Turkish employees have a number of termination benefits in
place. The Turkish Labour Code (TLC) allows for notification compensation,
severance compensation, accrued salary and bonuses and re-appointment
compensation. Let's look at them in a bit more detail.
Termination of employee contracts by employers can be classified under two
main categories. The first is termination without just cause and the second is
termination with just cause. Termination of an employee contract without just
cause (or any specific fault on the employee) is naturally at the
discretion of the employer. The automatic outcome of such termination is
compensatory amounts. There are different types of payments to be made to the
employees at immediate termination:
- Notification Compensation: This is a compensatory amount paid
to the employee at immediate termination if termination notice subject to the
designation of the TLC is not provided earlier.
- Severance Compensation: This refers to compensation that
employers pay to employees who have worked for over one year.
- Annual leave compensation: If there is immediate termination
without just cause the annual paid leaves that are accrued but not used by the
employee shall be paid for at termination.
- Accrued salary and bonuses: All accrued payments will need to
be settled at termination if no just cause for dismissal is given.
- Re-appointment Compensation: An additional benefit that
employees can demand upon being rehired.
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