Severance Pay Lawyer

Severance pay (kıdem tazminatı) is compensation paid to an employee whose employment contract ends in one of the ways listed in the law and who has worked for the same employer for at least one year; it equals thirty days’ gross wage for each full year of service. As a severance pay lawyer in Mersin, I handle severance and notice pay claims in mediation and court proceedings. With the calculator below, you can calculate your compensation and then review the conditions of entitlement and the steps to take if it is not paid.

How Is Severance Pay Calculated?

Three elements determine the severance pay calculation:

• Length of service: The period from the start date to the date of leaving. Thirty days’ wages are paid for each full year, and a proportional amount for any period exceeding the full years.
• Gross wage including benefits (giydirilmiş brüt ücret): Meal and transport allowances, bonuses and similar money and benefits measurable in money that are paid regularly are added to the last gross wage. The bare wage shown on the payslip is therefore not used as the basis on its own.
• Severance pay ceiling: The amount payable for one year of service cannot exceed the ceiling in force on the date of leaving. The ceiling is updated every year in January and July.

No income tax is deducted from severance pay; only stamp duty at a rate of 7.59 per thousand is deducted. The calculator automatically applies the ceiling that corresponds to your date of leaving and also calculates notice pay.

Who Is Entitled to Severance Pay?

To receive severance pay, the employee must have worked for the same employer for at least one year and the employment contract must end in one of the following ways:

• Dismissal by the employer for a reason other than conduct contrary to morality and good faith
• Termination of the employment contract by the employee for just cause
• Leaving because of military service
• Leaving in order to receive an old-age, retirement or disability pension or a lump-sum payment
• Leaving after completing the insurance period and number of premium days required for retirement (for example, 15 years and 3600 days)
• A female employee leaving voluntarily within one year of the date of her marriage
• The death of the employee; in this case, the compensation is paid to the heirs

Periods worked at different workplaces of the same employer are added together. In the event of a transfer of the workplace, periods worked for the previous employer are also taken into account in calculating seniority.

Can an Employee Who Resigns Receive Severance Pay?

As a rule, an employee who resigns without any just cause cannot receive severance pay. However, if there is a just cause attributable to the employer behind the resignation, the employee’s termination counts as a termination for just cause and severance pay can be claimed. Just causes commonly seen in practice are:

• Wages, overtime pay or other employee receivables not being paid on time or in full
• Social security premiums being reported incompletely or on a lower wage
• Mobbing, insults, harassment or degrading treatment
• Working conditions being made substantially harsher without the employee’s consent
• The work being dangerous to the employee’s health or way of life

If a termination for just cause is to be made, it must be made in writing, stating the reasons clearly, and within the time limits set by law. The wording of the termination notice can directly affect the outcome of any future lawsuit.

The Difference Between Severance Pay and Notice Pay

Severance pay is compensation for the employee’s length of service; notice pay (ihbar tazminatı), on the other hand, is compensation paid by the party that does not comply with the notice period when terminating the employment contract. If the employer dismisses the employee without giving the notice period, it pays notice pay in addition to severance pay. The notice period varies between two and eight weeks depending on the length of service. For details, please see the notice pay page. For employees covered by job security who are dismissed for an invalid reason, the option of a reinstatement lawsuit (işe iade davası) should also be considered.

What Can Be Done If Severance Pay Is Not Paid?

• Mandatory mediation: Before filing a lawsuit for severance and notice pay, it is mandatory to apply to a mediator (arabulucu). The application is made to the mediation office where the employee or the employer is located.
• Lawsuit: If no agreement is reached in mediation, a lawsuit is filed in the labour court. During the lawsuit, payslips, bank records, the SGK service record and witness statements are examined; the calculation is usually made by a court-appointed expert (bilirkişi).
• Interest: If severance pay is not paid on time, interest can be claimed from the date of termination at the highest interest rate applied by banks to deposits.
• Limitation period: Severance and notice pay claims become time-barred five years after the end of the employment contract.

Releases (ibraname) signed when leaving a job are not always valid. For a release to be valid, it must be drawn up at least one month after termination, the type and amount of the claim must be clearly stated, and the payment must be made in full through a bank. A release that does not meet these conditions may not prevent a severance pay claim.

How Is a Severance Pay Lawsuit Filed in Mersin?

Severance pay lawsuits are heard by the labour courts; where there is no labour court, the civil court of first instance (asliye hukuk mahkemesi) hears the case acting as a labour court. The lawsuit can be filed at the defendant employer’s place of residence or at the place where the work was performed. Employees working in Mersin, or in districts such as Tarsus, Erdemli, Silifke, Anamur and Mut, can therefore file their lawsuits in the courts in Mersin. The mandatory mediation application before the lawsuit is also made to the mediation offices in Mersin.

For other employment law claims and advice for employers, please see the Mersin employment lawyer page.

Frequently Asked Questions

Get an Assessment of Your Severance Pay

To assess whether your severance and notice pay calculation is correct, whether you meet the conditions of entitlement, and the steps to take if the employer does not pay, you can contact me through the contact page.