The Newly Proposed Severance Payment Model In Turkey

Severance payment disputes comprise almost half of the employment law disputes in Turkey. Severance payment is generally a compensation that employers are required to provide to their employees whose employment contract is terminated due to listed reasons under the Turkish Labor Law No. 4857, for their past commitment and loyalty to the employer. Since severance payment disputes make up a significant part of the cases before the labor courts, the system of severance payments and the relevant legal proceedings on such claims need to be restructured. To that end, the Turkish government has recently announced the new amendment package that will enter into force regarding the severance payment model.