An employee whose employment contract is terminated by the employer may be entitled to several legal rights, depending on the form and reason for the termination. Which of these rights actually arise in a specific case depends on the employee's seniority, the reason for termination, and the size of the workplace.
Below is a general summary of the rights a dismissed employee may hold. As each right has its own conditions and deadlines, a separate assessment based on the specific facts is recommended.
✧ Table of Contents
Right to Severance Pay
An employee terminated by the employer without just cause who has at least one year of seniority is entitled to severance pay. Severance pay is calculated based on thirty days' gross wages, inclusive of regular supplements, for each full year of service, and is subject to a statutory ceiling. Where the employer terminates for just cause, such as a breach of moral and good-faith rules, no severance pay entitlement arises.
Right to Notice Pay
Where an indefinite-term employment contract is terminated without observing the statutory notice periods, the employee becomes entitled to notice pay. Under Article 17 of the Labor Law, the notice period is two weeks for employees with less than six months' seniority, four weeks for six months to one and a half years, six weeks for one and a half to three years, and eight weeks for more than three years. An employee serving a notice period must also be granted at least two hours of paid job-search leave per day during that period (Article 27). This entitlement arises most frequently when an employer dismisses an employee abruptly and without notice, absent just cause.
Pay for Unused Annual Leave
Any annual paid leave the employee has not used by the date the employment contract ends does not lapse; the wages corresponding to that leave must be paid to the employee regardless of how the contract ended. This receivable is treated as a right separate from and independent of severance and notice pay.
Right to File a Reinstatement Lawsuit
Where the workplace employs thirty or more employees, the employee has at least six months of seniority, works under an indefinite-term contract, and the termination lacks a valid cause, the employee may file a reinstatement lawsuit. Mediation must be applied for before this lawsuit, and short deadlines must be observed; the details of these conditions are addressed in a separate article.
Right to Unemployment Benefits
An employee who becomes unemployed through no wish or fault of their own may benefit from unemployment allowance under the Unemployment Insurance Law No. 4447. This requires having worked under an employment contract for the last one hundred and twenty days before termination and having paid at least six hundred days of unemployment insurance premiums within the last three years, as well as applying to İŞKUR within thirty days of termination. This right generally arises in terminations initiated by the employer; where the employee resigns voluntarily or leaves by mutual agreement (ikale), no unemployment allowance entitlement arises as a rule.
Other Employment Receivables
In addition to the rights above, an employee may also have other employment receivables, such as unpaid wages, overtime, weekly rest pay, public holiday pay, or bonuses. These receivables may be claimed within a five-year limitation period, regardless of how the employment contract ended.
Applying to a mediator before filing suit is a precondition for litigation for all employment receivables.
Frequently Asked Questions
What can an employee do if the employer reported a "termination for just cause" (SGK exit code 29)? The burden of proving just cause lies with the employer. Through mediation and then the labour court, the employee may argue that the termination was not based on just cause and claim severance and notice pay; if the court finds the termination unjustified, it awards those amounts, and correction of the exit code may also be requested.
What does the severance pay ceiling mean? The severance pay for one year of service may not exceed the retirement bonus paid to the highest-ranking civil servant; this ceiling is updated every January and July. For an employee whose wage exceeds the ceiling, severance is calculated on the ceiling amount; the wage above the ceiling is taken into account only for notice pay and other receivables.
Where does a dismissed employee apply in İzmir? Applications for unemployment allowance are made to the İŞKUR İzmir Provincial Directorate or through e-Devlet; for compensation and receivables, an application is first made to the İzmir Mediation Bureau at the İzmir Courthouse in Bayraklı, and if no agreement is reached, to the labour courts at the same courthouse. Anyone seeking information on identifying and claiming rights arising after a dismissal may review our İzmir employment lawyer page; our office in Konak provides support in labour law matters across İzmir.
Av. Mehmet Yücesoy
İzmir Attorney & Legal Consultancy
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