In order to prevent the COVID-19 epidemic and reduce its effects, some measures are taken regarding social and economic life in our country and worldwide. In the coming period, it is important to take some measures regarding both public health and social and economic life in combating the epidemic.

In this context, the Law on Reducing the Effects of New Corona Virus (Covid-19) Epidemic on Economic and Social Life and Law Amending Certain Laws (“Omnibus Bill”) has been accepted on the General Assembly agendas of the Turkish Grand National Assembly dated 15.04.2020 and 16.04.2020. Accordingly, some articles will come into force to be effective in the past.

The novelties and regulations brought by the Omnibus Bill are presented for your information in the content of this Information Note.

If you have detailed information requests and / or questions regarding the below mentioned issues, you may send them to us via [email protected].

GENERAL OVERVIEW TO OMNIBUS BILL

When General Preamble of Omnibus Bill is evaluated; the following matters are aimed with Omnibus Bill.

• Providing cash wage support to workers who are entitled to unpaid leave and who cannot benefit from short-time work allowance or who are not eligible for unemployment benefits when dismissed,
• All kinds of employment contracts will not be terminated by the employer for 3 months, except in cases of violation of ethics and goodwill rules,
• Aid for the elderly and disabled people for 3 months without income criteria and severe disability requirement,
• Businesses whose activities are stopped or cannot operate, the parts of annual announcement and advertisement taxes and annual environmental cleaning taxes that hit the periods in which the activities were stopped or could not be operated will not be taken.
• Treasury and municipal immovables, national parks and forestry General Directorate immovables and permits, KYK loan debts and municipalities’ income tax withholding payments, social insurance premium payments will be postponed for 3 months and public transport activities will be supported by the municipalities for 3 months,
• Water bill debts for residences and businesses whose activities have been suspended may be postponed by the municipalities for 3 months,
• The amounts that municipalities borrowed to DSI for the services of drinking, using and industrial water provided by DSI were postponed. From the annual installment payments made by the Metropolitan Municipalities, Municipalities and Affiliated Institutions to DSI as of the effective date of the Bag Law, the ones to be collected for 3 months have been postponed for 3 months,
• The medical devices and materials directly seized in the fight against smuggling and contagious epidemic will not be suspended and will be allocated to the relevant public institution,
• 2020 installment payment of loan payables of Agricultural Sales Cooperatives unions from the Support and Price Stability Fund will be delayed until 2021,
• The annual fee to be paid by the travel agencies member of the Travel Agencies Association will not be received in 2020 and the business documents of the travel agencies will be transferred independently from the agency title,
• Structuring TEDAŞ’s receivables from electricity consumption,
• Postponing the general assembly meetings of various institutions such as TOBB, cooperatives, associations and agricultural producer unions and maintaining the duties, powers and responsibilities of existing organs during this period,
• Postponing the elections to be made in 2020 regarding the vacant headmen,
• Lengthening of seaworthiness certificates issued to merchant ships and extension of inspections until 1/8/2020,
• The validity period of the licenses granted under the Agricultural Products Licensed Warehousing Law is extended by 1 year,
• Ability to carry out activities carried out in R&D and design centres and technology development regions temporarily outside the region,
• In cases of force majeure; Determining the methods related to the creation, recording, transmission, preservation and submission of information and documents related to the Ministry of Treasury and Finance, by the Ministry,
• Transferring funds from the budget of the Ministry of Treasury and Finance to the revolving fund operation units of the medical faculties and dentistry faculties of the state-owned universities, and the health practice and research centre units affiliated to them, and the institutions that provide health services affiliated to the rectorate.

ARRANGEMENTS PROVIDED WITH OMNIBUS BILL

1. On the grounds of compelling reason caused by the new coronavirus (Covid-19) outbreak; With the first article of the Omnibus Bill titled “Postponing, not taking or structuring some receivables”;

• The following payments can be postponed for 3 months by the Minister of Environment and Urbanization, without the requirement for an application: The costs that must be paid in accordance with the contract (sales, rent, preliminary permit, right of easement, usage permit, revenue share etc.) regarding the Treasury immovables, Those that have to be collected for their 3 month period as of 1/4/2020, the price to be paid depending on the sales notification.
• The following payments will be postponed for 3 months without the requirement for an application; except for the permits granted for the purpose of tourism facility; pursuant to the Forest Law No. 6831, permissions granted in the state forests on behalf of real and private legal entities; in accordance with the State Procurement Law No. 2886 by the General Directorate of Forestry, the fees to be collected from the recreation areas and immovable properties for a 3-month period as of 1/4/2020.
• From the leases made in accordance with the provisions of the State Tender Law No. 2886 in places subject to the National Parks Law No. 2873, the fees to be collected for a 3-month period as of 1/4/2020 payments will be postponed for 3 months without the requirement for an application.
• Regarding the immovables owned or under the ownership of metropolitan municipalities, municipalities, special provincial administrations and affiliates and local administrative associations to which they are members, the parts to be collected for the 3-month period from 19/3/2020 of the prices or amounts arising from the sales, adequate pay and leasing made in accordance with the relevant legislation will be postponed for 3 months by the Minister of Environment and Urbanization or the Minister of the Interior. In addition, the rental fees will not be collected for the period when the activities of which the activities were stopped or those that could not operate are not operating.
• Income tax withholding declaration and payment periods and all social insurance premium payments of metropolitan municipalities, municipalities and affiliates will be postponed for 3 months.
• Water bill debts related to the residences of the metropolitan municipalities, municipalities and their affiliates and the workplaces whose activities are suspended may be postponed by the municipalities for 3 months.
• Metropolitan municipalities and municipalities, with the decision of the parliament for 3 months, to the real and legal persons working by obtaining permission or license or renting a line, without interruption of public transport service; will be able to pay income support, license, permit, line rental debts corresponding to the specified period can be postponed for 3 months without interest.
• The annual announcement and advertising taxes and annual environmental cleaning taxes of the companies whose activities are stopped or cannot operate will not be taken, which corresponds to the periods in which the activities are stopped or inactive.
• Loan debts under the Higher Education Loan and Dormitory Services Law No. 351 will be postponed for 3 months without the need for an application.
• The debt installment payment of 2020 of the loan payables of the Support and Price Stability Fund (DFIF), which was restructured and paid once a year, by the agricultural sales cooperatives postponed to 2021 without interest.
• The annual fee to be paid by the travel agencies to the Travel Agencies Association will not be received in 2020.
• Turkey Electricity Distribution Company (TEDAŞ) receivables arising from electricity consumption (during the transfer process of privatization which devolved TEDAŞ receivables) was decided to be configured.

2. On the grounds of compelling reason caused by the new coronavirus (Covid-19) outbreak; With the 2nd article of the Omnibus Bill titled “Time extension, postponement of meetings and working remotely”;

• The validity period of the licenses granted under the Agricultural Products Licensed Warehousing Law No. 5300 and which will expire in 2020, has been extended by 1 year.
• The duration of seaworthiness certificates, which were issued between 11/3/2020 and 31/7/2020 on the basis of Law on the Protection of Life and Property at Sea, numbered 4922, was extended until 1/8/2020.
• Inspections to be made within the scope of Law on the Protection of Life and Property at Sea No 4922 were postponed until 1/8/2020.
• The notifications and declarations to be given by the associations and the general assembly meetings of the association were postponed until 31/7/2020. The postponed general assembly meetings will be held within 30 days from the date of postponement. Duties, powers and responsibilities of the existing bodies will continue until the first general meeting to be held after the postponement period. This regulation came into force to be applied as of 10/3/2020.
• General assembly meetings within the scope of the Cooperatives Law No. 1163 were postponed until 31/7/2020. The postponed general assembly meetings will be held within 3 months from the date of postponement. Duties, powers and responsibilities of the existing bodies will continue until the first general meeting to be held after the postponement period. This regulation came into force to be applied as of 10/3/2020.
• General assembly meetings within the scope of Veterinary Services, Plant Health, Food and Feed Law no. 5996 and Agricultural Producer Associations Law no. 5200 were postponed until 31/7/2020. Deferred general assembly meetings will be held within 3 months from the date of postponement. Duties, powers and responsibilities of the existing bodies will continue until the first general meeting to be held after the postponement period.

This regulation came into force to be applied as of 10/3/2020.

• The Union General Assembly, which should be held as per No. 5174 Turkey Chambers and Stock Exchanges Union of Chambers and Commodity Exchanges must be done in accordance with Article 61 in May 2020, will be held next year with the General Assembly.
• According to article 33 of the Law No. 2972 ​​on the Selection of Local Administrations and Neighborhood Mukhtars and Elderly Committees, the elections to be made in 2020 were postponed.
• Within the scope of the Law No. 5746 on Supporting Research, Development and Design Activities, the activities carried out in R&D and design centres are also carried out outside the R&D and design centres; Within the scope of the Technology Development Zones Law No. 4691, the Minister of Industry and Technology will be allowed to carry out activities outside the Region for a period of 4 months starting from 11/3/2020.

This regulation came into force to be applied as of 10/3/2020.

• Within the scope of Public Servants Unions and Collective Bargaining Law No. 4688, the determination of the number of members of unions and confederations and the meetings to be held within this scope; while this date is normally set as May 15 each year; it was organized for 2020 based on 15 July 2020. In this context, the statistic of the number of members published in the first week of July every year will be published in the Official Gazette in the first week of September for 2020. Finally, the President is authorized to extend these periods until May 15, 2021.
• Collective bargaining agreement, resolution of collective labor disputes, strike and lockout processes were stopped for 3 months. In order not to cause loss of rights for the parties upon the cessation, it was regulated that the deprivation periods in the Law do not work.
• Sale of the immovable properties owned by the Treasury, leasing, tramping, construction of land or floor construction and limited real rights facility operations, Tenders for the renting and use of the places under the terms and conditions of the state, in return for the service fee, it can be done electronically until 31/7/2020 by using the technical infrastructure of the affiliated and related institutions of the Ministry of Environment and Urbanization and their affiliates.

3. With the amendment made in the paragraph 3 of the article 4 of the Law on Travel Agencies and Travel Agencies Association No. 1618,

• The business document will be given to legal entities exclusively for a business.
• Providing permission from the Ministry, the Business Document can be transferred to another legal entity regardless of the agency title and this transfer will be valid on the date of registration in the Ministry.
• The title of the agency in the transferred business document or the title that will lead to contact will not be made available to any travel agency within 10 years.
• The legal personality that transferred the business document will not be given a business document again within 3 years.

4. With the Additional Article 45 added to the Higher Education Law No. 2547;

• It is regulated that the debt coverage percentages can be transferred from the budget of the Ministry of Treasury and Finance to those who fall below the rate determined by the Ministry of Treasury and Finance from Revolving fund management units of state-owned universities, medical faculties, dental faculties, and health-related application and research center units and institutes that provide health services affiliated to their rectorate.

5. With the “Provisional Article 18” added to the Social Services Law No. 2828,

• On the grounds of compelling reason caused by the new coronavirus (Covid-19) outbreak; It has been regulated that the elderly and disabled people who need care services can be provided for 3 months without seeking income criteria and severe disability.

6. In the last sentence of the second paragraph of the provisional article 23 of the Unemployment Insurance Law No. 4447, the phrase “excluding the eligibility determinations” has been added after the “applications” statement. Thus, it has been established that the eligibility determinations regarding the employer’s applications regarding short-time working allowance are not subject to the 60-day period specified in the law.

7. Taking into account the possible effects of COVID-19 epidemic disease with the “Temporary Article 24” added to the Unemployment Insurance Law No. 4447;

• Employees who are entitled to unpaid leave under the temporary article 10 of the 4857 numbered Labor Law and who cannot benefit from short-time work allowance and employees who cannot benefit from unemployment benefits according to the other provisions of the Law, who have been laid off after 15/3/2020, will receive cash fee support 39,24 Turkish Liras per day from the Fund as long as they are on leave or unemployed provided that they do not receive an old age pension from any social security institution (not to exceed the period of termination that cannot be made within the framework of the temporary article 10 of the Labor Law No. 4857).
• If the employee, who has been granted free leave within the scope of the above and who benefits from cash wage support, is still employed by the employer, in case of determination, an administrative fine will be imposed by the Social Security Institution at the monthly gross minimum wage amount for each employee employed in this way and for each month it is employed, and the paid cash payment will be collected from the employer together with the legal interest to be processed from the date of payment.

8. With the “Temporary Article 25” added to the Unemployment Insurance Law No. 4447;

• Short-term work payments will be made in accordance with the employers’ declaration, without waiting for the completion of the eligibility assessment for short-term applications with compelling reasons for employers due to the new coronavirus (Covid-19).
• Excess and improper payments made due to the employer’s misinformation and document will be collected from the employer along with its legal interest.

This article came into force to be applied as of 29/2/2020.

9. Temporary Article 10 has been added to the Labor Law No. 4857. In accordance with the added article;

• The employment contract of any employee covered or not covered by the Labor Law will not be terminated by the employer for 3 months from the effective date of the Omnibus Bill, except in cases that do not comply with the rules of ethics and goodwill, and similar causes.
• In the 3-month period mentioned above, the employer can leave the employee completely or partially on unpaid leave. In this context, leaving the unpaid leave does not give the employee the right to terminate the contract based on the valid reason.

10. Additional Article 7 on Force Majeure was added to the Public Financial Management and Control Law No. 5018.

According to this;

• In cases of force majeure such as natural disasters such as earthquake, fire, flood and epidemic disease or information systems of the Ministry of Treasury and Finance not working for any reason; The methods for creating, recording, transmitting, preserving and presenting data, information and documents will be determined by the Ministry of Treasury and Finance.

11. Provisional Article 12 has been added to the Anti-Smuggling Law No. 5607.

According to this;

• Medical devices and materials, test material, plasma, ethyl alcohol, isopropyl alcohol, glycerol, mask, gloves, overalls, shoe covers, cologne, disinfectant, disinfection devices, respirator, intensive care equipment, medicine, vaccine, first aid equipment and devices and materials used in their production uncovered under the Law until 30/9/2020 and directly related to the fight against infectious epidemic disease, if it is not necessary to keep it as evidence, after taking enough samples, if it is not possible, after determining all kinds of distinctive features, may be requested by the seizing administration or the relevant public agency from the judge during the investigation phase; from the court during the prosecution phase.

12. With the provisional article 13 added to the Turkish Commercial Code numbered 6102,

• Except for the state, special provincial administration, municipality, village and companies where other public entities shareholder; It has been determined that the capital companies can distribute up to 25% of the net profit of 2019 until 30/9/2020, and the general assembly cannot authorize the board of directors to distribute dividend advances.
• If the general assembly has decided to distribute dividends for the fiscal year 2019, but the shareholders have not yet been paid or partial payments, the payments for the part exceeding 25% of the net profit for 2019 will be postponed until 31/09/2020.
• The Ministry of Commerce was authorized by taking the opinion of the Ministry of Treasury and Finance, by determining the exceptions regarding the capital companies under the article and the procedures and principles regarding the implementation. In other words, the Ministry of Trade will determine the circumstances and scope where over 25% dividend can be distributed. Wide discretion was left to the administration for bringing exceptions.

13. New paragraphs and clauses related to administrative fines were added to paragraph 1 of Article 18 of the Law on the Regulation of Retail Trade No. 6585. In this context, from 10,000. -Turkish Liras to 100.000.-Turkish Liras; From 50.000.-Turkish Liras to 500.000.-Turkish Liras; administrative fines were issued.

14. Law on the Regulation of Retail Trade No. 6585, regulations were made within the scope of “Exorbitant price increase”, “stocking” and “Unfair Price Evaluation Board”.

According to this;

• There will be no exorbitant increase in the sales price of a good or service by manufacturers, suppliers and retail businesses.
• Producers, suppliers and retail businesses will not be engaged in activities that prevent the consumer from accessing goods and activities that create disruption in the market, disrupt market balance and free competition.
• Unfair Price Evaluation Board will be established in order to make arrangements for exorbitant price increases and stocking practices of manufacturers, suppliers and retail businesses, to make administrative fines by making audits and examinations when necessary, and to take all kinds of measures.

15. Paragraph 2 of Article 6 of The Establishing Turkey Wealth Funds Management Inc. and Law Amending Certain Laws Numbered 6741 has been changed.

According to this; the date was changed from “June” to “August” within the scope of preparation of consolidated financial statements to ensure a healthy audit of other companies that will be established by Turkey Wealth Fund, Turkey Wealth Funds Management Inc. and Company and their sub-funds.

16. In Accordance with Arrangements Made to The Establishing Turkey Wealth Funds Management Inc. and Law Amending Certain Laws Numbered 6741; new issues were added to paragraph 5 of Article 8, after the first sentence.

According to this;

It has been regulated that the Capital Markets Law’s articles 23 to 27 governing the important transactions of the partnerships, the right to leave, the offer to buy shares, the obligation to buy shares, the right to withdraw from the partnership and the right to sell and the second legislation will not apply to the transactions in limited with Turkey Wealth Fund, Turkey Wealth Funds Management Inc. (“Company”), sub-funds and companies that will be established by them, together with third parties on other companies or in the process to ensure control alone, the parties to the transactions, their direct and indirect partners, subsidiaries and companies that are controlled by these transactions.

In addition, it has been regulated that Article 202 of the Turkish Commercial Code for the unlawful use of Domination within the scope of the corporate group regulations will not be applied to the Turkey Wealth Fund, Company, sub-funds and companies that will be established by them, together with third parties on other companies or in the process to ensure control alone, the parties to the transactions, their direct and indirect partners, subsidiaries and companies that are controlled by these transactions.

As stated in the preamble, when providing various exemptions with the 6741 Law No to Turkey Wealth Fund, Turkey Wealth Funds Management Inc., sub-funds and companies that will be established by them, the favoured thing is, having the speed and reaction ability required by the market economy in the transactions to be performed while fulfilling the aims and expectations aimed by the Law, as adopted at the Constitutional Court. Since this speed and reaction can be made possible by benefiting from the exemption of Law 6362 to the side of the transaction, the said exemption was also recognized to the parties of the transaction. With this exception, outflow of resources from companies will also be prevented.