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Principles for Termination of Employment Contracts
I. THE CONDITIONS OF TERMINATION OF THE CONTRACT
a) The Necessity of Having A Valid Cause of Termination
In the workplaces employing thirty or more workers, the employer must rely on a valid reason for termination of the indefinite employment contract made with the employee who have at least six months of seniority.
The employee who alleges that no reason was given for the termination of his employment contract or who considers that the reasons shown were not valid to justify the termination shall be entitled to sue against that termination with the labor court within one month of receiving the notice of termination. If the employer does not have a valid reason for the termination of the employment contract and if this is determined by the Court or the Arbitrator, the Employer is obliged to have the employee gotten back to work. Otherwise the employer is obliged to pay compensation amount of at least for a period of four months and a maximum for a period of eight months.
b) The Procedure of The Termination
Firstly, the employee’s statement must be taken before the worker can be terminated for reasons related to his behavior or his or her performance.
The employer shall send a termination notice in writing and indicate the reason for the termination.
c) Notice of Termination and Notice Pay
Before terminating the indefinite employment contract, a notice shall have to be served accordingly then the contract shall be terminated:
i. Two-Week Notice Period (2 Weeks): In the case of an employee whose employment has lasted less than six months,at the end of the second week following the serving of notice to the other party;
ii. Four-Week Notice Period (4 Weeks): In the case of an employee whose employment has lasted for six months or more but for less than one-and-a-half years, at the end of the fourth week following the serving of notice to the other party;
iii. Six-Week Notice Period (6 Weeks): In the case of an employee whose employment has lasted for one-and-a-half years or more but for less than three years, at the end of the sixth week following the serving of notice to the other party;
iv. Eight-Week Notice Period (8 Weeks): In the case of an employee whose employment has lasted for more than three years, at the end of the eighth week following the serving of notice to the other party.
These are minimum periods and may be increased by contracts between the parties. The party who does not abide by the rule to serve notice shall pay compensation covering the wages which correspond to the term of notice.
d) Severance Payment
Severance payments are currently regulated by Article 14 of the former Turkish Labor Law number 1475.Article 14 provides that an employer is required to pay severance payments to a terminated employee where (cumulatively):
i. The employee has worked for at least one year in the same workplace;
ii. The employment relationship was terminated:
- By the employer regardless just cause;
- By the employee for just cause;
- Due to military service;
- As a result of a female employee’s resignation due to her marriage, and within one year following the marriage;
- Upon retirement;
- As a result of the employee’s death; or
- Although the employee qualifies for job protection.