Conditions of Severance Pay in Turkey

conditions-of-severance-pay-in-turkeyAccording to article 14 (still in effect) of Former Law no. 1475, employees are granted severance pay under certain conditions. Accordingly:
Provided that the period of employment with the same employer is minimum 1 year, and if the employment contract is terminated for the following reasons, severance pay will be granted to the employee as required by the period of employment:

1- By the Employer, for reasons outside of good faith and compliance with ethical conduct,
2- By the Employee, for reasons of health, good faith and violation of ethical conduct or cessation of business in the workplace,
3- For military service,
4- Upon qualifying for retirement or completion of the period of insurance and days covered by a premium required within the same scope,
5- When the female employee gets married,
6- Employee’s death.

In addition, article 14 of the Labor Law no. 1475 stipulates that those who leave the job to receive an invalidity pension and those who complete the period of insurance except age and days covered by a premium in order to qualify for an old age pension and then voluntarily leave the job will receive severance pay.

How to calculate the right to severance pay

In case any labor contract is terminated for a reason that qualifies for severance pay, severance pay amounting to gross wages of 30 days for every full year of employment will be granted. For periods of more than one year, this will be proportioned and included in the calculation. Along with wages paid to the employee, severance pay calculations take into account the gross amounts of all money and material benefits that are provided regularly (travel allowance, food allowance, condition of regularity, bonus payments, etc.). The amount of severance pay paid for each full year of employment is limited by a severance pay upper limit in effect on the date of termination.

Severance pay upper limit is TRY 3,438.22 for 2014.

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