Severance Pay for Workers Switching Jobs Within The Same Parent Company

In the current laws, there is no regulation that prevents being insured in more than one workplace at the same time. Therefore, it is possible to work in more than one workplace.

There is no need to pay severance pay for employees who switch jobs between companies (or branches) whose parent company is the same, with a single tax number. Here, the transfer process is made by the SSI and the transitions are provided. These employees may work in one workplace (or branch) full time or part time, for example; they may be working for 15 days in one branch and 15 days in another. When severance pay is required to be paid upon dismissal of employees working for more than one workplace, the termination indemnity ceiling should be taken into account, and it should be noted that certain periods are only dedicated to a single employment contract with the same employer and that “more than one severance pay cannot be paid for the same seniority period”.

Severance pay and severance pay ceiling when working for different companies (with different tax numbers) of the same parent company 

Example 1:

When a person who has been working for 3 years in firm A, has to switch jobs into a different legal entity, firm B, of the same parent company, the correct procedure to implement will be to exit with a compensation (severance pay). Here, an organic link such as workplace transfer, service contract transfer, sales and merger has to be established  in order to combine services.

Example 2:

Let’s assume in company A, which has a separate legal entity with a different tax number attached to the same employer, an employee works on a part-time contract for 20 days a month. Let the same person work 10 days a month on a partial-term contract at company B, which has a separate tax number and a separate legal entity attached to the same employer. When the employee is dismissed, since companies A and B of the same group are independent legal entities and employees work separately on part-time contracts, each company should calculate their compensation separately and take into account the severance pay ceilings separately. Supreme Court 9.HD. E. 2009/33210 K. 2010/1177 T. 25 January 2010 (2), Supreme Court 9. HD. E. 2009/44744, K. 2009/33940. This case is clearly stated in the decision dated 08.12.2009 (3) and the same Supreme Court decision (4).

As a result, for workplaces that have a single tax number affiliated with the same employer and work with a single employment contract, the compensation periods must be combined and the calculation must be made over the single severance pay ceiling.

When working in more than one workplace in group companies or holdings affiliated with the same employer; however, each company is considered a different legal entity, with separate tax numbers and employees work with separate employment contracts. In this case, the severance pay calculation should be made separately for each workplace, taking into account the severance pay ceiling for each contract.

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