Attorney Bilal Alyar | Istanbul Bar Association, Reg. No: 54965 | Last Updated: March 2026

Turkey’s Labor Law (İş Kanunu, Law No. 4857) provides comprehensive protections for employees facing termination, including mandatory notice periods, severance pay (kıdem tazminatı), and unfair dismissal remedies. For foreign companies operating in Turkey and international employers with Turkish staff, understanding these obligations is critical — the financial exposure from improper termination can be substantial. This guide covers all aspects of employment termination under Turkish law.

Notice Periods (İhbar Süresi)

Turkish Labor Law Article 17 establishes mandatory minimum notice periods based on length of service: 0-6 months: 2 weeks notice, 6-18 months: 4 weeks, 18-36 months: 6 weeks, and 36+ months: 8 weeks. These are minimum periods — employment contracts or collective bargaining agreements can provide longer periods. Notice can be given by either party (employer or employee). The employer can choose to pay notice compensation (ihbar tazminatı) in lieu of the notice period — equivalent to the wages the employee would have earned during the notice period.

Severance Pay (Kıdem Tazminatı)

Severance pay is Turkey’s most significant employment termination cost. Under Law No. 1475 Article 14 (still in force for this purpose), employees with at least one year of continuous service are entitled to 30 days’ gross pay for each full year of employment, paid upon: termination by the employer (unless for just cause under Article 25/II), resignation for just cause by the employee (Article 24), retirement, military service, death, and female employees resigning within one year of marriage. The severance pay ceiling for January-June 2026 is 64,948.77 TRY per year of service. Severance pay is exempt from income tax (GVK Article 25/7) but subject to stamp duty at 0.759%.

Just Cause Termination (Haklı Nedenle Fesih)

Employers can terminate without notice or severance for “just cause” under Article 25/II, which includes: dishonesty, breach of trust, or disclosure of trade secrets; criminal conduct at the workplace; sexual harassment; intoxication or drug use at work; unjustified absence for 2 consecutive days or 3 days in a month; and refusal to perform duties despite warnings. The employer must act within 6 working days of learning of the conduct (or 1 year of occurrence). Just cause termination is heavily litigated — employers bear the burden of proof, and courts interpret the grounds restrictively.

Unfair Dismissal (İşe İade)

Employees in workplaces with 30+ workers who have 6+ months of service can challenge their termination as unfair under Article 18. The employer must demonstrate a “valid reason” (geçerli neden) — related to the employee’s capability/conduct or the operational requirements of the business. If the court finds the termination unfair: the employer must reinstate the employee AND pay up to 4 months’ back wages (işe başlatmama tazminatı of 4-8 months if reinstatement is refused). Mandatory mediation (arabuluculuk) is required before filing an unfair dismissal lawsuit. The mediation process typically takes 3-4 weeks, and approximately 65% of cases settle at this stage.

Mass Layoffs

Employers planning to terminate 10+ employees within 30 days at workplaces with 20-100 workers, or 10% of employees at workplaces with 100-300 workers, or 30+ employees at workplaces with 300+ workers, must follow the mass layoff procedure under Article 29. This requires: 30 days advance written notice to the Turkish Employment Agency (İŞKUR), consultation with employee representatives or unions, and a waiting period during which alternatives to termination are explored. Failure to follow this procedure can result in reinstatement of terminated employees.

Frequently Asked Questions

Can I fire an employee during their probation period?

Yes. During the probation period (maximum 2 months, extendable to 4 months by collective agreement), either party can terminate without notice or severance. However, the termination must not be discriminatory or retaliatory — even during probation, fundamental rights protections apply.

How is severance calculated for foreign employees?

The same rules apply regardless of nationality. If a foreign employee has worked in Turkey for 3 years with a monthly gross salary of 50,000 TRY: severance = 50,000 × 3 = 150,000 TRY. Since the 2026 ceiling is 64,948.77 TRY per year, the maximum applicable per year is 50,000 TRY (below the ceiling). Total: 150,000 TRY gross. Exempt from income tax; subject to 0.759% stamp duty.

What are non-compete clause limitations?

Turkish law (TBK Articles 444-447) allows non-compete clauses but with strict limitations: maximum 2-year duration, must be limited in geographic scope, must be limited to the specific field of the employer’s business, and must not unreasonably restrict the employee’s future livelihood. Overly broad non-compete clauses are void or judicially reduced.

Notice Periods and Severance: Detailed Calculation Guide

Turkish Labor Law (İş Kanunu No. 4857) Article 17 establishes mandatory notice periods: 0-6 months service: 2 weeks, 6-18 months: 4 weeks, 18-36 months: 6 weeks, 36+ months: 8 weeks. These are MINIMUM periods — employment contracts or collective bargaining agreements can provide longer periods. The employer can choose to pay notice compensation (ihbar tazminatı) in lieu of the notice period. Calculation: notice period × daily gross wage × days in the period. Example: an employee with 5 years of service earning 30,000 TRY/month → 8 weeks notice → ihbar tazminatı = 30,000 × 2 = 60,000 TRY (2 months’ gross salary). If the employer terminates without giving proper notice or paying ihbar tazminatı, the employee can claim it through the labor court.

Severance Pay (Kıdem Tazminatı) Calculation: Under Law No. 1475 Article 14, employees with 1+ year of service receive 30 days’ gross pay per year of service upon qualifying termination. The calculation base: last gross monthly salary (including regular bonuses, commissions, and benefits that are part of the regular compensation). The 2026 ceiling: 64,948.77 TRY per year of service (January-June 2026). If the employee’s monthly gross salary exceeds this ceiling, the ceiling amount is used. Example: Employee with 7 years of service, monthly gross 40,000 TRY → Severance = 40,000 × 7 = 280,000 TRY. If monthly gross were 70,000 TRY → Severance = 64,948.77 × 7 = 454,641 TRY (ceiling applies). Tax treatment: severance pay is exempt from income tax (GVK Article 25/7) but subject to stamp duty at 0.759%. Net severance = gross severance × (1 – 0.00759).

Just Cause Termination: Article 25/II Grounds

Employers can terminate without notice or severance for “just cause” under Article 25/II of the Labor Law. This is the employer’s most powerful (and most litigated) termination tool. The grounds are exhaustive — no additional grounds can be created by contract: (a) Deception at hiring: The employee provided false information about their qualifications, experience, or condition that was material to the hiring decision. (b) Dishonesty and breach of trust: Theft, embezzlement, unauthorized use of employer property, disclosure of trade secrets. (c) Sexual harassment: Against any person at the workplace. (d) Physical assault or serious threat: Against the employer, a family member, or a colleague. (e) Criminal conduct: Committing a crime at the workplace that carries 7+ days of imprisonment (and not subject to conditional release). (f) Unauthorized absence: 2 consecutive working days without valid reason, or 2 days in a month after a written warning, or 3 days in a month total. (g) Refusal to perform duties: Despite written warnings. (h) Endangering workplace safety: Actions that damage or threaten to damage employer property or endanger workplace safety. Time limit: The employer must act within 6 working days of learning of the conduct (subjective deadline) and within 1 year of the conduct occurring (objective deadline). Termination after these deadlines is invalid as just cause, though may still be valid as a regular termination (with notice and severance).

Unfair Dismissal and Reinstatement (İşe İade)

Employees in workplaces with 30+ workers who have 6+ months of continuous service enjoy protection against unfair dismissal under Article 18. The employer must demonstrate a “valid reason” for termination: Employee-related: Incompetence, poor performance (documented through performance reviews), inability to adapt to organizational changes, or loss of required qualifications. Operational: Economic difficulties, technological changes, restructuring (must demonstrate genuine business necessity, not pretext). NOT valid reasons: Union membership or activity, filing complaints or participating in legal proceedings against the employer, pregnancy/maternity, and disability (unless preventing job performance). Process: Mandatory mediation (arabuluculuk) — must be attempted before filing a lawsuit. Duration: 3-4 weeks. Approximately 65% of cases settle at this stage. If mediation fails → Labor Court lawsuit. Court examines: was the reason valid? Was the process fair (was the employee given an opportunity to defend)? Were less severe alternatives considered? Remedies if unfair: Reinstatement order + back wages (up to 4 months). If employer refuses reinstatement: compensation of 4-8 months’ wages (işe başlatmama tazminatı) + the 4 months’ back wages = total exposure of 8-12 months’ wages.

Non-Compete and Confidentiality Clauses

Turkish law (TBK Articles 444-447) allows non-compete clauses in employment contracts but with strict limitations designed to protect the employee’s livelihood: Maximum duration: 2 years from termination. Geographic scope: Must be limited to a specific, reasonable area. Activity scope: Must be limited to the specific field of the employer’s business. Fairness test: The clause must not “unreasonably restrict the employee’s economic future” — overly broad clauses are either void entirely or judicially reduced to reasonable scope. Compensation: While not legally required, courts are more likely to enforce non-compete clauses that include compensation for the restriction period. Confidentiality: Separate from non-compete, confidentiality obligations (gizlilik yükümlülüğü) regarding trade secrets and proprietary information continue indefinitely — they are not subject to the 2-year limitation. For foreign companies hiring in Turkey, properly drafted non-compete and confidentiality agreements are essential to protect business interests.

Frequently Asked Questions

What are the penalties for wrongful termination?

Financial exposure for an employer who wrongfully terminates: severance pay (kıdem tazminatı — 30 days per year of service), notice compensation (ihbar tazminatı — 2-8 weeks salary), unfair dismissal compensation (işe başlatmama — 4-8 months if reinstatement is refused), back wages (up to 4 months while the case is pending), moral damages (manevi tazminat — awarded in cases of particularly egregious treatment, typically 5,000-50,000 TRY), and legal costs. Total potential exposure: 12-24 months’ wages for an employee with several years of service.

Does Turkish labor law apply to foreign employees?

Yes. All employees working in Turkey — regardless of nationality — are covered by Turkish Labor Law No. 4857. Foreign employees have the same rights to minimum wage, severance pay, notice periods, social security, and unfair dismissal protection as Turkish citizens. The only additional requirement is a valid work permit.

Employment Law Services for Employers and Employees

Turkish employment law (İş Kanunu No. 4857) provides comprehensive protections for workers and imposes specific obligations on employers. Our office assists both foreign companies operating in Turkey and individual employees with: employment termination disputes and severance calculations, unfair dismissal claims and reinstatement proceedings, work permit applications and renewals, employment contract drafting and review (Turkish and English), social security (SGK) compliance, and workplace safety disputes. For employers: we help design compliant termination procedures, draft non-compete agreements within Turkish law limits, and represent companies in labor court proceedings and mandatory mediation. Contact us at +90 545 199 25 25.