Business in Turkey

Government Support for Interns Extended

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Government support provided from Unemployment Fund for the employers of interns will continue during 2017-2018 school year.

As is known apprentices, candidate apprentices and students in vocational high schools, and students having vocational and technical training in the universities or higher education institutions who are deemed in the scope of compulsory Internship were paid 30% of net minimum wage (MLA excl.) and employer of these interns received government support for 2016-2017 school year.

In the last school term interns were paid monthly 381,23 TL  (30% of net minimum wage-excluded minimum living allowance)  regardless of the number of personnel. However, the support amounts were applied differently depending on the number of personnel in the workplace.

Statute of Limitation Decreases to Five Years on Severance Payment

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Period of limitation for annual leave wage, severance pay, notice pay, bad faith compensation and compensation for terminating employment contract against equal treatment principle will be 5 years, as per the “Law on Labor Courts No. 7036” issued in Official Gazette, numbered 30221, dated 25 October 2017.   

Statute of limitation (also called period of limitation or lapse of time) can be described as a time limit in which a claim/action/legal proceeding can be brought. Any claim cannot be actionable-cannot be brought before a court-if the statute of limitation has expired. 

Shortening of the statute of limitation from 10 years to 5 years in above mentioned claims arisen from labor relationship will help to prevent fraudulent claims, and also contribute the early reconciliation between employee and employer. 

ARBITRATION BECOMES COMPULSORY IN LABOR DISPUTES

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Employees and employers shall resort to arbitrator in the first place instead of litigation process for their labor disputes and conflicts, as per the “Law on Labor Courts No. 7036” issued in Official Gazette numbered 30221, dated 25 October 2017.

The also called “mandatory mediation” aims at lessening  the heavy burden of labor courts  by directing the parties to reach out-of- court settlements which are time saving and less costly in comparison with litigation.

ARBITRATION AS CAUSE OF ACTION

The new law introduces the “arbitration as a cause of action,” a new concept in Turkish legislation, meaning that no lawsuit before resorting arbitrator.

PAYMENT DATE OF UNEMPLOYMENT SALARY CHANGES

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Unemployment salary that is paid at the end of each month will be paid at the 5th day of the month in case the “Bag Law” gets into force in the following weeks. 

Intending to prevent inappropriate payments Article 50 of Law on Unemployment Insurance No. 4447 will be changed as mentioned above.

Entitled person may collect the unemployment salary from the (PTT) post offices.

WHAT IS UNEMPLOYMENT SALARY?

Unemployment benefit, also called "Jobseekers Allowance" or "Dole," is an allowance granted to insured employees who lost their jobs against their will.  In Turkey, it is simply referred as “unemployment salary” and paid to eligible workers in the scope of mandatory unemployment insurance in line with the Law on Unemployment Insurance No. 4447.

REGISTERED ELECTRONIC MAIL OBLIGATION IN WORK PERMIT APPLICATION

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Work permit applicants will be required “Registered Electronic Mail Address (KEP-Turkish acronym)” during their work permit application.

In the announcement of Ministry of Labor and Social Security, General Directorate of International Labor Force, dated 25 October 2017, it is stated that renewal of Work Permit Application System is about to be completed; and new system will put into practice soon.

As per the said announcement;

  • Applicants of all work permit applications and of the foreigners who apply for independent and permanent work permit must have a “Registered Electronic Mail Address.”
  • It will be obligatory to file the applications with e-signature.
  • In case the applicant doesn’t have any KEP account and e-signature, application will not be possible.

Paid and Unpaid Leaves in Turkey

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Leaves with pay and unpaid leaves are always mixed up. We will try to enlighten you on the matter briefly.

LEAVE WITH PAY /PAID LEAVES

Leave of absences arranged in provisional article 2 of Labor Law 4857 are as follows;

  • Marriage Leave: 3 days in the event of employee’s marriage,
  • Bereavement Leave: 3 days death in the event of employee’s mother, father, spouse, brother or sister, and child,
  • Adoption Leave: 3 days in the event of employee’s adoption of a child,
  • Paternity Leave: 5 days in case of employee’s spouse giving birth,
  • Leave for Disabled child: employed parents whose child has at least seventy percent disability or chronic disease based on medical report, shall be allowed to take up to 10 days leave of absence with pay in a year for attending the treatment of the child; on condition that leave may be taken only by one of the parents and without interruption or segments

These payments are covered by the employer.

Turkey to Continue with Summer Time All the Year Round

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While most of the European countries, as well as some other countries of the world are preparing to set their clocks 1 hour back on Sunday, 29 October 2017, Turkey will remain in Summer time-DTS.

After a cabinet decree, dated 8 September 2016, summer time, which is also called DTS (Daylight Saving Time), became the country's non-changing standard time.

Taxable Income Brackets Will Not Change in 2018

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Based on Finance Minister’s last week announcement we had informed you that the tax rate applied to 3rd income bracket will be increased to %30 from %27 in 2018. However, during the discussion in the General Assembly this arrangement has been removed from the draft law (Draft law on Amending Some Tax Laws and Governmental Decrees), and taxable income brackets will be the same next year.

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