Severance pay is one of employees’ most important rights. Many people who have worked for a long time wonder, when leaving a job, whether they can receive severance pay. Under the Labour Law, when certain conditions are met, the employee has the right to severance pay depending on the length of service. This article explains in detail what severance pay is, in which cases it is received, how it is calculated and how a severance pay case is filed.
What Is Severance Pay?
Severance pay is compensation the employer must pay when an employee who has worked for the same employer for a certain period leaves the job in certain circumstances. It is regarded as the return for the employee’s labour during the time spent at the workplace. Severance pay is regulated under Labour Law No. 4857 and Article 14 of Law No. 1475.
Conditions for Receiving Severance Pay
Certain conditions must be met for an employee to receive severance pay.
1. Having Worked at Least 1 Year
The employee must have worked for the same employer for at least 1 year.
2. A Suitable Reason for Leaving
The reason for leaving also matters. Severance pay cannot be received in every case of leaving.
3. Termination of the Employment Contract
Severance pay comes into question when the employment contract ends.
In Which Cases Is Severance Pay Received?
Under the Labour Law, an employee can receive severance pay in the following cases:
Dismissal by the Employer
If the employer dismisses the employee without a justified reason, the employee is entitled to severance pay.
Leaving for a Justified Reason
In some cases an employee can receive severance pay even when leaving voluntarily. For example:
- Unpaid salary
- Social security contributions not paid
- Mobbing at the workplace
- The employer treating the employee badly
Leaving for Military Service
Male employees can receive severance pay when they leave the job because of military service.
Retirement
Employees who meet the retirement conditions are entitled to severance pay when they leave.
A Female Employee Leaving Because of Marriage
Female employees can receive severance pay if they leave the job within 1 year of the date of marriage.
How Is Severance Pay Calculated?
The employee’s length of service and last gross salary are taken into account. For each year worked, severance pay equal to 30 days’ gross salary is paid.
Calculation Example
For an employee with a gross salary of 25,000 TL and 5 years of service: 25,000 x 5 = 125,000 TL. This amount is paid to the employee after stamp duty is deducted.
What Is the Severance Pay Ceiling?
The state sets an upper limit (ceiling) for severance pay every year. For employees earning above it, compensation is calculated on that limit. The Turkish original of this article put the 2026 ceiling at roughly 41,000 TL; the ceiling is updated periodically, so check the current figure before calculating.
What to Do If Severance Pay Is Not Paid
Some employers do not pay severance pay. In that case the employee can turn to legal remedies.
Application to Mediation
In employment law cases, mandatory mediation must be applied to before a case is filed.
Filing a Case in the Labour Court
If no agreement is reached in mediation, the employee can file a case in the labour court. If the court finds the employee right, it orders payment of severance pay.
How Long Does a Severance Pay Case Take?
Severance pay cases filed in labour courts generally conclude within 6 months to 1.5 years. Appeal processes may extend this time.
Limitation Period for Severance Pay
The limitation period for severance pay claims is 5 years. An employee who has left may lose the right if they do not file a case within this period.
The Employee’s Right of Justified Termination
In some cases an employee can terminate the employment contract for a justified reason. Some grounds for justified termination:
- Salary not being paid
- Overtime pay not being given
- Psychological pressure (mobbing) at the workplace
- The employer acting contrary to the contract
In these cases the employee can claim severance pay.
In Which Cases Does the Employer Not Pay Severance Pay?
In some cases the employer is not obliged to pay severance pay, for example if the employee:
- Commits theft
- Starts a fight at work
- Insults the employer
- Is absent
In such cases the employer can dismiss the employee for a justified reason and does not pay severance pay.
Conclusion
Severance pay is one of employees’ most important rights. Employees who have worked at least one year may have the right to severance pay depending on the reason for leaving. However, severance calculations and cases are quite technical, so employees who leave should get support from a lawyer specialising in employment law to avoid losing rights. See our labor lawyer in Ankara page for details.
This article is for general information only and is not legal advice.