
Employee onboarding and termination are crucial processes in the lifecycle of any business. In Turkiye, these processes are governed by specific laws and regulations that ensure the rights of both employers and employees are protected. This article provides a comprehensive overview of the legal procedures for employee onboarding and termination in Turkiye, including a detailed discussion on severance pay. This article provides an overview of the legal procedures for both, empowering companies to navigate these critical phases effectively.
1. Employee Onboarding
Onboarding sets the tone for the employee experience and establishes a strong foundation for a productive working relationship. Here’s a breakdown of the key legal aspects to consider during onboarding in Turkiye:
2. Employee Termination
Employee termination in Turkiye is a sensitive process that must be handled in compliance with the Labor Law to avoid legal repercussions. Termination can occur due to various reasons, including redundancy, misconduct, or the employee’s resignation.
Termination of employment can be initiated by either the employer or the employee. Or, the employment contract may be terminated by mutual agreement of the both parties.
There are specific procedures that employers must follow when terminating an employee:
2.1. Termination by Employer:
2.2. Termination by Employee:
2.3. Mutual Rescission Agreement: The parties to the employment contract, the employee and the employer, may agree to terminate the employment contract together. The validity of this agreement is subject to certain conditions.
3. Severance Pay
Severance pay is a lump sum payment an employer must make to an employee upon termination of their employment contract, under certain circumstances. It is a financial compensation paid to employees upon termination, provided they meet certain conditions. Here’s a breakdown of when and how much severance pay is required (Each situation should be evaluated on its own merits. Only a general framework will be outlined here):
3.1. Eligibility for Severance Pay
Employees are entitled to severance pay if they have completed at least one year of continuous service with the same employer. Severance pay is also due in the following scenarios:
3.2. Calculation of Severance Pay
Severance pay is calculated based on the employee’s length of service and the last received gross salary. The formula is as follows:
For each year of service, the employee is entitled to one month’s gross salary. If the service period includes fractions of a year, the severance pay is calculated proportionally. The calculation of severance pay is a very detailed issue. General information is given here.
3.3. Payment of Severance Pay
Severance pay must be paid in a lump sum at the time of termination. Employers are required to make this payment promptly to avoid legal disputes and potential penalties.
4. Legal Disputes and Resolution
Disputes related to employee termination and severance pay are common in Turkiye. Employees who believe they have been unjustly terminated can file a lawsuit against their employer. The process typically involves the following steps:
5. Best Practices for Employers
To ensure compliance with the legal requirements and minimize the risk of disputes, employers should adopt the following best practices:
Following a well-defined onboarding process and adhering to legal requirements during termination not only protects companies from legal repercussions but also fosters a positive and productive work environment for employees. This, in turn, contributes to a company’s overall success and employee satisfaction.
6. Conclusion
Understanding the legal procedures for employee onboarding and termination in Turkiye is essential for businesses to operate smoothly and avoid legal complications. By adhering to the guidelines outlined in this article, employers can ensure they meet their legal obligations while fostering a fair and respectful work environment. Severance pay, as a key aspect of termination, must be handled with care to protect the rights of employees and maintain the company’s reputation.
A Reminder About Business Starters’ Legal Kit: This article is a part of “Business Starters’ Legal Kit” series. As we explained in our introductory article, the articles in this series contain essentials only. For detailed information, you can review the articles in special categories on our website or contact us.
Disclaimer: The information and opinions on this page are for general information and academic contribution purposes. It may not reflect the views of Otto Law and Mediation. Due to the fact that law is a dynamic field, the information and opinions on the site may be out of date. The articles on the site may not reflect the prevailing doctrine or common judicial practices in that field and may contain the author’s own legal convictions. The information and legal opinions on this site are not legal advice and these contents are not intended to be legal advice. It is recommended to seek professional legal support for specific cases. Otto Law and Mediation or the author of the relevant article are not responsible for the consequences of applying the information and opinions on the site to concrete events. We present it to your information.