Conditions of Entitlement to Severance and Notice Pay under Turkish Labour Law

Severance and notice compensation are primary financial rights upon termination of employment. However, not every departure qualifies. Entitlement depends on termination grounds, length of service, and remuneration composition.

Severance Entitlement Criteria (Law No. 1475, Art. 14)

Key statutory requirements:

• At least one full continuous year of service with the same employer.
• Termination by employer other than for gross misconduct under Article 25/II.
• Resignation by employee for just cause under Article 24 (non-payment of wages, mobbing, unsafe working conditions).
• Military service, retirement/pension qualification, marriage of female employee within one year, or death of employee.

Inclusive Gross Remuneration

Severance is calculated using inclusive gross remuneration, adding regular contractual benefits (meal allowances, transportation assistance, recurring bonuses and premiums) to base salary. Overtime and irregular allowances are excluded. Only stamp tax (0.759%) is deducted from statutory severance pay.

Frequently Asked Questions

Question: Can an employee resign and still claim severance pay if subjected to invasive workplace camera surveillance? Yes. Intrusive and disproportionate camera surveillance directed at individual employees or rest areas violates constitutional privacy and KVKK principles, constituting unlawful workplace mobbing. The employee is legally entitled to terminate immediately for just cause under Labor Law Art. 24/II and claim full statutory severance.

Question: Under what exceptional circumstances can an employee resign and legally collect severance pay? While resignation ordinarily forfeits severance, 4 statutory exceptions apply: 1) Female employees resigning within 1 year of marriage, 2) Compulsory military service, 3) Completing 15 years and 3,600 contribution days for pre-Sept 1999 entrants, and 4) Resignation for just cause due to unpaid overtime, public holiday pay, or under-reported social security contributions.

Question: How can unrecorded sales bonuses be proven in labor disputes? Under Article 199 of the Code of Civil Procedure, electronic sales records, CRM logs, and internal emails constitute valid documentary evidence. The court may appoint an expert to examine the employer's internal sales system.

Question: How is severance pay calculated if part of the wage was paid under the table in cash? The court will conduct an inquiry with relevant professional chambers and trade unions to determine the prevailing market wage for the employee's role, basing the severance calculation on the true gross remuneration.