
Labor Law
WHAT IS SEVERANCE PAY?
Labor law is a comprehensive branch of law that regulates the relations between employees and employers, determines working conditions and protects rights.
Pursuant to Article 14 of the Labor Law No. 1475, it is a type of compensation that protects the compensation for the services/labor provided by the workers to the employer during their employment (which is subject to certain conditions).
Even though Labor Law No. 1475 has been repealed, Article 14 regulating severance pay is still in force and the articles of law other than this article have been repealed. For all these reasons, Article 14 of the Labor Law No. 4857 will be the criterion that we deal with on severance pay.
WHAT ARE THE CONDITIONS FOR SEVERANCE PAY?
When we look at Article 14 of the Labor Law;
1-Being subject to Labor Law
Must be an employee subject to labor legislation.
2-Worker must have at least 1 year of seniority
In order for the employee to be entitled to such severance pay, he/she must have at least 1 year of seniority at the time of termination of this contract.
3-The employment contract must be terminated for the reasons specified in the law
When we look under the article of law;
The employment contract must have ended in such a way that the worker deserves severance pay.
I. Health reasons:
a) If the performance of the work that is the subject of the employment contract is dangerous for the health or life of the worker for a reason arising from the nature of the work.
b) If the employer or another worker with whom the worker is in constant close and direct contact is infected with a contagious disease or a disease incompatible with the worker's work.
II. Acts incompatible with the rules of morality and good faith and the like:
a) If the employer misleads the employee during the execution of the employment contract by showing false qualifications or conditions about one of the essential points of this contract or by giving information or saying words that are not in accordance with the truth.
b) If the employer utters words or behaves in a way that touches the honor and reputation of the employee or a member of his/her family or sexually harasses the employee.
c) If the employer taunts or intimidates the worker or a member of his/her family, or encourages, incites or drags the worker or a member of his/her family to act against the law, or commits a crime against the worker or a member of his/her family that requires imprisonment, or makes unfounded and serious allegations or accusations against the worker that are degrading to his/her honor and dignity.
d) If the worker is sexually harassed at the workplace by another worker or third parties and the necessary precautions are not taken despite reporting this situation to the employer.
e) If the wage of the employee is not calculated or paid by the employer in accordance with the provisions of the law or the terms of the contract,
f) In cases where it is agreed that the wage is to be paid by piece or by the amount of work and the employer gives the worker less work than the number and amount of work he can do, if the wage difference between the wages is paid on a time basis and the missing wage of the worker is not compensated, or if the working conditions are not applied.
III. Compelling reasons: If compelling reasons arise in the workplace where the worker works that require the work to stop for more than a week.
IV. Hence Conscription:
In case of termination regardless of whether the military service is paid or not, severance pay is paid to the employee.
V. Termination on the Grounds of Retirement / Disability Pension / Lump Sum Payment:
They may be terminated in order to receive old-age, retirement or invalidity pensions or lump-sum payments from the institutions or funds established by law or presidential decree to which they are affiliated.
VI. Termination Due to Marriage of a Female Employee:
The female employee will be entitled to severance pay by terminating her employment contract within 1 year starting from the date of marriage. However, this 1 year is a forfeiture period and this period must be observed. However, as can be understood from the wording of this provision, it is valid for female workers. Male workers are not included in this scope.
IN WHICH CASES IS AN EMPLOYEE NOT ENTITLED TO SEVERANCE PAY?
If one of the paragraphs in Article 25/2 is present;
II- Situations that do not comply with the rules of morality and good faith and the like:
a. The employee misleading the employer by claiming that he has the qualifications or conditions required for one of the essential points of this contract when he does not have them at the time of the conclusion of the employment contract, or by giving information or words that are not in accordance with the truth.
b. The employee utters words or behaves in a manner that may damage the honor and dignity of the employer or one of their family members, or makes unfounded denunciations and allegations against the employer that are offensive to honor and dignity.
c. Sexual harassment of another employee of the employer by the employee.
d. The employee offends the employer or a member of his/her family or another employee of the employer, or comes to the workplace intoxicated or on drugs or uses such substances at the workplace.
e. The employee's behavior that is incompatible with integrity and loyalty, such as abusing the employer's trust, stealing, revealing the employer's professional secrets.
f. The worker commits an offense at the workplace that is punishable by imprisonment for more than seven days and for which the penalty is not suspended.
g. Failure of the employee to attend work for two consecutive working days or twice in a month on the working day following any holiday, or three working days in a month, without permission from the employer or without a justifiable reason.
h. Persistence of the worker in not performing the duties that he/she is obliged to perform even though he/she is reminded of them.
i. The worker endangers the safety of the work due to his own will or negligence, damages or loses the machines, installations or other goods and materials which are the property of the workplace or which are not the property of the workplace but are at his disposal, to such an extent that he cannot pay with the amount of his thirty-day wage
WHO IS PAID SEVERANCE PAY IN THE EVENT OF THE DEATH OF A WORKER?
In the event of the death of the worker, the relevant compensation amount will pass to his legal heirs.
WHO HAS THE BURDEN OF PROOF?
The burden of proof that the employment contract was terminated in a way that does not require severance pay is on the employer.
WILL THERE BE A DEDUCTION IN SEVERANCE PAY?
Only stamp tax is deducted, there is no other deduction.
WHAT IS THE EFFECT OF THE FACULTATIVE WORK ON SEVERANCE PAY?
First of all, if we talk about the concept of intermittent work, it can be explained as intermittent work in one or more workplaces of the same employer.
So how does the employer's work in different workplaces affect severance pay?
The basic thing to do would be to add up the hours at the employer's workplaces.
WHAT IS THE STATUTE OF LIMITATIONS FOR SEVERANCE PAY?
Before 25.10.2017, the general statute of limitations applied, but now this period has been reduced to 5 years.
HOW IS SEVERANCE PAY CALCULATED?
First of all, the starting date of employment will be the point to be considered at the beginning of the period.
Wage calculation is based on the last gross wage for each full year. The remainder will be calculated proportionally (month/day).
HOW IS SEVERANCE PAY PAID?
It is paid in advance. However, if the employee and the employer agree, it is also possible to pay in installments.
WHICH AUTHORITY WILL BE COMPETENT IN CASE OF NON-PAYMENT OF SEVERANCE PAY?
Labor courts are the competent court.