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When does the right to severance pay arise?

Along with severance pay calculation, workers also frequently search for the conditions under which this right arises. In Turkey, the general rule is that an employee must have worked for the same employer for at least one year and the employment contract must end in one of the forms set out by law in order to qualify for severance pay.

Under the Labor Law, not every departure from a job automatically creates a right to severance pay. In particular, the reason for termination, the length of service and the manner in which the employee leaves can change the outcome.

In which cases can payment come into play?

  • The employer terminates the employment contract for a reason not based on the employee’s serious misconduct
  • The employee ends the contract for valid reasons such as health issues, non-payment of wages or similar justified grounds
  • Leaving the job after meeting certain retirement conditions
  • For male employees, leaving for mandatory military service
  • For female employees, leaving within the period set by law after marriage

On the other hand, ordinary resignation — meaning leaving solely at the employee’s own request — does not usually create a right to severance pay. That is why the reason for resignation, written notice and the termination code are all very important.

How is severance pay calculated?

In general practice, severance pay is calculated on the basis of 30 days of gross salary for each full year of service. Months and days beyond one full year are added proportionally. However, the pay used for this calculation may not be limited to base salary alone.

Some regular and cash-valued fringe benefits may also be included in the gross salary calculation. Whether payments such as meal, transportation, regular bonuses or premiums are included depends on the nature and continuity of the payment.

Which elements matter in the calculation?

  • The employee’s total length of service with the same employer
  • Correct determination of the gross salary including benefits
  • The status of uninterrupted or connected periods of work
  • The legal cap and any applicable deductions

Practical calculation method

The basic approach is to multiply the adjusted gross monthly salary by the number of years worked. For periods exceeding a full year, additional amounts are added based on monthly and daily equivalents. For employees with variable pay, calculating average earnings may also be important.

The most commonly confused points in resignation and dismissal

The most common mistake under the heading of severance pay on resignation is the belief that payment can be received in every resignation case. In fact, the general rule is the opposite; the employee may claim severance pay only if there are special reasons listed in the law.

Termination rights vary depending on the reason for dismissal. A termination by the employer for business-related reasons may not have the same consequences as a termination based on morality and good faith rules, so the content of the termination notice should be examined carefully.

Which documents matter in case of a dispute?

  • Employment contract, payslips and salary records
  • Social Security Institution (SGK) service record and termination notice
  • Termination letter, warning notice and written applications

Since the details of each case can change the outcome, it may be useful to seek expert advice, especially in files involving interrupted service, subcontractor relationships or variable pay. This can reduce the risk of losing rights and help ensure a more accurate severance pay calculation.

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