COVID-19: Short Term Working Payments and Layoff Restrictions Once Again Extended in Turkey

Extension on Short Time Working Payments

As per the Presidential Decree No. 3134 published in the Official Gazette No. 31287 dated October 27, 2020, short time working payment period is extended for two additional months to the short time working period determined under the Presidential Decree No. 2915 dated August 30, 2020. With this respect, short time working payment is extended until the end of December 2020.

Accordingly, conditions determined with the Presidential Decree No.2706 dated June 29, 2020 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 for the same workers who have previously benefited from short time working payment.

Extension on Layoff Restrictions

Due to the COVID-19 outbreak, 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. 3135 also published in the Official Gazette No. 31287 dated October 27, 2020, the period of layoff restriction and entitlement of furlough is extended for two months starting from November 17, 2020 preventing termination of labor contracts until January 17, 2021 subject to the above-mentioned conditions.

Ezgi Ceren Aydoğmuş