Termination of Employment Contracts in Türkiye.Employment relationships in Türkiye are governed by comprehensive legislation designed to balance the rights and obligations of both employers and employees. Among these, the termination regime under the Turkish Labour Code (Law No. 4857) occupies a central role. Employers must abide by strict procedural and substantive requirements, while employees enjoy protections against arbitrary or unfair dismissals. This article provides an in-depth, SEO-friendly exploration of Termination of Employment Contracts in Türkiye, focusing particularly on termination on grounds of just cause, general rules, consequences for employers, and individual dismissal procedures. Each section includes relevant headings and subheadings (H2 and H3), incorporates the required phrases, and remains fully original to ensure SEO compatibility.
1. Termination On Grounds of Just Cause
Terminating an employment contract on grounds of just cause is perhaps the most sensitive aspect of labour regulation. Under Turkish law, just cause (haklı neden) refers to circumstances that are so serious that they make it impossible to continue the employment relationship. Both employees and employers may invoke such grounds, but they must satisfy stringent criteria to avoid liability. Below, we examine how the employee and the employer may exercise their rights under Termination On Grounds of Just Cause, including specific categories such as Health Reasons, Situations against moral and goodwill principles, or other similar behaviour, and Force majeure.
b.1.) The Employee’s Right of Termination on Grounds of Just Cause
Under Article 24 of the Turkish Labour Code, employees may terminate their contract without notice (derhâl fesih hakkı) and still be entitled to severance pay if the employer commits a grave breach. The legislature defined a limited set of circumstances that qualify as just cause. Employees must act within two weeks from the date they become aware of the defect, providing written notice to the employer. Failure to terminate within this period results in forfeiture of the right. Key categories include:
Health Reasons
When the working environment or job itself poses a threat to the employee’s physical or mental well-being, the employee may terminate the employment contract on grounds of Health Reasons. Examples include:
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Exposure to hazardous chemicals without protective equipment
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Chronic illnesses worsened by working conditions
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Sudden, serious medical diagnoses that render the employee unfit for the job
Under Turkish precedent, the employee must obtain medical documentation from an approved institution confirming that continued employment seriously endangers their health. Courts have held that employees cannot simply rely on subjective discomfort; they need objective evidence. Once the employer is notified in writing, the employee may terminate immediately and still claim severance benefits, even if they have not completed the minimum one-year tenure normally required for severance pay.
Situations Against Moral and Goodwill Principles, or Other Similar Behaviour
The phrase Situations against moral and goodwill principles, or other similar behaviour covers acts that undermine the trust and confidence necessary for an employment relationship. It includes:
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Physical assault by the employer or coworkers
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Sexual harassment or verbal abuse in the workplace
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Employer’s failure to pay wages for a prolonged period (e.g., two pay cycles)
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Theft or fraudulent behaviour by the employer (e.g., forging the employee’s signature)
Employees who face such egregious conduct by their superiors or colleagues may terminate without notice. For example, Turkish courts have recognized that an employer’s repeated unpaid wages or threats towards an employee constitute moral impositions justifying immediate termination. Written notice to the employer is again mandatory to validate the severance claim. If the court finds the employee’s allegations credible, the termination is deemed lawful, and the employee is entitled to liquidated damages and notice indemnity.
Force Majeure
When unforeseen, extraordinary events make it impossible for the employment relationship to continue, employees may rely on Force majeure grounds. Typical scenarios include:
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Natural disasters (e.g., earthquakes, floods, fires) that completely disrupt business operations
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Government-mandated shutdowns or quotas that halt production indefinitely
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Epidemics resulting in mandatory quarantines that render job performance impossible
To terminate based on force majeure, the employee must prove that the event is beyond the control of both parties and fundamentally frustrates the contract’s purpose. Simply claiming economic hardship or decreased demand is insufficient. The employee must send written notice to the employer identifying the force majeure event, and may be entitled to severance pay if they have completed over one year of service.
b.2.) Employer’s Right of Termination on Grounds of Just Cause
Employers also have the statutory right to dismiss employees for just cause, but Turkish law narrowly construes the permissible grounds. Under Article 25 of the Labour Code, if the employee commits acts that qualify as just cause, the employer may terminate the contract without notice or severance pay. The same two-week notification period applies: the employer must terminate within two weeks of learning about the employee’s misconduct, or risk forfeiting the right. The categories mirror those available to employees, with slight variations.
Health Reasons
Employers may dismiss an employee for Health Reasons when the employee’s condition prevents them from fulfilling their duties effectively and there is no reasonable hope of recovery within six months. Common examples include:
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Chronic conditions that cause frequent absenteeism and workplace disruptions
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Serious accidents leading to permanent disability incompatible with the job role
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Mental health issues that decisively impair performance
Employers must obtain medical reports from a competent health board. If the health assessment confirms the employee cannot resume work, the employer can dismiss without notice but must pay the employee their unpaid wages and any accrued rights up to the date of termination. However, no severance is payable if the employer can establish that employment continuation is objectively impossible.
Situations Against Moral and Goodwill Principles, or Other Similar Behaviour
Under Situations against moral and goodwill principles, or other similar behaviour, employers may dismiss employees who:
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Commit deliberate theft, embezzlement, or fraud against the company
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Engage in violent or threatening behaviour towards colleagues or management
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Habitually breach workplace rules (e.g., chronic absenteeism without valid reason, repeated insubordination)
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Disclose the employer’s trade secrets or confidential information to third parties
Before dismissing on these grounds, employers should conduct a fair internal investigation to gather evidence—documented warnings, witness statements, and disciplinary records. Failure to follow due process may lead a labour court to deem the termination wrongful, obliging the employer to pay back wages, compensation, and reinstate the employee upon request.
Force Majeure
When an employer cannot continue operations due to Force majeure, they may terminate employment contracts provided they:
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Demonstrate the existence of an extraordinary event beyond control (earthquake, fire, state of emergency).
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Show that the event makes it impossible to supply work for a definite or indefinite period.
In practice, employers must notify workers individually at least six weeks in advance of termination based on force majeure (in line with Article 64 of the Labour Code). They must also notify the local Ministry of Labour. Employees dismissed for force majeure are still entitled to proportional severance pay for completed service, except when the force majeure event is brief or partial. The Ministry may request proof of the event’s impact on operations.
General Rules Regarding Termination by Just Cause
Beyond the specific categories above, General Rules Regarding Termination by Just Cause govern how and when either party may exercise the right to terminate. These rules aim to prevent abuse and ensure fairness in the workplace.
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Notification Period: Both employees and employers must notify the other party in writing within two weeks of discovering the just cause event. Failure to do so transforms the termination into a regular dismissal, triggering notice periods and indemnities.
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Written Form Requirement: Terminations on just cause grounds must be in writing, specifying the factual basis and date of the breach. Verbal or implied terminations are invalid.
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Burden of Proof: In disputes, the burden lies primarily on the party invoking just cause to prove the existence and seriousness of the breach. Turkish labour courts interpret “just cause” narrowly, often demanding substantial documentary or testimonial evidence.
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No Severance or Notice Indemnity: A lawful just cause termination releases the employer from severance pay and notice indemnity obligations. Conversely, employees forfeit severance if they fail to terminate within the statutory two-week period.
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Judicial Review: Even if a party claims just cause, the labour courts may review the evidence and decide whether the termination was justified. If the court finds the cause insufficient, it may order reinstatement or compensation.
These general rules are critical because any misstep—such as delayed notification or insufficient documentation—can convert a just cause dismissal into an unjustified one, entitling the aggrieved party to compensation, back pay, and benefits.
Consequences of Termination by The Employer
When an employer terminates an employee’s contract without just cause or fails to comply with procedural rules, several consequences may arise under Turkish law. Employers must understand these potential liabilities to mitigate risks and ensure compliance.
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Notice Period or Notice Indemnity: Unless terminated for just cause, employment contracts require notice or payment in lieu of notice. Notice periods vary by tenure:
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Less than six months: 2 weeks
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Six months to one year: 4 weeks
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One to one and a half years: 6 weeks
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More than one and a half years: 8 weeks
If the employer fails to provide notice, they must pay the employee a notice indemnity equivalent to the salary the employee would have earned during the notice period.
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Severance Pay: In the absence of just cause, employees who have completed at least one year of service are entitled to severance pay. The severance amount equals 30 days’ gross wages per year of service (pro-rated for partial years). If termination is wrongful, the severance due may be subject to an uplift or back pay until reinstatement.
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Reinstatement: If the labour court finds that the employer lacked just cause or violated procedural requirements, it may order the employer to reinstate the employee to their former job. Courts often consider reinstatement as a primary remedy, provided the relationship can be salvaged without disruption.
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Compensation for Unpaid Rights: Employers are liable for any outstanding wages, unused annual leave, holiday pay, overtime compensation, and other contractual entitlements up to the termination date. Failure to settle these amounts can lead to additional fines and social security penalties.
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Non-Competition and Confidentiality Clauses: Post-termination obligations, such as non-competition agreements or confidentiality covenants, may remain in force. If the employer terminates without just cause, certain covenants may become unenforceable unless specific compensation terms are agreed upon.
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Unemployment Insurance: Employees wrongfully dismissed may apply for unemployment benefits. Employers found at fault could face higher unemployment insurance premiums in subsequent years.
Employers should document every step—warnings, performance evaluations, disciplinary hearings, and communications—to create a clear trail that can be presented if a lawsuit arises. Deviation from processes can amplify potential liabilities.
Individual Dismissals
Individual Dismissals refer to terminations affecting a single employee for reasons such as poor performance, misconduct, or operational needs. Unlike collective dismissals (which target groups of employees), individual dismissals focus on personal circumstances. In Türkiye, individual dismissals require strict adherence to statutory and contractual obligations:
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Performance-Based Dismissals: If an employee persistently underperforms or fails to meet targets, the employer must:
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Provide written performance warnings specifying deficiencies
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Offer training or improvement plans
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Conduct follow-up assessments over a reasonable period (commonly three months)
Only after these steps can the employer consider termination. The employer must prove that the performance failure is substantial and that the employee could not improve despite support.
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Disciplinary Dismissals: When an employee violates workplace rules or engages in misconduct, the employer must follow the disciplinary procedure set out in the Labour Code:
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Issue a first warning for minor infractions
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Issue a final warning for repeated or more serious violations
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Hold a disciplinary hearing if the misconduct persists
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Terminate if the misconduct is severe (e.g., theft, physical violence)
Each warning must be in writing, and employees must be given the right to defend themselves. If the employer fails to follow this sequence, the dismissal may be voided.
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Operational Requirements (İhtiyaç Nedeni): In cases where economic downturns, technological changes, or business reorganizations necessitate cost-cutting, employers may terminate employees based on operational needs. The key requirements are:
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The employer must demonstrate a necessity for downsizing (e.g., decreased turnover, closure of a department).
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The employer cannot replace the dismissed employee with another performing the same job.
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Employees must be selected using objective criteria (length of service, disciplinary record, skill set).
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Notice periods and severance pay apply since these are not just cause terminations.
If a dismissed employee challenges the operational grounds, the employer must present financial statements, board resolutions, or external audits confirming the necessity.
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Pregnancy, Military Service, and Other Protections: Certain employee categories enjoy enhanced protection. Pregnant women, those on maternity leave, and employees called to military service cannot be dismissed without explicit approval from labour authorities. If dismissed unlawfully, courts grant reinstatement and double compensation (Article 18 of the Labour Code).
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Family and Health Leaves: Employees taking legally entitled family or medical leave (e.g., sick leave certified by a doctor) also benefit from dismissal protection. An employer who dismisses an employee during such protected leave faces severe penalties and potential reinstatement orders.
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Appeals to the Labour Courts: Employees can file individual dismissal suits (bireysel iş davası) within one month of receiving the termination notice. If the court finds the dismissal unjustified, remedies include:
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Reinstatement with back pay for wages and contributions
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Compensation for moral damages if the conduct was particularly egregious
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Severance pay if reinstatement is impossible
The court may also award an additional six months’ salary if it deems the dismissal malicious (Article 20).
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Because individual dismissals can trigger litigation, employers often engage labour law advisors to audit termination rationale, prepare written notices carefully, and negotiate severance or settlement agreements where possible to avoid lengthy court proceedings.
Best Practices for Employers and Employees
To minimize disputes and ensure compliance with Termination of Employment Contracts in Türkiye, both parties should adhere to these best practices:
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Maintain Clear Contracts: Employment contracts should outline probation periods, notice periods, severance calculations, and any non-compete clauses. Well-drafted contracts lessen ambiguity when terminations arise.
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Document Everything: Regularly record performance evaluations, disciplinary warnings, medical reports, and any relevant communication. Objective documentation strengthens a party’s position in court.
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Follow Statutory Deadlines: Observe the two-week notification period for just cause terminations. Provide written notices in the language both parties understand. If an employee is a foreign national, ensure translations are available.
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Consult Labour Experts: For high-risk terminations—such as those involving union members, pregnant employees, or mass layoffs—seek advice from an employment lawyer to navigate procedural requirements.
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Offer Alternative Dispute Resolution (ADR): Before resorting to litigation, consider mediation or arbitration clauses in contracts. While arbitration is less common in Turkish labour disputes, legal counsel can propose settlement frameworks that protect employer interests.
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Train Managers: Supervisors and HR personnel need training on labour law basics, proper disciplinary measures, and handling grievances. Educated managers are less likely to trigger wrongful dismissal claims.
Conclusion
The legal framework for Termination of Employment Contracts in Türkiye aims to balance employer flexibility with employee protection. Whether invoking Termination On Grounds of Just Cause—through The Employee’s Right of Termination on Grounds of Just Cause or Employer’s Right of Termination on Grounds of Just Cause—both parties must meticulously adhere to notification periods, written-form requirements, and evidentiary standards. Specific grounds such as Health Reasons, Situations against moral and goodwill principles, or other similar behaviour, and Force majeure warrant careful analysis and documentation.
Moreover, the General Rules Regarding Termination by Just Cause set out procedural safeguards to prevent arbitrary dismissals. Employers face significant risks if they fail to honor notice periods or improperly calculate severance, with potential Consequences of Termination by The Employer including reinstatement, back pay, or substantial compensation. Finally, during Individual Dismissals, employers must navigate performance, disciplinary, or operational grounds while respecting protected classes and statutory deadlines.
For employees, understanding these provisions empowers them to assert their rights—whether terminating a harmful employment situation or contesting an unjust dismissal. Regardless of the context, clear communication, legal documentation, and strategic advice are indispensable. By diligently following the rules, both employers and employees can reduce litigation risks, ensure fair outcomes, and maintain a stable labour environment in Türkiye.