Severance And Notice Pay In Türkiye: A Practical Labor Law Compliance Guide For HR

Severance and notice pay must comply with legal requirements on eligibility, calculation, and taxation, using total gross earnings with all benefits such as meal, transportation, and fuel allowances and applying rules based on length of service. Compliance depends on accurate records, current legal limits, and timely, documented payments to reduce legal and financial risks.

Introduction – Why Compliance Comes First

When it comes to severance and notice pay, the real cost of a mistake is not just financial. It also creates legal exposure and reputational damage. In Türkiye, compliance with labor law is not merely a payroll task. It is a critical part of risk management and organizational fairness. Miscalculating severance or notice pay, even unintentionally, can lead to labor court claims, administrative fines, and long-term harm to an employer's brand.