The general overview of Turkish Labor Law's provisions
concerning the legal framework for the calculation of redundancy
payments, in particular notice periods and severance payments are
1. Notice of termination
The party wishing to terminate the contract of employment is
required to give notice in writing. The period of notice will
depend on the employee's length of service. As a rule, there is
a notice period between the date of the notice of termination and
the date at which the notice takes effect.
Minimum notice periods (may be increased by the contract of
employment to be valid for the Employer):
two weeks notice for employees employed for less than 6
four weeks notice for employees employed for between 6 months
six weeks notice for employees employed for between 1½
eight weeks notice for employees employed for more than 3
2. Damages in lieu of notice – "Notification
If the terminating party does not wish to give notice, it will
be required to pay damages in an amount of the gross salary that
would have been paid or earned during the notice period as set out
hereinabove. The gross salary includes premiums, travel and food
amounts which are continuously paid to the employee during the
Notification compensation must be paid if the employee is not
going to work for the notification period. Income tax and stamp
duty should be deducted from this amount, but the social security
premiums are not paid since there is no actual work realized.
3. Severance compensation and other payments
The amount of severance compensation payable is equal to thirty
days salary for each year of service to the company. The durations
that are a fraction of a year (after the first year) are calculated
The reference salary used, as the basis for calculation is the
most recent gross monthly salary cut off at a ceiling of the
monthly pension of the highest paid civil servant in Turkey. This
monthly pension is currently 2.731,85Turkish Liras (approx. 1,200
€) as of July 1, 2011. The reference salary is reviewed
every six months to take account of inflation. Therefore the
severance payment is calculated in the following manner:
30 days worth of an employee's salary (calculated from the
legal maximum salary amount- currently 2.731,85Turkish Liras)
x (the number of year worked for the company).
In addition to the severance and notification compensation the
bonus amount and the vacation days the employee is entitled to
(applied pro rata) is also paid to the employee(s) during
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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