What is a Letter of Inheritance?

A release agreement is a written document in which an employee and an employer declare that neither party has any remaining claims or demands after the termination of their employment relationship. The employee declares that they have received all past wages, overtime pay, severance pay, and similar entitlements, while the employer acknowledges that they have no outstanding claims against the employee. This document is a frequently used legal tool, particularly in termination processes.

Article 420 of the Turkish Code of Obligations and the Validity Requirements of the Release Agreement

Article 420 of the Turkish Code of Obligations No. 6098 introduces special provisions regarding the validity of waivers in employer-employee relations. According to the article:

1. Written Form Requirement:
   The release agreement must be in writing. Oral statements or verbal agreements are not accepted as a release agreement.

2. One-Month Waiting Period Requirement: At least one month must pass from the termination of the employment contract . A release agreement drawn up on the day of termination is not legally valid.
   

3. Specifying the Type and Amount of Claims:
   The release agreement must clearly state which claims the employee is entitled to (e.g., wages, overtime pay, notice pay, and severance pay); the amount of each claim must be written separately. Simply listing the types of claims in general is not sufficient.

4. Payment via Bank Transaction:
   The rights specified in the release agreement must be paid in full and in full through a bank . Payments made in cash or without a bank record will invalidate the release agreement.

5. Receipt Status:
   If the payment amount stated in the release agreement is less than the amount due or does not reflect the actual amount due, this document shall only be considered a receipt with respect to the stated amount. However, even in this case, the payment must have been made via bank transfer.

Circumstances in Which a Release Agreement Will Be Deemed Invalid

• Release agreements drawn up on the day the employment contract is terminated or within one month of the termination,

• If payment was not made through the bank,

• If the amounts of the receivables are not specified individually, the transaction
  is considered absolutely void.

For example, a release agreement dated June 1, 2025 , or June 10, 2025 , for an employment contract terminated on that date, is invalid. However, it may be valid if issued on or after July 1, 2025 (provided other conditions are met).

Points to Consider When Drafting a Release Agreement

• The release agreement must be prepared at least one month after the termination date of the employment contract .

• Payments must be made through a bank. Bank receipts should be kept.

• Each item of entitlement (wages, overtime, severance pay, notice pay, etc.) must be clearly stated along with their amounts.

• The parties must sign freely and without coercion.

Conclusion and Evaluation

In employer-employee relations, a release agreement is an important document for preventing disputes. However, if the conditions specified in Article 420 of the Turkish Code of Obligations are not met, the release agreement is considered null and void , and the employee can file a lawsuit for unpaid wages. Therefore, procedural compliance is of great importance for both the employee and the employer when preparing a release agreement.

                                                                                         YAĞMUR YORULMAZ, LAW FACULTY STUDENT