Termination Of Employment Contract And Claims Against Unfair Dismissal

Contract of employment is a special type of contarct where the personal relationship of the parties have played an important role as parties have mutual obligations against each other. Generally, a contract of employment has came to an end in various accosions including the death of one party, mutual termination, expiration of contract and one sided termination.

There are two types of employment claims. First, it involves which can only be claimed upon the termination of the contract. Latter is non dependant on the termination. The first type of claims are regulated by the related legislation but they are limited in terms of providing a relief to workers as a right of reinstatement and general compensation payable in accordance with the service period of worker are not incorporated in the relevant law. Despite, they may be available in the employment contract or collective agreement.  

A. Claims Payable Upon Termination

1. Compensation For Failing To Serve A Notice Of Termination

Parties can terminate the contract of employment provided that they comply with the notice periods and served a written notice of termination to other party. Notice periods are stated in the Labour Law, 22/1992. These are minimum notice periods which can be increased by the parties in the employment contract and/or collateral employment contract.

The minimum notice periods are stated as follows ;

a. for a worker whose term of service has lasted a maximum of six months, one week after the notification was made to the other party,

b. for the worker whose service period lasted from six months to one year, three weeks after the notification was made to the other party,

c. for the worker whose service period lasted from one year to two years, four weeks after the notification was made to the other party,

d. for the worker whose service period lasted from two to five years, five weeks after the notification was made to the other party,

e. for the worker whose service period has lasted more than five years, six weeks after the notification was made to the other party.

The parties are still under obligations of the contract and they are still have to discharge their obligations in the notice periods up until the end of notice period when the contract will come to en end. Nevertheless, employer can terminate the contract of employment immediately without requiring them to work in the notice periods by making payment in lieu of notice. If one party has failed to comply with minimum notice periods, then defaulted party should pay the compensation in the amount of notice periods. 

2. Unfair Dismissal Compensation

In order to terminate the contract, employer shoud provide a valid reason for dismissal and comply with the minimum notice periods. If employer terminate the contract of employment without showing a valid reason or, if the stated reason is not adequate or if the empyoyer has failed to give notice of termination in writing and also failed to comply with minimum notice periods, then, termination of contract will be deemed to unfair dismissal. In that case, employer will be liable to pay compensation for unfair dismissal which is 3 times more than minimum notice periods that are stated in legislation or contract.

B. Other Claims Of Employee Which Are Not Dependant On Dismissal

Employer has to pay all of labour costs and earnings to employee including salary, overtime, bonus and other contributions regardsless of the termination of employment contract.

1. Overtime wage

In accordance with the Labour Law No. 22/1992, an employee is not allowed to work for a period of more than forty hours a week, eight hours per day, excluding meal hours, in any given week.

However, in cases where employees are required and / or when more work is required, the employer may employ the worker for a maximum of four hours per day, provided that the employee is paid. To summarize briefly, employers need to get the approval or consent of the workers who will work overtime. However, the total overtime working time may not exceed 4 hours per day and 90 business days per year. The fee for each hour of overtime work shall be paid by raising the amount of the normal daily working fee by 10% per hour.

Overtime is subject to 2 years of statutory limitation due to the fact that it will be charged.

2. Week Holiday and Public Holiday Wages

The weekend holiday covers the period from Saturday at 13.00 until the end of Sunday, unless stated otherwise in service contracts or collective bargaining agreements. Weekly working time, not exceeding forty hours, time worked until 13.00 by Saturday is not counted as overtime.

(However, according to the nature of the work on Saturdays and / or Sundays to do normal work and the Labour Law Article 35 (2) in the workplaces specified in the paragraph of the weekly rest days of employees is determined by the employer for one full day.)

Workers do not work and spend a holiday on the days accepted as public holidays and are paid in full without a corresponding job. According to Article 40 (2) of the Labour Law, the wages of employees on public holidays should be paid in multiply of (1).

Week Holiday and Public Holiday Fees are subject to a 2-year statute of limitations as they will receive overtime, as well as wages.

3. Annual leave wage

The duration of the annual paid leave for the employees, can't be less than the following depending on the duration of the service;

14 days for 6 months to 5 years (including five years) of service,

18 days to those who served more than 5 years but less than 10 years,

22 days to those who served more than 10 years but less than 15 years,

25 days to those who served more than 15 years.

However, the period of paid annual leave for employees at the age of eighteen and at the age of fifty and older cannot be less than twenty days.

The annual leave periods are calculated on a working day and weekends (usually on Sundays) and other public holidays corresponding to these periods are not included in the annual leave account.

In case of termination of the employment contract for any reason, the employee's wages related to annual leave periods that he / she cannot use will be paid to himself or to the right holders over his/her wages at the date of termination of the contract. The statutory limitation period of 2 years shall commence at the expiration of the employment contract.