Turkish Labor Law
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We have informed you that one year incentive-deprivation period of employers, who are found not notified the employed personnel as insured, or the notified insured is not working virtually (insured falsely), is shortened to one month according to additional article14 of Law No. 5510 which is added by article 17 of Law No. 6824 issued in Official Gazette numbered 30001, dated 8th March 2017.
As there are so many incentives, supports and deductions in Turkey’s application, questions aroused about which of them are in the scope of the new arrangement. Now with the SSI Circular No.2017/18 issued on 11 April 2017 the matter is clarified.
WORKPLACES, INCENTIVES AND SUPPORTS IN THE SCOPE OF THE LAW
Employers/Workplaces liable to incentive ban
- Employers who are detected to be employing unregistered personnel (not notified the employed as insured), or in case the personnel is falsely notified as insured (not working virtually)
- In case the number of unregistered or falsely registered personnel is exceeding 1% of total registered personnel in the workplace, (and more than five if it doesn’t exceed 1%)
- Employers cannot benefit from the below stated incentives for one month in the first detection, and in case the employers continue to employ unregistered personnel within the following 3 years they will be devoid of premium incentives for a period of one year each time they are detected to be doing so.
Incentives, supports and deductions to be deprived of;
- Law No. 5510, 5 point premium deduction
- 5 points premium deduction for the employees taken to abroad
- Regional incentive, 6 point deduction
- Premium support provided in the scope of government incentive for investments
- Incentive for young, women and holders of occupational certificate (Law no 4447, transitional article 10)
- Incentive for training-on-the job incentive (Law no 4447, transitional article 15)
Example 1:
Workplace (X) with 300 insured employee (declared in its 2017/June premium and service document)
- Benefiting 5% premium incentive (Law No: 5510), and from Law no 4447, transitional article 10 (employing young, women and holders of occupational certificate)
- In 21st June 2017, detected as having 2 unregistered employees (A) and (B) actually working since 1st September 2016
- Persons (C), (D) and (E) is declared as insured but they are not working virtually (falsely declared).
Incentives to be banned or not are as follows;
- As the number of unregistered employees plus the persons falsely insured totaling to 5, which exceed the %1 of total employed (300*0,01=3), the workplace will be deprived of 5% premium incentive (Law No: 5510)
- However, as the number of unregistered employees are only 2, which don’t exceed the %1 of total employed (300*0,01=3), the workplace will not be banned from benefiting 6% incentive for employing young and women (Law no 4447, transitional article 10).
Example 2:
In case the workplace in the above example 1 has 600 employees, it will not be banned benefiting from any incentives because 5 employees (total of uninsured and falsely registered) don’t exceed the %1 of total number of personnel which is (600×0,01=6).
Primary employer and subcontractor
In case the subcontractor doesn’t notify the employees to SSI, or notifies the persons actually not working (unregistered and/or falsely registering) both the subtracted and the primary employer will be banned benefiting from incentives on the above explained condition.
If it is only primary employer who conducts the above violation only the primary employer will be banned.
Amnesty for the old fines
If employers, who are deprived of incentives for one year in line with old arrangement, complete their one moth incentive-deprivation period before 1st April 2017 they will continue to benefit from the incentives.
INCENTIVES NOT TO BE BANNED
- In case of detection of employing unregistered personnel (not notified the employed as insured), and in case the personnel is falsely notified as insured, no ban will be applied to following incentives, supports and deductions.
ü Incentive for employing persons receiving unemployment benefit (Article 50 of Law No. 4447).
ü Government support for employing registered unemployed of İŞKUR (Additional employment incentive. Transitional Article 17 of Law No. 4447).
ü Minimum wage support. (Transitory article 71 of Law No. 5510).
- In case of only falsely notifying personnel as insured no ban will be applied to following incentives, supports and deductions.
ü % 6 incentive for employing young, women and holders of occupational certificate (Law no 4447, transitional article 10).
ü Incentive for training-on-the job incentive (Law no 4447, transitional article 15)
ü Incentive for improving social aid and cooperation (Additional article 5 of Law No. 3294)
