Short Term Working Payments and Layoff Restrictions Extended in Turkey

Extension on Short Time Working Payments 

As per the Presidential Decree No.2810 published in the Official Gazette No. 31202 dated July 31, 2020, short time working payment period is extended for one additional month to the short time working period determined under the Presidential Decree No.2706 published in the Official Gazette No. 31171 dated June 30, 2020.  Accordingly, conditions determined with the Presidential Decree No.2706 will apply and workplaces which applied for short-time working payments before June 30, 2020 due to COVID-19 will be eligible for the extended short time working payment without the need for an eligibility assessment, for the same workers who have previously benefited from short time working provided that previous short time work conditions are not exceeded.

Extension on Layoff Restrictions

Due to the COVID-19 pandemic, a new provisional article 10 had been added to the Labor Law numbered 4857 (“Law No. 4857”) stating that the termination of any labor contract whether under the scope of the Law No. 4857 or not; is prohibited except for termination regarding immoral, dishonorable or malicious conduct or other similar behavior. End of employment contract due to end of the term of the contract for employment contracts for a defined period, closing of a workplace and suspension of business, and completion of procurement of services and construction works had been further excluded from termination restriction with an amendment dated July 28, 2020. Additionally, within the same extent, the employer was entitled to grant furlough during the termination restriction period and being entitled to furlough under this article does not give the employee the right to terminate the contract based on the justified reason. As per the Presidential Decree No.2811 published in the Official Gazette No. 31202 dated July 31, 2020, the layoff restriction is extended for one month, preventing termination of labor contracts until September 17, 2020, subject to above-mentioned conditions.

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