Labor Law Article 17 – Before the termination of indefinite-term employment contracts, the other party must be notified of the situation.
Employment contracts;
a) For a worker whose employment has lasted less than six months, the contract is considered terminated two weeks after the notification is given to the other party,
b) For a worker whose employment has lasted between six months and one and a half years, the contract is considered terminated four weeks after the notification is given to the other party,
c) For a worker whose employment has lasted between one and a half years and three years, the contract is considered terminated six weeks after the notification is given to the other party,
d) For a worker whose employment has lasted more than three years, the contract is considered terminated eight weeks after the notification is given,
the contract is deemed terminated.
These periods are minimum durations and can be extended by agreement in contracts.
The party failing to comply with the notification requirement is obliged to pay compensation equivalent to the wage for the notification period. The employer may terminate the employment contract by paying the wage for the notification period in advance.
The employer’s failure to comply with the notification requirement or terminating the contract by paying the notification period wage in advance does not prevent the application of the provisions of Articles 18, 19, 20, and 21 of this Law. According to the first paragraph of Article 18, in cases where the employment contract of workers outside the scope of Articles 18, 19, 20, and 21 of this Law is terminated by abusing the right of termination, the worker shall be paid compensation equal to three times the notification period. Failure to comply with the notification requirement for termination also requires compensation under the fourth paragraph.
In calculating the compensation payable under this article and the advance payment for the notification period, in addition to the wage specified in the first paragraph of Article 32, monetary benefits or benefits measurable in money provided to the worker under the contract and the Law are also taken into account.
What is Severance Pay for Notice?
The Article 17 of the Labor Law No. 4857, mentioned above, explains how an employer should notify the employee when terminating the employment contract without a justified reason, and that the employee is entitled to severance pay for notice if such notification is not given.
In conclusion, severance pay for notice is the compensation the employee earns when they do not receive a prior warning before being dismissed. Likewise, if the employee leaves the job without giving notice, they must pay the same severance pay for notice to the employer. In other words, severance pay for notice is a type of compensation that can be paid not only to the employee but also to the employer.
Entitlement to Severance Pay for Notice
Severance pay for notice is a type of compensation that the non-terminating party is entitled to when the employment contract is terminated without adhering to the required notice periods, when termination occurs without just cause, when the reason for termination cannot be proven, or when the statutory time limit for termination has expired.
Situations Regarding Fixed-Term or Indefinite-Term Employment Contracts
In fixed-term employment contracts, both parties may unilaterally terminate the contract upon the expiration of the period specified in the contract. In this case, neither party is required to pay notice compensation.
Even in the case of an unjust termination before the expiration of the fixed-term contract, notice compensation is not required because the existence of an indefinite-term employment contract is a mandatory condition for notice compensation to arise.
Does a Resigning Employee Have the Right to Severance Pay?
The party responsible for paying the notice compensation is the one who terminates the contract without giving prior notice. Therefore, if the employee resigns, since the employee is the party terminating the contract, they are not entitled to notice compensation. However, as mentioned above, if the employee resigns without giving notice within the required period and without a valid reason, they are obliged to pay notice compensation to the employer. Normally, an employee who resigns without a justified reason is not entitled to notice compensation, but if the resignation is due to mobbing (workplace harassment) or other exceptional circumstances that influence the employee’s will, then the employee may be entitled to notice compensation.
Republic of Turkey Supreme Court
22nd Civil Chamber
Case No: 2015/11958
Decision No: 2016/15623
Decision Date: 31.05.2016
It is established that the plaintiff employee is a qualified and experienced worker in their profession. Upon evaluating the evidence in the case file together, emphasizing the employee’s expertise and the importance of the workplace in Istanbul, it is understood that the employee was assigned indefinitely from Ankara to Istanbul, but at the new workplace, was not given tasks appropriate to their experience and position, was marginalized, and a perception of the employee as unproductive was created. Consequently, mobbing was applied to the plaintiff employee with the aim of causing them to leave voluntarily. The plaintiff employee, subjected to mobbing, terminated the employment contract. In this case, it is established that the employee is entitled to severance pay.
Regarding the claim for notice pay, although the termination was made by the employee, it is established that the employee’s will to terminate was directed due to the employer’s mobbing, thus the employee is also entitled to notice pay. Although the court’s reasoning that the conditions for mobbing were not met is incorrect, the recognition of the claims for severance and notice pay is ultimately deemed appropriate.
How Is Notice Compensation Calculated?
- For a worker whose employment lasted less than six months, termination is effective two weeks after the notification is given to the other party.
- For a worker whose employment lasted between six months and one and a half years, termination is effective four weeks after the notification is given to the other party.
- For a worker whose employment lasted between one and a half years and three years, termination is effective six weeks after the notification is given to the other party.
- For a worker whose employment lasted more than three years, termination is effective eight weeks after the notification is given.
The notice periods specified in the law are the durations that must be taken as the basis for calculating the severance pay (notice compensation). The employer is required to give notice a certain amount of time before terminating the employee, based on the length of the employee’s service. Whether the employee is entitled to compensation will be determined by examining these periods.
The notice compensation is calculated based on the employee’s gross salary at the time of termination, including all continuously paid premiums, bonuses, rent, lighting, meal allowances, and similar payments—in short, the total amount of all material rights the employee receives. Only payments that are continuous are included in the calculation of notice compensation. According to the Supreme Court, the amount of notice compensation is determined by multiplying the number of days in the notice period by the daily gross salary used as the basis for severance pay calculation. After calculating the employee’s gross salary, the length of the employee’s service and compliance with the notice periods specified in the law are reviewed. Notice compensation is calculated by multiplying the employee’s weekly gross salary by the number of weeks in the notice period.
Sample Supreme Court Decisions
Supreme Court 9th Civil Chamber Case No: 2016/12990, Decision No: 2020/2336, Date: 17.2.2020
“Since the severance pay (notice compensation) is a compensation that the party terminating the employment contract must pay to the other party, even if the terminating party has a justified reason for termination, they are not entitled to severance pay. According to Article 14 of Law No. 1475, if the employee terminates the employment contract due to reasons such as retirement, active military service, or marriage, they do not have the right to claim severance pay. In these terminations, the employer also cannot claim severance pay.”
22nd Civil Chamber, Case No: 2013/29239, Decision No: 2015/13202
5- There is a dispute between the parties regarding the calculation of the notice compensation.
In the concrete case, the plaintiff’s length of service is one year, four months, and twenty-two days. Accordingly, although the notice period is 4 (four) weeks pursuant to Article 17 of Law No. 4857, calculating it as 6 (six) weeks is erroneous and requires annulment in this regard.
RESULT: The appealed judgment is REVERSED for the reasons explained above…
Supreme Court
22nd Civil Chamber
Case No: 2015/22893
Decision No: 2017/28476
Date: 12.12.2017
Relevant Law / Article: Labor Law No. 4857 / Article 17
In the present case, the plaintiff did not accept the defendant’s request for a change in working conditions. Despite the report’s conclusion, the plaintiff did not come to work on 05/05/2014, 06/05/2014, 07/05/2014, and thereafter. Although a formal notice was sent by the defendant, the plaintiff neither resumed work nor explained the reason for the absenteeism. According to the case file and witness statements, it is clear that the plaintiff’s working conditions were worsened, transitioning from part-time to full-time work without obtaining written consent on this matter. Since the plaintiff did not attend work and terminated the employment contract for a valid reason, it is clear that the plaintiff is entitled to severance pay but not to notice pay. Therefore, the acceptance of the notice pay claim was incorrect and requires reversal.
RESULT: The appealed decision is REVERSED for the reasons stated above.
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