Learn about the legal processes for employee termination and severance in Turkey
In accordance with the Turkish Labor Law (No. 4857), specific notice periods are required for both employers and employees during employment termination. These notice periods serve as a crucial buffer period for both parties involved in termination. For employers, it provides time to recruit and onboard a replacement employee, while for employees, it offers an opportunity to secure alternative employment and manage financial transitions.
The legal notice period is determined by the employee's length of service, as outlined in Article 17 of the Turkish Labor Law:
The notice must be given in writing to ensure clarity and legal enforceability. This written document should clearly state the termination date, calculated by adding the notice period to the date of notification.
There are limited exceptions to the statutory notice periods:
In the absence of a written notice, the employer is obligated to pay the employee an amount equivalent to their salary for the unprovided notice period.
Severance pay, or "Kıdem Tazminatı" as it's known in Turkey, is a significant part of Turkish labor law.
To qualify for severance pay in Turkey, an employee must have been employed by the same employer for at least one full year (365 days). Severance pay is typically due if the termination is due to the employer's termination without just cause, the employee's termination for just cause (such as employer misconduct), retirement, military service, or the death of the employee.
The calculation of severance pay is based on the employee's final gross salary, which includes bonuses, allowances, and other benefits. For each full year of employment, the employee is entitled to 30 days' worth of their gross salary. For example, an employee earning a gross salary of 10,000 Turkish Lira, who has worked for the company for 5 years, would be entitled to 1,500,000 Turkish Lira in severance pay.
There is a maximum limit on the amount of severance pay an employee can receive. This limit is revised semi-annually by the Ministry of Labor and Social Security. For the period of January 1, 2024 to June 30, 2024, the maximum severance pay ceiling is 15,034.18 Turkish Liras.
There are certain situations where severance pay is not required. If a fixed-term contract ends on the agreed date without renewal, severance pay may not be due. Additionally, if the employer terminates the employment due to the employee's gross misconduct or disqualifying reasons, the employee may lose their rights to severance pay.
Upon termination of the employment contract, the employer is obligated to make the severance payment in a lump sum.
In Turkey, the labor law recognizes several categories of employment termination. These include:
In this case, both the employer and employee agree to end the employment relationship, establishing the terms of separation.
The employer can terminate the employment in two ways:
The employee can also terminate the employment in two ways:
All termination notices in Turkey must be provided in written form to ensure clarity and legal compliance.
There are also additional considerations to keep in mind:
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