Navigating employment termination in Turkey demands both legal precision and procedural clarity—especially for international employers or those working through an Employer of Record (EOR). This guide explains the key rules, processes and risks involved in terminating employment under Turkish labour law.
1. Types of Termination in Turkey
Under Turkish law, employment can be terminated in different ways, broadly falling into:
- Ordinary termination – dismissal with notice or payment in lieu.
- Extraordinary termination (just cause) – immediate termination without notice or severance, valid only under serious circumstances.
For certain workplaces (e.g., with 30+ employees and employee tenure over six months) special “job security” rules apply requiring the employer to justify the dismissal.
2. Notice Periods & Payment in Lieu
For open-ended (indefinite) contracts, the law sets minimum notice periods depending on length of service:
- Less than 6 months: 14 days (2 weeks)
- 6 to 18 months: 28 days (4 weeks)
- 18 to 36 months: 42 days (6 weeks)
- More than 3 years: 56 days (8 weeks)
If an employer wants to terminate immediately without observing the notice period, the employer must usually pay the equivalent amount (notice pay) in lieu of the notice.
3. Severance Pay & Entitlements
Employees who have worked at least one year are generally entitled to severance pay when terminated without cause. The calculation is based on the employee’s last gross salary and years of service.
Additional accrued rights must also be paid at termination such as unused annual leave, outstanding wages, bonuses, etc.
4. Valid Reasons for Termination (for Employer)
If the “job security” rules apply (30+ employees AND employee has 6+ months service), the employer must provide a “valid reason” tied to the employee’s conduct, capability or the employer’s operational need. If no valid reason is given, the employee may challenge the dismissal (see section 7).
Examples of valid reasons may include:
- Employee’s inability to perform duties
- Business reorganisation, economic necessity or technological change
- Serious misconduct that allows immediate termination (just cause) such as theft, gross negligence, force majeure.
5. Just Cause (Extraordinary Termination)
Some situations allow for immediate dismissal without notice or severance, known as just cause termination. These include:
- Health or safety risks preventing the employee from continuing work
- Behavior contrary to good faith and moral principles (e.g., theft, harassment)
- Force majeure disrupting the employment relationship
However, the employer must act swiftly (within six working days of discovering the cause) and must usually prove the just cause in case of dispute.
6. Procedure & Documentation
To minimise risk, employers should follow a structured procedure:
- Provide a written notice of termination, stating the reason (for terminations requiring valid reason) or type (ordinary/extraordinary).
- Pay all due amounts: salary until termination, notice pay (if applicable), severance (if due), unused leave and benefits.
- Maintain clear records of the process: reasons, notices, payments, communications—to protect against claims.
- In cases of collective dismissal (mass layoffs) additional rules apply: employers must notify labour authorities, may face fines if non-compliant.
7. Risk of Unlawful Termination & Remedies
If termination is found to lack a valid reason (where required) or process is not followed, the employee may:
- Claim for re-employment by court if the employer meets job-security conditions and termination was unlawful.
- Claim compensation equivalent to 4 to 8 months’ wages depending on service and case.
- Request payment of unpaid rights and benefits.
For this reason, it is strongly advisable for employers — especially international companies operating via an EOR in Turkey — to document termination reasons, follow formal steps and consult local legal expertise.
8. Special Considerations for Fixed-Term Contracts & Resignation
- Fixed-term contracts normally end automatically at their expiry date and do not always require notice, unless otherwise stipulated.
- If an employee resigns (without just cause) before completing one year of service, severance may not be payable.
- Mutual termination agreements (where employee and employer agree to end the contract) are also common and should be put in writing to avoid future claims.
9. Why a Compliant Termination Process Matters for Employers & EORs
- Prevents legal exposure: Non-compliance can lead to costly reinstatement claims or compensation.
- Protects reputation: Fair and transparent termination practices support employer brand, especially important for global firms.
- Ensures cost-control: Proper notice and severance planning helps budget for exit liabilities.
- Supports smooth transitions: Clear process helps manage employee off-boarding, exit codes for unemployment, and ensures social security compliance.
Termination of employment in Turkey involves more than simply ending a contract—it requires compliance with termination categories, notice requirements, severance obligations, and proper documentation. For foreign companies or those using an EOR partner in Turkey, adherence to these rules ensures that exits are legally sound and minimise risk.
By understanding and implementing the correct termination procedures, organisations can navigate Turkey’s labour law landscape effectively, safeguard their interests and maintain strong employment practices.