Arguments over severance payment system have a long background in Turkey; and it still constitutes the most controversial issue between labor and employer representatives.
Starting from 1975 a severance payment fund, intended to reconstruct the still prevailing system, occupied the agenda during the last 42 years.
When the Labor Law No. 4857 entered into force on 2003, its transitory article 6 stipulated that severance fund should be established to replace the current system, and article 14 of abrogated Law No. 1475, which arranges the severance payment stayed in force until now.