When an employee leaves a company in Turkey, the offboarding process involves much more than simply processing the employee’s final salary.
Depending on the reason for termination, employers may need to manage notice periods, severance pay, unused annual leave, final payroll calculations, Social Security Institution (SGK) notifications, employee documents and the return of company property.
For international companies employing staff in Turkey, understanding these requirements is particularly important. Turkish employment and payroll procedures may differ significantly from those applicable in the employer’s home country.
This guide provides a practical employee offboarding checklist for employers in Turkey.
1. Identify the Reason for Termination
The first step is to determine exactly why the employment relationship is ending.
Common situations include:
- resignation by the employee;
- termination by the employer;
- expiration of a fixed-term employment contract;
- retirement;
- termination during the probationary period;
- termination for just cause;
- mutual termination;
- workplace closure;
- military service; or
- other statutory termination grounds.
The reason for termination is important because it can affect the employee’s entitlement to notice, severance pay and other benefits.
It will also determine the appropriate SGK termination code that the employer must use when reporting the employee’s departure to the Turkish Social Security Institution.
Employers should ensure that the reason recorded in the payroll and SGK systems is consistent with the underlying documentation.
2. Check the Employment Contract
Before processing the employee’s departure, the employer should review the employment agreement.
Particular attention should be paid to:
- whether the contract is fixed-term or indefinite-term;
- the employee’s start date;
- the contractual notice provisions;
- salary and benefits;
- bonus or commission arrangements;
- confidentiality obligations;
- restrictive covenants, where applicable;
- company equipment and property; and
- any specific termination provisions.
The employment contract should always be considered together with mandatory Turkish employment legislation.
Contractual provisions cannot generally remove statutory rights granted to employees by Turkish law.
3. Determine the Applicable Notice Period
For indefinite-term employment contracts, Turkish Labour Law provides statutory notice periods based on the employee’s length of service.
The standard notice periods are:
| Length of service | Minimum notice period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months to 1.5 years | 4 weeks |
| 1.5 years to 3 years | 6 weeks |
| More than 3 years | 8 weeks |
These are statutory minimum periods.
Depending on the circumstances, the employee may continue working during the notice period or the employer may pay compensation in lieu of notice.
Different rules can apply where the employment contract is terminated immediately for a legally recognised just cause.
Employers should therefore establish the legal basis of the termination before calculating any notice compensation.
4. Determine Whether Severance Pay Is Due
One of the most important questions during an employee’s departure is whether severance pay (kıdem tazminatı) is payable.
Severance pay is not automatically due every time an employment relationship ends.
Eligibility depends on factors including the employee’s length of service and the legal reason for termination.
As a general principle, an employee must normally have completed at least one year of service with the employer before becoming eligible for statutory severance pay.
Depending on the circumstances, severance may become payable in cases such as certain employer-initiated terminations, retirement, military service and certain legally recognised employee-initiated terminations.
An ordinary voluntary resignation, by contrast, does not normally create an entitlement to statutory severance pay.
Because the termination reason directly affects severance entitlement, this should be reviewed before the final payroll is prepared.
5. Calculate the Final Salary
The employee must receive all salary amounts earned up to the effective termination date.
The final payroll calculation may therefore include:
- salary for the final working period;
- overtime;
- bonuses;
- commissions;
- allowances;
- approved expenses;
- other contractual benefits; and
- any retroactive salary adjustments.
Where the employee leaves part-way through a payroll month, the salary may need to be calculated according to the applicable payroll rules and the employee’s actual termination date.
Payroll should also verify whether any outstanding payments from previous periods remain due.
6. Calculate Unused Annual Leave
Unused annual leave is an important part of the final payroll process.
During an active employment relationship, statutory annual leave is intended to be taken as time off and generally cannot simply be replaced by a cash payment.
However, when the employment relationship ends, accrued statutory annual leave that has not been used must generally be compensated.
The employer should therefore reconcile:
- the employee’s annual leave entitlement;
- leave already taken;
- any outstanding accrued leave; and
- the amount payable for unused leave at termination.
Maintaining accurate leave records throughout employment significantly simplifies this calculation.
7. Review Bonuses, Commissions and Allowances
Employees may have remuneration arrangements extending beyond their basic salary.
Before completing the final payroll, employers should review whether the employee has outstanding rights relating to:
- sales commissions;
- performance bonuses;
- annual bonuses;
- meal allowances;
- transportation allowances;
- private health insurance;
- internet or remote-working allowances;
- company car benefits; or
- other contractual benefits.
The applicable employment contract, bonus plan, company policy and the circumstances of the termination should be reviewed to determine whether amounts remain payable.
This can be particularly important for sales employees whose commissions may relate to transactions concluded before termination but paid at a later date.
8. Reimburse Outstanding Business Expenses
Any valid business expenses incurred by the employee before departure should be identified and processed.
Employers should establish a deadline for submitting outstanding expense claims and request the necessary invoices or receipts.
Examples can include:
- business travel;
- accommodation;
- client meetings;
- transportation;
- mobile phone expenses; and
- other authorised professional expenses.
Resolving these items before closing the employee’s payroll can reduce the need for corrections after termination.
9. Recover Company Property
Offboarding should also include the return of company property provided to the employee.
Depending on the employee’s position, this may include:
- laptop;
- mobile phone;
- SIM card;
- access cards;
- keys;
- company credit cards;
- vehicle;
- documents;
- security tokens; and
- other equipment.
A written equipment-return checklist can be particularly useful for remote employees.
For international employers using an Employer of Record in Turkey, coordination between the foreign company, the employee and the local employer is important to ensure that equipment is returned correctly.
10. Disable Access to Company Systems
IT access should be managed according to the employee’s effective termination date and the company’s security procedures.
This may include access to:
- company email;
- internal servers;
- CRM systems;
- accounting software;
- HR platforms;
- cloud storage;
- VPN;
- banking platforms; and
- other business applications.
Employers should coordinate HR, payroll and IT procedures so that access is removed at the appropriate time without interfering with legitimate work during the notice period.
11. Complete the Work Handover
Where the employee continues working during the notice period, the employer can organise a structured handover of responsibilities.
The handover may cover:
- current projects;
- client relationships;
- passwords or access arrangements handled through authorised company procedures;
- outstanding tasks;
- important deadlines;
- supplier relationships;
- internal documentation; and
- information required by the employee’s replacement.
A written handover document can help maintain business continuity and reduce operational risk after the employee leaves.
12. Select the Correct SGK Termination Code
When employment ends, the employer must report the employee’s departure to the Social Security Institution (SGK – Sosyal Güvenlik Kurumu).
The termination declaration includes a specific code indicating the reason for the end of employment.
For example, different codes exist for resignation, employer-initiated termination, expiration of a fixed-term contract, retirement, military service and various forms of termination for just cause.
The SGK code should correspond to the actual circumstances of the termination.
Selecting an incorrect code can create inconsistencies between the employer’s records, payroll documentation and the reason officially reported to the authorities.
Employers should therefore verify the appropriate termination code before submitting the declaration.
13. Submit the SGK Termination Notification
The employer must submit the employee’s termination notification (Sigortalı İşten Ayrılış Bildirgesi) to the SGK within the applicable statutory deadline.
For employees covered by the relevant social security regime, the notification is generally required within 10 days following the termination of the employee’s social insurance coverage.
The employer should verify that the following information is correct:
- employee identity;
- last working date;
- termination date;
- SGK termination code; and
- other information included in the declaration.
The SGK filing should be consistent with the company’s payroll and employment records.
14. Prepare the Employee’s Final Payroll and Termination Payments
Once all elements have been identified, the employer can prepare the employee’s final payroll.
Depending on the circumstances, the final payment may include:
Final salary
Salary earned up to the termination date.
Unused annual leave
Payment for accrued statutory leave remaining at the end of employment.
Notice compensation (ihbar tazminatı)
Where applicable, compensation relating to the statutory notice period.
Severance pay (kıdem tazminatı)
Where the employee satisfies the applicable statutory conditions.
Bonuses and commissions
Any outstanding variable remuneration due under the applicable arrangements.
Expenses
Approved professional expenses that have not yet been reimbursed.
Because each component can have different payroll, tax and social security treatment, the calculation should be reviewed carefully before payment.
15. Provide the Required Employment Documents
The employer should ensure that the employee receives the documentation required following termination.
The exact documents may depend on the circumstances of the departure, but the offboarding file may include:
- termination or resignation documentation;
- final payroll documents;
- employment certificate where applicable;
- documentation relating to final payments; and
- other records required by Turkish employment or social security procedures.
Copies should also be retained by the employer in accordance with applicable record-keeping requirements.
16. Review Private Health Insurance and Other Benefits
If the employee benefits from private health insurance or other company-sponsored benefits, the employer should determine when the coverage ends.
Depending on the insurance arrangement, termination of employment may require notification to the insurance provider.
The same review should be performed for other benefits such as:
- company car;
- meal card;
- private pension arrangements;
- mobile phone plan;
- gym or wellness allowance; and
- other employer-sponsored benefits.
This is particularly important where the company pays premiums or subscriptions in advance.
17. Keep a Complete Termination File
Employers should maintain a clear record of the employee’s departure.
The termination file may contain:
- employment agreement and addenda;
- resignation letter or termination notice;
- evidence supporting the termination reason;
- notice calculations;
- severance calculations;
- annual leave records;
- final payroll;
- SGK termination declaration;
- equipment-return confirmation; and
- relevant correspondence with the employee.
Good documentation can be especially important if a dispute arises after employment has ended.
Employee Offboarding Checklist in Turkey
Before closing an employee file, employers can use the following practical checklist:
☐ Confirm the reason for termination
☐ Review the employment agreement
☐ Determine the effective termination date
☐ Calculate the applicable notice period
☐ Determine whether notice compensation is payable
☐ Determine whether severance pay is payable
☐ Calculate the final salary
☐ Reconcile unused annual leave
☐ Review bonuses and commissions
☐ Process outstanding expenses
☐ Review allowances and benefits
☐ Organise the handover
☐ Recover company equipment
☐ Disable company access
☐ Select the correct SGK termination code
☐ Submit the SGK termination notification
☐ Prepare final payroll and termination payments
☐ Provide the relevant employee documents
☐ Close insurance and benefits where applicable
☐ Archive the termination documentation
Common Offboarding Mistakes Employers Should Avoid
Several practical mistakes can complicate employee departures in Turkey.
One common issue is treating every resignation or dismissal in the same way. The legal reason for termination can significantly affect the employee’s rights.
Another is failing to reconcile annual leave before the final payroll. Inaccurate leave records can result in incorrect termination payments.
Employers should also avoid selecting an SGK termination code before confirming the legal basis for termination.
Finally, companies should not wait until the employee’s final day to begin the process. Notice periods, handover arrangements, payroll calculations and administrative notifications should be coordinated in advance whenever possible.
Employee Offboarding for International Companies in Turkey
International companies may face additional challenges when an employee in Turkey leaves the organisation.
The employee may report to a manager located abroad, company equipment may belong to a foreign entity, payroll may be processed locally, and employment documentation may involve several different stakeholders.
Where the employee is hired through an Employer of Record (EOR) in Turkey, the foreign company should coordinate the termination process with its local EOR provider before communicating or implementing the termination.
This helps ensure that the termination date, notice requirements, payroll calculations, documentation and SGK reporting are aligned with Turkish employment requirements.
How Azkan Group Can Help with Employee Offboarding in Turkey
Employee termination in Turkey involves a combination of employment law, payroll and social security procedures.
Azkan Group supports international companies with Employer of Record (EOR), payroll and HR administration services in Turkey, including the practical management of employee departures.
Our support can include coordination of termination procedures, payroll calculations, unused annual leave, notice and severance calculations, SGK termination reporting and employee documentation.
For companies without their own legal entity or HR infrastructure in Turkey, having local support can significantly simplify the offboarding process and help ensure that employee departures are handled correctly.
