Severance pay (Kıdem Tazminatı) is one of the fundamental rights granted to employees under Turkish labor law. It serves as financial compensation to employees whose employment is terminated under certain legal conditions. This article outlines the key regulations, including relevant provisions from Turkish labor legislation, to help employees understand when and how they can claim their severance pay.
What is Severance Pay?
Severance pay is a lump sum paid to employees whose employment has ended, provided that certain legal criteria are met. The amount is calculated based on the duration of service and the employee’s most recent wage.
Who is Entitled to Severance Pay?
According to Article 14 of the former Labor Law No. 1475, which remains in effect solely for severance pay matters (despite the enactment of Law No. 4857), an employee is entitled to severance pay under the following conditions:
Unjust Termination by the Employer
If the employer terminates the employment contract without a just cause as defined in Article 25/II of Law No. 4857 (e.g., gross misconduct by the employee), the employee is entitled to severance compensation.
Voluntary Resignation with Just Cause
The employee is eligible if they resign for legitimate reasons, such as:
Health problems preventing them from continuing their work (Article 24/1),
Immoral, dishonorable, or humiliating conduct by the employer or their representatives (Article 24/II),
Resignation due to marriage (for female employees, within one year of marriage),
Conscription for mandatory military service (for male employees),
Fulfillment of retirement conditions (excluding the age requirement, according to the Social Security Institution – SGK).
Death of the Employee
In the event of the employee’s death, their legal heirs are entitled to receive the severance pay.
General Conditions for Eligibility
Minimum Duration of Employment: The employee must have worked for at least one full year for the same employer, either continuously or with short interruptions.
Proper Termination: The contract must not be terminated by the employee without a legally valid reason.
How is Severance Pay Calculated?
The amount is calculated based on the gross wage of the employee’s final month, including regular benefits such as meal and housing allowances.
The entitlement is one month’s gross salary for each year of service.
For instance, an employee with 5 years of service is entitled to 5 months’ worth of gross salary as severance pay.
Circumstances Where Severance Pay is Not Granted
If the employee resigns without a just cause,
If the employer terminates the contract due to the employee’s serious misconduct (e.g., theft, unauthorized absence, or similar violations defined in Article 25/II).
Legal Recommendation
Employees are advised to keep a signed copy of their employment contract, document any termination or resignation notices, and retain all payroll records. In the event of a dispute, employees should follow the mandatory mediation process and, if unresolved, file a claim with the Labor Court (İş Mahkemesi).
Severance pay is a legally protected right in Turkey, provided that the conditions outlined above are met. Understanding these conditions is essential for protecting your rights. If you believe you may be entitled to severance compensation, consulting with a legal expert is highly recommended.
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