Termination of Employment Contracts

According to Turkish Law, employees shall be entitled to the compensation described below upon termination of the employment contracts.

In case reason for termination of an employment contract is not accepted as one of “justified reasons” as prescribed in Article 25 of the Turkish Labor Code numbered 4857, but constitutes only “valid reason” the employer shall be obliged to pay compensation for seniority and if the employer prefers to terminate the contract without observing a notice period, compensation for such notice period.

Compensation for seniority shall be equal to 30 days’ wage of the employee to be paid for each year of employment. However, the maximum limit of the compensation for seniority to be paid for each year is determined by the Ministry of Labor and Social Security.

If the reason of termination does not qualify as a valid reason, the employee shall be entitled to file a re-employment case and in this case termination shall have different consequences for both parties

For further information please contact onder.budak@budaklegal.com