Severance Pay

Severance Pay; is a type of compensation that the employer is required to pay to the employee if the employment contract is terminated based on one of the reasons specified in the labor law. In order to be eligible for severance pay, it is necessary to work for the employer for at least six months under an employment contract. If an employee meets this requirement and their employment contract is terminated by the employer without a valid reason (unjustly), or if the employee terminates the employment contract for a valid reason (just cause), the employee is entitled to severance pay. When calculating severance pay, the employee’s monthly gross salary is taken into account. An employee whose employment contract is unjustly terminated by the employer or who terminates the employment contract with just cause is entitled to severance pay equivalent to one month’s gross salary for each year worked.