The process of termination of employment contracts in Turkey is governed by strict regulations under the Turkish Labor Law No. 4857. For both employers and employees, understanding these legal provisions is critical to prevent costly disputes and ensure compliance.
As Akkas & Associates Law Firm, a leading full-service law firm in Istanbul since 1992, we provide expert legal solutions in labor and employment law, guiding our clients through the complexities of Turkish jurisprudence.
Table of Contents
- Understanding Employment Contracts in Turkey
- 1. Legal Framework for Employment Termination in Turkey
- 2. Types of Termination of Employment Contracts
- 3. Employee Protections Under Turkish Labor Law
- 4. Notice Periods and Compensation
- 5. Severance Pay in Turkey
- 6. Termination Procedures Employers Must Follow
- 7. Common Grounds for Unlawful Termination
- 8. Reemployment (Reinstatement) Lawsuits
- 9. Termination of Foreign Employees
- 10. How Akkas & Associates Law Firm Can Help
- FAQs on Termination of Employment in Turkey
- 1. What is the difference between Just Cause and Valid Cause termination?
- 2. Can an employer terminate an employee during their annual leave?
- 3. Is a pregnant employee protected from termination in Turkey?
- 4. What happens if an employee does not take the severance pay offered by the employer?
- 5. Is a written warning always required before termination for poor performance?
- Contact us for Termination of Employment Contracts in Turkey
Termination of employment contracts in Turkey is a highly regulated process governed by the Turkish Labor Law and relevant judicial precedents. Whether you are an employer considering lawful termination or an employee seeking to protect your rights, understanding the legal framework is essential. At Akkas & Associates Law Firm, we advise clients across all industries on compliant employment termination procedures.
Understanding Employment Contracts in Turkey
Before discussing termination, it’s important to recognize the types of employment contracts. The primary distinction is between:
- Indefinite-Term Contracts: Contracts without a specific end date.
- Definite-Term Contracts: Contracts with a fixed duration, typically for specific jobs or projects.
The legal requirements for termination vary significantly based on the contract type and the grounds for termination.
1. Legal Framework for Employment Termination in Turkey
Employment termination is primarily regulated by the Labor Law, the Code of Obligations, and social security legislation. Turkish law distinguishes between valid termination, rightful termination, and invalid termination, each carrying different procedural obligations and legal consequences.
Employers must ensure that termination is based on objective, legitimate reasons such as performance issues, behavior-related causes, or operational requirements. Failure to comply with legal standards may result in reemployment lawsuits or compensation claims.
2. Types of Termination of Employment Contracts
a. Termination with Notice
This is the most common form of termination, requiring employers to provide notice periods ranging from 2 to 8 weeks, depending on the employee’s length of service. Employers may choose to pay notice compensation instead of having the employee work through the notice period.
b. Termination Without Notice (Immediate Termination)
Immediate termination is permitted for severe violations such as misconduct, health-related incapacity, criminal behavior, or breach of trust. Employers must be able to document the events leading to termination to avoid legal disputes.
c. Termination Based on Valid Grounds
Valid grounds include poor performance, redundancy, restructuring, or economic necessity. The employer must clearly demonstrate that the termination is not arbitrary.
3. Employee Protections Under Turkish Labor Law
Employees benefit from extensive protections including:
- Job security provisions for workplaces with 30+ employees and workers with 6+ months of seniority
- Prohibition of discrimination
- Requirement of written termination notices with specific justification
- Right to severance pay where applicable
- Right to file a reemployment lawsuit within 30 days
Employees terminated without valid reason may be entitled to reinstatement or compensation of up to 4–8 months’ salary.
4. Notice Periods and Compensation
The notice period depends on the employee’s tenure:
- 0–6 months → 2 weeks
- 6–18 months → 4 weeks
- 18–36 months → 6 weeks
- 36+ months → 8 weeks
Employers who prefer immediate termination without requiring the employee to work through the notice period must pay notice compensation.
5. Severance Pay in Turkey
Severance pay is mandatory for employees who have completed at least one year of service and are terminated for reasons other than misconduct under Article 25/II.
Severance pay is calculated as 30 days’ gross salary per year of service, subject to the government-imposed severance cap updated semi-annually. Employee benefits, allowances, and bonuses may also be considered in the calculation.
6. Termination Procedures Employers Must Follow
Employers should follow a compliant procedure to minimize legal risks:
- Conduct a performance evaluation or disciplinary investigation where necessary.
- Gather evidence and documentation.
- Prepare a written termination letter clearly stating the valid reason.
- Issue notice or severance pay where applicable.
- Deliver employment records and final payments in a timely manner.
Non-compliance may expose the employer to compensation claims, reinstatement orders, or administrative penalties.
7. Common Grounds for Unlawful Termination
Certain reasons are legally considered invalid and can expose the employer to legal action:
- Terminating without written justification
- Terminating due to pregnancy or maternity leave
- Terminating based on personal dislike or bias
- Retaliation against employees asserting their rights
- Terminating without proper documentation
Employees terminated unlawfully may file for reinstatement and compensation.
8. Reemployment (Reinstatement) Lawsuits
Employees who believe they were terminated without valid grounds can file a reemployment lawsuit within 30 days of receiving the termination notice. Arbitration through mandatory mediation is required before going to court.
If the court rules in favor of the employee, the employer must:
- Reinstate the employee, or
- Pay compensation between 4–8 months’ salary
- Pay wage loss up to 4 months
These lawsuits are common in Turkey and require strong legal representation.
9. Termination of Foreign Employees
Termination procedures for foreign employees follow the same labor rules but also require notification to the Ministry of Labor regarding work permit status. Failure to notify authorities may result in administrative fines.
10. How Akkas & Associates Law Firm Can Help
Since 1992, Akkas & Associates Law Firm has advised both employers and employees on legal termination procedures, labor disputes, restructuring, severance calculations, and litigation. Our bilingual team assists clients nationwide with compliance and dispute resolution.
FAQs on Termination of Employment in Turkey
1. What is the difference between Just Cause and Valid Cause termination?
Just Cause (Article 25) is a serious breach that makes the continuation of the contract unbearable, allowing for immediate termination without notice pay. Valid Cause requires the employer to have a defensible reason (performance, behavior, or operational need), but requires a notice period and is subject to reinstatement lawsuits.
2. Can an employer terminate an employee during their annual leave?
Yes, generally, the termination notice can be served while the employee is on annual leave, provided all other legal requirements (written notice, valid/just cause) are met. However, the notice period begins to run only after the leave ends.
3. Is a pregnant employee protected from termination in Turkey?
Yes, a pregnant employee is specially protected. An employer cannot terminate a contract based on the employee’s pregnancy or maternity leave. Termination for an unrelated valid cause is still possible but is scrutinized by the courts to ensure it is not discriminatory.
4. What happens if an employee does not take the severance pay offered by the employer?
The employee might refuse to accept the offered severance pay if they believe it is calculated incorrectly or if they believe the termination was unjust. In such cases, the employee can file a lawsuit to claim the correct amount or file a reinstatement lawsuit challenging the grounds for termination.
5. Is a written warning always required before termination for poor performance?
While not explicitly required by law, a series of written warnings detailing specific performance issues and giving the employee a chance to improve is considered best practice and is often required by courts to prove that the employer acted in good faith before resorting to termination based on performance (valid cause).
Contact us for Termination of Employment Contracts in Turkey
If you need assistance with termination of employment contracts in Turkey, workplace disputes, severance pay calculations, or wrongful termination claims, our legal team is ready to help. For 2025 and beyond, Akkas & Associates Law Firm continues to provide reliable and effective labor law services.
Our law firm is now one of the leading Labor and employment law firms in Istanbul, Turkey. You may reach us for termination of employment contracts through our Contact page.
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