Under Turkish Labor Law, the termination of employment contracts by employers is governed by two distinct systems. These frameworks are designed to balance the employer’s operational needs with the employee’s right to job security. The first system, referred to as the freedom to terminate (Article 17), gives employers the right to end indefinite-term employment contracts without needing to justify their decision—provided they meet legal obligations such as notice periods and severance pay.
However, for many employees, a second system known as employment security (Article 18) offers protection against arbitrary dismissal. In this regime, employers must provide a valid or rightful reason for termination; otherwise, the dismissal is deemed unlawful.
When Employment Security Applies for Termination of Employment Contracts by Employers under Turkish Labor Law
Article 18 of the Labor Law outlines the conditions under which an employee is entitled to employment protection. Specifically, these rules apply if:
- The employee has completed at least six months of continuous service with the employer, and
- The employer employs 30 or more workers across all its workplaces in Turkey.
The second criterion often causes confusion, particularly for businesses with multiple branches or seasonal staff. The total number of employees includes all locations under the same employer. For instance, if one location has 20 employees and another has 15, the total headcount is 35, and the employment security provisions apply to workers at both sites.
Furthermore, the critical date for determining the employee count is the day of termination. This clarification, confirmed by case law from the Turkish Court of Appeals, resolves uncertainties in situations where workforce numbers fluctuate.
Legal Grounds for Termination under Employment Security
For employees covered by employment security, employers cannot dismiss at will. A valid or rightful reason must be cited, as outlined in the Labor Law.
a) Termination for a Valid Reason (Article 18)
Terminations under Article 18 must be based on:
- The employee’s poor performance or inadequacy,
- Behavioral issues incompatible with employment obligations, or
- Economic or operational needs of the business.
However, the law provides only broad definitions, leaving much of the interpretation to court precedents. Each termination must be evaluated on a case-by-case basis to determine whether it meets legal thresholds. Courts generally expect employers to consider alternatives—such as reassignment or reduced hours—before proceeding with termination. The principle of “last resort” is central to this process.
b) Termination for a Rightful Reason (Article 25)
In contrast, Article 25 lays out specific, concrete grounds where employers may terminate a contract immediately and without notice. These include:
1. Health Reasons
- If the employee’s illness results from their own misconduct (e.g., substance abuse) and causes prolonged absence (3 consecutive days or more than 5 days in a month),
- If a medical report shows that the illness poses a health risk to others and prevents the employee from continuing work.
2. Breach of Moral Principles and Good Faith
- Providing false information during hiring,
- Insulting or harassing the employer or coworkers,
- Acts of dishonesty or criminal behavior at the workplace,
- Unauthorized absences or failure to fulfill work duties.
3. Force Majeure
- In the event of a natural disaster or other extraordinary situation that makes it impossible for the employee to work for over a week, the employer may terminate based on force majeure.
Terminations based on these reasons are rarely contested if properly documented, but legal advice is still recommended to minimize risk.
Conclusion
Navigating the termination of employment contracts under Turkish law requires a thorough understanding of legal protections in place for employees. While employers have certain rights to terminate employment, especially under Article 17, many terminations fall under the employment security regime, requiring valid or rightful justification.
The Turkish legal framework tends to favor employees, aiming to counterbalance the inherent power asymmetry in the employer-employee relationship. As a result, courts often scrutinize terminations closely and are inclined to rule in favor of the employee in cases of doubt.
To mitigate risks, businesses should:
- Assess each employee’s status and eligibility under employment security provisions,
- Document reasons and alternatives considered before termination, and
- Seek professional legal support before taking action.
If you require further guidance on employee terminations or legal compliance, please feel free to contact us.