Turkish Labor Law
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Law on Amending the Labor Act No. 6552 and Some Laws and Statutory Decrees and Restructuring Some Receivables, publicly known as “Bag Law”, is published and entered into force on September 11, 2014.
Bag Law made important amendments in many fields from labor law and tax law to social security and occupational health and safety. We will continue to share these amendments via our reports in detail in the upcoming days.
Referring to the Social Securities and General Health Insurance Law No. 5510, issues such as restructuring of the deducted administrative fines and waiving some receivables and associated receivables were regulated by Law No. 6552.
Remission of the Social Security Institution Administrative Fines!
Administrative fines applied referring to Articles No. 59 – 60 – 61 and 81 of the Law No. 6552 and Law No. 5510 are regulated and restructured. Amendments made under Law No. 6552 are as follows.
ARTICLE 59 – The following provisional article is added to Law No. 5510.
“PROVISIONAL ARTICLE 55 – pertains to Law No. 506 and companies which are excluded from the scope of this Law, and principal receivables total primary debt amount of which are less than or equal to TRY 100.00 based on the debt type and regardless of their amount, accessory receivables such as delay penalty and default interest related to this principal receivables amongst the insurance premium, unemployment insurance premium, social security support contribution and administrative fines which are not paid although the payment period regarding the total debt of the company pertains to December 31, 2013 or earlier, and the contribution to education, special transaction tax and stamp duty debts that are followed in accordance with the provisions of Law No. 6183 by the Institution referring to the provision in special laws; will not be collected.”
ARTICLE 60 – The following provisional article is added to Law No. 5510.
“PROVISIONAL ARTICLE 56 – Among the persons who are included in the scope of provisional articles No. 44 and 51, the ones who have not used their rights to apply within the stipulated period will benefit from the provisions of provisional article No. 44, on the condition that they apply to the Institution as of the date on which this article becomes effective.
As per the seventeenth clause of provisional article No. 4, in the case that the persons who are debited and paid their debts wholly or partially want the paid amount to be returned; if the amounts of pension deduction and institution’s provision calculated under provisional article No. 44 are paid to the Institution within six months following the notification to the public administrations that they are currently working or have worked as a public official at once and in the case that these payments are not made within this period, if the persons make payment with the default interest, the paid part by the public administration of the amounts that are already paid will be returned to them without any interest.
By way of debiting in accordance with the seventeenth clause of article No 4, provisional article No. 44, provisional article No. 51 and this article, periods obtained as a service along with the periods in which premium is paid to long term insurance branches as subject to the other insurance status within the periods identified as per the aforementioned articles are considered as spent in official duty and assessed in the determination of the acquired right salary.”
ARTICLE 61 – Following provisional article is added to Law No. 5510.
“PROVISIONAL ARTICLE 57 – For points specified in the third clause of article No. 8 and the paragraph (b) of the first clause of article No. 9, obligations determined in the third clause of article No. 9 along with the obligations determined in the third and sixth clauses of article No. 11 which are fulfilled within three months by the effective date of this article, administrative fines within their legal periods are cancelled notwithstanding whether they become definite or not; however, collected amounts cannot be returned, refused or set off.
Declarations and documents which are required to be submitted as per this Law about the insured persons under the paragraph (e) of the first clause of article No. 5 are considered as submitted within the legal period in the case that they are submitted within six months by the effective date of this article. Administrative fines applied to these obligations before are cancelled notwithstanding whether they become definite or not; however, the collected amounts cannot be returned, refused or set off.
Procedures and principles regarding the application of this article are determined by the Institute.”
ARTICLE 81 – Following provisional article is added to Law No. 5510 of 31.5.2006.
“PROVISIONAL ARTICLE 60 – (1) For the following debts, with their principle parts, which are related to April 2014 and earlier months and not paid although they were accrued before the publish date of this article, accessory receivables such as delay penalty and default interest applied to these receivables will not be collected in the case that the amount which will be calculated based on the monthly exchange ratio of Domestic Producer Price Index for the period from the end of the payment period for these receivables to the publish date of this article is paid within the determined time and way;
a) Insurance premium, pension deduction and institution’s provision, unemployment insurance premium, social security support premium arising from the insurance status under paragraphs (a), (b) and (c) of the first clause of article No. 4 of this Law,
b) By the date of the application performed as per this article, optional insurance premium and collective insurance premium which can still be paid in accordance with the relevant legislation,
c) Stamp duty, special transaction tax and contribution to education that are followed as per the relevant laws by the Social Security Institution,
d) Insurance premium calculated over the amount of poor workmanship determined as a result of the pre-assessments, researches or detections performed regarding the special quality constructions and works which are subject to tender which is not paid by the publish date of this article while the employer is notified by being accrued ex officio by the Institution before the publish date of this article and which pertains to the works which are subject to tender and special quality constructions completed by April 30, 2014 (included),
e) General health insurance premium of the persons who are subject to general health insurance under paragraph (g) of the first clause of article No. 60 of this Law,
f) Debt regarding the salaries which are found to be paid unduly from the effective date of this article to the payment period for the persons whose salaries have to be suspended due to their employments in the companies which belong to the agencies and institutions which are included in the second clause of article No. 30 of Law No. 5335 while the aforementioned persons receive retirement or old age pension as per the social security laws.
(2) In the case that the amount which will be calculated based on the monthly exchange ratio of Domestic Producer Price Index for the period from the date on which the payment periods are over to the publish date of this article and 50% of the principle debts of the administrative fines which are not paid by the publish date of this article and which are related to the acts performed by April 30, 2014 (included) is paid within the determined time and way, the remaining 50% of the administrative fine principles and accessory receivables such as delay penalty and default interest applied to the administrative fine will not be collected.
(3) For the debtors who want to benefit from the provisions of this article;
a) By the first day of the month following the publish date of this article, debtors who are identified under the paragraph (d) of the first clause have to apply to the Institution within seven months and debtors who are identified under the other paragraphs have to apply to the Institution within three months,
b) By the first day of the month following the publish date of this article; debtors who are identified under the paragraph (d) of the first clause have to pay the first instalment within eight months, debtors who are identified under other paragraphs have to pay the first instalment within four months; they have to pay the other instalments by maximum eighteen equal instalments in two-month periods.
(4) a) In the case that the amount of the debts, except the premium debt resulting from the insurance status under paragraph (g) of the first clause of article No. 60 of the aforementioned Law, calculated as per the provisions of this article is totally paid within the payment period for the first instalment, no interest will be charged for this amount for the period from the publish date of this article to the payment date. In the case that the principle of the premium debt resulting from the insurance status under paragraph (g) of the first clause of article No. 60 of the aforementioned Law is totally paid within the first instalment payment period, delay penalty and default interest calculated as per the social security legislation will not be collected until the payment date.
b) In the case that the debtor wants to pay the amount calculated as per the provisions of this article by instalments, it is obligatory for the debtors to choose one of the payment options of six, nine, twelve or eighteen equal instalments during the application without prejudice to the provisions in the relevant articles.
Payment should be made in a period no longer than the selected instalment period.
c) For the payments which will be made by instalments, the amount determined as per the relevant articles will be multiplied by the following coefficients and the resulting amount will be divided by the number of instalments and by this way, the instalment amount to be paid by the two-month periods will be calculated;
1) For six equal instalments; (1.05),
2) For nine equal instalments; (1.07),
3) For twelve equal instalments; (1.10),
4) For eighteen equal instalments; (1.15).
Debtors who apply for benefiting from the provisions of this article are provided with a payment schedule appropriate to the selected instalment period. However, if the payment is made within a period shorter than the chosen schedule, the amount to be paid shall be corrected as to the relevant coefficient.
(20) The Social Security Institution is authorized to establish the procedures and principles regarding the application of this article.”
We will closely follow the new regulations which contain the application principles of the articles and which will be prepared by the Social Security Institution and continue to announce these regulations to you.
