Short Term Working Payments and Restrictions to Terminate Labor Contracts Extended in Turkey

Extension on Short Time Working Payments

As per the Presidential Decree No.2706 published in the Official Gazette No. 31171 dated June 30, 2020, a new amendment on Unemployment Insurance Law numbered 4447 came into force regarding short time working. Accordingly, due to COVID-19, for workplaces which applied for the short-time working payments before June 30, 2020, short time working payment periods was extended for one month for the same workers who have previously benefited from short time working provided that previous short time work conditions are not exceeded and without the need for an eligibility assessment starting from:

i.July 30, 2020, if the short time working practices has ended in the concerned workplace before June 30, 2020.

ii.The date that the short time working practices will end if these practices are currently ongoing.

Additionally, payments made on the basis of compelling reasons due to external effects of COVID-19 shall not be deducted from the initial unemployment benefit period.

Restrictions for the Termination of Labor Contracts

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 Labor Law or not; is prohibited except for termination as per article 25/1-II of the Law No. 4857 regarding immoral, dishonorable or malicious conduct or other similar behavior, for three months starting from April 17, 2020. Additionally, within the same extent, the employer was entitled to grant furlough for the aforementioned three months 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 As per the Presidential Decree No.2707 published in the Official Gazette No. 31171 dated June 30, 2020, the three month time periods stipulated therein are extended for one month, preventing termination of labor contracts until August 17, 2020, subject to abovementioned conditions.

Simge Kılıç, Deniz Çelikkaya