Turkish Labor Law
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What is Unemployment Benefit?
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.
Who are in the scope of Unemployment Insurance?
Briefly, employees working against wage under an employment contract are in the scope of Unemployment Insurance.
Employee, employer and state make unemployment insurance premium contribution to the Unemployment Insurance Fund, with the following rates applied to employee’s monthly gross wage;
- Employee 1%,
- Employer 2%
- State 1% (on behalf of employee).
Employer is required to deduct the above unemployment premiums, and declare and pay them to the Social Security Institution together with social security premium contributions on a monthly basis.
- Retired personnel are not subject to unemployment insurance premium and don’t benefit from unemployment salary.
Are foreign employees included in the scope of Unemployment Insurance?
Yes. Legally employed foreigners are also subject to unemployment insurance premium in case they are working against wage under an employment contract, and are entitled to unemployment salary.
Conditions of Benefiting?
First of all, reason of leaving employment is very important.
Workers who lost their job against their own wish (not resigned without unjust cause) and without any fault on behalf of them such as by reason of;
- Termination of permanent employment contract by employer without giving a just cause
- Expiration of fixed term contract
- Compulsory Military service
- Collective redundancy
- Shutdown of workplace
- Cessation of work
- Termination by employee for force majeure
- Termination by employee for reasons of health
- Termination by employee for reason of employer’s immoral, dishonorable or malicious conduct or other similar behavior
- Termination by employer for reason of force majeure and imprisonment of employee
- Termination by employer for reasons of health
- Termination within the scope of Code of Obligations, and Law on Trade Unions and Collective Bargaining Agreements, without the consent or fault of employee
- Termination by reason of privatization as stated in Law No. 4046, Article 21
- Termination of employment contract by press member
- Termination by reason of transfer, or status change of workplace
Will be eligible for unemployment salary by satisfying the following requirements:
- 120 days’ premium prior to unemployment must be paid uninterruptedly
- Non-paid days coincides the situations such as sickness, unpaid leave, disciplinary penalty, economic crises, natural disasters etc. are not considered as interruption
- 600 days of contributions must be paid in the preceding 3 years of employment.
For detailed information about SSI codes of termination: http://turkishlaborlaw.com/faq/370-ssi-sgk-codes-for-termination-of-employement
Calculation of Unemployment salary?
- Unemployment salary is 40% of an employee’s daily average gross wage calculated on the basis of last 4 months’ salary prior to unemployment.
- Amount of unemployment salary cannot be over 80% of monthly gross minimum wage
What are the Benefiting periods?
Benefiting periods depend on the worker’s number of contributions; and are as follows.
- Employees who paid 600 days unemployment premium within 3 years prior to unemployment will benefit for 180 days (6 months),
- Employees who paid 900 days unemployment premium within 3 years prior to unemployment will benefit for 240 days (8 months),
- Employees who paid 1080 or more days unemployment premium within 3 years prior to unemployment will benefit for 300 days (10 months).
Where and when to apply?
- Worker should apply within 30 days as of termination of employment contract to the nearest İŞKUR (Turkish Employment Agency) unit personally or online.
- In case of not applying within 30 days, except the force majeure, delayed period will be deducted from benefiting periods.
- İŞKUR, after assessing the application, deposit the money to beneficiary’s account until the end of the month following the date unemployed entitled to unemployment pay.
- Unemployment salary may be collected from post offices.
