Severance Pay
"When are employees entitled to severance pay in Turkey?"
Quick Answer
Employees with at least 1 year of service may be entitled to severance pay equal to 30 days’ wage per full year of service (prorated), calculated on the basis of the employee’s gross wage including regular benefits, up to the statutory ceiling. Entitlement depends on the reason for termination; resignation usually does not qualify, except in specific cases such as termination by the employee for just cause, military service, retirement, or certain other statutory grounds.
Turkish Labor Law Framework
Severance pay in Turkey is primarily regulated by Article 14 of the former Labor Law No. 1475 (the provision still in force), together with related legislation and court practice. The Labor Law No. 4857 is also relevant, particularly regarding termination grounds and employment protections.
Key Points to Remember
- Labor Law No. 4857 applies to most employment relationships
- Employment contracts can be for definite or indefinite terms
- Employees enjoy significant statutory protections
- Social security contributions are mandatory for both parties
Compliance Requirements
Employers operating in Turkey must ensure compliance with both written employment law requirements and practical HR management standards. This includes proper documentation, timely salary payments, and adherence to workplace safety regulations.
Foreign companies should be particularly aware of work permit requirements and the specific obligations when employing both Turkish nationals and foreign workers.
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We share general information on Turkish employment termination and severance calculation rules. Contacting us does not create a lawyer client relationship.
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