Mediation and Court Decisions in Turkey Will Allow Changes to the SSI Termination Code in 2025.
On March 11, 2025, the Turkish Social Security Institution (Sosyal Güvenlik Kurumu, or SGK) issued Circular No. 2025/8, introducing significant amendments to the existing regulations concerning the issuance and cancellation of termination declarations. This update, which modifies Circular No. 2013/11 on Insurance Transactions dated February 22, 2013, aims to provide clarity and flexibility in the classification of employment terminations, especially in light of subsequent mediation agreements or court decisions.
Understanding SSI Termination Codes in Turkey
SSI termination codes in Turkey are alphanumeric designations used to identify and classify the reasons for terminating an individual’s social security coverage. These codes serve a crucial purpose in maintaining an organized system, facilitating record-keeping, and ensuring transparency in the termination process. By assigning specific codes to each termination case, the SSI can track the prevalence of different termination reasons, evaluate the effectiveness of their policies, and make informed decisions to improve their services.
Significance of Termination Codes
Termination codes are pivotal in determining an employee’s entitlement to various post-employment benefits:
- Severance Pay: Certain termination reasons entitle employees to severance pay, while others do not. The specific code assigned influences this entitlement.
- Notice Pay: Similar to severance pay, eligibility for notice pay is contingent upon the termination reason as indicated by the corresponding code.
- Unemployment Benefits: To qualify for unemployment benefits, the reason for dismissal and the corresponding code must align with the criteria set by the unemployment insurance system.
Accurate assignment of these codes ensures that employees receive the benefits they are rightfully entitled to, and it safeguards employers from potential legal disputes arising from misclassification.
Challenges with Fixed Termination Codes
Prior to the issuance of Circular No. 2025/8, once a termination code was assigned and reported to the SGK, it remained fixed, even if subsequent legal proceedings, such as mediation or court decisions, altered the nature of the termination. This rigidity posed challenges:
- Discrepancies in Records: If a court or mediation later determined that an employee was entitled to severance or notice pay, the original termination code might no longer accurately reflect the situation, leading to inconsistencies in official records.
- Benefit Entitlements: Employees could be unjustly deprived of benefits if the termination code was not updated to reflect new legal determinations.
- Employer Obligations: Employers faced difficulties in fulfilling their legal obligations accurately, as the unchanged termination codes did not mirror the outcomes of legal resolutions.
Key Provisions of Circular No. 2025/8
The newly introduced circular addresses these challenges by allowing for the modification of termination codes post-reporting under specific circumstances:
- Mediation Settlement Agreements: If a mediation process results in an agreement that grants the employee severance or notice compensation, the termination code can be updated to reflect this outcome.
- Court Decisions: Similarly, if a court decision awards such compensations, the termination reason can be amended accordingly.
- Application Process: Either the employee or the employer can apply to the SGK to request the update. The application must be accompanied by the mediation settlement agreement or the court decision that has the status of an enforceable judgment.
Implications for Employers and Employees
This amendment has several significant implications:
- Enhanced Accuracy: Employment records will more accurately reflect the true nature of terminations, ensuring that all parties have access to correct information.
- Benefit Entitlements: Employees will receive the benefits they are entitled to based on the updated termination reasons, aligning with legal resolutions.secure.ssa.gov
- Employer Compliance: Employers can ensure compliance with legal obligations by updating termination codes to reflect mediation or court outcomes, thereby reducing potential disputes.
Procedure for Updating Termination Codes
To facilitate the update of a termination code, the following steps should be undertaken:
- Obtain Legal Documentation: Secure a copy of the mediation settlement agreement or court decision that has the status of an enforceable judgment.
- Application Submission: The employee or employer must submit an application to the SGK, including the legal documentation as evidence for the requested change.
- SGK Review: The SGK will review the application and, upon verification, update the termination code in their records to align with the legal outcome.
Conclusion
Circular No. 2025/8 represents a significant advancement in Turkey’s employment and social security landscape. By allowing for the modification of termination codes following mediation or court decisions, the SGK ensures that employment records are accurate and that employees receive the benefits they are rightfully entitled to. This change underscores the importance of flexibility and responsiveness in administrative processes, particularly in reflecting legal resolutions that impact employee rights and employer obligations.
For detailed information, stakeholders are encouraged to consult the official circular available on the SGK’s website. Employers and employees alike should remain informed about these changes to ensure compliance and to uphold the integrity of employment practices in Turkey.