practice

Employer’s Right to Terminate an Employment Contract with Immediate Effect for Just Cause

Article 25 of the Turkish Labour Act regulates an employer’s right to terminate an employment contract with immediate effect for just cause. Where the statutory conditions are met and the right is exercised in time, the employer may not be required to pay severance or notice compensation. Other employee receivables, including wages, overtime pay, and accrued annual-leave pay, may nevertheless remain payable.

Article 26 provides that the right to terminate on grounds contrary to morality and good faith under Articles 24 and 25 cannot be exercised after six working days from the date on which the other party learns of the conduct and, in any event, after one year from the act. The one-year limit does not apply where the employee has obtained a financial benefit from the event.

Grounds for Immediate Termination by the Employer

I. Health Reasons

  • The employee becomes ill or disabled through deliberate conduct, an improper lifestyle, or alcohol addiction, and the resulting absence lasts for more than three consecutive working days or five working days in one month.
  • An official medical board determines that the employee’s illness is incurable and that continued work at the workplace would be unsafe.
  • For illness, accident, childbirth, or pregnancy outside the first category, the right generally arises after the absence exceeds the applicable notice period by six weeks. Special statutory rules apply to childbirth and pregnancy.

II. Conduct Contrary to Morality and Good Faith

  • When entering into the contract, the employee misleads the employer about an essential qualification or condition by providing false information or statements.
  • The employee makes statements or engages in conduct that attacks the honour or dignity of the employer or a member of the employer’s family, or makes serious and unfounded accusations against the employer.
  • The employee sexually harasses another employee of the employer.
  • The employee assaults the employer, a member of the employer’s family, or another employee, or violates the applicable workplace rules concerning alcohol or prohibited substances.
  • The employee abuses the employer’s trust, commits theft, discloses trade secrets, or engages in similar conduct inconsistent with honesty and loyalty.
  • The employee commits an offence at the workplace that is punishable by more than seven days’ imprisonment and the sentence is not suspended.
  • Without permission or a justified reason, the employee is absent for two consecutive working days, twice in one month on the working day following a holiday, or for three working days in one month.
  • Despite being reminded, the employee persistently refuses to perform assigned duties.
  • Through intent or negligence, the employee endangers workplace safety or causes damage or loss to machinery, installations, goods, or materials that cannot be compensated with thirty days’ wages.

III. Force Majeure

A force-majeure event prevents the employee from working at the workplace for more than one week.

IV. Detention or Arrest

The employee’s absence due to detention or arrest exceeds the notice period specified in Article 17.

An employee who argues that the termination does not comply with these grounds may seek judicial review under the applicable provisions of the Labour Act.

When Does the Six-Working-Day Period Begin?

The period begins when the employer learns of the event giving rise to termination. The day on which the event is learned is not counted; the period expires at the end of the sixth following working day. If the conduct is continuing, the period does not begin to run until that conduct ends.

Are Weekends and Public Holidays Included?

According to the established case law of the Court of Cassation, weekends and public holidays are not included when calculating the six working days.

Is This a Forfeiture Period?

The period in Article 26 is a forfeiture period. If it is missed, the employer may lose the right to terminate for just cause on the relevant event and the legal consequences of an ordinary termination may apply. Please contact us using the details on our contact page for information about our legal services in employment disputes.

  • Share: