Legal News

Minimum Wage Support Ends

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Government support for minimum wage, which is being applied since 2016, will end after September 2018.

As is known minim wage support started in January 2016 by the government to reduce the burden of employers due to 30% wage hikes at the time. The support continued throughout 2017, and between January 2018 and September.

As per the Omniums bill (colloquially known bag law) No. 7103, issued in Official Gazette No. 30373, dated 27th March 2018, and the Cabinet Decree, 2018/11668, issued in the Official Gazette on 20th June 2018; minimum wage support is applied between January and September 2018. However, no support will be provided for minimum wage after September 2018.

For detailed information please visit our website;

http://turkishlaborlaw.com/news/business-in-turkey/371-10-questions-and-answers-on-2016-minimum-wage-support-in-turkey

http://turkishlaborlaw.com/news/legal-news/446-minimum-wage-support-is-to-continue-in-2017

http://turkishlaborlaw.com/news/legal-news/612-2018-minimum-wage-support

Collective Redundancy in Turkish Law

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Collective redundancy, also called collective dismissal or lay-off is the termination of large amount of employees’ contracts due to economic, technological or structural reasons.

NUMBER OF EMPLOYEES DISMISSED

Dismissal of 10 to 30 employees within a month is considered as collective redundancy.

Collective redundancy is arranged in Article 29 of Labor Law 4857, and numbers are as follows:

  • Dismissing minimum 10 employee in the establishments with 20 to 100 employees,
  • Dismissing minimum 10% of employees in the establishments with 101 to 300 employees,
  • Dismissing minimum 30 employees in the establishments with over 301and over employees,
  • Dismissal should occur at a same or different dates within a month.
  • In determining the number of employees, only the employees working in the workplace the collective dismissal is taken place, i.e. the employees who are working in the other workplace of the same employer aren’t taken into consideration.

OBLIGATION OF NOTI FICATION

Employer should inform the relevant Regional Directorate of Labor and the Public Employment Office and the union shop-stewards, if any, with written notification at least 30 days prior to planned dismissal.

Notification should include the reason for the collective dismissal, the number of employees that will be affected, and the length of time the procedure of terminations is likely to take.

In case of closing down the entire establishment only the public administrations (Regional Directorate of Labor and the Public Employment Office) should be informed.

RIGHT OF EMPLOYEES

In case of collective redundancy all the gained rights of employees must be paid, such as:

  • Notice pay,
  • Severance pay,
  • Unused leaves.

ADMINISTRATIVE FINE IN CASE OF UNLAWFULL REDUNDANCY

In case of violating the provision of above said article, 29, 693,00 TRY administrative fine will be imposed to employer.

Deferment Interest Rate is Increased

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Determent interest rate and late fee applied to public receivables is increased from 12% to 24% yearly (monthly 2%).

According to Revenue Administration's General Communiqué (SERIAL: C, ITEM NO: 3) published in Official Gazette No. 30527, dated 6 September 2018, starting from publishing date the determent interest rate will be monthly 2%.

SSI DEBTS

The rate of late fee imposed to installments and postponed SSI receivables will be the same, i.e. monthly 2%, daily 0,000667 (2/100/30).

However, the late fee will be applied as 12% yearly for the installments and postponed receivables before 5 September 2018.

Detention and Arrest of an Employee

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In case of an employee’s detention or arrest period exceeds the notice period, employer has the right to break the employment contract by just reason. This period is also called as employee’s absence from work due to detention or arrest.

Termination due to detention or arrest is arranged in Labor Law 4857, article 25-IV:

“If due to the employee’s being taken into custody or due to his arrest, his absence from work exceeds the notice period indicated in Article 17.”

NOTICE PERIODS

Notice periods are arranged in Article 17 of above said law. The minimum notice period will depend on the number of months worked as shown below:

  • Less than 6 months 2 weeks
  • 6 month to 1.5 years 4 weeks
  • More than 3 years 8 weeks

In such cases the following questions arises.

WILL THERE BE ANY NOTICE PAYMENT?

No, because termination in such cases is considered as “termination with just cause” and no notice pay will be paid to employee.

WILL THERE BE ANY SEVERANCE PAYMENT?

Yes, in case the employee is completed at least one year's service he/she will be entitled to severance payment.

WHAT IF THE REASON OF ARREST IS RELATED TO WORKPLACE?

In case the detention and arrest is related to employees work and/or his misconduct in the workplace there may not be a severance payment.

WHAT HAPPENS IF THE EMPLOYEE IS ACQUITTED?

If an employee is acquitted he cannot claim to be reemployed, unless his contract is terminated unlawfully.

Data Controllers Registration Dates on Data Controller Registry

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Dates of registration obligation on Data Controller Registry are issued in the Official Journal numbered 30513, dated 18 August 2018.

As is known, according to Law on The Protection of Personal Data, No. 6698 all natural and legal persons, collecting, processing and transferring personal data are deemed as “Data Controller” and shall be registered in “Data Controller Registry” (VERBİS) before starting personal data processing with some exceptions determined by Personal Data Protection Board (The Board).

Start and end dates of registration dates are as follows.

  • Workplaces that have over 50 employees yearly, or have financial balance sheet over 25 Millions: 1 October 2019-30 September 2019.
  • Real and legal persons who have settled abroad: 1 October 2019-30 September 2019.
  • Real and legal persons whose main subject of activity is processing special categories of personal data, even they have less than 50 employees yearly, or have financial balance sheet below 25 Millions: 1 January 2019-31 March 2020.
  • State institutions and organizations: 1 April 2019-30 June 2020.

You can find detailed information about “REGULATION ON DATA CONTROLLER REGISTRY” in our website.

http://turkishlaborlaw.com/news/legal-news/607-regulation-on-data-controller-registry-issued

Intern Support Extended for 3 Years

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As per Presidential Decision No. 42, dated 15 August 2018, Government support for employers of interns is extended until 2020-2021 (included) 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 in the scope of compulsory internship are paid 30% of net minimum wage (excluding MLA), and employer of these interns are receiving government support.

All interns, regardless of the number of personnel in the workplace, will be receiving monthly 435,27 TRY (30% of net minimum wage-excluded minimum living allowance, which is 1.450,90 TRY).

SUPPORT AMOUNTS

Government support will be provided according to number of personnel in the work place as shown below:

  • In the workplaces that have less than twenty personnel 2/3 of the wage (minimum payable). (1.450,91* % 30 *2/3 ) = 290,18 TRY.
  • 1/3 of the wage (minimum payable) in the workplaces that have twenty or more personnel. (1.450,91* % 30 *1/3 ) = 145,09 will be by Unemployment Fund.

It should be bear in mind that above said support is provided for compulsory interns who are having internship compulsorily within the determined periods as a requirement of their school or occupation. Employment processes and SSI transactions of such trainees will be conducted by their school at the start of the internship. They will be insured only in the scope of short term insurance branches.

Support is not applicable to optional interns who are not obliged to undergone internship by their school, but wish to learn their occupation and gain experience by means of working in companies. These interns have the same status with the regular employees as regard to SSI applications, i.e. their social security premiums must be paid by employer.

For detailed information please visit our website:

http://turkishlaborlaw.com/news/business-in-turkey/571-intern-wages-updated

Shorter Working Periods for Non-Smoking Employees

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According to revealed “Tobacco Control Strategy and Action Plan,” positive discrimination will be applied to non-smoking personnel.

In an effort to encourage persons to quit the smoking habit, which is very common in Turkish people, Government is taking new steps.

The planned arrangements involving non-smoker employees and the workplaces are as follows.

  • Daily 30 minutes shorter working periods
  • 7 days more annual vacation periods
  • Lower SSI premium contribution
  • Tax reduction for the workplaces whose employees are non-smokers, and increase in child and family allowances.

We will keep you informed about the developments regarding legislative stage of above mentioned positive discrimination for non-smokers in the workplaces.

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.

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