Termination of the employment contract by the employer is an important turning point in the life of the employee and the rights of the employee in this case are guaranteed by the Labour Law No. 4857. These rights may differ according to the reason for dismissal, the seniority of the employee and the type of employment contract. It is of vital importance for workers to know their rights and to apply for legal remedies when necessary in order to prevent grievances.
Legal Framework: Termination of Employment Contract and Workers’ Rights
Termination of the employment contract is the termination of the employment relationship by the employee or the employer. The Labour Law stipulates certain conditions for the employer’s right of termination and introduces protective provisions for the employee. Especially in the termination of indefinite-term employment contracts, the employer must show a valid reason and comply with the notice periods. Article 17 of the Labour Law stipulates that the other party must be notified before the termination of indefinite-term employment contracts and regulates the notification periods. Furthermore, Article 18 of the Law states that the termination of the employment contracts of workers covered by job security must be based on a valid reason.
Labour Law – Article 17: Termination for a Term
Before the termination of indefinite-term employment contracts, the other party must be notified. Employment contracts shall be deemed to have been terminated; a) for an employee whose employment has lasted less than six months, two weeks after the notification is given to the other party, b) for an employee whose employment has lasted between six months and one and a half years, four weeks after the notification is given to the other party, c) for an employee whose employment has lasted between one and a half years and three years, six weeks after the notification is given to the other party, d) for an employee whose employment has lasted more than three years, eight weeks after the notification is given. The party who does not comply with these periods and terminates the employment contract must pay compensation in the amount of wages for the specified periods.
Basic Rights of the Employee in Case of Dismissal
There are various rights that a dismissed employee can claim according to the situation:
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Severance Pay: It is the compensation paid to the employee who has worked for at least one year in case the employment contract is terminated by the employer for a reason other than the justified reasons specified in the Labour Law or if the employee terminates for just cause. For each full working year, severance pay is paid in the amount of 30 days gross wage. Periods increasing from one year are also included in the calculation proportionally. The ceiling of severance pay is determined every six months and no payment can be made above this ceiling. Severance pay is calculated on the last gross wage of the employee and is not subject to any tax other than stamp tax.
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Notice Pay: The employer must comply with the notice periods specified in the Labour Law before terminating the indefinite-term employment contract. If the employer terminates the employment contract without complying with these periods, he/she is obliged to pay notice pay in the amount of the wage for the notice period. Notice periods vary between 2 and 8 weeks depending on the seniority of the employee. The notice pay is calculated over the gross wage of the employee and is subject to income tax and stamp tax.
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Annual Leave Pay: The employee may claim the wage for the annual leave periods that he/she has earned but not used until the date of termination of the employment contract. The right to annual leave is a right granted for the purpose of resting the worker and the wage of unused leave is paid upon termination of the employment contract. This wage is calculated over the last gross wage of the employee.
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Overtime, Week Holiday and General Holiday Wages: The employee may claim overtime wages, week holiday wages and unpaid wages for working on national holidays and general holidays until the date of dismissal. These receivables can be proved with evidence such as payrolls, payroll records or witness statements.
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Bad Intent Compensation: Workers who are not covered by job security (workplaces employing less than 30 workers or workers with less than 6 months of seniority) can claim bad faith compensation in the amount of three times the notice period in case of malicious termination of the employment contract by the employer (for example, due to the union activity of the worker).
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Reinstatement Case: If an employee who is covered by job security (who has at least 6 months of seniority in a workplace employing 30 or more employees and who works with an indefinite-term employment contract) believes that the termination of his/her employment contract is not based on a valid reason, he/she may file a reinstatement lawsuit within one month from the notification of termination. If the court decides that the termination is invalid, the employer is required to reinstate the employee or pay compensation if the employer does not reinstate the employee. If the reinstatement lawsuit is decided in favour of the employee, the employee may also claim wages and other rights up to a maximum of four months for the idle period.
Litigation Process and Application Procedures
In case of dismissal, the employee who wants to claim his/her rights can first send a written notice to the employer and claim his/her receivables. This notice is evidence in a lawsuit to be filed in the future. If the employer does not pay or underpays, the employee has to apply for mediation. According to the Labour Courts Law, mediation has been made mandatory before filing a lawsuit in employee receivables and reemployment cases. If no agreement is reached during the mediation process, the employee may file a lawsuit at the competent Labour Court.
Statute of Limitations
There are certain statute of limitations for labour receivables. For example, the statute of limitations for receivables such as severance pay, notice pay, annual leave pay is 5 years. These periods start to run from the date of termination of the employment contract. If the lawsuit is not filed within the statute of limitations, the employee may lose the right to claim his/her receivables.
The rights of the employee in case of dismissal are quite comprehensive and each situation has its own specific conditions. Severance and notice pay, annual leave pay, overtime receivables and the right to file a reinstatement lawsuit under certain conditions are the most basic legal guarantees of the employee. In order to claim these rights, it is necessary to first apply for mandatory mediation, and if no agreement is reached, a lawsuit must be filed at the Labour Court. It is of great importance to get legal support from a labour law lawyer in order to prevent loss of rights and to manage the process correctly.