Amendments to Terminations, Unpaid Leave, and Unpaid Leave Insurance Termination through the Omnibus Law

The Law on Mitigating the Effects of Coronavirus (COVID-19) Outbreak on Economic and Social Life and the Amendment of Certain Laws No. 7244 (“Law “) regulates issues that will have an important impact on employment relations. We have evaluated some of the important issues in the Law that will affect employment relationships.
 

Termination of Employment Agreements have been Prohibited for Three Months

Employers have been prohibited from terminating employment agreements unilaterally for a period of three months, effective as of 17.04.2020. Unilateral termination by the employer due to the employees' behavior that violates the rules of morals and good faith are exempt from the termination prohibition. In this context, for 3 months, employers may only terminate employment agreements in case an employee violates the rules of ethics and good faith under Article 25 / II of the Labor Law.

The President has been authorized to extend the 3-month termination prohibition period up to 6 months within the scope of the Law.
 

Employer Could Send the Employee to Unpaid Leave

Normally, unpaid leave can be exercised through the mutual agreement of the employee and the employer. Within the scope of the new amendment, the employer will be able to send the employee to unpaid leave without the employees’ consent for a period of 3 months as of 17.04.2020. Limitations have also been imposed on seniority indemnity entitlements of the employees who terminate their employment agreements due to being sent on unpaid leave.
 

Employees Who Are Sent on Unpaid Leave and Cannot Benefit from Short-term Working Benefits Will Receive Daily Monetary Support of TRY 39,24

Employees, who are sent on unpaid leave and do not meet the conditions of the short-term working benefits will receive daily monetary support amounting to TRY 39.24 per day. This amount is fixed regardless of the salary of the employee. In this context, no there will be no differing practice between the employees paid minimum salaries and higher salaries.

The support payments to be made by the Turkish Employment Agency (“İŞKUR”) from the unemployment insurance fund will not be subject to any taxation, excluding stamp tax.

The employee's right to benefit from unemployment insurance shall be reserved in case the employment agreement is terminated by the employer after the expiration of the unpaid leave period.
 

Employees Will Not Be Entitled To Seniority Indemnity In Case They Terminate The Employment Agreement on Unpaid Leave Period

Before the enactment of the Law, employees had the right to terminate their employment agreements with a just cause in the event they have been sent on unpaid leave without their consent. According to the new regulation, in case the employee terminates the employment agreement due to being sent on unpaid leave they shall not be entitled to seniority indemnity.
 

Employees Have Been Entitled To Benefit From Health Insurance During The Unpaid Leave Period

If the salary support beneficiaries are not entitled to benefit from the general health insurance schemes via their relatives, their social security contributions will be paid by İŞKUR for the duration of the unpaid leave to ensure that the individual is within the scope of a health plan. In this context, the relevant person shall be subject to general (public) health insurance.
 

Conclusion

This Law regulates several important subjects with respect to employment relationships. The law regulates significant limitations on the termination of employment agreements by employers. Moreover, as per the amendment employers are entitled to send the employees to unpaid leave without their consent. The employee who is on unpaid leave will receive monetary support corresponding to TRY 39.24 per day from İŞKUR.

Content: Av. H. Şafak Varol – Stj. Av. Alp Akdaş