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Türeli & Ceylan Law Firm – Labour & Employment Practice
- Severance (kıdem): Payable to employees with ≥1 year service if the contract ends under qualifying grounds; 30 days of gross pay per full year (Law No. 1475 Art. 14 via Law No. 4857).
- Notice (ihbar): Due when a fixed statutory notice period is not observed (Law No. 4857 Art. 17).
- Mandatory mediation: A precondition to lawsuits since 2018 (Law No. 7036 Art. 3).
2) Who Qualifies for Severance?
Typical qualifying scenarios: unjust/invalid dismissal, employee’s just-cause resignation (unpaid wages, health risks, harassment), military service (male), resignation within 1 year after marriage (female), retirement eligibility.
A purely voluntary resignation without legal cause does not trigger severance. Forced resignations may be treated as constructive dismissal.
3) Severance – How to Calculate
Formula: (Gross base pay + regular monetary benefits) × 30 days per full year (+ prorata)
- Ceiling: An annual statutory cap applies (indicative 2025 figure ~TRY 41,000/year, subject to official circulars).
- Tax: Severance is exempt from income tax; stamp tax applies.
Example: 6 years × TRY 30,000 (gross) = TRY 180,000 (if under cap).
4) Notice – Periods & Amount
Notice periods: <6 months: 2 weeks | 6–18 months: 4 weeks | 18–36 months: 6 weeks | >36 months: 8 weeks.
If notice is not honored, the other party may claim gross pay + regular benefits for the missing period.
Tax: Notice compensation is subject to income tax (and assessed for social security per practice).
5) Extra Protections
- Bad-faith compensation (Art. 17/6): For employees outside job-security coverage; up to 3× the notice period if terminated in bad faith.
- Reinstatement: With 30+ employees, ≥6 months seniority, and indefinite contracts; invalid dismissal may yield reinstatement, up to 4 months’ back pay, and 4–8 months’ compensation, plus standard receivables.
6) If You Weren’t Paid – What To Do
- Written demand to the employer.
- Mandatory mediation application.
- If no settlement, Labour Court claim.
Limitation: 5 years for wage-type claims (incl. notice); 10 years typically cited for severance—precise accrual dates matter, so case-specific review is key.
7) How We Help
- Free eligibility screening and exposure analysis.
- Representation in mediation and, if needed, litigation/enforcement.
- Accurate calculations: gross, prorata, benefits, overtime, bonuses.
- Building the evidence file: witnesses, payrolls, SGK data, correspondence.
8) FAQs
Paid off the books—can I prove it? Yes: witnesses, emails/messages, bank data, SGK records.
I resigned under pressure—am I out of luck? Likely constructive dismissal; severance/notice may still be due.
Underpaid—can my employer retaliate if I sue? No. Access to courts is a constitutional right; retaliation is unlawful.
