Labor Law

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What is Severance Pay? How to Calculate Notice Period and Severance Pay?

Labor Law

We provide consultancy on workers’ rights, employers’ rights, working conditions, labor and trade union relations.

Labor law is basically the branch of law that deals with employee rights, employer rights, working conditions, labor and trade union relations.

The main sources of labor law in our country are Labor Law No. 4857, Social Insurance and General Health Insurance Law, Press Labor Law, Maritime Labor Law, Trade Unions Law, Turkish Code of Obligations, Collective Labor Contract Strike and Lockout Law and Labor Courts Law.

In our country, the most common type of lawsuit under the Labor Law is the labor receivables lawsuit. This lawsuit will be possible in the event that the employee’s employment contract is terminated unfairly by the employer or the employee terminates the employment contract for just cause.

  • Severance Pay: In order to be entitled to severance pay, the employee must be a worker subject to the Labor Law, must have worked in the same workplace for one year without interruption and the employment contract must have been terminated for one of the relevant reasons stipulated in the Law. Severance pay is equivalent to one month’s dressed gross wage for each year of employment. According to the severance pay law, the statute of limitations varies as 5 or 10 years depending on the period of termination of the employment contract.
  • Notice Compensation: According to the law, the party who fails to comply with the notice requirement for the termination of the employment contract is obliged to pay compensation in the amount of the wage corresponding to the equivalent of the notice period.

Notice pay is only applicable for indefinite-term employment contracts.

According to Article 17 of the Labor Law,

a) For a worker whose employment has lasted less than six months, 2 weeks after the notice is given to the other party,
b) for a worker whose employment has lasted from six months to one and a half years, 4 weeks after the notice is given to the other party,
c) for a worker whose employment lasts from one and a half to three years, 6 weeks after the notice is given to the other party,
d) For a worker whose employment has lasted more than three years, 8 weeks after the notice is given,

Deemed terminated. These periods are minimum and can be increased according to the agreements.

The party who fails to comply with the terms and conditions of the notice must pay compensation in the amount of the wage for the notice period.

The statute of limitations for compensation varies as 5 or 10 years depending on the period of termination of the employment contract.

Overtime Pay: The employee must be paid overtime wages for the maximum working time specified in the law. If this is violated, the employee is entitled to overtime wages.

According to the law, with the agreement of the parties, the normal weekly working time can be distributed to the working days of the week in different time intervals, provided that it does not exceed eleven hours in total per day. In this case, the average weekly working time of the employee within a two-month period cannot exceed the normal weekly working time. Overtime wages are time-barred after a period of five years.

Weekly Holiday Pay: For the non-working day of the week, the employee is paid in full by the employer without any provision for that day’s wage. In case of working on a holiday, the employer must pay the wage for that day as specified in the law. The statute of limitations for week holiday receivables is set as five years.
National Holiday and General Holiday Pay: If the employees working subject to the Labor Law do not work on the days accepted as national holidays and general holidays in the laws, they must be paid their full wages for that day without any work, and if they work without taking a holiday, they must also be paid one day’s wage for each day worked. The statute of limitations for these receivables is five years.

Unpaid or underpaid wages of the employee may also be subject to a labor receivables lawsuit. During the wage allocation, the highest interest rate applied to deposits is valid. In terms of wage receivables, the date on which interest will start to accrue will be the date on which the employee defaults the employer with a notice. The statute of limitations for wage receivables is five years.

Annual Leave Pay: An employee who works in the same workplace for one year without interruption is entitled to annual paid leave. The annual leave right that the employee does not use accumulates and must be used afterwards. If there is an unused annual leave period by the employee when the employment contract is terminated, this right can be claimed from the employer under the name of annual leave fee receivable.

Pursuant to the labor law legislation, the duration of annual paid leave to be granted to employees is determined by the length of service;

a) Fourteen days for those with one to five years of service (including five years),
b) Twenty days for those with more than five years and less than fifteen years,
c) Twenty-six days for those with fifteen years (inclusive) and more,

It cannot be less.

The statute of limitations for annual vacation pay is five years.

Minimum Living Allowance: It refers to the income tax deduction applied to the employee and his/her dependents. If it has not been paid by the employer in accordance with the law, it may be subject to a labor receivables lawsuit after the termination of the employment contract. The statute of limitations for labor receivables is five years.

The labor receivables lawsuit is mandatorily subject to the Labor Law mediation method. Since applying to the mediator before filing a lawsuit is also a litigation condition, it is important to pay attention to this issue. Because, if the Court determines that the mediator was not applied before the lawsuit is filed, the Court decides to dismiss the lawsuit on procedural grounds due to the lack of a cause of action.

The courts in charge of the labor receivables case in terms of labor law practices are the Labor Courts.

The competent court for this case is specified in Article 6 of the Labor Courts Law.

The court having jurisdiction in the lawsuits to be filed in the labor courts is the court of the place of residence of the defendant real or legal person within the date of the lawsuit and the court of the place where the work or transaction is carried out.
In compensation cases arising from work accidents, the court of the place where the relevant work accident or damage occurred and the court of the settlement of the injured worker are also authorized
If there is more than one defendant, the court of the domicile of any of them is also competent
The provisions of other laws regarding the jurisdiction of labor courts are reserved
Authorization agreements contrary to the provisions of this article shall be deemed invalid.

The trial procedure in labor receivables cases is a simple trial procedure in accordance with the basic principles of Labor Law.

After the lawsuit is filed and the exchange of petitions is completed, the preliminary examination stage is initiated. Following the preliminary examination stage, the Court hears the witnesses of the parties depending on the requested labor claim.

After the statements of the witnesses are received, the Court shall have an expert accountant prepare an expert report to determine the amount of the labor receivables.

The main evidence considered by the Courts in determining the amount of the employee’s receivables is the expert report.

If the court determines that the claims of the employee, who can be represented by a labor law attorney, are justified, the case is accepted and the expert report or reports issued within the scope of the file are taken into consideration and receivables are ruled in favor of the employee in accordance with the Labor Law workers’ rights.

Obligations of Companies Regarding Message Management System

The explicit consent of customers regarding data processing must be obtained online through IYS. If the company has obtained the explicit consent of the customer not through the system but through its own means, it must record the consent statement it has received within three business days in the Message Management System, with the burden of proof belonging to it.

Consents not recorded in the Message Management System are deemed invalid. It is against the Law to send commercial electronic messages to customers whose consent has not been obtained. The deadline for registering the consents already in the IYS is May 31, 2021. Consents not registered in the system before this date will be deemed invalid and sending commercial electronic messages to these recipients will be in violation of the Law.

Pursuant to the Regulation, companies are obliged to keep the consent records related to commercial electronic messages sent to the electronic communication addresses of recipients in order to promote and market their products and services or to increase their awareness with content such as congratulations and wishes for three years from the date the consent ceases to be valid, and other records related to commercial electronic messages for three years from the date of recording.

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Important things to know

Field Related Questions and Answers

You can obtain severance pay, which is not paid by the employer, through mediation or litigation.

You can receive overtime pay for work that exceeds the legal and contractual limits.

Overtime pay can be proved by payrolls, sign-in and sign-out signatures and cards, workplace correspondence or witnesses.

If you have an accident at work, you can obtain compensation by filing a direct lawsuit.

This can be proved both by witness evidence and documents.

The average duration of a labor claims case is 3 years.

It is mandatory to apply to the mediator before filing such lawsuits, otherwise the lawsuits will be dismissed.

If you become permanently ill as a result of your work, it is possible to sue for compensation.

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