State Of Emergency and Its Potential Effect on Business and Labor Relation


The cabinet decree regarding declaration of state of emergency for ninety days has been approved by the Grand National Assembly of Turkey and it is in effect as of 21 July 2016, 01.00 hour.

The state of emergency gives the government enhanced powers for at least three months, and financial, material and labor obligations may be imposed on citizens within this period.

As far as business world and labor relations are concerned, dismissal of employees may be postponed according to the State of Emergency Law No. 2935, Article 11/n, which reads as follow;

“In the case of emergency following measures may be taken:
n) To postpone or to require permission for, provided that not exceeding three months and considering the conditions of employer, the dismissal of employees, except in cases of; termination or cancellation of labor contracts at the request of employees, in the situations contrary to morals and good faith, health reasons, normal retirement and expiration of a fixed term contract.”

Please bear in mind that above said provision only specifies one of the measures that can be taken by government should the need arise, and up to now there is no announcement as to the restriction on dismissal. We will keep you informed in case of any development.

On the other hand Deputy Prime Minister Mehmet Şimşek announced that financial markets will be functioning in normal conditions and Turkey’s macro fundamentals are strong, and there is no need for the radical changes in economic policy.

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