Articles Tagged ‘LAW, - Turkish Labor Law’

Is Compensatory Work Possible for Eves of Feasts?

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Yes it is possible.

In case of bad weather and under some other circumstances that made working impossible, employer has the right to ask its employers to make up unworked hours at a later date. Also, the days unworked before and after holidays –especially the half-days before the Turkish religious holidays- may be considered within the same scope. However, this right of employer has some limitations; and monetary fines can be applicable in the cases of violating the provisions set forth in Law and Regulation.

Compensatory work is arranged in Article 64 of Labor Law No. 4857, and in Article 7 of Working Time Regulations;

“In cases where time worked has been considerably lower than the normal working time or where operations are stopped entirely for reasons of suspending work due to force majeure or on the days before or after the national and public holidays or where the employee is granted time off upon his request, the employer may call upon compensatory work within two months in order to compensate for the time lost due to unworked periods.”

Employer is under the obligation of informing the employees clearly for which reasons specified in Labor Law, and on what dates the compensatory work will be done.

Compensatory work must be done within sixty days following the date reason that prevented work is disappeared and workplace returned to its normal operation. After this period employees cannot be forced to make up their unworked hours.

PAID MILITARY SERVICE EXEMPTION

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Employees who benefit from paid military service exemption will be given unpaid leave.

Bag Law that contains provisions for paid military service passed through the Parliament on 25 July 2018. Turkish citizens who were born on or before 1 January 1994 are given the chance of completing their military service in 21 days by paying 15.000,00 TRY.

UNPAID LEAVE FOR EMPLOYEES

In Turkish Labor Law unpaid leave, apart from under some specific conditions, can only be taken by the consent of employer. Now the new Law makes it obligatory for the employers to grant this shortened military service period as an unpaid leave.

During the unpaid leave, no wage and SSI premium is paid for the non-worked day.

SEVERANCE PAY

In normal conditions, according to article 14 of the Former Labor Law No. 1475 (still in effect),  an employee who joins to army due to compulsory military service may end his employment contract and require severance pay.

However, the above article will not be applied for shortened military service, and employee cannot require severance payment.

RETROSPECTIVE BENEFITING STARTS IN JULY 2018

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Set-off process from the due debts of employer, regarding the retrospective benefiting from the incentives, will start as of July 2018 without waiting until 1st of 2019.

As we informed you before, the Bag Law No. 7103, issued in Official Gazette No. 30373, dated 27 March 2018, gives the opportunity to benefit from missed incentives retrospectively. We also informed you that calculated amount will be refunded within 3 years starting from 1st January 2019 (for the applications completed until 1st June 2018). Legal interest will be calculated for the refund amount as of above dates.

Now as per the new announcement from SSI, refunding process (by setting off from their current term SSI premium debts) will be started as of July 2017 term for the employers who completed their application until 1st June 2018), and prepared the additional-cancellation declaration.

Tax and SSI Premium Debts to be Restructured

Many of the public receivables, accrued before 31 March 2018, related to taxes and social security premiums, and subsidiary receivables associated with them will be restructured.

After Turkish PM Yıldırım has announced his government's economic package that contains social reforms and restructuring of some public receivables including SSI premiums and tax debts on Monday this week, the “Draft Law on Restructuring Some Receivables,” has been accepted in Plan and Budget commission and expected to get through Parliament well before the elections that will held on June 24, 2018.

SCOPE OF THE LAW

The law will be applicable to following receivables provided that they accrued before 31 March 2018;

* All types of taxes and tax penalties,

* Administrative monetary fines

* Insurance premium, group insurance premium, pension deduction and institution's contribution, unemployment insurance premium, social security support premiums and subsidiary receivables associated with principles receivables (penalties, default interests and late,)

* Customs duties,

* Estate tax,

* The motor vehicle tax and their tax penalties, default interests and late fees.

RESTRUCTURED PREMIUM DEBTS

Only the "Domestic PPI" applied amount of principle receivable will be collected, and delay penalty and default interests will be waived.

In the collection of receivables; Monthly Change Ratio of Domestic Producer Price Index (Domestic PPI / Yİ-ÜFE) will be applied to principal amount of;

"Insurance premium, pension deduction, unemployment insurance premium, social security support premium, irredeemable voluntary insurance premium and group insurance premium, general health insurance premium, and SSI related stamp tax, special transaction tax, and contribution to education" receivables accrued before 31 March 2018

However, the delay penalty and default interests (subsidiary receivables) applied to these principle amounts will not be collected, provided that PPI applied amount of principle receivable is paid.

In short, the amount to be collected = principle amount of receivable*PPI.

The same will be applied to social security support premium receivables, accrued on or before 31 March 2018, related to retired persons who continue to work independently.

Debts may be paid bimonthly in 6-9-12-18 equal installments. First installment and advanced payments should be paid until 31 August 2018.

ADMINISTRATIVE FINES

Half of the principle amount of receivables related to unpaid administrative fines imposed for the acts conducted before 31 March 2018 will be deleted. In other words, "Domestic PPI" will be applied only to half of the principal amount of administrative fine.

TAX DEBTS

Similar principles, such as Domestic PPI will be applied to tax receivables. We will inform you in details when the application circulars are issued.

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