Severance pay is the name given to the wage paid by the employer to the dismissed employee for the years he/she worked in the workplace. In severance pay, the employee is paid a monthly salary for each year of employment.
What are the Conditions for Severance Pay?
According to the Labour Law No. 4857, it is deemed necessary for the employee to meet certain conditions in order to be entitled to severance pay. According to this
- The person must be working in the status of “employee” according to the Labour Law.
- There must be an indefinite-term employment contract between the employee and the employer.
- The employee must have worked continuously and uninterruptedly for at least 1 year in the workplace he/she left.
- The employment contract must have been terminated unfairly by the employer or justifiably by the employee.
How is severance pay calculated?
When calculating severance pay, the last monthly salary of the employee before leaving the job is taken as basis. This salary is the dressed gross wage at the time of termination of the employment contract. This wage includes elements such as insurance premiums, union dues and taxes. Severance pay is determined by multiplying the dressed gross wage by the number of years the worker has worked, i.e. seniority.
In which cases is the worker entitled to severance pay?
The employee may be entitled to severance pay if he/she terminates his/her employment contract or if his/her employment contract is terminated in the following cases.
- Termination due to health reasons,
- Termination for non-payment of receivables,
- Military service
- Retirement,
- Death,
- Marriage of a woman worker,
- Offences committed by the employer against the employee,
- Fundamental change in labour conditions,
- Trade union leadership,
- Less work for the labourer in piecework.