- within Energy and Natural Resources and Criminal Law topic(s)
A. Definition, Establishment, and Renewal of Fixed-Term Employment Contracts:
Employment contracts may be established as fixed-term or indefinite-term contracts depending on the nature and duration of the work. In addition, these contracts may be structured as full-time, part-time, with probation period, or in other forms suitable for different working arrangements.
Pursuant to Labor Law No. 4857, a fixed-term employment contract is defined as an employment contract established in writing between the employer and the employee based on objective conditions such as fixed-term work, completion of a specific task, or the occurrence of a specific event. In this respect, fixed-term employment contracts may be entered into for the purposes of (i) time-bound projects, (ii) completion of a specific task, or (iii) ensuring the occurrence of a specific event.
Employment contracts with a duration of one year or longer must be in writing. In cases where a written contract is not in place, the employer must provide the employee with a written document containing the following details within two months at the latest (fixed-term contracts with a duration of less than one month are excluded from this requirement):
- General and specific working conditions,
- Daily or weekly working hours,
- Basic salary and additional payments, if any,
- Salary payment period,
- Duration of the contract,
- Provisions that the parties must comply with in the event of termination.
If the employment contract terminates before the two-month period expires, the aforementioned information must be provided to the employee in writing no later than the date the contract terminates.
In addition to the above, provisions such as job descriptions, probationary periods, non-compete clauses, and confidentiality provisions may also be included in employment contracts.
Fixed-term employment contracts may not be renewed consecutively more than once without a substantial reason, such as the completion of a project or a specific event. However, if there is a situation that justifies the conclusion of a fixed-term contract due to the nature of the work, renewal of the contract is possible.
Fixed-term employment contracts established or renewed in violation of these principles are deemed to be indefinite-term employment contracts from the outset.
B. General Rules Regarding Fixed-Term Employment Contracts:
Employees working under a fixed-term employment contract may not be subject to different treatment compared to employees working under an indefinite-term employment contract of comparable nature, unless there is a valid reason.
On the other hand, salary and monetary benefits provided to employees under fixed-term employment contracts and calculated based on a specific period must be paid in proportion to the duration of employment.
C. Termination of Fixed-Term Employment Contracts:
A fixed-term employment contract generally terminates automatically upon the expiration of its term. Termination of the contract before the expiration of the term is only possible in the following cases:
- Termination during the probationary period,
- Emergence of a just reason under Articles 24 and 25 of the Labor Law, or
- Mutual agreement of the parties.
If a fixed-term employment contract is terminated before the expiration of its term in violation of the above provisions:
- If the contract is terminated by the employer, the employee may claim as compensation the amounts they would have been entitled to receive until the end of the contract term. However, in the event of a potential dispute, any income the employee saved due to the termination of the employment contract, and income they earned from another job or intentionally refrained from earning, will be deducted from the calculated compensation.
- If the employee terminates the contract, the employer may claim compensation equivalent to one-fourth of the employee's monthly salary, as well as reimbursement for any additional damages. However, if the employer has not suffered any loss or the loss incurred is lower, the court may reduce the amount of compensation in the event of a potential dispute.
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.
