Termination of employment in Turkey varies depending on whether the employment is for a definite or indefinite period and whether it is based on just cause.
Here’s a breakdown of the termination procedures:
Definite Period Employment
- Employment for a definite period automatically ends at the agreed-upon date.
Indefinite Period Employment
- Both the employer and the employee have the right to unilaterally terminate an indefinite period employment relationship at any time. Notice must be served according to statutory notice periods.
- Parties can agree on longer notice periods.
- Failing to adhere to the notice periods obliges the non-compliant party to pay the wages that would have accrued during the notice period.
- In certain situations, the employer is obligated to pay severance upon termination of employment.
- Severance pay is mandatory when terminating an employee with at least one year of continuous employment, except in cases of just cause related to unethical behavior or actions against good faith.
- It’s also required in cases of an employee’s death, resignation to begin compulsory military service, retirement, disability, or when a female employee resigns within one year of marriage.
- Severance pay is calculated as 30 days of salary for each full year of employment, based on the employee’s latest gross wage.
Termination in Larger Workplaces
- In workplaces with over 30 employees, if an employer terminates an employee with over six months of seniority, it must be based on business necessity or the employee’s inability to meet job requirements.
- If the termination is due to business necessity, it should be the last resort. Failing to meet these conditions may result in the employee seeking re-employment and additional compensation.
Termination Based on Just Cause
- The Labor Law allows both employers and employees to terminate employment contracts immediately in certain situations.
- Just causes for employers include an employee’s severe illness, unethical behavior, actions against good faith, force majeure events that keep the employee away from work for a week or more, or employee detention due to criminal enforcement.
- Just causes for employees include work or workplace health and safety risks, unethical behavior by the employer, actions against good faith, or force majeure events in the workplace preventing work for at least a week.
- Employers must terminate the employment within six business days of discovering the just cause.
- A one-year statute of limitations applies to just cause, except when the employee solicited financial benefits through the wrongful action.
- Employees have the right to challenge terminations through mediation within one month of termination.
- Mediation is mandatory for certain employment disputes and must be pursued before filing a lawsuit in labor courts.
- If the conflict remains unresolved after mediation, the employee can file a lawsuit within two weeks of the final mediation report.
- In labor suits, the burden of proof typically falls on the employer.
Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.