Employment Law
Av. Orhun Türkoğlu
COMPENSATION: Within the scope of labor law, compensations are divided into two categories: seniority and notice compensation.
Seniority Compensation: It is a type of compensation that the employer is obliged to pay to the employee in case the employment contract is terminated based on one of the reasons stipulated in the labor law. In order to be entitled to seniority compensation, it is necessary for the employee to work for at least six months under an employment contract with the employer. If an employee meeting this requirement is terminated by the employer without a valid reason (unfairly) or if the employee terminates the employment contract for a valid reason (with just cause), the employee is entitled to seniority compensation. When calculating seniority compensation, the employee’s gross monthly salary is taken into account. An employee whose employment contract is terminated unfairly by the employer or who terminates the contract with just cause is entitled to compensation equal to one month’s gross salary for each year worked.
Notice Compensation: It is the compensation that the party terminating the contract is obliged to pay to the other party in case of termination of indefinite-term employment contracts without complying with the requirements specified in the labor law. In other words, notice compensation, unlike seniority compensation, is a compensation that may arise against the employee. Pursuant to Article 17 of the Labor Law No. 4857, it is essential to notify the other party in writing before terminating employment contracts, and the notice periods specified under this article are applied as follows:
- Two weeks for employment lasting up to six months,
- Four weeks for employment lasting from six months to one and a half years,
- Six weeks for employment lasting from one and a half years to three years,
- Eight weeks for employment lasting more than three years.
These periods are also used to calculate the amount of compensation to be paid by the party terminating the contract without complying with the notice period. In other words, in the calculation of compensation, the above notice periods are determined by comparing the employee’s monthly gross salary. A seniority compensation calculation engine can be added to the site from here. (Note: The calculation made by the calculation engine determines the approximate amount of seniority compensation you will receive; the exact calculation may vary depending on individual cases.)