Terminating an employee in Turkey requires strict adherence to the Labor Law and other relevant regulations. Employers must understand notice periods, severance pay obligations, and the specific grounds and procedures for lawful termination to avoid potential legal challenges. Improper termination can result in costly litigation and damage to a company's reputation.
Navigating Turkish employment law can be complex, especially when dealing with terminations. Employers must carefully document all steps, provide proper notifications, and ensure that severance calculations are accurate. Understanding the nuances of just cause versus without-cause terminations is also crucial.
Notice Periods
Turkish Labor Law mandates that employers provide advance notice of termination, the length of which depends on the employee's tenure. These minimum notice periods are as follows:
| Length of Service | Notice Period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months - 1.5 years | 4 weeks |
| 1.5 years - 3 years | 6 weeks |
| More than 3 years | 8 weeks |
- Important Considerations: Notice periods apply to terminations initiated by the employer. Employees also must provide notice if they resign, although the consequences for failing to do so are different. Notice periods can be extended by mutual agreement but cannot be shortened.
Severance Pay ( kıdem tazminatı )
Severance pay is a crucial aspect of employment termination in Turkey. Employees who have worked for at least one year are generally entitled to severance pay upon termination, provided the termination is not due to the employee's fault (just cause).
- Calculation: Severance pay is calculated based on the employee's gross salary (including regular bonuses and benefits) at the time of termination, multiplied by the number of years of service. For each full year of employment, the employee is entitled to 30 days' gross salary. A pro-rata calculation is applied for any remaining months of service.
- Formula: Severance Pay = (Gross Salary x Years of Service) + Pro-rata payment for remaining months
- Maximum Limit: There is a cap on the amount of severance pay an employee can receive. This cap is updated twice a year. As of April 2025, the maximum severance pay is TRY 38.269,61.
- Entitlement Conditions: Severance pay is typically payable when an employee is terminated without just cause, retires, is called up for military service, or, in some cases, resigns for valid reasons (e.g., employer's breach of contract).
Grounds for Termination
Turkish law distinguishes between termination with just cause (haklı nedenle fesih) and termination without just cause (geçerli nedenle fesih).
Termination With Just Cause (by the Employer)
The Labor Law specifies certain situations that allow an employer to terminate an employment contract immediately and without providing notice or severance pay. These include:
- Employee misconduct (theft, fraud, etc.)
- Breach of loyalty
- Absenteeism without valid excuse
- Insubordination
- Disrupting workplace order
- Committing a crime at the workplace
Termination Without Just Cause (by the Employer)
Even without just cause, an employer can terminate an employee, but they must adhere to notice periods and severance pay requirements (if applicable). Valid reasons for termination without just cause can include:
- Economic difficulties
- Technological changes
- Restructuring or downsizing
- Poor performance (provided it is documented)
- Incompatibility with the job
Procedural Requirements
Terminating an employee in Turkey requires following specific procedures to ensure compliance with the law.
- Documentation: Maintain thorough records of employee performance, warnings, and any incidents leading to termination.
- Notification: Provide written notice of termination to the employee, clearly stating the reason for termination.
- Consultation (if applicable): If the termination is due to economic or technological reasons affecting a large number of employees, consult with the labor union or employee representatives.
- Payment: Ensure timely payment of all outstanding wages, severance pay (if applicable), and any accrued vacation pay.
- Release: Obtain a release from the employee confirming receipt of all payments and waiving any further claims (although the validity of such releases can be challenged in court).
Employee Protections Against Wrongful Dismissal
Turkish law provides several protections for employees against wrongful dismissal.
- Reinstatement: If an employee believes they have been unfairly dismissed, they can file a lawsuit seeking reinstatement. If the court finds the termination unlawful, the employee may be ordered to be reinstated, and the employer may be required to pay compensation for lost wages.
- Compensation: Even if reinstatement is not ordered, the employee may be entitled to compensation for the unlawful termination, in addition to severance pay and other entitlements.
- Burden of Proof: In wrongful dismissal cases, the burden of proof generally lies with the employer to demonstrate that the termination was justified.
- Time Limits: Employees have a limited time (generally one month) to file a lawsuit challenging their termination.
