In accordance with the 5th paragraph added to the 1st clause of Article 14 of the Labor Law No. 1475 with the amendment of the Law dated 25/8/1999; it has been regulated that if the employee meets the criteria of working period and number of premium days other than the age requirement regarding retirement, he will be entitled to severance pay when he voluntarily terminates his employment agreement.
Due to the above-mentioned regulation, many employees mistakenly believe that they are entitled to severance pay if they resign after working for a long time in the same workplace. However; in order to be entitled to severance pay as stated in the mentioned article, some additional conditions are required.
Is the employee entitled to severance pay in case of termination of employment contract due to retirement?
The circumstances in which an employee will be entitled to severance pay is clearly regulated under Article 14 of the Labor Law No. 1475 (“Law”). According to the common decisions of Supreme Court; the provision of law in question is absolutely mandatory and cannot be expanded by interpretation. So; it is not possible for an employee to be entitled to severance pay, except in the cases regulated under Article 14 of Labor Law No. 1475.
Under normal circumstances, the voluntary resignation of an employee does not grant him the right to claim severance pay. However, some exceptions have been brought to this situation with Article 14 of the Law. Termination of employment due to retirement is one of these exceptions. In accordance with the 5th paragraph of the 1st clause of Article 14 of the Law; if the employee completes a certain number of premium days and insurance year and terminates the employment agreement voluntarily, he will be entitled to claim severance pay.
What are the Conditions for being able to Claim Severance Pay in case of Termination of Employment Contract due to Retirement?
The working period and premium days required for retirement as specified under the 5th paragraph of the 1st clause of Article 14 of the Law differ according to the date of the commencement of employee’s insurance registration. For employees whose insurance registrations were made before the date of 08.09.1999, the working period stipulated by the law is 15 years and the number of days paid premium is 3600, while for an employee whose insurance registration was started after 08.09.1999, the required working time to be entitled to severance pay is 25 years and the number of days paid premium is 4500 days.
If an employee who meets the conditions stated above is willing to terminate his employment agreement voluntarily and to be entitled to severance pay in this way, he must apply to the relevant social security directorate to obtain the necessary documents and thereby prove to his employer that he meets the conditions specified under the Law.
Is There a Sanction for the Employer Who Refuses to Pay Severance Pay in the Event of Termination of Employment Due to Retirement?
According to the provision of paragraph 11 of Article 14 of the Law, as a result of the litigation case to be filed due to the failure of the employer to pay the severance pay on time, the judge rules for the payment of the highest interest applied to deposits for the unpaid period. As can be seen; if the employee does not pay the severance pay to the employee although he is entitled to, the employer will be obliged to pay the employee the interest amount that will accrue at the highest interest rate starting from the date of termination of the contract.
Is the employee entitled to notice pay in case of termination of employment contract due to retirement?
In line with the established decisions of the Supreme Court; if an employee terminates his employment agreement due to retirement, he has no right to demand notice pay. Similarly; in this case, the employer will not have the right to demand notice pay from the employee by claiming that the notice period is not complied with.
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