Notice Pay

Notice Pay is the compensation that must be paid to the other party in case of termination of an indefinite-term employment contract by either the employee or the employer without complying with the conditions specified in the labor law. In other words, unlike severance pay, which is payable only to the employee, severance pay is a compensation that can also arise to the detriment of the employee. According to Article 17 of Labor Law No. 4857, it is essential to notify the other party in writing before the termination of employment contracts. Pursuant to this article, the following notification periods are applied:

• Two weeks for employments lasting up to six months,
• Four weeks for employments lasting from six months to one and a half years,
• Six weeks for employments lasting from one and a half years to three years,
• Eight weeks for employments lasting more than three years.

These periods are also taken as the basis for calculating the amount of compensation to be paid by the party terminating the employment contract without adhering to the notification period. In other words, in calculating the compensation, the above notification periods are determined by comparing the employee’s monthly gross salary.