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Labor Law

Severance and Notice Pay: Requirements, Calculation and Litigation

Severance and Notice Pay: Requirements, Calculation and Litigation

The end of an employment relationship often raises the questions of severance pay, notice pay and accumulated employee claims. Whether you are entitled to these rights depends on how the employment ended, how long you worked, and the reason for termination. Without a proper assessment, you may suffer serious loss of rights.

Calculate now: Use our severance pay calculator and notice pay calculator to find out your gross and net amounts for free, using the current 2026 ceiling.

Requirements for Severance Pay

As a rule, to be entitled to severance pay you must have worked at least one year and your employment contract must have ended in one of the ways listed by law. Severance pay may arise when the employer terminates without a justified reason, when the employee resigns for a justified reason (for example, non-payment of wages), and in cases such as retirement, military service, and a female employee leaving due to marriage. Conversely, severance pay may not be payable where the employer terminates for a justified reason, such as the employee's conduct contrary to the rules of morality and good faith.

How Is Severance Pay Calculated?

Severance pay is calculated as 30 days of gross "dressed-up" (full-compensation) wages for each full year worked. The "dressed-up wage" includes, in addition to the base salary, regular payments such as transportation, meals and bonuses. Periods exceeding a full year are prorated. A statutory ceiling applies to severance pay, and the calculation is made taking this ceiling into account.

Notice Pay

Notice pay is the compensation paid to the other party by the party who terminates the employment contract without observing the notice periods. Notice periods range from two to eight weeks depending on seniority. If the employer ends the employment without observing these periods, it pays notice pay; an employee who leaves without following the proper procedure may also be liable to the employer. An employee who resigns is, as a rule, not entitled to notice pay.

Overtime, Annual Leave and Other Claims

In addition to severance and notice pay, you may also claim overtime, pay for unused annual leave, weekly rest day pay, national holiday and public holiday pay, and unpaid wages. In overtime claims, evidence such as payroll records, entry–exit logs and witnesses is important. Where your actual wage was reported as lower than it really was on the payroll, the real wage can also be proven with various forms of evidence.

Reinstatement and Statute of Limitations

Employees who meet certain conditions may file a reinstatement lawsuit in the event of an invalid termination; however, you must act within a short period after the notice of termination. Limitation periods also apply to employee claims and compensation. Because your rights may weaken if deadlines are missed, it is important to have your situation assessed without delay after leaving your job.

Mobbing and Termination for Justified Reason

Systematic intimidation, humiliation or pressure (mobbing) in the workplace may give the employee the right to terminate for justified reason and strengthens compensation claims. Likewise, non-payment of wages, incomplete payment of insurance premiums, or worsening of working conditions are also grounds for justified termination. In these situations, correctly identifying the reason for termination before resigning is decisive for your right to compensation.

Work Accidents and Occupational Diseases

Employees who suffer physical or psychological harm as a result of a work accident or occupational disease may claim treatment expenses, compensation for loss of working capacity, and non-pecuniary damages. In the event of death, beneficiaries (spouse, children) may claim compensation for loss of support. In these cases, the employer's fault, the occupational safety measures that were not taken, and the extent of the damage are determined through expert examination. Handling the process correctly directly affects the amount of compensation.

How Does the Process Work?

In employment disputes, mediation is, as a rule, a mandatory step before filing a lawsuit. If no agreement is reached, a lawsuit is filed in the labor court, and the claims are calculated through expert examination. Structuring the process correctly from the start increases both the likelihood and the speed of recovery. Gathering documents and evidence completely helps you receive what you are owed as quickly as possible.

I Signed a Release Agreement — Have I Lost My Rights?

A release agreement (ibraname) signed upon leaving a job is subject to certain formal requirements. Releases that are undated, do not clearly state the payments, or do not reflect the employee's true intent may be considered invalid. Therefore, having signed a release does not always mean your rights have ended. Having a lawyer review the document and the actual payments will reveal whether there are still claims you can pursue.

Fixed-Term vs. Indefinite-Term Contracts

Employment contracts may be fixed-term or indefinite-term. In indefinite-term contracts, job security provisions and notice periods apply, whereas early termination of a fixed-term contract without a justified reason has different consequences. The type of your contract directly affects your rights, such as severance pay, notice pay and pay for the remaining term. Therefore, the first step in a dispute is to correctly determine the type of contract and the manner of termination.

Frequently Asked Questions

After how many years of work am I entitled to severance pay?

As a rule, you must have worked at least one year and your employment contract must have ended for a reason listed by law. Periods exceeding a full year are prorated.

Can I receive compensation if I resign?

As a rule, no compensation arises from a voluntary resignation; however, severance pay may be claimed where the termination is made for a justified reason, such as non-payment of wages.

How is severance pay calculated?

It is based on 30 days of gross dressed-up wages for each full year; regular payments such as transportation, meals and bonuses are also taken into account. The statutory ceiling is observed.

How much time do I have to file for reinstatement?

In the reinstatement process, a short filing period runs after the notice of termination. Because the time is limited, you need to act without delay.

My salary was paid in cash. Can I prove my real wage?

Yes. The real wage can be proven with evidence such as bank records, witnesses, messages, and comparable wage research.

Is mediation mandatory before filing a lawsuit?

For employee claims and reinstatement requests, pre-litigation mediation is, as a rule, mandatory; if no agreement is reached, the matter proceeds to court.

This content is for general information purposes only and does not constitute legal advice. For an assessment specific to your situation, you can request a preliminary consultation. As Avrasya Law Office, based in Bakırköy, we support both individual and corporate clients.