Labour law in Turkey: severance pay, dismissal and employee claims

Turkish labour law: scope and sources

Turkish labour law governs the relationship between employees and employers: the employment contract, working conditions, wages, working hours, occupational health and safety, and termination. Its main source is the Labour Law No. 4857. Severance pay is still calculated under Article 14 of the former Labour Law No. 1475. Special laws apply to journalists and seafarers, and employees outside the scope of Law No. 4857 are covered by the service contract provisions of the Code of Obligations No. 6098.

These rules apply to foreign nationals working in Turkey in the same way as to Turkish employees, provided they work under a Turkish employment relationship. A foreigner working without a work permit still has wage claims for work actually performed, but unauthorised work carries separate risks explained in our immigration law guide. Social security issues, such as service determination and retirement, are covered in our social security guide.

Severance pay (kıdem tazminatı)

Severance pay is due to an employee who has worked for the same employer for at least one year and whose contract ends in one of the ways listed in the law. It equals 30 days' gross wages, including regular benefits, for each full year of service, with a proportional amount for any part year. It is subject to a statutory cap that is updated periodically; check the current cap before calculating.

An employee is entitled to severance pay where:

• The employer terminates the contract for any reason other than breach of morality and good faith (Labour Law, Art. 25(II))
• The employee terminates the contract for just cause under Article 24 (unpaid wages, harassment, health reasons and similar)
• The employee leaves for compulsory military service
• The employee leaves to receive an old-age, retirement or disability pension or a lump-sum payment
• The employee leaves after completing the statutory insurance period and number of premium days (other than the age condition)
• A female employee leaves voluntarily within one year of marriage
• The employee dies (the severance pay is paid to the heirs)

An employee who resigns without just cause is, as a rule, not entitled to severance pay. The wording of a resignation letter therefore matters: an employee whose wages have not been paid but who writes "I am leaving of my own free will" may weaken a later claim of termination for just cause.

Notice periods and notice pay

A party terminating an indefinite-term employment contract must observe the notice periods in Article 17 of the Labour Law. A party that does not observe them must pay notice pay equal to the wages for the notice period. Notice pay is not due where the contract is terminated for just cause.

These are minimum periods and can be extended by contract. The employer may end the contract immediately by paying the wages for the notice period in advance. During the notice period, the employer must give the employee at least two hours a day off to look for a new job.

Job security and reinstatement claims

Under Article 18 of the Labour Law, an employee benefits from job security if all of the following apply:

• The workplace employs 30 or more employees
• The employee has at least six months' service
• The employee works under an indefinite-term contract
• The employee is not an employer's representative managing the whole business

An employer terminating the contract of such an employee must base the termination on a valid reason relating to the employee's capability or conduct or to operational requirements, and give notice in writing with reasons. The procedure for challenging a dismissal is:

1. Application to a mediatorThe employee applies to the mediation office within one month of being notified of the termination (Labour Law, Art. 20; Law No. 7036, Art. 3).
2. MediationIf the parties agree on reinstatement or compensation, the settlement record has the effect of a court judgment.
3. LawsuitIf no agreement is reached, a reinstatement lawsuit must be filed with the labour court within two weeks of the final mediation record.
4. Judgment and return to workIf the court finds the termination invalid, the employee must apply to the employer to return to work within ten working days of the judgment becoming final.
5. OutcomeIf the employer does not reinstate the employee within one month, it must pay compensation of between four and eight months' wages, plus up to four months' wages for the period the employee was not working until the judgment became final (Art. 21).

Overtime, annual leave and other claims

Overtime

Weekly working time is limited to 45 hours. Work beyond that is overtime, paid at 150% of the normal hourly wage (Labour Law, Art. 41). Total overtime cannot exceed 270 hours a year and requires the employee's consent. Work on weekly rest days, national holidays and public holidays is paid separately. Overtime is usually proved by entry and exit records, timesheets, emails and witness statements.

Annual paid leave

An employee who has worked for at least one year is entitled to annual paid leave according to their length of service (Art. 53):

When the contract ends, pay for unused leave is paid on the basis of the last wage (Art. 59). Other claims include unpaid wages, bonuses, transport and meal allowances, minimum wage differences and differences arising from under-reported social security premiums. For late payment of wages, the highest interest rate applied to deposits may be claimed (Art. 34).

Termination for just cause

Either party may terminate the contract immediately, without notice, where there is just cause listed in the law:

• For the employee (Art. 24): unpaid or underpaid wages, unpaid overtime, under-reported social security premiums, failure to apply working conditions, insulting conduct by the employer, sexual harassment, health reasons and similar.
• For the employer (Art. 25): unexcused absence, persistent refusal to perform duties, conduct incompatible with honesty and loyalty, committing a crime at the workplace, long-term illness and similar.

The right to terminate for breach of morality and good faith must be exercised within six working days of learning of the conduct, and in any case within one year of the act (Art. 26). For continuing breaches, such as ongoing non-payment of wages, this period does not start while the breach continues.

Workplace harassment (mobbing)

Systematic and deliberate exclusion, humiliation, intimidation or bullying of an employee over a period of time is known as mobbing. Article 417 of the Code of Obligations requires employers to take the necessary measures to protect employees from psychological and sexual harassment and to prevent further harm to those affected. An employee subjected to mobbing can terminate the contract for just cause, claim severance pay and also seek non-pecuniary damages. Emails, messages, witness statements and medical reports are important evidence.

Work accidents and occupational diseases

Work accidents are defined in Article 13 of the Social Security Law No. 5510 and include accidents at the workplace, while on assignment elsewhere, and during transport provided by the employer. After a work accident, the employer must notify the Social Security Institution within three working days. The Institution pays temporary incapacity allowance and, where the conditions are met, a permanent incapacity pension. Where the employer failed to take occupational health and safety measures, the employee, or the relatives of a deceased employee, can claim pecuniary and non-pecuniary damages from the employer; degrees of fault are determined by an expert report. Work accident claims are not subject to mandatory mediation.

Mandatory mediation and the competent court

Under Article 3 of the Labour Courts Law No. 7036, applying to a mediator is a precondition for lawsuits concerning employee or employer receivables and compensation based on the law or an individual or collective agreement, and for reinstatement claims. A lawsuit filed without mediation is dismissed on procedural grounds. The application is made to the mediation office at the domicile of either party or where the work is performed. The mediator generally concludes the process within three weeks, which can be extended by up to one week. A settlement record has the effect of a judgment, and the period from the application until the final record suspends limitation and time-bar periods. General information on mediation is available in our services overview.

Employment disputes are heard by the labour courts; where there is none, the civil court of first instance acts as a labour court. The competent court is that of the defendant's domicile on the date of filing or of the place where the work was performed; contract clauses to the contrary are invalid (Law No. 7036, Art. 6).

Key time limits

Documents usually required

• Employment contract and any amendments
• Termination notice, resignation letter or formal notices
• Payslips and bank statements
• Social security service record (from e-Government)
• Entry and exit records, timesheets, emails and messages showing overtime
• Annual leave records
• Details of colleagues who can act as witnesses
• For work accidents: accident report, social security notification, medical reports

Relevant legislation

Turkish legislation is published (in Turkish) at mevzuat.gov.tr:

• Labour Law No. 4857 — Art. 17, 18–21, 24–26, 34, 41, 53–59, Add. Art. 3
• Former Labour Law No. 1475 — Art. 14 (severance pay)
• Labour Courts Law No. 7036 — Art. 3, 6
• Turkish Code of Obligations No. 6098 — Art. 393 et seq., 417
• Social Security Law No. 5510 — Art. 13
• Occupational Health and Safety Law No. 6331

Labour Law: topics

The main topics within Turkish labour law are listed below. Detailed guides for each are in preparation.

• Severance pay
• Notice pay
• Reinstatement lawsuits
• Overtime claims
• Workplace harassment (mobbing)
• Termination for just cause
• Mandatory mediation in employment disputes
• Work accident compensation

Frequently asked questions about labour law in Turkey

This article is for general information only and does not constitute legal advice. Please consult a lawyer about your specific situation. Legislation and court practice change over time, so check the current legislation before taking any step. Last updated: 14 October 2026