On 19 September 2019 the Constitutional Court found that the requirement for employers to pay interest at a rate of 5% for each day that a journalist's overtime payments remain outstanding conflicts with the Constitution. As such, the court repealed this requirement.(1)
Under Turkish law, journalists are subject to the Press Labour Law 5953, which sets out their employment rights, including their right to a salary. Pursuant to the law, where salary payments are not...»
Penalty clauses agreed for unjust termination of a fixed term employment contract before its expiry are valid and enforceable even if the contract is deemed as an indefinite term employment contract by law due to lack of conditions required to conclude fixed term contracts.
With its decision dated 8 March 2019 and numbered 2017/10 E., 2019/1 K., the Supreme Court General Assembly on the Unification of Judgments (“General Assembly”) concluded that penalty clauses agreed for un...»
On 1 January 2018 applying to a mediator was made a prerequisite when filing a lawsuit concerning monetary claims by employees or employers arising out of employment contracts, collective labour agreements or reinstatement claims. As a result, parties must now apply for mediation before filing a lawsuit; otherwise, the lawsuit will be rejected due to the absence of a prerequisite.
Mandatory mediation was introduced to accelerate legal proceedings and lower the costs in employ...»
As a result of a presidential decree aimed at protecting the value of the Turkish lira, residents in Turkey are now prohibited from agreeing to the value of monetary obligations in a foreign currency (or indexed to a foreign currency) in certain types of contracts, including employment contracts.
Presidential Executive Decree 85 was published on September 12, 2018, amending Decree 32 on the Protection of the Value of Turkish Currency and became fully effective on October 13, ...»
The Supreme Court, as per its established precedent, recently found that the failure of employees to use appropriate language in their written workplace correspondence with superiors or colleagues constitutes a valid reason for termination.
The Supreme Court has adopted a balanced approach between the principle of termination as last resort and the employer’s management rights in reinstatement actions filed by employees laid off by their employers due to workplace ...»
Minimum wage, severance payments and administrative fines prescribed by the Labour Act are revised at the beginning of each calendar year.
The minimum wage rate for 2018 was TL2,029.50 (gross) per month. As of 1 January 2019, this has increased to TL2,558.40 (gross) per month. The new rate applies from 1 January 2019 to 31 December 2019.
Minimum wage applies to all employees, regardless of age, industry and experience. The only exceptions are the coal and lignite...»
1. What kinds of incentive plan are most commonly offered and to whom?
The most prevalent type of monetary incentive plan in Turkey is bonus paid monthly or annually. For most of the employees this bonus may be calculated as sales commission calculated upon good or services sold to customer or the employees may receive project bonuses from the work performed with their team. The highest ranked employees may also benefit from profit sharing. Some of the companies also establis...»
Turkey’s Labor Courts Act (No. 7036) has introduced a number of changes to the administration of justice in employment disputes, including mandatory mediation, which must now be undertaken prior to initiating court proceedings, and a new appeal procedure for challenging a court’s decision.
With the Labor Courts Act, it has become mandatory to apply for mediation in the following situations:
Both employers and employees must do so for claims about employee “receivab...»
The Supreme Court recently issued a number of decisions setting out how to calculate overtime pay and how employees can prove any overtime owed when required. The Supreme Court’s findings, which govern overtime pay, can be summarised as follows:
Signed payslips can be used as material evidence. This means that where signed payslips document overtime paid, they will constitute proof that payment has been made to an employee, unless the employee can prove forgery. If an employ...»
It is now mandatory to apply for mediation, before certain claims are brought, as follows:
for both employers and employees – claims regarding employee “receivables” and compensation arising from either the Labour Act, the employment agreement, and/or a relevant collective bargaining agreement; and
for employees – claims for re-instatement.
Mandatory mediation is not applicable to claims arising from occupational accidents and diseases.
Where mediation is mandatory, this mu...»
1. What are the main statutes and regulations relating to employment?
The main sources of employment law are as follows:
the Turkish Labour Act No. 4857 (the TLA);
the Law on Trade Unions and Collective Bargaining Agreements No. 6356 (the Union Law);
the Law on Civil Service Trade Unions and Collective Bargaining Agreements No. 4688;
the Maritime Labour Law No. 854;
the Press and Media Labour Law No. 5953;
the Turkish Code of Obligations No. 6098 (the TCO);...»
The Supreme Court recently issued a decision concerning an employee’s dismissal for borrowing money from their employer’s customer. The Supreme Court reversed the first-instance labour court decision and ruled that the termination was lawful based on the fact that the employee had acted against the rule of integrity and honesty and damaged the employer’s reputation.
The employee worked as a medical representative and went to another city in eastern Turkey for work, wher...»