The Severance Pay On The Termination Of The Fixed Term Agreements

There are no clear provisions or regulations under Labor Law and relevant legislation as to whether to pay a severance pay to the employee with the termination of the Fixed-Term Employment Agreement. Therefore, the solution to this problem is based on the decisions of the Supreme Court (Yargıtay).

"Principle of interpretation in favor of the employee" is embraced under the Labor Law and such principle has also been adopted by the Supreme Court which delivers its judgments by considering to protect the employee. There is a common practice of the Supreme Court in which the employee is entitled to severance pay if the employer terminates the fixed term employment agreement by noticing the employee that the employment agreement will not be renewed at the end of its term and if such decision of the employer is not based on a valid reason.