UNDERSTANDING TYPES OF EMPLOYMENT CONTRACTS AND TERMINATION PROCEDURES IN TURKEY

WHAT ARE THE TYPES OF EMPLOYMENT CONTRACTS IN TURKEY?

In Turkey, types of employment contracts can vary according to the demands of the employer and employee, as well as the characteristics of the job. Generally, the types of employment contracts in Turkey are classified as follows:

• Contracts for Specific and Indefinite Jobs

An employment contract is a two-party, continuous debt relationship and a private law agreement that imposes rights and obligations on both the employee and the employer within a specified or indefinite period of time, and contains specific rules depending on the nature of the employment relationship. While an employment relationship is not made for a specific period of time, it is considered an indefinite contract, which is one of the types of employment contracts in Turkey.

According to the doctrine, it is accepted that chain agreements occur when the second type of definite term contract is made without any substantial reason, and it is also accepted that the second type of definite term contract will turn into an indefinite contract.

• Contracts for Continuous and Non-Continuous Jobs

Article 10 of the Labor Law divides the types of employment contracts into continuous and non-continuous jobs based on the nature of the work that is the subject of the contract, not on the parties’ will. The important point to consider here is that the duration of the job must continue based on the nature of the job, not the period of time determined by the parties or the actual duration of the job.

Employment contracts in Turkey are agreements that impose obligations and provide rights to both parties in exchange for the mutual exchange of performances. The internal relationship between the employee and the employer is established when the employee begins working at the employer’s workplace, either actually or based on the contract. Both parties must comply with the obligation of care and loyalty required by the contract. Employment contracts in Turkey also have the characteristic of a personal unity relationship due to this feature.

• Full-Time and Part-Time Employment Contracts

Depending on whether the worked hours correspond to the necessary working hours, employment contracts are classified into two types: full-time and part-time employment contracts.

Employment contracts in Turkey established based on the full-time working principle, in accordance with the weekly and daily working hours at the workplace, are considered full-time employment contracts. On the other hand, contracts in which full-day work is agreed upon on certain days of the week or a certain period is determined within one or more days of the week are considered part-time employment contracts in Turkey.

It is worth mentioning the topic of on-call work at this point. According to Article 14 of the Labor Law, the employment relationship where the need for work performance is agreed upon in case the worker is required for the work he/she undertakes is a part-time employment contract based on on-call work, aimed at protecting the worker. Unless otherwise agreed by the parties, the call must be made at least four days in advance. The contract must be made in writing.

Under the heading of part-time employment contracts in Turkey, distinguishing between the Job Sharing Employment Relationship, the Opportunity Employment Relationship, and the Rotation-Shift Employment Relationship is legally significant.

• Seasonal Employment Contract

Seasonal employment contracts in Turkey, one of the types of employment contracts, refers to jobs that are performed only during certain periods of the year, while the activity is either suspended or not carried out during other periods. It can be done for a specific or indefinite period. In the calculation of seniority and notice periods in seasonal jobs, the period in which the employment contract is suspended must be taken into account. According to the decisions of the Court of Cassation, the total number of worked and non-worked days should be considered.

• Home Working Contract

A home working contract is one of the types of employment contracts in which the worker undertakes to perform the work given by the employer at home or at a workplace determined by himself/herself in exchange for a fee. In cases where there is no provision regarding the service contract, the general provisions of the service contract will apply.

• Team Agreement

It is a contract that must be made in writing; the condition of it being in writing is a validity requirement. With the written team agreement, when each worker whose name is written starts to work, a contract of employment is deemed to have been made between that worker and the employer in accordance with the terms determined in the team agreement. The employer is obliged to make separate payments to each worker who is part of the team.

• Trial Employment Contracts

The parties may determine a trial period in all types of employment contracts, including fixed-term or indefinite-term permanent employment contracts in Turkey. (Labor Law Article 15) The trial period may be set for a maximum of 2 months, as the legislator has limited this period to 2 months. If the trial period is not terminated during this period, the employment contract becomes definitive and continues.

• Temporary Employment Relationship

This employment relationship, also known as a loaned labor relationship, arises in cases where qualified labor is provided in corporate groups or as part of it, in the training of senior executives, or when companies from the same group jointly undertake a task, or in cases where an employer facing financial difficulties includes his worker in another employer’s structure until his business improves.

In this case, obtaining the written consent of the worker is mandatory in Turkey. The employer who establishes a temporary employment relationship is jointly responsible with the worker for the unpaid wages during the period the worker worked for them, the duty to oversee the worker, and the social security premiums. The joint and several liability of the transferring employer cannot be eliminated by agreement between the parties.

REQUIREMENT AS TO FORM OF EMPLOYMENT CONTRACTS IN TURKEY

Article 8 of the Labor Law provides that employment contracts in Turkey are not subject to any specific form unless otherwise specified for certain types of employment contracts in Turkey. Written employment contracts are mandatory for some types of employment contracts under the law. Employment contracts with a duration of one year or more must be made in writing. Parties have the freedom to make employment contracts for a period of less than one year without a written agreement. In addition, team contracts and call-on work contracts must be written contracts subject to the validity condition.

WHAT ARE THE REASONS FOR TERMINATION OF EMPLOYMENT CONTRACT IN TURKEY?

The reasons for the termination of employment contract in Turkey are listed in the Labor Law. In brief, the reasons for the termination of an employment contract are as follows:

• Expiration of the Employment Contract

Employment contracts in Turkey can be made between the employee and employer for a certain period of time. The duration of the employment contract is determined in accordance with the agreement of the parties, and the employment contract terminates at the end of the specified period. However, if the duration is not specified in the contract, the employment contract is deemed to be for an indefinite period, and the parties have the right to terminate it at any time.

If a certain period is specified in the contract, the employment relationship ends with the expiration of that period in Turkey. Fixed-term employment contracts in Turkey cannot be established consecutively in a chain unless there is a substantial reason, and are deemed to be for an indefinite period.

In the event of the expiration of the employment contract in Turkey, the parties must collaborate to renew or terminate the contract. The employer must notify the employee before the end date of the employment contract that the contract will not be renewed or will be terminated.

The expiration of the employment contract is one of the reasons for the termination of the employment contract in Turkey, providing the employee with new career opportunities and the employer with the opportunity to find a new employee. Instead of making a new contract or terminating the employee, the employer can reach an agreement with the employee that the contract will not be renewed or will be terminated. This is a good opportunity for cooperation between the parties and a healthy termination of employment relationship in Turkey.

Near the expiration of the employment contract , the parties may reach an agreement to extend the contract in Turkey. The employer comes with the option of extending the employment contract instead of terminating the employee. The employee is free to accept the offer to extend the duration of the employment contract. However, if the offer of an extension is not made to the employee, the employment contract is considered to have expired.

In conclusion, employment contracts in Turkey can be made for a fixed or indefinite period, and it is also possible to renew or terminate the contract with the collaboration of the parties. The expiration of the employment contract is the most commonly encountered reason for the termination of employment contracts in Turkey in practice.

• Termination of Employment Contract by Agreement of the Parties in Turkey

Regardless of whether the employment contract is for a definite or indefinite period, it can be terminated by agreement of the parties.

Making an agreement between the employer and the employee for the termination of employment contract in Turkey is the most ideal method for ending employment relationships in a healthy manner. When the parties agree to terminate the employment contract, it helps to prevent the legal problems that may arise when an employee is terminated or when the employer dismisses an employee.

Generally, the parties make the agreement in writing for the termination of employment contract. The terms of the agreement include the date of termination of the employment contract, the necessary procedures for the employee to resign, the mutual rights and responsibilities of the parties, and other details.

Terminating the employment contract in Turkey by agreement of the parties carries some risks for the employee. If the employee terminates the employment contract by agreement, they may have waived their rights to unemployment benefits or severance pay. Therefore, before terminating the employment contract by agreement, it is recommended that the employee carefully evaluate such issues and seek support from a lawyer or employee representative if necessary.

• Termination of Employment Contract in Case of the Employee’s Death

If an employee dies, the employment contract in Turkey naturally terminates. This does not mean that the employer terminated the employment contract due to the employee’s death. Since the act of performing the work is a personal act that the employee must perform, it does not pass on to their heirs. However, in this case, the heirs or beneficiaries of the employee are entitled to the rights that the employee earned before their death.

The heirs or beneficiaries of the deceased employee may make a claim for the employee’s unpaid wages, severance pay, notice pay, and other rights at the workplace. These rights are valid for the amounts unpaid due to the termination of the employment contract in Turkey.

Additionally, the death of an employee can lead to serious legal problems for employers regarding occupational health and safety. Therefore, it is extremely important for employers to take necessary measures for occupational health and safety and ensure the safety of employees.

Since the employment contract is terminated in case of the employee’s death, the employer is not obliged to offer a job to the employee’s heirs or beneficiaries. However, the employer is obliged to pay the earned rights of the deceased employee to their heirs or beneficiaries until the termination of the employment contract in Turkey.

In conclusion, the employment contract naturally terminates in case of the employee’s death, and their heirs or beneficiaries can claim their unpaid rights in Turkey. It is extremely important for employers to take necessary measures for occupational health and safety, ensure the safety of employees, and pay the earned rights of the deceased employee to their heirs or beneficiaries.

• Termination of Employer’s Activities

Termination of an employer’s activities may occur due to the company’s bankruptcy, declaration of concordat, liquidation, or similar situations. In these cases, since the employer’s business is closed, the employees have no job to work and their employment contracts are terminated.

In case of the termination of employment in Turkey, employees can claim their unpaid wages, severance pay, notice pay, and other rights earned before the termination date. Additionally, it should be noted that in cases of the employer’s bankruptcy or declaration of concordat, employees are among the priority creditors.

In the event of the termination of the employer’s activities, it is clear that the employees will become unemployed. However, they can receive unemployment benefits through the Turkish Employment Agency (İŞKUR) and can also receive assistance during their job search process. Receiving services from İŞKUR during their job search process can help employees find a new job.

• Resignation due to Retirement in Turkey

Retirement is a valid reason for the termination of employment contracts in Turkey. When an employee reaches retirement age or meets certain conditions, they earn the right to retire and leave their job due to retirement. Termination of employment contract due to retirement means the end of the employee’s working life.

Resignation in Turkey due to retirement may occur at the request of the employer or the employee. The employment contract can be terminated upon the employee’s request for retirement. Additionally, if an employee becomes eligible for retirement, the employer can terminate the employment contract.

If an employee decides to retire and resigning from a job due to retirement, the employer has obligations to pay their severance pay, notice pay, and other rights such as compensation for unused leave and severance pay based on the length of service. If an employee resigns due to retirement, the employer’s obligation to pay their health insurance premiums also ends.

• Termination of Employment Contract by Resignation in Turkey

Resignation in Turkey is a common occurrence in the workplace and many people choose this route when changing jobs. Resigning from a job may be due to personal or professional reasons, but it is important to do it correctly. Knowing the correct steps in the resignation process is important for workers’ future careers.

• What Does Resignation Mean in Turkey?

Resignation in Turkey means an employee voluntarily leaving their job. The employee will leave their job after a certain period of time by giving a resignation letter to the employer. Resigning from a job means expressing the employee’s decision clearly and the employer must accept this situation.

• Reasons for Resigning From a Job in Turkey

Resigning can be due to many reasons in Turkey. Employees may leave their jobs due to dissatisfaction with their work, changes in working conditions, salary, career goals, or the management style of the business. Personal reasons, such as health problems or family reasons, may also lead to resignation.

• Resignation Process in Turkey

Resignation is a process that must be done correctly. It is important for employees to act in accordance with company policies and the Labor Law. Some steps that employees need to follow are as follows:

1. Notification to the Employer: Regardless of the types of employment contracts, employees must inform their employer in writing of their resignation. The resignation letter should include information such as the employee’s name, job position, leaving date, and reason for resignation.
2. Notice Period: The most important thing to pay attention to during the resignation process in Turkey is the notice periods. After informing the employer of the resignation, employees may need to work for a certain period of time, which is called the notice period. These periods are regulated in Article 17/2 of the Labor Law.
3. Communication with the Employer: After the employer accepts the employee’s resignation letter, the employer may need to communicate with the employee about the resignation process. During the resignation process, the employer and employee can agree on the terms of separation.
4. Return of Company Property: During the resignation process in Turkey, employees must return all company property they have used, such as company cars, computers, keys, cards, documents, or any other assets related to their work.
5. Final Pay and Payments: During the resignation process in Turkey, employees must request their final pay and any unpaid salaries until the resignation date. This may also include requesting payment for unpaid leave, bonuses, allowances, and similar payments from the employer.
6. Leaving the Job: Employees must complete all necessary steps to leave their job on the specified departure date. This includes all matters related to the job, such as returning all company property, final pay, and payments. The resignation process is completed with leaving the job.

In conclusion, resigning from a job in Turkey is a common occurrence in the workplace. It is important for workers to show respect for their employers and abide by company policies during the resignation process. Resigning may stem from personal or professional reasons, but it is crucial for workers to take the right steps during the resignation process to build a good foundation for their future careers.

• Termination of an Employment Contract by Rescission in Turkey

The termination of an employment contract in Turkey through rescission can be carried out either with notice or without notice, depending on the type of employment contract. The process differs between the termination of an indefinite-term employment contract and a fixed-term employment contract.

Rescission is a right that creates a dissolutive effect and takes effect upon the declaration of the right holder’s intent. This declaration must be clear, precise, and free of doubt to effectively terminate the employment relationship between the parties. This clarity is crucial to ensure the protection of both employee and employer rights.

WHAT IS THE NOTIFICATION OF TERMINATION OF AN EMPLOYMENT CONTRACT IN TURKEY?

The notification of termination of an employment contract in Turkey is the declaration of intent by an employee or employer to end the employment relationship. Through this notification, the termination of the employment contract is aimed, and the existing legal status is altered. Thus, the notification of termination constitutes a right that creates a dissolutive effect.

In Turkish labor law, the notification of termination of an employment contract can be utilized in two ways: termination with notice and immediate termination.

Termination with notice allows indefinite-term employment contracts to end after a specified period. Such notification can be made by either the employee or the employer (Turkish Labor Law Article 17/1).

• NOTICE PERIODS FOR TERMINATION OF AN EMPLOYMENT CONTRACT IN TURKEY

The minimum notice periods that parties must comply with in cases of termination with notice are specified in Article 17/2 of the Turkish Labor Law. These periods are as follows:

a) For employees with less than 6 months of service: 2 weeks,
b) For employees with 6 months to 1.5 years of service: 4 weeks,
c) For employees with 1.5 to 3 years of service: 6 weeks,
d) For employees with more than 3 years of service: 8 weeks.

These minimum notice periods begin from the moment the notification is delivered to the other party. However, these periods are minimum requirements and may be extended by individual or collective labor agreements (Turkish Labor Law Article 17/3). If the agreed notice period is shorter than the statutory minimum, the periods stipulated by law will apply.

• TERMINATION OF AN EMPLOYMENT CONTRACT BY ADVANCE PAYMENT

Under Article 17/5 of the Turkish Labor Law, an employer may terminate an employment contract in Turkey without adhering to notice periods by paying the employee an advance payment equal to the wages for the notice period. This is referred to as “termination by advance payment” and is a right granted exclusively to employers. Employees cannot exercise this right.

If the employer terminates the contract by advance payment without observing notice periods, the wage calculation is based on the employee’s most recent gross salary in accordance with Article 17/7 of the Labor Law.

• CONSEQUENCES OF FAILING TO COMPLY WITH NOTICE PERIODS IN TURKEY

Failure to comply with notice periods in Turkey results in the party terminating the contract being obligated to pay compensation for notice. This compensation corresponds to the wages for the notice period and is calculated based on the gross salary (Labor Law Article 17/4).

The statute of limitations for claims regarding notice compensation is 5 years, as per Article 3/1-b of the Additional Provisions of the Labor Law. This provision came into effect on October 25, 2017. For employment contracts terminated after this date, the 5-year statute of limitations applies. For those terminated before this date, the limitation period remains 10 years.

A legal interest rate of 24% is applied to claims for notice compensation in Turkey. To initiate the accrual of interest, the other party must be placed in default. Therefore, to place the party at fault in default and to provide clear evidence, it is advisable to issue a formal notice through a notary. This ensures that the debtor of the notice compensation is in default, and interest begins to accrue from the date of default.

If the debtor of notice compensation in Turkey is not placed in default prior to initiating legal proceedings, interest on the notice compensation claim will accrue from the date of the lawsuit. This process is essential for protecting claims related to notice compensation and ensuring entitlement to legal interest.

WHAT ARE THE REASONS FOR TERMINATING AN EMPLOYMENT CONTRACT IN TURKEY?

The reasons for terminating an employment contract in Turkey can be categorized into three main groups. It is crucial to ensure that each reason for termination complies with the law and regulations and that the process is managed properly.

• REASONS FOR TERMINATION WITH NOTICE IN TURKEY

Under the Turkish Labor Law, the right to terminate an employment contract with notice is a unilateral declaration of intent that ends an indefinite-term employment contract after a specified period. The validity of this declaration does not require acceptance by the other party; it is sufficient for the notice to be communicated to and received by the other party. Termination with notice in Turkey is a right that creates a legal change by ending the existing employment relationship and can be exercised by both employees and employers.

However, the application of the right to terminate with notice differs for employees covered by job security and those who are not. While employees not covered by job security can terminate their contracts through notice, employees covered by job security must rely on valid reasons to end their contracts. Employers may terminate an indefinite-term employment contract of a job-secured employee only for valid reasons. This serves to protect employees under job security from arbitrary termination by employers.

Article 18 of the Turkish Labor Law outlines the conditions for valid termination in Turkey, the employees it applies to, and the situations that do not constitute valid reasons. The rationale for Article 18 explains that valid reasons are “less severe than those listed in Article 25 but still negatively impact the normal functioning of the business or workplace.” According to this, valid termination can be defined as a right enabling the employer to terminate an indefinite-term employment contract by adhering to notice periods without having to prove a just cause as severe as those in Article 25.

The employer’s termination of an employment contract in Turkey for valid reasons should be a last resort. If the employer has any other means to maintain the employment relationship, termination is not permissible. Moreover, under Article 18, termination is not allowed for reasons explicitly stated as invalid, or for similar reasons. Thus, an employer cannot terminate a employment contract on such grounds.

It is essential to emphasize that the obligation to provide a valid reason for terminating an indefinite-term employment contract applies only to employees covered by job security. For employees not under job security, employers may terminate the contract by adhering to the notice periods specified in Article 17 of the Turkish Labor Law. In such cases, it suffices for the employer to issue a notice of termination without providing any justification.

Termination for valid reasons may arise from the employee’s inadequacies or behaviors or the requirements of the business, workplace, or the nature of the job. When termination is due to the employee’s inadequacies, the reasons often involve circumstances beyond the employee’s control. Conversely, termination due to the employee’s behaviors is more directly tied to the employee’s intent and actions.

In cases of termination based on the employee’s inadequacies, the employee’s fault is not required. However, in cases of termination due to the employee’s behaviors, fault is a necessary element. Employers may also terminate an indefinite-term employment contract for valid reasons arising from business, workplace, or job-related necessities. In such cases, the reasons for termination are unrelated to the employee’s physical, professional, or behavioral attributes.