Severance and Notice Pay Guide for Foreign Employees

Severance and notice pay for foreign employeesis determined not by citizenship, but by the type of employment contract, the duration of employment and the reason for the termination of the contract. Foreign workers working for an employer in Turkey can also claim these compensations if they meet the necessary conditions. In connection with this topic Labor Law You can also review the content titled.

Severance and notice pay are not the same payment. The employee may qualify for one but not the other. Therefore, before making the calculation, it should be determined whether the contract is for a definite or indefinite period, who left the job and what the reason for termination is. About the relevant aspect of the process Labor Court Processes of Foreign Employees in Turkey There is detailed information on the page.

Difference Between Severance and Notice Pay

When Can a Foreign Employee Receive Severance Pay?

The first condition for severance pay is that the employee must have worked for the same employer for at least one year. As a rule, a foreign employee who has not completed one year cannot be entitled to severance pay, even if he is dismissed. Labor Law Rights of Foreign Personnel Working in International Companies its content explains other legal points related to this stage.

In addition to the one-year period, the employment contract must be terminated for a reason that gives rise to severance pay. The most common entitlement situations for foreign employees are as follows:

• The employer dismisses the employee for a reason other than violation of the rules of morality and goodwill,
• Termination of the contract for a justified reason such as non-payment of the employee's wages,
• Closure of the workplace or termination of the business,
• Occurrence of justified termination conditions specified in the law due to health or occupational safety,
• In case of the death of the worker, the compensation is paid to the legal heirs,
• Occurrence of conditions for the completion of conditions other than retirement or age in social security legislation.

If the foreign employee resigns voluntarily and without a justifiable reason, severance pay does not arise. However, even if the employer has made the employee sign a resignation letter, the real reason for leaving can be investigated.

How is Severance Pay Calculated?

Severance pay is calculated based on the employee's last dressed gross wage. 30 days' wage is taken as a basis for each full year of employment. Months and days from a year are also taken into account proportionally.

The basic logic of the calculation is:

Total working hours × last dressed gross wage

If the employee works for two years and six months, the two full years' wages and the half-year amount corresponding to the remaining six months are calculated together.

However, the wage that can be taken into account for each working year cannot exceed the severance pay ceiling valid on the date of termination. If the employee's actual gross wage is above the ceiling, the calculation is made over the ceiling.

What is added to the dressed gross wage?

Severance pay may not be calculated only on the bare salary on the payroll. Regular and continuous money or benefits that can be measured in money can also be included in the calculation.

Payouts that can be accounted for based on its terms include:

• Regular meal assistance,
• Transportation or service benefit,
• Continuous housing assistance,
• Regularly paid premiums and bonuses,
• Fuel or similar continuous aid.

One-time, incidental, or remuneration for expenses are generally not added to the dressed wage. Regular payments made from abroad can also be taken into account in the calculation if they are the equivalent of the employment relationship.

Compensation of Foreign Employees Paid in Foreign Currency

The foreign employee's wage may be set in euros, dollars, or another foreign currency. In this case, the exchange rate at which the wage will be converted into Turkish lira, the provisions of the contract and the payment application should be examined.

If the employer shows different wages in the work permit application, SSI notification and actual payment, the actual wage is determined by bank movements, contract, payroll and other evidence.

It should be investigated whether the salary, premium or housing allowance paid by the parent company in the foreign country is also the equivalent of the employment relationship in Turkey.

In Which Situation Does Notice Pay Arise?

Notice pay comes to the fore when the indefinite-term employment contract is terminated without a justifiable reason and without complying with the notice periods in the law.

If the employer dismisses the foreign employee immediately without giving a notice period, he may have to pay the wage for this period as notice pay. If the employee suddenly leaves the job without a justified reason and without complying with the notice period, the employer may request notice pay from the employee.

Legal notice periods are as follows:

• Two weeks for those working less than six months,
• Four weeks for those who work between six months and one and a half years,
• Six weeks for those who work between one and a half years and three years,
• Eight weeks for those who have worked for more than three years.

These periods are minimum and can be increased by an employment contract or collective bargaining agreement.

In Which Cases Notice Pay Is Not Paid?

In the event that the fixed-term employment contract terminates automatically on the agreed date, as a rule, notice pay does not arise. Because the notice periods are regulated for indefinite-term contracts.

If the employee or employer exercises the right to terminate immediately for just cause specified in the law, the notice period is not waited and notice pay is not paid.

When the contract is terminated during the trial period, the parties are not required to comply with the notice period. However, the wages for the days worked during the probationary period and other rights arising must be paid.

Does the Termination of the Work Permit End the Right to Compensation?

The expiration of the work permit does not mean that severance and notice pay will be automatically lost. It should be examined why the leave period was not extended and by whom and for what reason the employment contract was terminated.

If the employment relationship has ended because the employer did not extend the work permit on time, this situation may be considered as employer termination. On the other hand, if the employee does not submit the necessary documents and information or creates a situation that prevents obtaining permission, it may lead to different results.

The expiration of a work permit is not the same as the expiration of labor receivables. Wages, seniority, notice and leave receivables should be calculated separately.

Does the Old Seniority Continue in the Change of Employer?

If the foreign employee moves to another company, a new work permit must be obtained. As a rule, the work that starts with the new employer creates a new seniority period.

However, if there is a company transfer, workplace transfer, apparent transition between group companies or subcontractor change, it should be investigated separately whether the previous working period continues. Also Legal Disputes Between Foreign Employers and Employees in Turkey should be evaluated together with the concrete case.

The fact that only the payroll of the employee is transferred to another company does not mean that his seniority will be reset in all cases. The actual employer relationship and workplace transfer rules are evaluated.

Is Time Worked Without Leave Taken Into Account?

Not having a work permit creates administrative sanctions. Despite this, the period of actual employment of the foreigner and the wage claim for this period can be examined separately on the basis of concrete evidence.

The effect of the period of unauthorized work on the seniority calculation; It may vary depending on whether the work is a prohibited profession, the fault of the parties, the nature of the working relationship and the judicial evaluation. For this reason, a general conclusion should not be reached that "if there is no work permit, there is no right".

Which Way to Apply If Compensation Is Not Paid?

The foreign employee must first protect the employment contract, work permit, bank records, payrolls, SSI service statement and termination notice.

Before filing a lawsuit in the labor court for severance and notice pay, it is necessary to apply to a mandatory mediator. If an agreement cannot be reached in mediation, a lawsuit can be filed in the labor court.

Even if the foreign employee has left Turkey, he can follow the mediation and litigation proceedings through his lawyer with the appropriate power of attorney.

The statute of limitations for severance and notice pay claims is generally five years. The period is calculated from the date of termination of the employment contract.

Frequently Asked Questions

Can a foreign employee receive severance pay?

Yes. If he/she has worked for the same employer for at least one year and the contract has ended for a reason that gives rise to severance pay, he/she can make a claim.

Does a foreigner who has worked for less than a year receive severance pay?

As a rule, no. For severance pay, at least one year of employment under the same employer is required.

What happens if the foreign employee resigns without complying with the notice period?

If the employer terminates the indefinite-term contract without notice without a justified reason, the employer may request notice pay.

Does the employee whose work permit expires lose his right to compensation?

It does not lose automatically. It is examined why the leave period ended and which party terminated the employment contract.

Is severance pay calculated only on salary?

Regular benefits such as regular meals, travel, housing and premiums can also be added to the gross wage dressed according to their conditions.

Is mediation mandatory before a compensation case?

Yes. A mediator should be consulted before filing a lawsuit for severance and notice pay claims.

Legal information: This content has been prepared for general information purposes. Right to compensation and calculation; It should be determined according to the type of employment contract, the reason for termination, work permit status, regular fringe benefits and the severance pay ceiling on the date of termination.