Employment Law

The termination of an employment contract, unpaid wages and overtime claims, or pressure experienced in the workplace are disputes in which short time limits and rules of evidence are decisive. In most claims, applying to a mediator before filing a lawsuit is mandatory; some rights are lost if they are not exercised within a few weeks.

On this page, we summarise the most common issues in employment law, the applicable time limits and the procedure followed. Our office is based in Istanbul (Küçükçekmece) and provides advisory, mediation and litigation services in employee and employer disputes.

What matters do we handle in this field?

  • Termination of the employment contract: assessment of termination for just cause and valid reason, formal notice
  • Severance pay and notice compensation claims
  • Reinstatement (objection to termination) application and lawsuit
  • Overtime, weekly rest day, public holiday, annual leave and wage claims
  • Bad-faith compensation and compensation for breach of the equal treatment principle
  • Mobbing (psychological harassment) and violation of personal rights
  • Action for determination of employment service for uninsured or underreported work
  • Compensation arising from a work accident or occupational disease
  • Representation of employees or employers in mandatory mediation meetings
  • For employers: employment contracts and non-compete clauses, disciplinary and termination processes, KVKK compliance in employee data processing

Termination of the employment contract: just cause and valid reason

Immediate termination for just cause. One of the parties may terminate the contract without waiting for the notice period in serious circumstances listed by law. Examples for the employee (Article 24 of Turkish Labour Law No. 4857):

  • wages not being calculated or paid in accordance with the law or the contract
  • insulting, aggressive or harassing conduct by the employer
  • failure to take measures despite notification of sexual harassment in the workplace
  • the employee being misled on essential matters when the contract was concluded

For the employer, circumstances such as absenteeism and breach of honesty and loyalty are listed (Article 25). The right to terminate based on conduct contrary to moral and good-faith rules must be exercised within six working days from learning of the situation and, in any event, within one year from the incident (Article 26).

Termination for a valid reason. In workplaces employing thirty or more employees, the contract of an employee who has at least six months’ service and works under an indefinite-term contract may be terminated only for a valid reason such as the employee’s capability, conduct or the requirements of the undertaking (Article 18). The employer must give the notice of termination in writing and state the reason clearly and definitively. Before termination for reasons related to conduct or performance, the employee’s defence/explanation must be obtained (Article 19). Trade union membership, pregnancy, or the employee’s pursuing legal remedies against the employer are not valid reasons.

Severance pay

Severance pay is based on Article 14 of Labour Law No. 1475, which remains in force. As a rule, at least one year of service with the same employer is required, and the contract must end in one of the following ways:

  • termination by the employer (except for termination for just cause due to conduct contrary to moral and good-faith rules)
  • termination by the employee for just cause
  • compulsory military service
  • leaving work in order to receive a retirement pension, disability pension or lump-sum payment
  • leaving work after completing the insurance period and premium day requirements for retirement other than age (with a letter obtained from the Social Security Institution (SGK))
  • a female employee leaving of her own accord within one year from the date of marriage
  • the death of the employee (the compensation is paid to the heirs)

A payment equal to 30 days’ gross wages is made for each full year of service; periods exceeding a full year are also taken into account on a pro rata basis. In the calculation, in addition to the basic wage, cash and cash-equivalent benefits such as transport and meals are also considered. The compensation is subject to an annual ceiling, and this amount is redetermined each year. For severance pay not paid on time, the highest interest rate applied to bank deposits may be claimed.

Notice compensation and notice periods

The party terminating an indefinite-term employment contract must comply with the statutory notice periods (4857, Article 17):

Length of service Notice period
Less than 6 months 2 weeks
6 months – 1.5 years 4 weeks
1.5 – 3 years 6 weeks
More than 3 years 8 weeks

The party that fails to comply with these periods pays notice compensation equal to the wages for the relevant notice period. This rule also applies to the employee: if an employee leaves work without just cause and without observing the notice period, the employer may claim notice compensation. The periods may be extended by contract, but not reduced.

If the contract of an employee outside the scope of employment protection is terminated through abuse of the right of termination, bad-faith compensation equal to three times the notice period may be claimed.

Reinstatement lawsuit

An employee who falls within the scope of employment protection may seek reinstatement if they believe that the reason for termination was not stated or was not valid (4857, Articles 20–21).

  1. Application to the mediator: An application is made to the mediation office within one month from service of the notice of termination.
  2. Lawsuit: If no settlement is reached, a lawsuit is filed before the labour court within two weeks from the date of the final report.
  3. Burden of proof: The burden of proving that the termination was based on a valid reason lies with the employer.
  4. Appeal: An appeal may be brought against the first-instance decision; the decision of the Regional Court of Appeal is final.
  5. After the decision: The employee must apply to the employer within ten working days from service of the final decision. If the employer does not reinstate the employee within one month, it must pay compensation for failure to reinstate equal to four to eight months’ wages. In addition, wages and other rights for the period not worked of up to four months are paid.

These are preclusive time limits.

Overtime, annual leave and wage claims

  • Overtime: Work exceeding 45 hours per week. For each hour, wages are paid with a 50% increase; if the employee wishes, they may use one and a half hours of time off instead of increased pay. Total annual overtime may not exceed 270 hours (4857, Articles 41 and 63).
  • Annual leave: An employee who has worked for at least one year must be given paid leave of not less than 14 days for 1–5 years of service, 20 days for 5–15 years, and 26 days for 15 years and over. For employees aged 18 and under and 50 and over, the period may not be less than 20 days (Article 53). Payment for unused leave is made when the contract ends (Article 59).
  • Proof: Overtime may be proven by entry-exit records, attendance sheets, emails and correspondence, shift schedules and witness statements. Signed payrolls and any reservation may directly affect the outcome.

Mobbing and the protection of personal rights

The employer is obliged to protect the employee’s personal rights, maintain an order in the workplace consistent with the principle of good faith, and take measures to ensure that employees are not subjected to psychological or sexual harassment (Article 417 of the Turkish Code of Obligations (TBK) No. 6098).

  • Systematic and continuous exclusion, humiliation, withholding of duties, or intimidation through meaningless tasks may be regarded as mobbing.
  • If the conditions are met, the employee may terminate the contract for just cause and claim severance pay and non-pecuniary damages.
  • Correspondence, medical reports, witnesses, and noting events down in chronological order are important for evidential purposes.

Work accident and occupational disease

In cases of work accident and occupational disease, social insurance benefits are provided by the SGK (Law No. 5510, Articles 13–14). For loss not covered by the SGK, a lawsuit for pecuniary and non-pecuniary damages may be brought against the employer.

  • These lawsuits are an exception to mandatory mediation (Article 3/3 of the Labour Courts Act No. 7036).
  • In addition to the ordinarily competent court, the lawsuit may also be filed where the accident occurred or where the employee is domiciled.
  • Fault and disability rates are determined by expert and medical board reports.
  • For details: Insurance and Compensation Law

Mandatory mediation

In employee and employer receivable and compensation claims, and in reinstatement claims, based on the law, an individual employment contract or a collective labour agreement, applying to a mediator before filing a lawsuit is a procedural precondition (7036, Article 3). Since 2023, actions for annulment of objection, negative declaratory actions and restitution actions relating to these receivables have also been included within the scope.

  • The application is made to the mediation office where the other party is domiciled or where the work was performed.
  • The mediator concludes the application within three weeks; in mandatory cases, this period may be extended by up to one week.
  • From the application until the final report, the limitation period is suspended and the preclusive period does not run.
  • A party that does not attend the first meeting without a valid excuse is held responsible for half of the litigation costs even if it wins the case; only half of the attorney’s fee in its favour is also awarded.
  • The settlement document is binding; no separate lawsuit may be filed on the matters agreed. Its scope should be carefully reviewed before signing.

Limitation periods and litigation time limits

  • Severance pay, notice compensation, bad-faith compensation, compensation for breach of the equal treatment principle, and annual leave pay: five years (4857 Additional Article 3)
  • Wage claims (including overtime, weekly rest day and public holiday): five years (4857, Article 32)
  • Reinstatement: mediator within one month from service of termination; lawsuit within two weeks from the final report
  • Action for determination of employment service: five years from the end of the year in which the service was performed (5510, Article 86)

An important procedural change from 31 July 2026: By Law No. 7589, the action for unquantified receivables (Article 107) under the Code of Civil Procedure (HMK) has been repealed. In lawsuits filed before this date, the old provision continues to apply. In new lawsuits, part of the receivable may be claimed as a partial claim, and the claim may be increased once in the same lawsuit until the end of the evidentiary phase; for the increased part as well, the limitation period is deemed to have been interrupted on the date the lawsuit was filed (HMK, Article 109/4). In claims such as overtime, where the amount cannot be calculated precisely from the outset, the lawsuit should be prepared with this change in mind.

Services for employers

  • Employment contracts, confidentiality and non-compete provisions
  • Disciplinary process, obtaining the employee’s defence, and procedurally compliant notice of termination
  • Working time records and payroll arrangements
  • KVKK compliance in the processing of employee data (privacy notice, camera and device monitoring)

How does the process work?

  1. Initial meeting: The period of employment, wages, the manner of termination and the documents are assessed.
  2. Review and calculation: SGK records, payrolls and correspondence are reviewed; the items of claim and time limits are determined.
  3. Mediation: In mandatory cases, an application is made to the mediation office.
  4. Lawsuit: If no settlement is reached, a lawsuit is filed before the labour court. Witness evidence, expert examination and record review are carried out.
  5. Recovery: Follow-up of payment after the judgment or settlement; enforcement proceedings if necessary.

Documents to be prepared

  • Employment contract, any annexes, and commencement of employment documents
  • SGK service record from the e-Government portal
  • Payrolls for the recent months and bank statements showing salary payments
  • Notice of termination, resignation letter, formal notice or requests for defence/explanation
  • Records showing the working-hours arrangement, emails and messages, and witnesses’ contact details

Common mistakes

  • Missing the one-month mediation period for reinstatement
  • Exceeding the six-working-day period from learning of the event for termination for just cause
  • Signing a resignation letter without reasons or a release letter stating that all rights have been received
  • Signing the mediation settlement record without understanding its scope
  • Failing to preserve overtime evidence, especially correspondence and records, before leaving work
  • The employer terminating without giving written notice or obtaining the employee’s defence

Frequently asked questions

Who is entitled to severance pay?
An employee who has worked for at least one year and whose contract is terminated by the employer for a reason other than conduct contrary to moral and good-faith rules is entitled to it. Termination by the employee for just cause, military service, retirement, a female employee leaving within one year due to marriage, and death also give rise to severance pay.

Within how many days must one apply for reinstatement?
An application must be made to the mediator within one month from service of the notice of termination. If no settlement is reached, a lawsuit must be filed before the labour court within two weeks from the final report.

How is overtime proven?
It may be proven by entry-exit records, attendance sheets, emails and messages, and witness statements. If overtime payment appears on signed payrolls, the situation is assessed separately.

Can an employee who resigns receive compensation?
As a rule, severance pay cannot be claimed in the case of resignation without reasons. If the departure is based on a just cause such as non-payment of wages or mobbing, the employee may be deemed to have terminated for just cause and may claim severance pay.

Can a lawsuit be filed without going to a mediator?
No, in employment claims, reinstatement, and related actions for annulment of objection, negative declaratory actions and restitution actions; the lawsuit will be dismissed on procedural grounds. There is no mediation requirement in compensation lawsuits arising from work accidents and occupational diseases.

What is the limitation period for employment-related claims?
It is five years for severance pay, notice compensation, bad-faith compensation, compensation for breach of the equal treatment principle, annual leave pay and wage claims including overtime. During mediation, the limitation period is suspended.

Related articles

  • Notice Compensation and Severance Pay
  • Differences Between Notice Compensation and Severance Pay
  • Probationary Period and Termination
  • Resignation and the Process of Leaving Employment in Labour Law
  • Annual Leave and Termination for Just Cause Where Leave Is Not Granted by the Employer
  • Non-Pecuniary Damages Due to Mobbing
  • Scope of Mandatory Mediation: Actions to Be Filed and Exceptions
  • Work Accident Compensation Lawsuit: Rights to Pecuniary and Non-Pecuniary Damages
  • Work accident and compensation: Insurance and Compensation Law

Contact

You can contact us via our contact page to discuss your employment law dispute.

  • İstanbul: Kartaltepe Mah. Süvari Cad. Torkam E5 Residence A Blok D:21, Sefaköy, Küçükçekmece. Tel: +90 212 579 79 85.

This page is for general informational purposes only and does not constitute legal advice for your specific case. Legislation and case law may change; please assess the current position with a lawyer before taking action.

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