How is employees' annual paid leave calculated?
Annual Paid Leave Entitlement
The Legal Nature of Annual Paid Leave
Annual paid leave is one of the fundamental labor rights granted to employees after completing a certain period of employment, allowing them to rest, and must be granted by the employer while continuing to pay wages. In Turkish labor law, the basic legal basis for the right to annual paid leave in Articles 53 and subsequent articles of the Labor Law No. 4857 .
The primary purpose of annual leave is to allow workers to recover from physical and mental fatigue incurred during their work, regain their work capacity, and benefit from the necessary rest for occupational health and safety. Therefore, annual paid leave should be considered not merely a contractual benefit between employer and employee, but a part of the worker's right to rest.
An employee waiving their right to annual leave in advance, or an employer consistently depriving an employee of their annual leave, is incompatible with the legal nature of paid annual leave. While the employer has the authority to plan the work schedule, this authority cannot be exercised in a way that negates the employee's legal right to rest.
The accrual of annual paid leave, the determination of the leave period, the granting of leave, and the conversion of unused leave into wages after the termination of the employment contract are all distinct legal stages. Therefore, when considering annual leave, not only the number of days the employee takes leave but also the length of service and the manner in which the employment contract is terminated should be evaluated.
Entitlement to Annual Paid Leave
To be eligible for annual paid leave under the Labor Law No. 4857, an employee have worked for at least one year .
The one-year period is calculated based on the date the employee started work. The period the employee worked during the probationary period is also taken into account in the calculation of the length of service.
Therefore, it is not possible for the employer to exclude the employee from the annual leave calculation due to the probationary period. The employee becomes entitled to annual paid leave when they have fulfilled the legal requirements regarding the length of service since the beginning of the employment relationship.
While one year of service is the basic threshold for entitlement to annual leave, the number of leave days is determined according to the employee's total length of service.
Therefore, completing one year of service only determines the start of an employee's annual leave entitlement; the amount of leave that can be used may change in subsequent years as the length of service increases.
Annual Leave Entitlements Based on Length of Service
According to Article 53 of the Labor Law No. 4857, annual paid leave periods are determined according to the employee's length of service.
Accordingly:
- Workers with 1 to 5 years of service: At least 14 days,
- Workers with more than 5 years and less than 15 years of service: At least 20 days,
- Workers with 15 years or more of service: At least 26 days
They are entitled to annual paid leave.
The periods mentioned here are the legally mandated minimums. It is possible to stipulate longer annual leave periods in favor of the employee through an employment contract or collective bargaining agreement.
Therefore, it is legally possible for an employer to grant annual leave exceeding the statutory period. Conversely, the validity of contractual provisions that oblige an employee to take less leave than the statutory minimum should be evaluated considering the employee's legally protected rights.
Specific Age Groups in Determining Annual Leave Duration
Turkish labor law stipulates minimum annual leave periods that are longer than the general annual leave periods for some employees.
Workers under the age of 18 and those over the age of 50 cannot have less than 20 days of annual paid leave.
This regulation aims to strengthen the right to rest for employee groups who are considered to need greater protection due to their age.
Therefore, for example, even if an employee under the age of 18's length of service generally corresponds to 14 days of leave, their annual paid leave cannot be less than 20 days due to the special protection stipulated in the law.
Similarly, for workers over 50 years of age, if the general leave period calculated according to length of service is less than 20 days, a special minimum period should be taken into consideration.
This regulation requires employers to consider not only seniority but also legal protections regarding an employee's age when planning annual leave.
Calculating Annual Leave Entitlement
The length of service of an employee is the primary criterion in calculating the duration of annual paid leave.
As an employee's length of service increases, their statutory leave entitlement also increases progressively. Therefore, employers must accurately calculate the employee's total length of service for each leave period.
Determining length of service is particularly important in situations such as the transfer of a business, a change of employer, a company merger, or an employee working in different workplaces within the same employer.
An employer's incorrect calculation of an employee's length of service may result in the employee receiving less than their legally entitled annual leave.
Therefore, human resources systems must accurately record not only the date of employment but also other legal events that may affect the length of service.
Granting Annual Leave
The primary purpose of annual paid leave is to ensure that the employee actually rests. Therefore, merely showing annual leave on the payroll or having the employee sign documents indicating they have taken leave does not constitute genuine annual leave.
Employers may plan leave schedules taking into account the workplace's operational procedures and production or service needs. However, leave planning cannot be implemented in a way that infringes upon the employee's statutory right to rest.
Forcing an employee to work at the workplace during their annual leave is incompatible with the purpose of the leave entitlement. Annual leave is a period of rest during which the employee's obligation to work temporarily ceases, but their right to wages continues.
Therefore, ensuring that annual leave records accurately reflect the situation is of great importance to both employers and employees.
Dividing Annual Leave
It is essential that annual paid leave is granted in a way that allows the employee to fulfill their purpose of rest.
Under the Labor Law No. 4857, annual leave periods can be taken in installments by mutual agreement. However, there are legal limitations regarding the division of leave periods.
If annual leave is divided, one of the divisions be at least 10 days long .
The aim of this regulation is to prevent the worker's annual leave from being divided into very small segments, thereby eliminating the opportunity for genuine rest.
For example, if 14 days of annual leave are taken in two separate periods, one of the periods must be at least 10 days.
An employer may need to allow leave at different times due to organizational considerations. However, this need cannot be implemented in a way that violates the division limits defined by law.
The Impact of Weekend and Public Holidays on Annual Leave
When calculating the duration of annual paid leave, certain days falling within the leave period must be taken into account separately.
According to the law , national holidays, public holidays, and weekends that fall within the annual leave period are not counted towards the annual leave period .
This regulation aims to protect the worker's legally entitled actual annual rest period.
For example, if an employee's annual leave period includes a weekend holiday or a national holiday, these days should not be deducted from their annual leave entitlement.
Therefore, when calculating annual leave, it is not sufficient to only look at the total number of days on the calendar. Weekend holidays and public holidays included in the leave period must also be taken into consideration.
Entitlement to Pay During Annual Leave
The employee's right to wages continues during the annual paid leave period.
The fundamental characteristic of leave is that the worker's right to wages is preserved even though their work obligations are temporarily suspended. Therefore, annual leave differs from unpaid leave.
Employers are required to pay employees their wages for the duration of their annual leave in accordance with legal regulations.
It is not possible for an employer to treat annual leave as unpaid leave or to waive the employee's right to wages during the leave period.
Therefore, it is important to accurately show annual leave periods on payrolls and to maintain regular records regarding leave pay.
Payment of Annual Leave Pay
The employer has an obligation to pay annual leave pay.
Paying the worker their wages for the period of annual leave before they go on leave is important in terms of the law's protective approach towards workers.
The aim of this regulation is to prevent the worker from experiencing financial hardship during their leave and to ensure that their annual leave entitlement is actually exercised.
Failure of the employer to pay annual leave pay on time may lead to a dispute regarding the employee's wage claims.
Therefore, employers need to manage leave planning and pay processes in a coordinated manner, not independently.
Unused Annual Leave Entitlements
Continuation of Unused Annual Leave
Failure to use annual leave entitlement does not automatically terminate the right for the duration of the employment contract.
If an employee has unused annual leave from previous periods, it should be further investigated to determine which periods this leave relates to and whether the employer granted it.
An employer depriving an employee of their annual leave for many years is incompatible with the legal nature of the right to annual leave.
Therefore, it is important for employers to keep proper records of annual leave and to track unused leave.
Annual Leave Pay Upon Termination of Employment Contract
One of the key features of annual paid leave is that unused leave can be converted into paid leave upon termination of the employment contract.
According to Article 59 of the Labor Law No. 4857, if an employment contract is terminated for any reason, the employee's wages for any earned but unused annual leave days must be paid based on their wage at the time of termination.
Therefore, the right to annual leave does not completely disappear upon the termination of the employment contract. Unused leave can be converted into a monetary entitlement under certain conditions.
This is particularly important in calculating employee entitlements when terminating a job.
Annual Paid Leave for Foreign Employees
Annual Leave Entitlement of Foreign Workers
In Türkiye, for foreign workers employed under Turkish labor law, the right to annual paid leave is one of the fundamental labor rights that needs to be considered.
A foreign worker's nationality status alone does not negate their right to annual paid leave.
If a foreign employee's employment contract is conducted in Türkiye and the relationship is governed by Turkish labor law, the relevant legal regulations regarding annual leave must also be taken into account.
Therefore, in workplaces employing foreign workers, human resources practices should be structured to include leave records not only for Turkish employees but also for foreign employees.
The Relationship Between a Foreign Worker's Work Permit and Annual Leave Entitlement
Work permits and annual paid leave rights for foreign workers are distinct legal matters.
A work permit regulates the administrative status allowing a foreigner to legally work in Türkiye. The Ministry of Labor and Social Security states that foreigners covered under the International Workforce Law No. 6735 must obtain a work permit or work permit exemption before starting work in Türkiye.
Annual paid leave is an employee right stemming from the employment contract and labor law.
Therefore, a foreign worker's possession of a work permit is not the source of their annual leave entitlement; however, it is important in determining the legal status of their employment.
Similarly, in the event of the expiration of the work permit or the termination of the employment relationship, the employee's entitlements regarding previously earned but unused annual leave must be evaluated separately.
Evaluation of the Employment Period of Foreign Workers in Türkiye
Accurately determining the length of service is important for determining the annual leave rights of foreign employees.
Especially for foreign workers:
- renewal of work permit,
- Making a new contract with the same employer,
- working at different locations within the same company,
- assignment among group companies,
- Temporary transfer from Türkiye to another country
In such cases, the legal continuity of the employment relationship should be examined separately.
The fact that a work permit is for a fixed term does not automatically mean that the employee's service period under labor law ends in the same way in every case. The legal nature of the work permit and the employment contract should be evaluated separately.
Therefore, when calculating the annual leave of foreign employees, not only the start and end dates of the work permit should be considered; the commencement and duration of the employment contract and the actual employment relationship should also be examined.
Annual Leave Practices for Foreign Employers
Annual Leave Obligations of Foreign Employers
In Türkiye, the applicable provisions of Turkish labor law must be taken into consideration for foreign-owned companies, foreign individuals, or other foreign employers operating in Türkiye who employ workers.
The fact that a foreign employer is established outside of Türkiye or that the employer is a foreign national does not automatically eliminate the legal right of an employee working in Türkiye to annual leave.
Therefore, foreign companies operating in Türkiye need to establish systems in their human resources policies regarding annual paid leave that comply with Turkish labor legislation.
For companies with headquarters abroad, simply applying the same leave policies used in their home countries to their employees in Türkiye may not be legally sufficient.
The applicable provisions of Turkish labor law concerning employees in Türkiye should also be taken into consideration.
Permit Policies for Foreign Companies
In international companies, employees' annual leave is often determined by the company's global human resources policies.
However, when applying the company's global leave policy to employees in Türkiye, the minimum standards stipulated in Turkish labor law must be maintained.
For example, the fact that a shorter minimum annual leave period applies in the country where the company is headquartered does not justify reducing the statutory minimum leave period for an employee in Türkiye who is subject to Turkish labor law.
Conversely, it is possible for a foreign company to grant employees longer leave than the minimum periods stipulated under Turkish law.
Therefore, it is important for international companies to align their global human resources policies with the mandatory labor law provisions in Türkiye.
Maintaining Annual Leave Records
Maintaining accurate records of annual leave is an important obligation for employers.
The dates between which the employee took leave, the number of days of leave they are entitled to, and whether they have any leave days carried over from previous periods must be recorded.
In cases of dispute between employer and employee regarding annual leave, leave records can serve as important evidence.
Therefore, simply obtaining a signature from the employee should not be considered sufficient; the accuracy of the records must be ensured.
For foreign employees, providing leave records in a language they can understand, along with Turkish documentation, can be beneficial, especially in international companies.
However, providing information to a foreign employee in a different language does not negate the need to fulfill the record-keeping and documentation obligations stipulated by Turkish law.
Legal Assessment of Annual Leave Disputes
In annual leave disputes, the employee's total length of service must first be determined.
Next, it should be examined during which periods the employee earned annual leave entitlement and how much of that leave was actually used.
Following this:
- permission records,
- permission forms,
- payrolls
- payment documents,
- employment contract
- employer's leave plans,
- electronic authorization systems if any
They should be evaluated together.
In the event of termination of the employment contract, the paid equivalent of unused annual leave must also be calculated.
In the case of foreign employees, in addition to these, work permit records, the start and end dates of the employment contract, and any international assignment documents may also be examined.
The Importance of Annual Leave Entitlement for Both Employers and Employees
Annual paid leave is not merely a right that allows workers personal rest; it is also a crucial institution of labor law in terms of occupational health, work productivity, and sustainable working relationships.
Prolonged and uninterrupted work can increase a worker's physical and mental fatigue. Therefore, annual leave is considered a protective mechanism aimed at preserving the worker's working capacity.
From the employer's perspective, regularly planning annual leave ensures both a healthy work organization and reduces potential future disputes over employee wages.
In international companies, especially those with a large number of foreign employees, leave planning needs to be considered in conjunction with the central human resources system and local labor law practices in Türkiye.
Conclusion
Annual paid leave is one of the fundamental labor rights in Turkish labor law, guaranteeing the worker's right to rest. Under the Labor Law No. 4857, an employee becomes entitled to annual paid leave upon completing at least one year of service, and the duration of the leave is determined according to the employee's total length of service.
Generally, employees with one to five years of service are entitled to at least 14 days of annual paid leave, those with more than five years but less than fifteen years of service are entitled to at least 20 days, and those with fifteen years or more of service are entitled to at least 26 days. For employees under 18 and over 50 years of age, the annual leave period cannot be less than 20 days.
Providing genuine annual leave is crucial for protecting an employee's legal right to rest. Falsely representing that leave has been granted or consistently delaying annual leave entitlements can lead to legal disputes.
Unused annual leave entitlements become particularly important upon termination of an employment contract. The payment for earned but unused annual leave should be calculated based on the wage at the time of termination of the employment contract.
For foreign workers, the right to annual paid leave is an important labor right. In Turkey, under Turkish labor law, the citizenship status of foreign workers does not, by itself, negate the right to annual leave. However, it is necessary to distinguish between work permits and rights arising from the employment contract, and to evaluate the foreigner's employment status separately. While a work permit establishes an administrative status regarding the legal employment of a foreigner in Turkey, the right to annual paid leave is a labor law right stemming from the employment relationship.
Foreign employers and foreign-owned companies should also consider the annual leave rights of their employees in Türkiye. When implementing global human resources policies, practices that fall short of the mandatory provisions of Turkish labor law should be avoided.
In conclusion, when determining annual paid leave, the employee's length of service, the date the right to leave arises, the statutory leave period, used and unused leave, wage payments, and the termination of the employment contract must all be considered together. For foreign employees and foreign employers, in addition to these factors, work permits and the legal characteristics of international employment relations must also be taken into account.
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