional directorate of labour and the Public Employment Office with written information at least 30 days prior to the intended lay-off.

3. Termination Agreement

Before terminating an open ended employment contract, a notice to the other party must be served by the terminating party, either employer or employee in accordance with the notice periods abovementioned. The terminating party, who does not respect the statutory notice period, shall pay a compensation amount totaling the salary corresponding to the term of notice.

4. Severance Payment

Under the applicable provision of the TLC, the employees who have completed at least one year of service in a company, are entitled to receive the severance payment. The total amount of the severance payment cannot exceed the maximum limit of severance payment amount for the relevant year multiplied by seniority period.

5. Options for Employee

If an employee chooses to terminate his/her employment contract by resigning, the employer is not required to pay any severance or notice payments to the resigning employee. Both parties must respect statutory notice periods.

6. Unfair Dismissal

An employee, if he believes that his employment contract has been terminated in the absence of any valid reason, may choose to initiate a reinstatement lawsuit within the scope of job security protection (where the employee has worked for more than six months and the employer has more than 30 employees).

7. Void Dismissal

When exist a verdict ruling the termination invalid, the court shall also designate the amount of compensation to be paid to the employee in case he is not re-engaged in work.

Employee shall be paid up to his four-month salary and other entitlements for the time he is not reinstated in work until the finalization of the court’s verdict.

For more information, please contact L&E Global.
This information was contributed by Köksal & Partner Law Office.
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