04/12/2025

Employer’s Right to Terminate an Employment Contract for Just Cause in Türkiye

Employer’s Right to Terminate an Employment Contract for Just Cause

Termination of an employment relationship refers to the unilateral dissolution of the contract by either the employee or the employer. In Türkiye, the fundamental rules governing how and under which conditions employment contracts may be terminated are set out in the Labour Law No. 4857 (“Labour Law”).

Under the Labour Law, an employment contract may be ended unilaterally on the basis of just cause or valid cause. It is also possible for both parties to terminate the agreement without citing any cause, provided that statutory obligations—such as notice periods or compensation—are fulfilled. The distinction is significant: when no legitimate justification exists, the terminating party becomes subject to certain liabilities, whereas the presence of an objective just cause removes these obligations.

Essentially, a just cause grants either party the right to end the employment relationship immediately when the circumstances prescribed by the Labour Law are met. These grounds are listed separately for employees and employers, ensuring that both sides’ interests are safeguarded.

This article focuses specifically on the employer’s right to terminate for just cause. Article 25 of the Labour Law outlines four categories of just cause available to the employer:

  1. Health-related reasons
  2. Immoral, dishonourable or malicious behaviour
  3. Force majeure
  4. Absence due to custody or arrest

1. Grounds Allowing the Employer to Terminate for Just Cause in Türkiye

Article 25 provides that “the employer may terminate a fixed-term or indefinite-term contract before its expiration or without complying with notice periods, in the following circumstances.” The subsequent clauses explain each ground in detail.


1.1 Health-Related Grounds

The Labour Law first addresses the employer’s right to terminate on medical grounds:

“If the employee suffers an illness or injury caused by his/her own intentional act, irregular lifestyle, or intoxication, and consequently is absent for three consecutive workdays or for more than five workdays in a month.”

Accordingly, if the employee’s health issue stems from intentional behaviour, disorderly habits, or alcohol use—and the resulting incapacity exceeds the above limits—the employer gains the right to terminate for just cause.

Apart from this specific scenario, the employer may also terminate if the employee’s inability to work due to illness, accident, pregnancy, or childbirth extends beyond the statutory notice period by an additional six weeks. If this period is not exceeded, the employer may not invoke just cause. During such suspension of work, the employee cannot claim wages.

For pregnancy and childbirth, the suspension period begins only after the statutory maternity leave under Article 74 has ended. During maternity leave, the employment contract remains suspended, and the employer has no right to terminate on this basis.

“If a Health Committee report establishes that the employee suffers from an incurable illness incompatible with the performance of their duties.”

In such a situation, the employer may immediately end the contract for just cause.


1.2 Conduct Contrary to Morality, Honour, Good Faith, or Similar Principles

Article 25 also grants termination rights where the employee’s behaviour violates ethical, moral, or good-faith standards. Examples include:

  • Misrepresentation at hiring:
    If the employee deceives the employer by claiming qualifications or conditions essential to the job that they do not possess.
  • Insulting or defamatory conduct:
    If the employee uses offensive language or behaviour against the employer or their family, or makes unjust accusations harming the employer’s reputation.
  • Sexual harassment towards another employee.
  • Physical assault or intoxication:
    If the employee assaults the employer, a family member, or a co-worker, or attends work intoxicated or uses drugs at the workplace.
  • Breach of trust:
    Theft, disclosure of trade secrets, or any act that undermines loyalty and honesty.

These examples are not exhaustive. Whether a particular behaviour amounts to a breach of honesty or fidelity must be evaluated based on the specific circumstances.

Additional grounds include:

  • Committing a crime at the workplace that results in a non-suspended prison sentence longer than seven days.
  • Unexcused absenteeism: Being absent for two consecutive workdays, two days following public holidays in a single month, or three workdays in total within one month.
  • Persistently failing to perform duties after being warned. Although the law does not require written warning, written proof is advisable.
  • Causing significant damage through intent or negligence:
    The damage must exceed the employee’s thirty-day wage and must result from negligence or willful misconduct.

1.3 Force Majeure

Another ground concerns force majeure events:

“If a force majeure event prevents the employee from working at the workplace for more than one week.”

The force majeure must directly affect the employee (not the workplace). During the first week of interruption, the employee must be paid half wages. After one week, the employer may terminate without notice or allow the contract to remain suspended—without wage entitlement for the suspended period.


1.4 Custody or Arrest

Finally, the employer may terminate if:

“The employee’s absence due to detention or arrest exceeds the statutory notice period as defined in Article 17.”

Once the relevant notice period is exceeded, the employer acquires the right to terminate.


2. Notice Requirements and Time Limits for Immediate Termination in Türkiye

Article 19 requires employers to:

  • Deliver the termination notice in writing
  • Clearly state the grounds for termination
  • Obtain the employee’s defence when termination is based on behaviour or performance (except where Article 25/II applies)

Under Article 109 (as amended in 2025), all notifications must be made in writing or, with the employee’s consent, via registered electronic mail (REM). Termination notices must always be in writing.

Article 26 sets strict deadlines for using the right of immediate termination:

  • The employer must act within six working days after becoming aware of the event.
  • In any case, the action must be taken within one year from the event.
  • The one-year limit does not apply if the employee has gained material benefit from the incident.

Failure to comply with these deadlines invalidates the termination.


3. Legal Consequences of Termination for Just Cause in Türkiye

When an employer terminates the contract lawfully for just cause, the contract ends immediately. However, certain employee rights may still arise.

Severance Pay

If the termination is based on reasons other than those listed under Article 25/II (morality and good-faith violations), and the employee has completed at least one year of service, they are entitled to severance pay.

Notice Compensation

Since termination for just cause is immediate, the employee is not entitled to notice pay.

Job Security Rights

If the termination is deemed lawful and final, the employee cannot claim reinstatement, and job security provisions do not apply.

Other Earned Receivables

Payments such as:

  • accrued annual leave pay
  • overtime wages
  • wages for national/public holidays

remain payable even in termination for just cause, as they arise from work previously performed.


4. Conclusion

Article 25 of the Labour Law outlines in detail the situations in which an employer may terminate an employment contract for just cause, including health issues, misconduct, force majeure, and arrest or detention.

However, employers must strictly follow procedural requirements—especially written notice and statutory time limits. Failure to adhere to these rules may render the termination unlawful and create liability for compensation.

Ultimately, the employer’s right to terminate for just cause is a carefully balanced mechanism designed to protect legitimate employer interests while ensuring that employees’ earned rights remain safeguarded.