When an employer terminates your employment contract, it gives rise to more rights than most employees realize. However, whether these rights arise depends on the type of termination, your length of service and the size of the workplace. In this guide, we go through all the rights a dismissed employee can claim, along with their conditions, one by one.
Calculate what you're owed: See your rights in seconds with our severance pay and notice pay calculators.
First, determine the type of termination
The scope of your rights depends on the grounds on which the employer terminated the contract:
- Termination for just cause: Termination by the employer on the basis of the serious grounds set out in Article 25 of the Labor Law (for example, the employee's conduct in breach of honesty and loyalty). In this case, severance pay is not paid.
- Termination for valid cause: Grounds that arise from the employee's inadequacy or conduct, or from the requirements of the business, but that are not serious. Severance and notice pay are paid.
- Invalid (improper) termination: Termination carried out without any valid reason being given, or in violation of procedure. In this case, the right to reinstatement comes into play.
Assessing the real reason and the procedure of a termination often requires expertise; for this reason, it is important that you keep the termination notice (and any records, if available).
Severance pay
Severance pay is the most important right of a dismissed employee. To be entitled to it:
- You must have worked at least 1 year at a workplace belonging to the same employer, and
- The employment contract must have ended for a reason other than the employee's termination for just cause (such as termination by the employer, termination by the employee for just cause, retirement, military service, or marriage in the case of women).
The amount is calculated based on 30 days' gross pay for each full year you worked. Periods exceeding a full year are added proportionally. The calculation is based not only on the base salary but on the gross pay including benefits, such as regularly paid transportation, meals and bonuses. Severance pay has a ceiling set by the state, which is updated every year.
Notice pay
In indefinite-term employment contracts, the parties must give the other party prior notice before terminating the contract. If the employer dismisses you without observing this notice period, it is obliged to pay notice pay. The periods, according to length of service, are as follows:
- Less than 6 months of service: 2 weeks
- 6 months – 1.5 years: 4 weeks
- 1.5 – 3 years: 6 weeks
- More than 3 years: 8 weeks
The amount of pay corresponding to the notice period is paid as compensation. Note: When an employee terminates immediately for just cause, they cannot claim notice pay.
Reinstatement lawsuit
If you are covered by job security, you can request to return to your former job when you face an invalid termination. The conditions are:
- The workplace must have at least 30 employees,
- You must have at least 6 months of service,
- You must be working under an indefinite-term contract, and the termination must not be based on a valid reason.
Applying to a mediator within 1 month of notification of the termination notice is mandatory; if no agreement is reached, a lawsuit is filed at the labor court within the same period. If the court finds the termination invalid and the employer does not reinstate you within 1 month, you are paid compensation for non-reinstatement amounting to 4 to 8 months of your wages, as well as up to 4 months of wages and benefits for the period you were left without work.
Other commonly forgotten claims
In addition to compensation, when leaving a job you can also claim the following:
- Pay for unused annual leave: Leave you earned but did not use is paid based on your last salary.
- Overtime pay: Work exceeding 45 hours per week is paid at a 50% premium.
- Weekly rest day, national holiday and public holiday (UBGT) pay.
- Unpaid salaries, premiums and bonuses.
Unemployment benefits
If you became unemployed through no fault of your own, you can receive unemployment benefits from İŞKUR. To qualify, you must have been subject to an employment contract continuously for the last 120 days and must have paid unemployment insurance premiums for at least 600 days in the last 3 years. The application must be made within 30 days of termination.
How does the process work? Mediation and the statute of limitations
In disputes between employee and employer concerning compensation and employment claims, applying to a mediator is mandatory before filing a lawsuit. If no agreement is reached in mediation, a lawsuit is filed at the labor court. The statute of limitations for severance pay, notice pay and annual leave claims is, as a rule, 5 years. Collecting evidence (payslips, overtime records, bank account transactions, witness statements) in good time is decisive for the outcome of the case.
Professional legal support
This article is for general informational purposes and does not constitute legal advice; every dispute involves its own unique circumstances, and legislation may change over time. To avoid losing your rights and to manage your process correctly, we recommend consulting Avrasya Law Office. Kasım Ergün and his experienced team are by your side in litigation and consultancy processes. To book an appointment at our Bakırköy office, you can visit our Contact page.
