Severance pay represents the legal protection of the employee’s accumulated service and labor over the years. Although many employees know that they may have a right to severance pay, the practical answer to how this right is acquired, calculated, protected, and collected is often misunderstood. A mistake at the resignation, settlement, mediation, or litigation stage may lead to serious loss of rights.
This article explains what severance pay is under Turkish employment law, the main conditions for entitlement, how severance pay is calculated, whether it may be paid in installments, what legal steps should be taken if the employer does not pay, and which points are especially important for employees, and companies operating in Turkey.