Turkey: Termınatıon Of Labor Contract S Under The Turkısh Labor Law

Last Updated: 10 September 2018
Article by Pınar Gayretli

A) SCOPE

This legal assessment has been prepared to provide interested persons with brief information on termination of the labor contracts by employer and to clarify the rights of the parties in case of termination. To this respect, in accordance with the Turkish Labor Code, Code of Obligations, and other relevant applicable Laws of Turkey and judicial decisions, we hereby would like to inform you as follows;

B) REGULATIONS on the TERMINATION OF LABOR CONTRACTS

First of all, we would like to point out that Labor Code numbered 4857 is the main law which governs the employee and employer relations. Employment contracts are mainly terminated in accordance with this Code. In case of absence of a provision, the 6098 numbered Code of Obligations shall be applied.

Employment Contracts may be terminated either by employee or employer. The biggest risk arises for employers when employer wishes to terminate to contracts. Therefore, we will evaluate the termination of the contract by employer first and we will mention termination of the contracts by employee.

B.I. Termination of the Employment Contracts by Employer

According to Labor code numbered 4857, if there are more than 30 employees working under the employer and if the employee has been working in the company more than 6 months, employers does not have right to employment contract without a reason. In other words, the employer shall have a reason to terminate to contract. In the Labor Code it is stated that there are only two ways for the employers to terminate the employment contracts. One is termination of the contracts by showing a valid reason(article 18-19 of the Labor Code) and the other is rightful termination (Article 25 of the Labor Code).

We would like to explain the difference these two provisions; As it is mentioned above the employer needs reason to terminate the employment contract. These articles differ based on the aggravation of the termination reason.

I.Termination of the Contracts by Showing a Valid Reason (Article 18-19 of the Labor Code)

I.I. Before Termination

In accordance with the Article 18 of Labor Code; the employers that employ more than 30 could not terminate the unlimited contracts of their employees with a seniority of 6 months without valid reason. Therefore termination notice shall be in writing and should depend on a legal ground. There is no definition for valid reason neither in the article 18 nor in other articles of Labor code or relevant regulations. The definition of valid reason take shape from the Supreme court decisions.

  • the worker's qualification
  • the worker's behavior
  • the necessities of the establishment, the workplace or the work
  • et cetera can be considered by valid reason for termination of the employment contracts by employer.

Nevertheless, we need to point out that each case shall be evaluated separately and the Supreme court decisions shall be checked specifically for each case.

We would like to emphasize that according to article 19 of the Labor Code; before termination of contract employers shall request for defensive statement from the employees for their bad form. Even if the article does not state that the request for defensive statement shall be written, according to Supreme court decisions both the employer's request and employee's statement shall be written. Otherwise, the employers cannot prove that they requested for defensive statement. Furthermore, even if according to article 19 of the Labor Code it seems that requesting only one defensive statement is enough again according to Supreme court decision employers shall request for defensive statement at least two times. Supreme court rules that after the first defensive statement employer shall warn the employee by written notice. In the mentioned notice the employer shall state that the acts of the employee are not acceptable and if employee repeat his/her acts, his/her contract will be terminated. Again we would like to remind that these are the general explanations therefore each case shall be evaluated separately.

I.II. Termination Process

When employers decide to terminate the contract after all the procedure, The employee shall be notified by written notification which containing clear and definite justifications for termination.

In case of the termination based on the valid reason; according to Article 17 of the Labor Law, the employer is entitled to terminate an employment contract concluded for an indefinite period by observing the following minimum notification periods:

2 weeks prior notice if duration of employment is less than 6 months,

4 weeks prior notice if duration of employment is between 6 – 18 months,

6 weeks prior notice if duration of employment is between 18 months – 3 years,

8 weeks prior notice if duration of employment is more than 3 years.

If the employer does not obey this rule and terminate the contract immediately, such employer shall pay to the employee the above amounts of salary to compensate for notice period.

The other important point is that if the employment contract is terminated based on the valid reason the severance payment of the employee shall be paid to him/her.

I.III. Risks after Termination

Even if all the procedures have been completed by the employer, the employee has right to apply to court for reemployment by claiming that the reason was not valid for the termination. The burden of proof that the employment contract was terminated with a valid reasons lies with the employer. In this case the employers shall prove all their claims by written documents which is very difficult most of the cases. In case the employee wins the case;

  • The employee applies within 10 days to employer for reemployment.
  • The employer either call the employee within 1 month for reemployment or does not.
  • If the employer calls the employee within 1 month;

    • 4 months' pay for the period spent without working + Social Security Payments
    • If already paid, the worker shall reimburse the severance pay and pay in lieu of notice and if applicable, annual leave pay.
  • If the employer does not call the employee within 1 month

    • 4 months' pay for the period spent without working + Social Security Payment
    • Compensation amounting to 4-8 months' pay
    • If not paid already, severance pay and pay in lieu of notice and if applicable, annual leave pay

II.Termination of the Contracts by Rightful Termination (Article 25 of the Labor Code)

II.I. Provisions

The article 25 of the Turkish Labor Code regulates the rightful termination right of the employer. In case of rightful termination, the employer does not have to pay any kind of compensation to employee and can terminate the contract immediately.

According to article 25 the employer has a right to terminate the contract rightfully in following cases;

"The employer may terminate the contract, whether for a definite or indefinite period, before its expiry or without having to comply with the prescribed notice periods, in the following cases:

I. For reasons of health

a) If the employee has contracted a disease or suffered an injury owing to his own deliberate act, loose living or drunkenness, and as a result is absent for three successive days or for more than five working days in any month.

b) If the Health Committee has determined that the suffering is incurable and incompatible with the performance of the employee's duties. In cases of illness or accident which are not attributable to the employee's fault and which are due to reasons outside those set forth in (a) above and in cases of pregnancy or confinement, the employer is entitled to terminate the contract if recovery from the illness or injury continues for more than six weeks beyond the notice periods set forth in article 17. In cases of pregnancy or confinement, the period mentioned above shall begin at the end of the period stipulated in Article 74. No wages are to be paid for the period during which the employee fails to report to work due to the suspension of his (her) contract.

II. For immoral, dishonourable or malicious conduct or other similar behaviour

a) If, when the contract was concluded, the employee misled the employer by falsely claiming to possess qualifications or to satisfy requirements which constitute an essential feature of the contract, or by giving false information or making false statements;

b) If the employee is guilty of any speech or action constituting an offence against the honour or dignity of the employer or a member of his family, or levels groundless accusations against the employer in matters affecting the latter's honour or dignity;

c) If the employee sexually harasses another employee of the employer;

d) If the employee assaults or threatens the employer, a member of his family or a fellow employee, or if he violates the provisions of Article 84(prohibition on Alcohol and Narcotic);

e) If the employee commits a dishonest act against the employer, such as a breach of trust, theft or disclosure of the employer's trade secrets.;

f) If the employee commits an offence on the premises of the undertaking which is punishable with seven days' or more imprisonment without probation;

g) If, without the employer's permission or a good reason, the employee is absent from work for two consecutive days, or twice in one month on the working day following a rest day or on three working days in any month

h) If the employee refuses, after being warned, to perform his duties;

i) If either wilfully or through gross negligence the employee imperils safety or damages machinery, equipment or other articles or materials in his care, whether these are the employer's property or not, and the damage cannot be offset by his thirty days' pay.-

III. Force majeure:

Force majeure preventing the employee from performing his duties for more than one week.

IV. If due to the employee's being taken into custody or due to his arrest, his absence from work exceeds the notice period indicated in Article 17."

Please note that any of these circumstances arise, the contract of the employee shall be terminated within 6 working days after the employer become aware of the acts of the employee. We further would like to point out that even if the act of the employee is included in the scope of article 25 of the Turkish Labor Code(not all) but most of the cases the employer shall request a defensive statement form employee before termination. Therefore, the process shall be complete as soon as possible by taking into consideration the 6 working days deadline

II.II. Risks after Termination

Again, even if all the procedures have been completed by the employer, the employee has right to apply to court either for reemployment by claiming that the reason was not valid or rightful for the termination or request his/severance payment and notification compensation with interest. The burden of proof that the employment contract was terminated with a valid reasons lies with the employer.

C. CONCLUSION

As it can be clearly seen above mentioned explanations, Turkish Labor Courts always make their judgment on favor of Employee. Therefore, the employer shall make and keep all the warnings, notices etc. as written documents. Furthermore, as we have already mentioned each case shall be examined separately and whenever employer face with any problem with employees all the actions shall be taken with legal advisor.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Bereket & Baltaci
Oncel, Aydın, Duman & Uygun Attorney Partnership
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Bereket & Baltaci
Oncel, Aydın, Duman & Uygun Attorney Partnership
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions