Termination Of Employment Contracts In Türkiye Just Cause Notice And The Cost Of Getting It Wrong

Introduction

Turkish Labour Law No. 4857 draws several lines that must not be blurred. A termination on notice is not automatically lawful merely because notice pay is offered. For employees protected by the job-security provisions, the employer must also prove a valid reason connected with the employee's capacity or conduct, or with the operational requirements of the enterprise, workplace or work. Immediate termination for just cause is a different and narrower route under Articles 24 and 25. It dispenses with notice, but it demands a statutory ground, reliable evidence and strict compliance with the time limit in Article 26.¹

For an international employer, the decisive work usually occurs before the letter is signed. The company must identify the legal employer, the employee's actual seniority, the decision-maker with authority to terminate, the applicable collective or individual terms, the date on which the relevant facts became known, and the evidence that can lawfully be used. A headquarters instruction that overlooks these local questions can turn a manageable exit into reinstatement exposure, multiple compensation claims and a credibility problem in court.

1. Three Routes That Must Be Kept Separate

The appropriate legal route is determined by the facts, not by the label placed on the termination letter. The comparison below states the practical starting point. Each case still requires review of the contract, the workplace headcount and the employee's role.

A fixed-term contract requires separate treatment. It ordinarily ends on the agreed date and may be concluded only where an objective condition justifies the fixed term. Early termination of a fixed-term contract may produce different damages questions under the Turkish Code of Obligations and should not be managed by mechanically applying the notice rules for indefinite-term employment.²

2. Ordinary Termination and Statutory Notice

Article 17 establishes minimum notice periods for indefinite-term employment. They are mandatory minimums and may be increased by contract or collective agreement. The terminating party may observe the period, or the employer may terminate immediately by paying the wage corresponding to the period in advance.³

Pay in lieu should be calculated on the employee's gross remuneration, including regularly provided monetary and measurable contractual benefits where the statutory calculation requires them. Payment of notice indemnity does not cure an absent valid reason for a job-security-protected employee. Equally, an employer that relies on Article 25 just cause but fails to prove it may face notice and severance consequences, depending on the ground and the employee's eligibility.

For employees outside job-security protection, Article 17 still prohibits abuse of the termination right. A bad-faith termination can result in compensation equal to three times the notice period, in addition to notice indemnity where notice was not observed. The protection is not a substitute for the reinstatement regime, and the two should not be pleaded as though they were interchangeable.⁴

3. When Job Security Requires a Valid Reason

Articles 18 to 21 generally protect an employee working under an indefinite-term contract who has at least six months of seniority in a workplace with thirty or more employees, subject to statutory exclusions for certain employer representatives. The thirty-employee count can require enterprise-level analysis where the employer has more than one workplace in the same line of business. Titles alone do not determine the managerial exclusion; actual authority to manage and to hire or dismiss is critical.⁵

A protected employee may be dismissed only for a valid reason relating to capacity, conduct or the operational requirements of the enterprise, workplace or work. The employer bears the burden of proving the valid reason. If the employee alleges that the real reason was different, including discrimination, union activity or retaliation, the allocation of proof may require a more detailed analysis under the relevant statute.

3.1 Written reasons and the right to respond

The termination notice must be in writing and must state the reason clearly and precisely. Where termination is based on the employee's conduct or performance, the employee's defence must ordinarily be obtained before termination. This requirement does not remove the employer's right to rely on Article 25(II) where its conditions are met. The Court of Cassation has repeatedly treated the defence requirement and a concrete notice as substantive procedural safeguards, not paperwork that may be reconstructed after litigation begins.⁶

4. Immediate Termination for Just Cause

Just cause is reserved for circumstances in which continuation of the employment relationship cannot reasonably be expected even for the notice period. Article 24 gives the employee immediate termination rights; Article 25 gives corresponding rights to the employer. The categories are statutory and should be matched to proven facts rather than expanded by analogy.

4.1 Employee termination under Article 24

An employee may terminate immediately on specified health grounds, for conduct contrary to morality and good faith, and for force majeure preventing work. Examples within the statutory framework include material misrepresentation concerning essential terms, sexual harassment where the employer fails to take adequate measures after notice, assault or serious insult, and non-payment or materially incorrect payment of wages. When the Article 24 ground is established, the employee may preserve eligibility for severance pay under Article 14 of former Labour Law No. 1475, provided the other conditions are satisfied.<sup7

4.2 Employer termination under Article 25

Article 25 groups employer grounds under health reasons, conduct contrary to morality and good faith, force majeure, and absence resulting from detention or arrest beyond the statutory notice-related period. Article 25(II) includes serious forms of dishonesty, harassment, assault, breach of trust, unauthorized absence meeting the statutory thresholds and refusal to perform duties after warning. Not every rule breach reaches this level. Proportionality, consistency and the surrounding circumstances remain central when a court tests whether immediate termination was justified.⁸

The legal consequences also vary within Article 25. For example, termination under Article 25(II) normally defeats statutory severance eligibility, whereas other Article 25 grounds may not. The termination letter should therefore identify the factual conduct and the statutory classification with care. A vague reference to 'loss of trust' is particularly risky when the evidence concerns an ordinary performance or capability issue rather than dishonesty or a fundamental breach.

5. Article 26 and the Six Working Day Rule

Article 26 provides that the right to terminate for conduct contrary to morality and good faith under Articles 24(II) and 25(II) must be exercised within six working days after the entitled party learns of the relevant conduct, and in any event within one year after the act. The one-year limit does not apply where the employee obtained a material benefit from the event.⁹

The six-working-day period normally begins when the person or body authorized to exercise the termination power has sufficiently reliable knowledge of the material facts. A prompt, proportionate investigation may therefore be legitimate, but an organization cannot indefinitely suspend the clock through internal layers or unexplained delay. The file should record when the allegation arrived, who received it, when decision-making authority obtained sufficient knowledge, what investigative steps were taken and when notice was delivered.

The Article 26 period applies to the morality and good-faith grounds specified in Articles 24(II) and 25(II). It should not be generalized to every valid-reason dismissal or to every other statutory ground. Even where Article 26 does not directly govern, delay can weaken the asserted causal link and the credibility of an argument that continuation of employment became intolerable.

6. Performance Dismissals Require a Credible Record

Low performance usually belongs to the valid-reason regime rather than Article 25 just cause. The Court of Cassation expects performance criteria to be objective, job-related, communicated in advance and applied consistently. A single disappointing period, an unexplained rating or a target outside the employee's control rarely provides a safe foundation by itself. The employer should be able to show the expected standard, the employee's actual result, the period over which the shortfall persisted and the operational significance of the deficiency.

In its 9th Civil Chamber decisions E. 2007/27584, K. 2008/5327 and E. 2007/13994, K. 2007/27720, the Court of Cassation emphasized objective performance assessment, persistence of the deficiency and the connection between the criterion and the work actually performed. Later case law also confirms that the employee's defence must be requested before a dismissal based on conduct or performance, in line with Article 19.¹⁰

A professional performance process will usually contain the following elements, adapted to the role and the seriousness of the issue:

A current job description and measurable standards that were communicated before assessment.

Comparable and non-discriminatory treatment of employees performing equivalent work.

Contemporaneous evidence, not a retrospective file assembled after the dismissal decision.

Clear feedback, reasonable support or training, and an opportunity to improve where improvement is realistically possible.

A request for the employee's response to the specific allegations before the final decision.

Consideration of a less severe measure where it can reasonably protect the employer's legitimate interest.

These are not mechanical boxes that guarantee validity. They are the evidentiary structure through which the employer proves that the reason was genuine, the process was fair and dismissal was a proportionate last resort. Serious misconduct and genuine operational redundancy call for different evidence and should not be forced into a performance-improvement template.

7. Operational Redundancy and the Last Resort Principle

An operational termination must rest on a real managerial or economic decision that eliminates or materially changes the need for the employee's work. The court does not ordinarily substitute its commercial preference for the employer's business judgment, but it tests whether the decision was genuine, consistently implemented and causally connected to the dismissal. Selection criteria should be documented where more than one employee performs comparable work.

The principle that termination is a last resort is particularly important. Before dismissing, the employer should consider available vacancies, reasonable reassignment, training for a suitable position, removal of overtime or external labour performing the same work, and other proportionate measures. The law does not require the creation of an artificial role, but a foreign group should examine vacancies within the Turkish employer rather than assume that a global reorganization slide proves local redundancy.

8. A Defensible Termination Process

The sequence below should be treated as a decision-control process, not as a generic form. Some steps will be unnecessary in a straightforward resignation or fixed-term expiry; others are indispensable in a contested conduct, performance or redundancy case.

Evidence collection must also comply with Turkish data-protection and communications rules. An employer should not assume that broad monitoring is lawful merely because the employee used a company device. The purpose, prior notices, proportionality and the least intrusive means should be reviewed before relying on private communications or extensive digital monitoring.

9. The Financial Exposure of a Defective Termination

9.1 Notice indemnity and severance pay

Notice indemnity is payable when an indefinite-term contract is terminated without observing the applicable notice period and no lawful immediate-termination ground removes the notice requirement. Severance pay remains governed by Article 14 of former Labour Law No. 1475, which continues in force for this purpose. An eligible employee with at least one year of service generally receives thirty days' gross wage for each completed year, with a proportionate amount for part of a year, subject to the statutory ceiling and the relevant termination category.¹¹

The severance base can include regular monetary and measurable benefits in addition to basic salary. The ceiling is revised periodically. A calculation should therefore use the ceiling and payroll data applicable on the actual termination date rather than a figure copied from an earlier transaction.

9.2 Earned claims and special compensation regimes

Termination does not extinguish accrued wages, contractual bonuses that have vested, or payment for unused annual leave. Article 59 requires unused annual-leave pay to be paid on termination based on the wage at the termination date.¹²

A discriminatory termination may trigger compensation under Article 5 and unpaid rights. Union-related termination can engage the separate protection in Law No. 6356, including union compensation. Workplace union representatives have a distinct protection regime. These remedies cannot safely be summarized as a general rule of 'double compensation' for protected employees. Pregnancy, maternity, statutory leave, military service, union activity and similar protected circumstances must each be analysed under the relevant provision and facts.¹³

Settlement language also requires caution. Under Article 420 of the Turkish Code of Obligations, an employee release concerning employment receivables is valid only if the statutory conditions are met, including timing, written form, specificity and compliant bank payment. A broad release signed on the termination date does not automatically eliminate later claims.¹⁴

10. Reinstatement Claims and Mandatory Mediation

A job-security-protected employee who seeks reinstatement must apply to a mediator within one month after notification of termination. If no settlement is reached, the employee must bring the reinstatement action within two weeks after the final mediation record. These are short periods and should be monitored from the date of valid notification.¹⁵

If the court finds the termination invalid, it orders reinstatement. The employee must apply to the employer within ten working days after final notification of the judgment. If the employer does not reinstate within one month, it becomes liable for court-determined compensation of four to eight months' wages. The employee may also receive wages and other entitlements for up to four months for the period not worked, subject to the statutory conditions and set-off rules.¹⁶

The parties may resolve the consequences of reinstatement during mandatory mediation, but the agreement must address the statutory items required by law. A foreign employer should coordinate settlement authority before the mediation date so that the representative can negotiate within an approved range and document tax, social-security and payment mechanics accurately.

11. Particular Concerns for Foreign Employers

Cross-border groups often create risk through process fragmentation rather than bad intent. A regional manager may decide the outcome, a Turkish manager may sign the letter, group compliance may hold the evidence and payroll may calculate entitlements under a different assumption. Turkish counsel should align these workstreams before notification.

Confirm which entity is the legal employer and whether any joint-employer or transfer issue exists.

Translate global policies into Turkish practice and prove that the employee received the applicable version.

Identify the person or corporate body authorized to dismiss and record when that authority learned the decisive facts.

Review work-permit and immigration notifications separately for foreign employees.

Use a delivery method that proves the content and date of notice; email alone may create avoidable factual disputes.

Coordinate payroll, tax, social security, unused leave and benefits before any settlement figure is offered.

Preserve documents in their original form and maintain a clear Turkish chronology for mediation and litigation.

12. Frequently Asked Questions

How long does an employee have to challenge a dismissal?

A job-security-protected employee seeking reinstatement must apply to mandatory mediation within one month after notification. If mediation ends without settlement, the action must generally be filed within two weeks after the final record. Monetary claims may have different limitation periods, so the reinstatement deadline should not be treated as the only relevant period.

Can an employee resign for just cause and still receive severance pay?

Yes, where the employee proves an Article 24 ground and satisfies the severance conditions under Article 14 of Law No. 1475. Common examples include serious employer misconduct and material non-payment of wages. The evidence and timing should be reviewed before resignation, especially where the facts are disputed.

Does payment of notice indemnity make every employer termination lawful?

No. It addresses the notice obligation. It does not supply a valid reason for a protected employee, correct a defective Article 19 process or convert insufficient evidence into just cause.

Must the employee always receive a warning before dismissal?

No single rule requires a warning in every case. Warnings and an opportunity to improve are normally important in remediable performance or conduct cases. They may be unnecessary where the misconduct is sufficiently grave or where an operational reason cannot be cured by employee improvement.

Can termination be notified by email?

The legal and evidentiary answer depends on the route and the parties' arrangements. For employer termination within the job-security regime, written notice with a clear and precise reason is essential. A signed letter, notarial notice or another method that proves both content and delivery is generally safer than an ordinary email.

Can the employer rely on a different reason after litigation starts?

The employer is generally confined to the reason stated clearly in the termination notice. A vague or incomplete letter is difficult to repair later. The factual investigation and legal classification should therefore be complete before notice is issued.

Does probation remove all termination risk?

No. Article 15 permits a probation period of up to two months, extendable to four months by collective agreement. During probation either party may terminate without notice or compensation, but accrued wages and other rights remain due, and discriminatory or retaliatory motives remain unlawful.¹⁷

Conclusion

A lawful termination in Türkiye begins with classification. The employer must distinguish notice termination from a valid-reason dismissal and from immediate termination for just cause. It must then match the route to evidence, authority, timing and procedure. The greatest avoidable risks are relying on notice pay as a substitute for a valid reason, treating ordinary underperformance as gross misconduct, missing the six-working-day Article 26 period, and issuing a vague letter before the investigation is complete.

For foreign employers, a short local review before notification usually costs far less than correcting a defective exit through mediation, reinstatement litigation and multiple compensation claims. The decision file should be capable of explaining, in one coherent chronology, what happened, when the authorized decision-maker learned it, why the selected route was lawful and how every termination payment was calculated.

Bibliography and References

Legislation: Turkish Labour Law No. 4857, especially Articles 5, 11, 15, 17 to 26, 59 and 74. Former Labour Law No. 1475, Article 14. Labour Courts Law No. 7036, Articles 3 and 11. Turkish Code of Obligations No. 6098, Article 420. Trade Unions and Collective Bargaining Agreements Law No. 6356, especially Articles 24 and 25.

Selected Court of Cassation authorities: Court of Cassation 9th Civil Chamber, E. 2007/27584, K. 2008/5327. Court of Cassation 9th Civil Chamber, E. 2007/13994, K. 2007/27720. Court of Cassation 9th Civil Chamber, E. 2016/12350, K. 2020/1151. Court of Cassation Assembly for the Unification of Judgments, E. 2017/9, K. 2018/10, 19 October 2018.

Official sources: Republic of Türkiye, Ministry of Labour and Social Security, official legislation and labour-law information, https://www.csgb.gov.tr/. Republic of Türkiye, Official Gazette, https://www.resmigazete.gov.tr/. Court of Cassation, Official Case Law Search Database, https://karararama.yargitay.gov.tr/. Ministry of Justice, official legislation database, https://mevzuat.adalet.gov.tr/.

Selected legal books: Süzek, Sarper, İş Hukuku. Çelik, Nuri; Caniklioğlu, Nurşen; Canbolat, Talat; Özkaraca, Ercüment, İş Hukuku Dersleri. Mollamahmutoğlu, Hamdi; Astarlı, Muhittin; Baysal, Ulaş, İş Hukuku. Centel, Tankut, İş Güvencesi.

Foontotes

^{1 Turkish Labour Law No. 4857, Articles 17 to 26.}

^{2 Turkish Labour Law No. 4857, Article 11; Turkish Code of Obligations No. 6098, provisions governing service contracts and early termination consequences.}

^{3 Turkish Labour Law No. 4857, Article 17.}

^{4 Turkish Labour Law No. 4857, Article 17, final paragraphs on bad-faith compensation and compensation for non-compliance with notice periods.}

^{5 Turkish Labour Law No. 4857, Article 18. See also Court of Cassation 9th Civil Chamber, E. 2016/22737, K. 2017/14623, on the functional assessment of employer-representative status.}

^{6 Turkish Labour Law No. 4857, Article 19. See Court of Cassation 9th Civil Chamber, E. 2016/12350, K. 2020/1151. For the defence question in Article 25(I)(b) health-related termination, see Court of Cassation Assembly for the Unification of Judgments, E. 2017/9, K. 2018/10, 19 October 2018.}

^{7 Turkish Labour Law No. 4857, Article 24; former Labour Law No. 1475, Article 14.}

^{8 Turkish Labour Law No. 4857, Article 25.}

^{9 Turkish Labour Law No. 4857, Article 26. The statutory wording is six working days from learning of the act and, in principle, one year from the act; the one-year period does not apply where the employee obtained a material benefit.}

^{10 Court of Cassation 9th Civil Chamber, E. 2007/27584, K. 2008/5327; Court of Cassation 9th Civil Chamber, E. 2007/13994, K. 2007/27720.}

^{11 Former Labour Law No. 1475, Article 14, which remains in force for statutory severance pay.}

^{12 Turkish Labour Law No. 4857, Article 59.}

^{13 Turkish Labour Law No. 4857, Articles 5, 18 and 74; Trade Unions and Collective Bargaining Agreements Law No. 6356, Articles 24 and 25.}

^{14 Turkish Code of Obligations No. 6098, Article 420.}

^{15 Labour Courts Law No. 7036, Article 3; Turkish Labour Law No. 4857, Article 20 as amended by Law No. 7036.}

^{16 Turkish Labour Law No. 4857, Article 21.}

^{17 Turkish Labour Law No. 4857, Article 15.}

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.