wrongful termination

TERMINATION REASONS FOR EMPLOYMENT CONTRACTS AND RIGHTS OF TERMINATED EMPLOYEES

Employment contracts can be terminated due to expiration of the term, death, mutual agreement of the parties, or  wrongful termination by the employee/employer. The most significant reason for terminating an employment contract is wrongful termination, so we will provide detailed information below regarding termination reasons and the rights of employees regarding wrongful termination.

Generally, notice-based termination applies to indefinite-term contracts or fixed-term contracts that later convert into indefinite-term contracts. When termination occurs, the rights of the terminated employee must be addressed.

As a result of the freedom of contract, the parties can freely terminate their contracts through notice-based termination without the need for a specific reason. However, if the parties have stipulated in individual or collective employment agreements that termination can be based on certain reasons, then wrongful termination will be valid if it is based on the designated reason, and in this case, stating the reason for termination becomes important.

According to Article 17 of the Labor Law, notification periods of two, four, six, and eight weeks are regulated depending on the employee’s seniority. Accordingly, notification periods are set as 2 weeks for employees who have worked up to 6 months, 4 weeks for employees who have worked between 6 months and 1.5 years, 6 weeks for employees who have worked between 1.5 years and 3 years, and 8 weeks for employees who have worked more than 3 years.

These notification periods mentioned are indivisible in nature, meaning that uninterrupted and complete notice period must be complied with according to the employee’s seniority. Before addressing the rights of terminated employees, it must be determined whether the notice period has been properly granted.

One of the rights of terminated employee is that, according to Article 27 of the Labor Law, the employer is obliged to grant the employee permission to search for a new job; the employer must provide the employee with job search permission for at least two hours per day. Notification periods are a matter that both the employee and the employer should consider.

However, the right to terminate the employment contract by paying the wages for the notification period is granted only to the employer. According to Article 17 of the Labor Law, both the employee and the employer who do not comply with the notification periods are obliged to pay compensation in the amount of the wages for the notification period in order to protect the rights of the terminated employee.

Lawsuits related to notification compensation are subject to a statute of limitations of 5 years. In the case of contracts that have not converted into fixed-term or indefinite-term contracts, notification compensation does not arise upon termination.

For detailed information about Labor Law in Turkey, please visit our page here.

Labor Law Article 8 – An employment contract is a contract formed by one party (the employee) undertaking to perform work under dependence and the other party (the employer) undertaking to provide payment. Unless otherwise specified in the law, an employment contract is not subject to a specific form.

TERMINATION WITH VALID GROUNDS FOR EMPLOYEES COVERED BY JOB SECURITY ACT

Article 18 of the Labor Law stipulates the conditions for termination with valid grounds. Accordingly, an employer terminating an indefinite-term employment contract of an employee with a minimum of 6 months of seniority, in a workplace employing thirty or more workers, must have valid grounds for the termination. The number of employees at the time of termination should be considered, and the judgment should not be based on the number of employees during the lawsuit. It is important to note that terminations based on this provision do not imply termination without severance pay. The rights of the terminated employee should be calculated and their compensation should be paid.

Another important aspect for employees to benefit from job security provisions is that the employee should not be a representative of the employer. However, employees who manage and administer the entire workplace but do not have the authority to hire or dismiss employees can benefit from job security provisions.

Article 18/1 of the Labor Law explains the concept of valid grounds, stating that the termination must be based on the existence of a valid reason arising from the employee’s competence, behavior, or the requirements of the enterprise, workplace, or work. Additionally, termination must be the last resort. In other words, the employer should have exhausted all options to maintain the employment relationship and resorted to termination as a last resort. In this case, it is not a case of termination without compensation, and the rights of the terminated employee should be protected.

The burden of proof that the termination is based on valid grounds rests with the employer. According to Article 20 of the Labor Law, an employee whose indefinite-term employment contract is terminated and who is dismissed without valid grounds can first exhaust the mandatory mediation process within 1 month of the notification of the termination and then file a reinstatement lawsuit within a two-week period, claiming that the termination is not based on valid grounds. These time limits are limitation periods and must be considered by the court ex officio.

If the employee’s reinstatement lawsuit based on wrongful termination is accepted, the employee must apply to start work within 10 working days and be paid the accrued wages and other entitlements for a maximum of four months until the decision becomes final. Additionally, if the employer fails to re-employ the wrongfully terminated employee within 1 month after the application, according to Article 21 of the Labor Law, the employer will be obliged to pay compensation in an amount of at least four months’ and up to eight months’ wages to the employee, which will be determined by the court. The rights of wrongful dismissal employees are protected by job security provisions.

Article 22 of the Labor Law addresses the issue of making changes in working conditions. When an employer intends to make changes in working conditions, they must inform the employee in writing about the situation. Changes that are not made in accordance with the proper procedure and are not accepted by the employee in writing within a 6-day period will not be binding on the employee.

termination rights of employee

CONTRACT TERMINATION BY THE EMPLOYEE WITH JUST CAUSE

The valid grounds for the employee to terminate the employment contract are listed in Article 24 of the Labor Law, which are as follows:

1.Health Reasons:

Health reasons that grant the employee the right to terminate the contract without notice arise when the nature of the work covered by the employment contract poses a danger to the employee’s health or life or when the employee is continuously in close or direct contact with the employer or another employee who has a contagious or incompatible disease with the employee’s work. In such cases, the employee can immediately terminate the employment contract without notice.

2. Acts Contrary to Morality and Good Faith, and Similar Cases

Article 24/2 of the Labor Law specifies these cases, and the following reasons are frequently encountered:

  • Misleading the employee by the employer,
  • Making offensive remarks that touch upon honor and dignity,
  • Engaging in sexual harassment towards the employee,
  • Making personal attacks,
  • Committing a crime,
  • Making false accusations,
  • Threatening,
  • Failure to take preventive measures against sexual harassment in the workplace,
  • Non-payment of the employee’s wages or wage differentials,
  • Non-compliance with working conditions.

3. Compelling Reasons

According to Article 24/3 of the Labor Law, if compelling reasons arise in the workplace where the employee is employed and require the work to be suspended for more than one week, the employee may immediately terminate the employment contract. The employer is obligated to pay half of the wage for this one-week period. If the compelling reason continues, the employee may choose to wait for it to be resolved, but in this case, the employment contract will be suspended, and payment of half of the wage will not be possible.

Please note that the specific circumstances and requirements for each termination ground may be subject to further interpretation and legal considerations. It is advisable to consult with a legal professional or refer to the relevant labor laws and regulations for precise information in a specific situation.

CONTRACT TERMINATION BY THE EMPLOYER WITH JUST CAUSE

According to Article 25 of the Labor Law, in case of just cause arising, the employer has the right to terminate a fixed-term or indefinite-term employment contract immediately and without waiting for the notice period to expire. In this case, the termination is made without any severance payment, and if the employee claims that the reason for the termination is not valid, the first termination rights of employee is the right to file a lawsuit. The justified reasons mentioned in the article are briefly grouped as follows:

1. Health Reasons

Under Article 25/1 of the Labor Law, if an illness or disability arises as a result of the employee’s own intent, disorderly lifestyle, alcoholism, and the illness suffered by the employee cannot be treated and poses a risk to working at the workplace, as determined by the relevant Health Committee, the employer can immediately terminate the employment contract without any severance allowance.

For the employer’s right to terminate the contract without notice to arise, the absence must last consecutively for three working days or for more than five working days within a month. Except for these reasons, if the employee becomes ill, has an accident, or experiences childbirth or pregnancy, the employer’s right to terminate the contract due to the employee’s absence arises after the employee’s absence exceeds the notification periods specified in Article 17, depending on the employee’s working period. In the case of childbirth and pregnancy, the absence period is calculated by adding 6 weeks to a total of 16 weeks, with 8 weeks before and 8 weeks after childbirth.

2.Acts Contrary to Morality and Good Faith, and Similar Cases

Article 25/2 of the Labor Law specifies these cases, which include:

  • Misleading the employer,
  • Making remarks that touch upon the honor and dignity of the employer or family members,
  • Engaging in sexual harassment towards another employee of the employer,
  • Coming to the workplace under the influence of alcohol,
  • Making personal attacks,
  • Engaging in dishonest and disloyal behaviors,
  • Committing a non-postponed offense in the workplace,
  • Failing to continue work,
  • Failing to perform the assigned duties,
  • Endangering workplace safety.

In the presence of these cases, the termination is made without any severance payment. However, if the employee can prove that they were unjustly terminated, they have the right to file a lawsuit.

3.Compelling Reasons

As stipulated in Article 25/3 of the Labor Law, if a compelling reason arises that prevents the employee from working for more than one week, the employer can immediately terminate the employment contract. If the compelling reason lasts less than one week, the employer does not have the right to terminate the contract.

4.Detention or Arrest of the Employee

In the event of the employee’s detention or arrest, if the absence exceeds the notification periods specified in Article 17, the employer can immediately terminate the employment contract without any severance allowance under Article 24/4 of the Labor Law.

Please note that the specific circumstances and requirements for each termination ground may be subject to further interpretation and legal considerations. It is advisable to consult with a legal professional or refer to the relevant labor laws and regulations for precise information in a specific situation.

THE CONSEQUENCES OF WRONGFUL TERMINATION WITHOUT NOTICE

Concrete explanation of the termination reason is not essential in the termination notice; the act of giving notice is sufficient. However, in case of any dispute, it is important for the party giving the termination notice to specify that it is based on justifiable reasons in order to prove the existence of valid grounds. The parties are bound by the stated termination reason. If the termination reason is inconsistent, it will be wrongful dismissal and it may lead to the terminated employee claiming their rights.

If the termination rights of employee are based on violations of morality and good faith by either the employee or the employer, the party learning about such behavior cannot exercise their termination right until 6 working days have passed from the date they learned about it, and in any case, not after 1 year from the occurrence of the act. This provision is regulated in Article 26/1 of the Labour Law. The specified time limits are statute of limitations, and the court must consider them ex officio. Even if the employer is justified, failure to comply with the specified time limits will prevent them from exercising the right to terminate the employee without severance pay compensation.

Unjustifiable termination refers to termination that occurs when there is no valid reason, when the stated reason is untrue, or when the termination rights of employee are not exercised within the legal timeframe. In such cases, the terminated employee’s rights come into play, and they can file a lawsuit for compensation for wrongful termination.

The consequences of wrongful termination come into effect and the contract is terminated as of the moment the termination will is communicated to the other party. Within the scope of Articles 24/2 and 25/2 of the Labour Law, if the employee or employer complies with the specified time limits in Article 26, they can claim compensation based on general provisions.

If the employee terminates the employment contract for justifiable reasons, they may be entitled to severance pay. However, if the employment contract is terminated by the employer based on violations of morality and good faith or similar reasons, the employee will not be entitled to severance pay. Additionally, if the employer terminates the employment contract due to health reasons or compelling reasons, the employee will still be entitled to severance pay, and the rights of the terminated employee will be protected.

The right to terminate for justifiable reasons cannot be restricted or waived by contractual agreements, but within the limits of imperative provisions, certain situations may be accepted as justifiable termination reasons. These limitations can be in favor of the employee and can be expanded accordingly.

TERMINATION RIGHTS OF EMPLOYEES REGARDING WRONGFUL DISMISSAL

The termination rights of employees regarding wrongful dismissal can vary depending on labor law and relevant legal regulations. However, generally, they have the following rights:

  • Severance Pay: When an employee is dismissed unfairly, they can claim severance pay if the termination is in violation of the law. Severance pay is calculated based on the employee’s length of service and a formula determined by the country’s laws. How to obtain severance pay is further discussed below.
  • Notice Pay: In the event of the employer terminating the employee unfairly, the employee can demand notice pay equivalent to the notice period or compensation for the notice period. The notice period is determined based on the employee’s length of service and the country’s laws. Notice pay is provided when the employer terminates the employee directly without giving them the required notice period.
  • Other Claims: A terminated employee can claim wage arrears, overtime pay, and other employee compensation claims. For detailed information on this matter, you can refer to our article.
  • Unused Leave Payment: If an employee is unfairly dismissed, they can request payment for unused leave days. The payment for unused leave corresponds to the annual leave period and its associated salary that the employee has accrued but not utilized.
  • Unemployment Insurance: Some countries have an unemployment insurance system in place. Unfairly dismissed employees may receive financial support under the unemployment insurance coverage when they become unemployed. This insurance system aims to provide temporary income support to individuals who are unemployed.
  • Job Security Compensation: Certain countries have job security regulations that restrict employers from terminating employees except under specific conditions. In cases where the employer unfairly dismisses the employee or terminates their employment in violation of the law, the unfairly dismissed employee may claim job security compensation. This compensation aims to cover the financial or emotional damages resulting from the unfair dismissal and protect the rights of the dismissed employee.
  • Compensation for Idle Time: In some countries, compensation for idle time is provided when an employer unfairly dismisses an employee or terminates their employment without valid reasons. This compensation aims to cover the time spent by the unfairly dismissed employee in the job-seeking process and compensate for the financial losses resulting from job loss.
  • Compensation for Malicious Intent: Compensation for malicious intent can be claimed when the employer unfairly dismisses the employee or terminates their employment in a malicious or unlawful manner. Malicious intent refers to situations where the employer acts with the intention of causing harm to the employee or terminates their employment with ill intentions. This compensation aims to remedy the unfair treatment experienced by the unfairly dismissed employee and compensate for their losses.
  • Other Rights: The rights of unfairly dismissed employees can vary depending on the country and its laws. For example, the employee may continue to have health insurance coverage, may require an employment certificate, or may be entitled to other social benefits.

To fully protect the rights of unfairly dismissed employees, it is important to pay attention to labor laws and the legal regulations governing the employment relationship. If an employee believes they have been unfairly dismissed by their employer, they can seek assistance from an employment lawyer and take steps such as reporting the situation to the relevant authorities or filing a lawsuit.

What should an unfairly dismissed employee do? Here are some steps to follow:

  • Review the Termination Notice: Carefully review the termination notice provided by your employer. Try to understand the reasons for your dismissal and identify any errors or unfairness in the notice. Take notes on the details mentioned in the document.
  • Examine Employment Law and Contract: Review the relevant employment laws and your employment contract. Research the legal procedures that should have been followed by your employer during the termination process and determine the rights granted to you under the applicable provisions.
  • Seek Legal Advice: It can be beneficial to seek assistance from a wrongful termination lawyer or legal advisor familiar with labor laws. Consult with a wrongful termination lawyer to evaluate your rights and explore your options regarding the dismissal.
  • Evaluate Compensation Claims: If you have been unfairly dismissed without receiving any severance allowance, you may have financial claims such as wrongful termination compensation, notice pay, or unused leave entitlements. Calculate the amount of compensation you believe you are owed and formally request it from your employer in writing.
  • Research Unemployment Benefits and Support: Research the availability of unemployment benefits or other support programs offered by your country. Explore the possibility of obtaining temporary financial assistance through unemployment benefits, job placement services, or training opportunities. Apply to the relevant organizations to access these resources.
  • Consider Legal Proceedings: If you believe that your employer has unjustly or unlawfully terminated your employment, and you have experienced unfair dismissal without receiving compensation, evaluate the option of initiating legal proceedings. Consider filing a complaint with the relevant authorities or taking your case to court to protect your rights. It is important to follow the guidance of your wrongful termination lawyer in this process.

wrongful dismissal

HOW TO RECEIVE SEVERANCE PAY?

When workers’ relationships with an employer come to an end after a period of employment, they generally have a right to severance allowance, also known as termination pay, in many countries. Severance pay is a compensation given to employees when they are terminated by their employer or when the employment relationship comes to an end. It is a payment that employees receive from the employer as a recognition of their contributions and to acknowledge their long-term commitment and experience with the employer. While the question of how to receive severance pay involves technical and legal knowledge, you can follow the steps outlined below as a brief guide.

1. What is Severance Pay?

Severance pay is an amount of compensation paid to an employee when the employment relationship is terminated. This payment is calculated based on the duration of the employee’s service and certain factors determined by the employer. Severance pay is typically provided in cases of employee termination, retirement, expiration of an employment contract, or mutual agreement with the employer to separate. It is usually calculated at a rate based on the employee’s length of service and often tied to their salary.

2. How to Receive Severance Pay?

The following are some brief points regarding how to receive severance pay and the characteristics of severance allowance.

  • Length of Service: The fundamental requirement to receive severance allowance is for the employee to have worked for a certain period of time at the workplace. Legal regulations determining the length of service may vary in each country. Generally, employees are required to have worked for a specific period, such as one year, with the employer.
  • Termination of Employment: Severance pay is one of the entitlements for employees who are terminated, typically in cases of unjustified termination. However, severance allowance may also be received when an employee voluntarily leaves their job or due to other reasons such as retirement, although these conditions may vary from country to country. Therefore, it is important to examine the labor laws and legal regulations of the respective country regarding how to receive severance pay.
  • Legal Regulations: Severance pay is generally subject to labor laws and regulations that favor employees. Each country has its own legal framework and rules. Laws can determine the calculation of severance allowance, the period of payment, and other details. Therefore, it is important to study the labor laws and regulations of the respective country regarding how to receive severance allowance.
  • Employer’s Financial Situation: In some countries, the financial situation of the employer may be a factor in the payment of severance pay. Certain exceptions or limitations may be implemented, especially for small businesses or financially struggling employers.
  • Terms of the Employment Contract: The employment contract may include additional conditions regarding the payment of severance pay. For example, there may be an increase in the amount of severance allowance after a certain period of employment or exceptions for certain circumstances. It is important for employees to carefully review their employment contracts and understand the provisions related to severance pay.

Severance pay is considered a right earned by employees in their work life, and it is paid as compensation for the wrongful dismissal of employment by the employer. Since each country has its own legal regulations and conditions, it is important to comply with the labor laws of the respective country regarding how to receive severance pay. Workers should seek advice from a wrongful termination lawyer to understand termination rights of employee and fulfill the necessary requirements.

3. Calculation of Severance Pay

After understanding how to claim severance pay, the second issue is accurately calculating the severance allowance. The calculation of severance pay for unfairly dismissed employees can vary from country to country and depending on legal regulations. Each country has its own labor laws and methods for calculating severance allowance. Therefore, it is important to refer to the laws and regulations of the relevant country for the calculation process. However, generally, the calculation of severance pay is based on the following factors:

  • Length of Employment: The total duration of the employee’s service at the employer forms the basis of the calculation. This period includes the time between the start of employment and the termination of employment. In some countries, the length of employment is calculated in years or months, while in others, it is calculated in days.
  • Wage: The employee’s gross wage at the time of termination can be used as a basis for calculating severance allowance. This wage can be the salary at the time of termination or the average salary for a specific period. Additional payments such as bonuses, incentives, or other benefits may also be taken into account.
  • Severance Pay Rate: In some countries, a specific rate is used when calculating severance allowance. For example, a certain amount or percentage may be determined for each full year of service. This rate can vary depending on the country’s labor laws and legal regulations.
  • Exceptions and Limitations: Some countries may have certain limitations or exceptions in the calculation of severance allowance. For instance, an upper limit may be set, or the amount of severance pay may be fixed after a certain period. Additionally, the amount of severance allowance may differ if the employee voluntarily resigns or is terminated due to misconduct or serious violations.

The factors mentioned above provide a general overview of the calculation of severance pay, which is one of the rights of employees who are terminated. However, each country has its own unique methods for calculating severance allowance. Therefore, it is important to examine the labor laws, regulations, and guidelines of the relevant country for the calculation of severance allowance. Seeking assistance from a labor attorney is also advisable.

PROTECTION OF THE TERMINATION RIGHTS OF EMPLOYEE THROUGH REINSTATEMENT LAWSUIT

A reinstatement lawsuit is a legal process that involves the employee who has been unjustly dismissed seeking to return to work. Whether the employee is subjected to wrongful termination without compensation or with compensation, if they are covered by job security, they have the right to file a reinstatement lawsuit. If the employee believes that the employer has violated laws or labor regulations, they can file a reinstatement lawsuit to cancel the termination decision or request to be reinstated. Here is more information about the reinstatement lawsuit:

  • Objective of the Reinstatement Lawsuit: The reinstatement lawsuit is a legal process initiated against the employer in cases where the employee alleges that they have been wrongfully dismissed in violation of the law. The employee presents evidence to prove that the employer has not complied with the laws, employment contracts, or labor regulations and requests to be reinstated or for the employer’s wrongful termination to be canceled.
  • Legal Basis: The reinstatement lawsuit is subject to different labor laws and regulations in each country. The laws determine the employer’s obligations and the employee’s rights in cases of termination. In Turkey, if an employee with at least 6 months of seniority in a workplace employing thirty or more workers is employed under an indefinite-term employment contract, they are considered to be covered by job security. The termination rights of employees are protected under job security act, regardless of whether the termination is without compensation.
  • Wrongful Dismissal: The reinstatement lawsuit applies to cases of unjust dismissal. Wrongful termination can involve the employer violating the employee’s fundamental rights or not adhering to legal procedures. Examples of wrongful termination include arbitrary dismissal, discrimination, interference with union activities, or violations of occupational health and safety.
  • Labor Courts and Legal Process: Reinstatement lawsuits are heard in labor courts. The employee presents their claim for reinstatement along with evidence. The labor court listens to the employer’s defense and evaluates the contradictions and evidence between the parties. As a result, the labor court may accept the employee’s reinstatement request, reject it, or facilitate a settlement between the parties.
  • Outcomes: If the labor court rules in favor of the employee in the reinstatement lawsuit, the unfairly dismissed employee returns to work, and the employer may provide compensation to redress the employee’s grievances. However, in some cases, the employer may have the right to appeal, and the employee’s request for reinstatement may be denied.

The reinstatement lawsuit is an important legal process for the reinstatement of an employee who has been wrongfully dismissed and for the protection of their rights. It is important to seek assistance from a wrongful termination lawyer to understand the termination rights of employee and the labor laws of the respective country and to take the necessary steps.

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