Turkish Labor Law
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When the wage of employees is not paid in time for whatever reason by the employer, the conflict is usually settled by the courts. In this article we will take the subject as a case study, but first let’s have a look at the provisions of the related legislation.
What is non-payment of wages?
- Wage may be paid on a monthly basis at the latest. However, pay period may be determined as weekly by employment contract or by collective agreement (Labor Law, Article 32).
- Employers must determine a regular pay period and a regular pay day for employees.
- The employee whose wage has not been paid within 20 days of the day it was due, except for force majeure, may refrain from fulfilling his obligation to work.
- Even if refraining from work by employees based on their personal decisions takes on the character of a concerted action in quantifiable terms, it shall not qualify as a strike.
- The highest interest rate charged to bank deposits shall be levied on wage debts not paid on the day they were due.
- Employment contracts of such employees shall not be terminated solely because they have refrained from working for this reason; no replacements shall be hired, nor may such work be performed by others.
- Statutory limitation on wage claims is five years. (Labor Law, Article 34).
- Statutory limitation on wage claims is five years. (Labor Law, Article 34).
Reason of termination by just cause
Labor Law Article 24/II-3 set forth that in case the employer fails to calculate or to pay wages in conformity with the provision of the law and the terms of the employment contract, employee may terminate the contract with just cause and be entitled to severance pay, however there are some points to be taken into account for both side.
The Case Summary
- Local Court Verdict: Employee terminated his employment contract for reason of not receiving part of his April wage and complete May wage. He resorted to court claiming his severance pay and the total wages and other benefits due during this time. Local court accepted that the termination is for reason of just cause.
- Supreme Court Ruling: Employer’s attorney lodged an appeal with the Supreme Court who overturned the local courts verdict.
- Justification of the decision:
ü According to collective agreement pay day is 20th of each month
ü Employee’s claim is that April-May wages are not paid by the employer and he terminated the contract for this reason
ü But it is found that April wage is paid by a signed payslip
ü Employee terminated the contract before the May wage is due
ü As a result, employee’s termination cannot be considered as termination with just cause.
Summary
With reference to Supreme Court ruling both employees and employer should bear in mind the following points in case of non-payment of wages.
- In case the wages are not paid in time, employee should allow for 20 days from the regular pay date before terminating the contract by instigating a warning to employer.
- Burden of proof as regard to payment of wages is on the employer. Signed payslips or bank accounts can be considered as document of proof.
