Resigning in Turkey: Can an Employee Who Resigns Get Severance Pay?
One of the most common questions employees in Turkey ask before leaving their job is whether they will receive severance pay (kıdem tazminatı) if they resign. As a rule, an employee who resigns without a just cause is not entitled to severance pay. However, where wages are not paid, overtime is not compensated, social security premiums are under-reported or the employee is subjected to mobbing, the employee can terminate the employment contract for just cause, and in that case severance pay becomes payable. This article by Yetkiner Law Firm explains the difference between resignation and termination for just cause, the situations in which severance pay can be claimed, the time limits and the points to consider.
In Brief: Resignation and Severance Pay in Turkey
- An employee who resigns without a just cause is, as a rule, not entitled to severance pay.
- An employee who terminates the contract on one of the just causes listed in Article 24 of the Labour Law is entitled to severance pay, provided they have at least one year of service.
- Retirement or completion of the non-age retirement conditions, compulsory military service and a female employee leaving within one year of marriage also give the right to severance pay.
- When the employee terminates the contract, no notice pay is paid to the employee.
Resignation vs Termination for Just Cause
Legally, resignation means the employee ending the employment contract without stating any just cause. In this case, the employee must comply with the notice periods in Article 17 of the Labour Law; otherwise, the employee may have to pay notice compensation to the employer.
In termination for just cause, the employee ends the contract with immediate effect on the basis of a reason arising from the employer or listed in the law. The employee does not need to observe the notice period and, if the length of service requirement is met, is entitled to severance pay. Since the word “resignation” is used for both situations in practice, it is very important to state clearly which reason is relied on when leaving the job.
Just Causes for Termination by the Employee (Labour Law, Article 24)
Article 24 of the Labour Law sets out the situations in which the employee can terminate the contract without waiting for its term, in three groups.
Health Reasons
The employee may terminate the contract if the employee’s health or life is endangered for a reason arising from the nature of the work, or if the employer or a co-worker has a contagious disease or a disease incompatible with the employee’s work.
Conduct Contrary to Morality and Good Faith
The most frequently relied on just causes in practice fall into this group:
- Unpaid wages: The wage not being calculated or paid in accordance with the law or the contract. Regularly late payment of wages may also be considered in this context.
- Unpaid overtime: Failure to pay for overtime, weekly rest day work or work on national and public holidays.
- Under-reported social security premiums: According to the case law of the Court of Cassation, reporting the employee’s actual wage or number of working days to the Social Security Institution incompletely is a just cause for termination.
- Failure to apply working conditions: The employer materially changing the working conditions, such as the workplace, duties or working hours, without the employee’s consent.
- Mobbing, insults and harassment: The employer making statements or acts offending the honour of the employee or their family members, harassing the employee, or failing to take the necessary measures despite the employee’s complaint of sexual harassment at the workplace.
- Misleading the employee at the time of contracting: The employer misleading the employee by giving false information about essential points of the contract.
Force Majeure
The employee may also terminate the contract for just cause if force majeure requiring the work to stop for more than one week arises at the workplace.
Other Situations Giving the Right to Severance Pay
In addition to termination for just cause, the law grants severance pay in some cases where the employee leaves voluntarily:
- Retirement: Leaving in order to receive an old-age, retirement or disability pension, or a lump-sum payment.
- Completion of the non-age retirement conditions: An employee who has completed the required insurance period and number of premium days can leave without waiting to reach the retirement age, with a letter obtained from the Social Security Institution, and claim severance pay.
- Compulsory military service: Leaving the job due to military service.
- Marriage of a female employee: A female employee leaving voluntarily within one year of the date of marriage.
In all these cases, the employee must have worked for the same employer for at least one year. For how severance pay is calculated, see Severance Pay in Turkey.
Time Limits for Termination for Just Cause
Under Article 26 of the Labour Law, the right to terminate based on conduct contrary to morality and good faith must be exercised within six working days of the employee learning of the conduct, and in any case within one year of the act. However, in the case law of the Court of Cassation, for continuing breaches such as unpaid wages, this period is considered not to run as long as the breach continues.
An employee whose wage is not paid within twenty days of the payment date, except for force majeure, may also refuse to work (Labour Law, Article 34). This gives the employee an option other than termination.
Points to Consider When Leaving the Job
- State the reason clearly: The employee should clearly state the just cause relied on in the termination notice. A letter simply saying “I am leaving of my own will” makes it harder to prove a just cause later.
- Give notice in writing and in a provable way: Sending the termination notice through a notary, by registered electronic mail (KEP) or by a letter signed for receipt is recommended.
- Collect evidence beforehand: Payslips, bank statements, the social security service record, timesheets, correspondence and witness details should be secured before termination.
- Beware of pre-signed resignation letters: Undated resignation letters signed at the start of employment, or letters signed under pressure, are not considered valid if this is proven.
Can the Employee Claim Notice Pay?
Notice pay is compensation paid by the party that terminates an indefinite-term employment contract without observing the notice period. When the employee terminates the contract, no notice pay is paid to the employee, even if the termination is based on just cause. Since an employee terminating for just cause does not need to observe the notice period, the employee does not pay notice compensation to the employer either. If the employee resigns without just cause and without observing the notice period, the employee may have to pay notice compensation to the employer.
What If Severance Pay Is Not Paid?
If severance pay is not paid after termination for just cause, applying to mediation is mandatory before filing a lawsuit for employee claims. If no agreement is reached in mediation, a lawsuit can be filed before the labour court. Severance pay claims are subject to a five-year limitation period from the end of the employment contract. The employee bears the burden of proving the just cause.
For employees dismissed unfairly by the employer, the option of a reinstatement lawsuit should also be considered.
Frequently Asked Questions
Can an employee who resigns receive unemployment benefit in Turkey?
An employee who resigns without a just cause cannot receive unemployment benefit. An employee who terminates the contract on the just causes listed in Article 24 of the Labour Law can receive unemployment benefit if the other conditions are also met.
My salary is paid a few days late every month. Can I terminate for just cause?
Regular and continuous late payment of wages may be considered a just cause for termination in the case law of the Court of Cassation. However, one-off and short delays are assessed according to the circumstances of each case.
My overtime is not paid. Can I receive severance pay?
Yes. Non-payment of overtime gives the employee the right to terminate the contract for just cause. In this case, an employee with at least one year of service can claim severance pay. Timesheets, entry and exit records and witness statements are important for proving overtime.
My social security is reported on the minimum wage, but I earn more. Is this a just cause?
Yes. According to the case law of the Court of Cassation, under-reporting the employee’s actual wage to the Social Security Institution is a just cause for termination. Bank records, witness statements and comparable wage research are used to prove the actual wage.
Do the same rules apply to foreign employees working in Turkey?
Yes. Foreign employees working in Turkey under the Labour Law have the same rights regarding termination for just cause and severance pay as Turkish employees, provided the conditions are met. Since the work permit is generally tied to the employer, foreign employees should also consider the effect of leaving the job on their work and residence permits.
Yetkiner Law Firm provides legal support in İzmir in English, French and Turkish to employees and employers in termination for just cause, severance and notice pay, reinstatement and other employment law matters. The firm can be reached through the channels on the contact page.
The information on this page has been prepared for general informational purposes and does not constitute legal advice. It is recommended to obtain legal support from a lawyer in specific cases.
