Severance pay in Turkish law
Severance pay is applied in Turkey, but not for all sectors and all workers.
LOCAL EXPATS CORNER
Q: “Dear Sadettin. I have read your articles in the Hurriyet Daily News & Economic Review and I am grateful for all. Can you give me information about severance pay? I have been working in Turkey for five years with work permit. In my country, the workers have the right to severance pay. Is there the same right in Turkey for workers? If there is, how is it calculated? Best regards, Dany.”
A: Dear Dany, severance pay is applied in Turkey, but not for all sectors and all workers. For example, these groups are not covered:
Sea and air transport activities; establishments and enterprises employing a minimum of 50 employees where agricultural and forestry work is carried out; any construction work related to agriculture that falls within the scope of family economy; work and handicraft performed in the home without any outside help by members of the family or close relatives up to and including the third degree; domestic services; apprentices; sportsmen; those undergoing rehabilitation; establishments employing three or fewer employees and falling within the definition given in Article 2 of the Tradesmen and Small Handicrafts Act.
All employees outside of these groups are entitled to severance pay.
As well you need to know that there are certain conditions to receive severance pay. The severance period and the end of the work contract are important factors in determining entitlement to severance pay.
In order to gain severance pay rights, an employee must have been working at the same workplace for at least one year. In cases where the contract of an employee is terminated after one year by the employer for reasons other than ethical or other similar circumstances, or in cases where the employee has not displayed goodwill; by the employee based on justifiable grounds; because of compulsory military service of a male employee; to draw old age, retirement pension or disability allowance from, or for a lump sum payment by the institutions or special annuity funds to which they are attached; by a female employee, in cases of voluntary termination within one year of her marriage; or because of the death of the employee, the employer shall pay the employee a severance payment at the rate of 30 days’ wages for each full year since the date the employment commenced.
There are several elements that should be taken into consideration when calculating the amount of severance pay. It is essentially calculated based on the number of years spent at the workplace. For each full year from the start of work to the dismissal of the employee, the employee is entitled to the most recent 30 days’ wages. Payment shall be made pro rata for a portion of a year.
Regardless of your wage level, the upper limit of severance pay is 2,623 Turkish Liras per month for 2011. For example, for your five years work, you could receive a mazimum 13,115 liras as severance pay.
Hurriyet Daily News/04.03.2011
LOCAL EXPATS CORNER
Q: “Dear Sadettin. I have read your articles in the Hurriyet Daily News & Economic Review and I am grateful for all. Can you give me information about severance pay? I have been working in Turkey for five years with work permit. In my country, the workers have the right to severance pay. Is there the same right in Turkey for workers? If there is, how is it calculated? Best regards, Dany.”
A: Dear Dany, severance pay is applied in Turkey, but not for all sectors and all workers. For example, these groups are not covered:
Sea and air transport activities; establishments and enterprises employing a minimum of 50 employees where agricultural and forestry work is carried out; any construction work related to agriculture that falls within the scope of family economy; work and handicraft performed in the home without any outside help by members of the family or close relatives up to and including the third degree; domestic services; apprentices; sportsmen; those undergoing rehabilitation; establishments employing three or fewer employees and falling within the definition given in Article 2 of the Tradesmen and Small Handicrafts Act.
All employees outside of these groups are entitled to severance pay.
As well you need to know that there are certain conditions to receive severance pay. The severance period and the end of the work contract are important factors in determining entitlement to severance pay.
In order to gain severance pay rights, an employee must have been working at the same workplace for at least one year. In cases where the contract of an employee is terminated after one year by the employer for reasons other than ethical or other similar circumstances, or in cases where the employee has not displayed goodwill; by the employee based on justifiable grounds; because of compulsory military service of a male employee; to draw old age, retirement pension or disability allowance from, or for a lump sum payment by the institutions or special annuity funds to which they are attached; by a female employee, in cases of voluntary termination within one year of her marriage; or because of the death of the employee, the employer shall pay the employee a severance payment at the rate of 30 days’ wages for each full year since the date the employment commenced.
There are several elements that should be taken into consideration when calculating the amount of severance pay. It is essentially calculated based on the number of years spent at the workplace. For each full year from the start of work to the dismissal of the employee, the employee is entitled to the most recent 30 days’ wages. Payment shall be made pro rata for a portion of a year.
Regardless of your wage level, the upper limit of severance pay is 2,623 Turkish Liras per month for 2011. For example, for your five years work, you could receive a mazimum 13,115 liras as severance pay.
Hurriyet Daily News/04.03.2011
