The document that a worker signs with his employer on the day he starts working and that initiates the employment relationship is called an employment contract. In the event that this employment relationship is terminated for certain reasons, that is, the employment contract is terminated, certain rights arise for the employee. One of them is severance pay. Although this practice seems to be only in favor of the workers, it actually protects the employers as well. This system, which rewards an employee's long-term commitment to the workplace, reduces the number of employees entering and exiting the job, that is, employee circulation.
What are the Severance Pay Conditions?
The conditions required to receive severance pay are determined within the framework of the Labor Law. Not every worker whose employment contract is terminated is entitled to compensation. In order for a worker to receive severance pay, he or she must have worked at the workplace for at least 1 year. Of course, the only requirement is not fulfilling the minimum working time. In order to have this right, the employee must leave the job in order to receive a lump sum due to disability, old age and retirement, or the employer must have dismissed the employee for a reason other than the relevant articles in the Labor Law.
In addition to retirement and dismissal, even if an employee leaves his job voluntarily due to some exceptional reasons, he may be entitled to compensation. Just as male employees are entitled to severance pay by resigning due to compulsory military service. Male employees who want to benefit from this right must also attach a Military Service Referral Document to their employment termination petition.
While there are many severance pay conditions according to the Labor Law, people who cannot benefit from this right are also clearly stated. For example, people who work for a family member or relative, athletes, apprentices and domestic workers cannot benefit from severance pay according to Article 14 of the Labor Law. In addition, employees who resign from their jobs without giving a reason do not receive severance pay.
How is Severance Pay Calculated?
Severance pay is calculated based on the sum of the time a person has worked at the workplace in question. In other words, the longer you stay at a workplace, the higher your severance pay is calculated accordingly. While making this calculation, not the net salary of the worker, but the gross salary and side payments (such as travel, meal, additional payment) are taken into account. The worker has the right to receive payment in the amount of the last 30 days' gross salary for each year he has worked at the workplace. If the employee's dismissal date does not coincide with the full year, a ratio is made based on the 30-day gross salary for that year. For example, a worker working at the same workplace for 5 years and 6 months has the right to receive a payment equal to his last 30 days' gross salary x5 + 15 days' gross salary.
One of the most important issues to be considered in this calculation process is the maximum severance pay determined by the Ministry of Treasury and Finance for the year the employment contract is terminated. The ceiling is considered to be the one-year pension that a highest-ranking civil servant will receive when he retires. The Ministry of Treasury and Finance announces the ceiling figures twice a year, in January and July.
A stamp tax is deducted before the final calculated amount is paid to the employee, and the remaining amount is paid to the employee whose employment contract is terminated as severance pay. Severance pay is not subject to income tax; However, if the worker works in more than one workplace and the pay he will receive throughout the year exceeds the maximum severance pay, income tax arises from the earnings above this figure. In this case, the worker must create an income tax return for other earnings and pay this tax in the following year.
How to Get Severance Pay?
If a worker's employment contract is terminated for reasons that comply with the provisions of the Labor Law, as mentioned above, the worker is automatically entitled to compensation. If there is a situation such as retirement, the Social Security Institution should document this situation. Workers whose retirement has been approved by SGK can be entitled to severance pay by submitting the relevant document they will receive from SGK to their employers. Severance pay must be paid within 5 years from the end of the employment contract. Claims not paid within 5 years are time-barred. In this case, interest can be added to the severance pay; however, for this, the worker has to file a complaint with the Labor Court.
Can a Female Worker Resigning Due to Marriage Get Severance Pay?
One of the most frequently asked questions about the severance pay requirement is whether a female employee who quits her job due to marriage has a right to compensation. If the marriage took place in accordance with the Civil Code, female employees are entitled to marital compensation. Women employees can benefit from this right if they terminate their employment contract within one year after marriage.
In order to be sure whether you have the right to receive severance pay and not to have a question mark in your mind, you can obtain the most reliable information by examining the articles of the Labor Law on severance pay.