Termination Restriction and Cash Support in the Pandemic

One of the lawyers of Kayseri Bar Association, Seyit Halil Yüzgeç explained the legal process regarding dismissal in the pandemic. Atty. Mr. Yüzgeç stated that Covid-19 pandemic affected the business life deeply across the world and the Turkish state took significant steps both for employers and employees in this period. Having reminded that the state had initiated the termination restriction and cash support based on the provisional article 10 of the Labor Law no. 4857, Atty. Seyit Halil Yüzgeç expressed that the new regulation restricted the termination of labor contracts by employers and led the way for the practice of unpaid leave. Atty. Seyit Halil Yüzgeç Law Office's statement on the termination restriction and cash support pratice is as follows:

The Perception That Employees May Not Be Dismissed is Definitely Wrong

Termination restriction aims to keep the welfare of the society, protect the employment and prevent the business life from losing its vitality. It was observed following the regulation that employees displayed some actions contrary to the labor peace and affected the productivity at workplace. The state intended to protect a sustainable productivity with the regulation. Employees have rights and powers as granted by the labor legislation against the productivity loss caused by employees thinking they may not be dismissed in any ways. Termination of labor contracts have been included within the scope of the prohibition apart from the Rightful Termination of Labor Contracts of Definite Duration by Employers, Termination of Labor Contracts of Trial Period by Employers, Mass Layoff, Termination for Mandatory Reasons and Imprisonment by Employers, other reasons and Termination Due to Health Reasons and by Employers and Prohibition of Employers to terminate labor contracts during the termination prohibition time.

Employers may terminate labor contracts for reasons specified under the title "reasons contradicting ethics and good will" in the paragraph II of the article 25 of the Labor Law where reasons for rightful termination are specified with the purpose of not hindering the operation. Similarly, labor contracts may be terminated during the restriction period in case of resignation, retirement and presence of labor contracts of definite duration.

In case of termination contradicting the article; a fine valued at the monthly gross minimum wage on the date when the action is committed for every employee whose labor contract is terminated shall be imposed on the employer or employer's deputy.

Employees will be allowed to benefit from the Unemployment Fund for the period of time when they are on an unpaid leave or remain unemployed with the cash support. Apart from the stamp revenue on payments, there will not be any cutbacks. Aiming to reduce the adverse effects of the pandemic, this practice is restricted to the period of time when termination is restricted. Employers are able to apply full or partial unpaid leave during the restriction without the need for requesting employees' consent. The fact that an employee in on an unpaid leave does not grant the employee the right to terminate the labor contract for good cause.

The termination restriction does not affect the arbitration processes that have the characteristics of trial within the scope of the labor law and pre-trial mandatory application, and the processes are under way.