SEVERANCE PAY AND ELIGIBILITY CONDITIONS

the current Labor Law No. 4857,a person working at an employer's workplace under an employment contract is defined as an employee and, according to the same law, has the right to claim severance pay.

Conditions for receiving severance pay…

Although Law No. 1475/14 was repealed with the enactment of Law No. 4857, some provisions regarding severance pay remain valid. Accordingly, employees are paid severance pay under certain conditions. These conditions are as follows:

• The employment period with the same employer must be at least 1 year
• The employment contract may be terminated by the employer for reasons other than those violating good faith and moral principles
• Due to reasons such as violations of health, good faith and moral rules by the worker, or cessation of work at the workplace,
• Due to military service,
• Due to obtaining the right to retirement or fulfilling the required insurance period and premium days, excluding age,
• The female worker may apply within one year of her marriage date
• In the event of termination of an employment contract due to the death of an employee, severance pay is paid based on the length of service.

The right to severance pay in case of employee resignation..

According to the Labor Law, an employee is not entitled to severance pay upon resignation. However, this right is preserved in certain circumstances. The following situations protect the right to severance pay for employees who have worked for at least one year and whose employment contract ends due to resignation:

• Military service,
• Obtaining the right to retirement,
• Documentation demonstrating that health problems consistently prevent the performance of the job
• The employer's conduct is contrary to good faith and ethical principles,
• Female employee who leaves her job due to marriage (must document the termination as being due to marriage in writing within one year of the marriage date)

Severance pay calculation…

In the event of termination of any employment contract for reasons stipulated in the law, severance pay is calculated at 30 days' gross salary for each full year worked. Periods exceeding one year are also included in the calculation proportionally. Severance pay calculations take into account the gross amounts of all monetary and quantifiable benefits regularly provided to the employee (such as transportation allowance, meal allowance, and regular bonus payments). The amount of severance pay paid for each full year of service is limited by the severance pay ceiling in effect at the time of termination.

For more information on this matter, you can seek advice from an experienced employment law attorney.