Employment Termination in Türkiye: Severance, Notice and Reinstatement

Termination of employment in Türkiye engages three distinct sets of rules: severance pay, notice pay and — where job security provisions apply — reinstatement. Each has its own conditions and its own deadlines.

Severance pay

Severance pay continues to be governed by Article 14 of the former Labour Law No. 1475, which remains in force for this purpose. The basic requirement is at least one year of service with the same employer.

Even where the one-year threshold is met, the manner of termination is decisive. Severance is payable where the employer terminates for any reason other than the employee’s conduct contrary to morality and good faith; where the employee terminates with just cause under Article 24 of Labour Law No. 4857; on retirement or military service; and, for female employees, on resignation within one year of marriage.

Resignation without just cause extinguishes the entitlement. Severance is calculated at 30 days’ gross remuneration for each full year of service, subject to a statutory ceiling revised every six months. The calculation is based on the gross wage including benefits, which covers recurring payments such as transport, meal and bonus allowances.

Notice pay

Article 17 of Law No. 4857 requires the terminating party to give advance notice. Notice periods increase with length of service: two weeks below six months, four weeks up to eighteen months, six weeks up to three years and eight weeks thereafter.

A party failing to observe the period pays the corresponding wage. Importantly, notice pay may be owed by the employee as well, where the employee leaves without proper notice.

Reinstatement claims

Job security provisions apply where the workplace employs thirty or more employees, the employee has at least six months’ service, the contract is of indefinite duration and the employee is not an employer’s representative.

Two deadlines are critical. The employee must apply to a mediator within thirty working days of notification of termination — mediation is a procedural precondition. If no settlement is reached, proceedings must be commenced within two weeks of the final mediation record.

If the court finds the termination invalid and the employer does not reinstate the employee, the employer pays job security compensation of between four and eight months’ wages, plus up to four months’ wages for the period the employee was out of work.

Limitation

Severance and notice pay claims are subject to a five-year limitation period running from termination. Limitation is not applied by the court of its own motion; it must be raised by the defendant.

This article is for general information only and does not constitute legal advice. Legislation and case law change; your situation must be assessed on its own facts. Please consult a lawyer before acting.