Redundancy Payments

SEVERANCE PAY

Severance Pay is entitled by  employee if some conditions arises. The employees are entitled to severance pay provided that they have been continuously employed for at least one year with the same employer. The calculation of severance is made based on last gross salary. If the gross salary exceeds upper limit of severance payment, it is calculated with upper limit. Upper Limit of Severance is updated per 6 months (January and July)

-Conditions for Severance under Situation of Employee Resigning

This situaton is classified into two parts;

• Resignation of employee without good reason
• Resignation of employee by submitting valid reason

1. Resignation of employee without good reason

The employee is paid nothing if he/she resigns voluntarily except for four cases;

1. If a female quits working voluntarily within 1 year after she gets married
2. Mandatory Military Service (for male)
3. If an employee having 3600 social security contribution days and 15 years of employment history resigns by submitting a document from Social Security Instution (SGK) indicating working history.
4. Death of employee ( it is paid to his/her family)

2. Resignation of employee by submitting valid reason

How to be terminated the employment contract by the employee is explaned in Article 24 of Labour Law. The employee is entitled the severance if he/she terminates the contract within 6 days depending on one of the reasons in the article.

Reasons;

• Employee’s live or health being in danger due to job performing
• If the employer or another employee who is continuously nearby the employee and with whom he is in contact is suffering from an infectious disease or from a disease incompatible with the performance of his duties.
• If the employee is given false information about job, salary, work condition etc by employer
• If the employee or one of his/her family member is insulted by employer
• If the employee is harassed by the employer.
• If employer threatens employee or one of employee’s family member or urge them to commit any crime.
• If employer commits a crime with imprisonment againist the employee or a member of employee’s family or smear or charge with unreal crime about the employee, or a member of his/her family.
• If employer doesnt take measure for the employee harassed by another employee even though he is informed of this.
• If the employee is not paid exact salary on time.
• If work is stopped more than 1 week due to force majeure
• If actual work condition is not complied with the condition in the employment contract.

If the employee is terminated due to reasons below, the employee will not be paid severance payment.

• If employee pretends to have necessary features for vacant position by misleading employer
• If employee insults employer or a member of employer’s family.
• If employee harasses another employee
• If employee bullies employer or another employer.
• If employee comes to workplace by being drunk or taking drugs, or takes drugs in workplace.
• If employee commits a theft, breach of trust and reveal employer’s trade secrets.
• If employee receive imprisonment more than seven days due to commiting a crime in workplace and the improsement is not delayed.
• If the employee does not come to workplace for two days sequenced without employer’s permission or twice in one month on the working day following holiday or on three working days in any month
• If employee does not perform his duties despite the warning.
• If employee endangers job safety due to his fault
• If employee damages the machinery, tools and equipment in workplace due to his negliance and fault and the damage can not be compensated by his 1 month salary amount.

3. Calculation of Severance Payment

Severance payment is calculated based on gross salary of the employee. The calculation is made by multiplying number of years of employment with last month gross salary at termination. The employee is to be paid  severance pay equal to 30 days gross salary for each year complete of employment. On the other hand if gross salary in last month exceeds statutory ceiling limit of severance payment (8.284,51 TL for second half of 2021) the calculation is made based on ceiling limit.

NOTICE PAY

Notice Pay is a payment made to an employee when employment is terminated without notice, instead of the employee working through a notice period and receiving pay in the normal way. It is applicable to contrary situation. It means if the employee terminates the employment contract at any time while working, the employee has to pay Notice Pay to the employer.

According to Article 17 of 4857 Labour Law, notice periods as follows;

1. 2 weeks for working 6 months
2. 4 weeks for working between 6 months and 1,5 years
3. 6 weeks  for working between 1,5 years and 3 years
4. 8 weeks for working more than 3 years.

If there is fixed-term employment contract signed between employee and employer, it is not liable to Notice.