Things to consider when firing employee in Turkey!!!
Ending Employment in Turkey!!!
If the termination of the employment contracts of your employees in Turkey is not based on a valid reason (closing company due to the income drop or general situation in Turkey is not a valid reason for termination of the employment contract according to Turkish Labor Law) listed in the Turkish Labor Law numbered 4857, your employees are entitled to receive payments according to Turkish Labor Law mentioned below.
1- Severance Payment
Since the termination of the employment contracts of your employees in Turkey is not based on a valid reason (closing company due to the income drop or general situation in Turkey is not a valid reason for termination of the employment contract according to Turkish Labor Law) listed in the Turkish Labor Law numbered 4857, your employees are entitled to receive severance payments provided that they have worked for at least one year including the probation period in Company.
An employee whose employment contract is terminated by the employer not based on a valid reason listed in Turkish Labor Law must be compensated with a severance pay to be calculated based on the employees’ seniority at the work place. This indemnity pay is calculated on the basis of the last thirty days’ gross wage per year of the employment contract from the commencement date of employment. The thirty days’ payment per year of employment may not exceed the upper limit determined semi-annually. However, severance pay may be agreed to be paid at an amount higher than the limit indicated above in case there is a provision in the employment contract.
2- Lieu of Notice
Since the termination of the employment contracts of your employees in Turkey is not based on a valid reason according to the relevant provisions of the Labor Law numbered 4857, Company is required to give specified notification periods to the employees prior to the termination of an employment contract, as shown in the following table.
Required minimum notification periods for employers and employees:
Duration of service Duration of notification period
0 – 6 months 2 weeks
6 – 18 months 4 weeks
18 – 36 months 6 weeks
more than 36 months 8 weeks
The Company may terminate an employment contract that is concluded for an indefinite period based on the notification periods indicated in the above table. If the Company wishes to terminate the employment contract immediately without waiting minimum notifications period , it has to pay lieu of notice covering the wages which correspond to the required minimum notification periods based on the employee’s duration of service.
3- Annual Paid Vacation
There are six paid public holidays per year (January 1st, April 23rd, May 1st , May 19th, August 30th, October 29th), plus two paid periods of religious holiday, which comes to eight days in total. Employees are entitled to be paid annual vacation for the periods indicated below, provided that they have worked for at least one year including the probation period:
Years of work Minimum paid vacation period
1 – 5 years (inclusive) 14 working days
5 – 15 years 20 working days
15 years (inclusive) or longer 26 working days
In case of termination of the employment contracts of the employees by Company, the Company also has to make accumulated annual holiday payments to the employees if there are unused vacation days of the employees according to the above table.
4- Working Hours and Overtime
Under the Turkish Labor Law, the maximum regular working hours are 45 hours per week. In principle, 45 hours should be split equally among the working days. However, in accordance with the Labor Law, working hours may be arranged by the employer within the legal limits.
As a rule, hours exceeding the limit of 45 hours per week are to be paid as “overtime hours”. The wage/salary for each hour of overtime work is paid by raising the hourly rate of the regular working salary by fifty percent. Instead of the overtime payment, employees may be granted 1.5 hours of free time for every overtime hour worked. Overtime hours worked during weekends and public holidays are to be paid as wage for one day holiday and overtime wage. These rates may be increased on the basis of a collective or personal employment contracts between employees and employers. The total number of overtime hours worked per year may not exceed 270 hours.
In case of termination of the employment contracts of the employees by Company, the Company also has to pay wage/salary for each hour of overtime work to the employees if there are unpaid overtime works of the employees according to Turkish Labor Law.
5- Risk of Reemployment Lawsuit against Company.
If the termination of the employment contracts of your employees in Turkey is not based on a valid reason listed in the Turkish Labor Law numbered 4857, your employees who worked in a company more than 6 months, are also entitled to file a reemployment lawsuit against the Company even if their rights were paid by the Company at the time of termination of their employment contract.
Reemployment lawsuit can be carried out only if there exists more than thirty employees at the time of termination of the employment contract, in the employee’s business premises. Even though there are less than 30 employees working in the Company’s business premises at present, if the Company is a group company, the courts count the number of the employees that works in the other companies which are also the members of the same group company when they are calculating the number of the employees in the Company. Consequently, in the conclusion of the lawsuit, usually the courts decide against the employer and the reemployment of the plaintiff employee.
In that case, the employees have ten business days from the date of the finalization of the court decision to apply to their employer (Company) for reemployment (if they do not apply to their employer in the above – mentioned time period, then they will lose their right for reemployment.) It is obligatory for the employer to reemploy the employees within one month from the date of employees’ application.
If the employer does not reemploy the employees within the above – mentioned time period, then the employer has legally the obligation to pay indemnification to the employees which is the amount of their at least four at most eight month salary.
The courts mostly adjudge for eight-month salary to be paid to the employees. Furthermore, in addition to the above – mentioned indemnification amount, regardless of whether or not the employees reemployed, concurrently with the court’s decision of reemployment, the employer legally obliged to pay their wage and other rights at most four months for the time they being unemployed until the court decision is finalized.
Bazı bilgiler için Kaynakça: www.invest.gov.tr
Attorney at Law
WiklundKurucuk Law Firm
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