This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Kıdem Tazminatı Ne Zaman Hak Kazanılır?.
Three conditions must be met together for severance pay to be earned: at least one year of service with the same employer, termination of the contract, and a form of termination that the statute treats as giving rise to the entitlement. As a rule an employee who resigns does not receive severance — but marriage, compulsory military service, retirement and the just-cause grounds in İş K. art. 24 are exceptions to that rule.
Severance pay is the single most valuable protection in Turkish employment law, and the one most often lost through a procedural misstep. İş K. means the Labour Act No. 4857; severance itself is still governed by art. 14 of the repealed Act No. 1475, which remains in force until a severance fund is established.
What Severance Pay Is
Severance pay is a payment made by the employer to an employee whose contract ends in defined circumstances. It functions as a reward for length of service rather than as compensation for loss.
"In calculating an employee's length of service, periods worked at one or more workplaces of the same employer are aggregated, and the compensation is calculated for the whole of that period."
Labour Act No. 1475, art. 14
The Three Conditions
All three must be present:
- At least one year of service. Uninterrupted service of at least one year with the same employer — including at different workplaces of the same employer or group.
- An indefinite-term contract. No severance arises under a fixed-term contract that simply expires without renewal.
- A qualifying form of termination. Not every termination gives rise to the entitlement.
No severance is payable where the contract ends during the probation period or before one year of service is completed. But the probation period itself counts towards total length of service once that year is passed.
Which Terminations Qualify
Severance is payable where:
- the employer terminates without a valid or just cause;
- the employee terminates for just cause — unpaid wages, health grounds, conduct contrary to morality and good faith;
- the employee leaves for compulsory military service;
- the employee leaves to take a retirement or old-age pension or a lump-sum payment;
- a female employee resigns within one year of the date of her marriage;
- the employee dies — severance is paid to the heirs.
It is not payable in the two most common situations: resignation without just cause, and termination by the employer for just cause under İş K. art. 25/II (conduct contrary to morality and good faith).
| Severance | Notice | Basis | |
|---|---|---|---|
| Employer terminates without just cause | Yes | Yes | İş K. art. 17 |
| Employee terminates for just cause | Yes | No | İş K. art. 24 |
| Employer terminates for conduct contrary to good faith | No | No | İş K. art. 25/II |
| Resignation without just cause | No | No | — |
| Retirement or old-age pension entitlement | Yes | No | Act 1475 art. 14 |
| Female employee resigning within a year of marriage | Yes | No | Act 1475 art. 14 |
| Compulsory military service | Yes | No | Act 1475 art. 14 |
| Death of the employee (paid to the heirs) | Yes | No | Act 1475 art. 14 |
Severance is paid under art. 14 of the repealed Act No. 1475, which remains in force, not under the Labour Act No. 4857.
How It Is Calculated
Severance is thirty days' gross wage for each full year of service, with part years pro-rated. The result may not exceed the statutory severance ceiling, which is revised twice a year.
The gross wage used is not the bare salary. It is the all-inclusive gross wage: meal allowance, transport allowance, regular bonuses and other benefits paid with continuity are added in. This is why the figure on the payslip usually understates the true entitlement.
Severance is exempt from income tax; only stamp duty is deducted.
Common Mistakes
- Signing a resignation letter under pressure, and losing the entitlement with it.
- Accepting an underpayment presented as a "mutual termination agreement".
- Leaving supplementary benefits out of the calculation.
- Missing the limitation period — five years from termination.
Frequently Asked Questions
What are the conditions for severance pay?
At least one year of service with the same employer, an indefinite-term contract, and a form of termination the statute treats as giving rise to the entitlement.
Do I lose severance if I resign?
As a rule yes. The exceptions are just-cause termination by the employee, compulsory military service, retirement, and resignation by a female employee within a year of marriage.
How is it calculated?
Thirty days' all-inclusive gross wage for each full year of service, pro-rated for part years, capped at the statutory ceiling.
What counts towards the gross wage?
Not just the bare salary: meal and transport allowances, regular bonuses and other benefits paid with continuity are included.
How long do I have to claim?
Five years from the date of termination.