Türkçe
Law No. 7244 (“Law”), which is aimed to reduce the negative effects of Coronavirus (COVID-19) on economic and social life, was entered into force by its publishing in the Official Gazette dated 17 Nisan 2020 and numbered 31102.
Within the scope of the said Law; many regulations are imposed in different areas to support the companies, traders and the employers. Some of the important regulations made under the said Law are as follows:
PAYMENTS TO BE MADE TO ADMINISTRATIVE AUTHORITIES ARE POSTPONED
In accordance with Article 1 of the Law, the payments to be made to the Treasury and Metropolitan municipalities, municipalities, special provincial administrations and affiliates and the local administrative unions for the rental and sale of the real states owned by the same, as well as the payments to be made by real persons and legal entities providing public transportation services for license and line rentals are postponed for a period of 3 months without seeking an application requirement. Such period may be extended by the related authorities if required.
In addition; it is regulated that the annual announcement and advertisement taxes and annual environmental cleaning taxes of the companies whose activities are stopped or cannot operate, will not be charged for the periods of such stoppage or inactivity.
Further; a regulation was also made to postpone the loan debts within the scope of Article 16 of the Higher Education Loan and Dormitory Services Law for a period of 3 months without requiring an application condition, limited to the ones that should be collected for a 3-month period.
MAJOR REGULATIONS ARE MADE WITHIN LABOR LAW
Pursuant to Article 2 of the Law; periods for execution of the collective labor agreements, resolution of collective labor disputes and strike and lockout have been extended for three months.
In accordance with Article 7 of the Law; a temporary article was added to the Unemployment Insurance Law No. 4447 and with such addition, it is envisaged to pay daily 39.24 Turkish lira for wage support to the employees who are subjected to unpaid leave and cannot benefit from short-time work allowance and the employees whose employment contract was terminated after 15/3/2020 and who could not benefit from the unemployment benefit, for the periods of their unpaid leave and unemployment.
However, if it is determined that the employee who is subjected to unpaid leave and benefit form the above mentioned wage support is actually working, an administrative fine will be applied to the employer, for each worker who have been working during the period of unpaid leave and for each month of such work, amounting to the monthly gross minimum wage. In addition; the amount of the wage support will also be requested to be refunded by the employer together with the interest to be accrued as from the date of such wage support date.
Within the scope of the said Law, some arrangements were also made regarding the short-time working allowance. In accordance with Article 8 of the Law; it is regulated that short time working payments will be made in accordance with the employers’ declaration, without waiting for the completion of the eligibility for short work applications made by the employers for compelling reason due to the new coronavirus (Covid-19).
Similar to the above stated regulation, excessive and improper payments made due to the employer’s misrepresentation and wrongful documents will be collected from the employer along with its legal interest.
In accordance with Article 10 of the Law; a temporary article is added to the Labor Law No. 4857 and it is regulated that the employer cannot terminate any employment or service contract for three months, except for situations that do not comply with the rules of ethics and goodwill and similar reasons. With the implementation of the article in question, it is aimed to prevent arbitrary layoffs and the growth of employment deficit.
However, in order to prevent the employer from being harmed due to this restriction, another regulation has been introduced and it has been regulated that the employer can make the workers entirely or partially take unpaid leave provided not to exceed the said three-month period.
Under normal circumstances, the employer is obliged to obtain the approval of the worker in order to make the worker to take unpaid leave, and if this approval is not given, the worker will have the right to terminate the employment contract for justified reason. However, in accordance with the new regulation, allocating the worker to unpaid leave under this article will not give the worker the right to terminate the contract based on the justified reason.
Within the scope of the same article, it has been regulated that the employer or employer representative who terminates the employment contract in violation of the provisions of this article of the Law will be imposed to an administrative fine amounting to the monthly gross minimum wage amount at the date of such termination.
AMENDMENTS WERE MADE UNDER TURKISH COMMERCIAL CODE REGARDING THE GENERAL ASSEMBLY MEETINGS AND THE DISTRIBUTION OF PROFIT
Another essential regulation was made within the scope of the Turkish Commercial Code. In accordance with Article 12 of the Law; a temporary article was added to the Turkish Commercial Code and accordingly, it has been regulated that only twenty-five percent of the net profit of the year of 2019 can be distributed until 30/9/2020. It is also stated that previous year’s profits and free reserves cannot be subject to distribution, and the general assembly cannot authorize the Board of Directors to distribute dividend advances.
The above-mentioned regulation shall not apply to companies, fifty percent of the share capital of which is directly or indirectly owned by the state, special provincial administration, municipality, village and other public legal entities and funds, more than fifty percent of the share capital of which is owned by public institutions.
In that respect; if the general assembly has decided to distribute dividends for the fiscal year of 2019, but the shareholders have not yet been paid or partial payments have been made, payments exceeding twenty-five percent of the net profit of 2019 will be postponed for 3 months.
AMENDMENTS WERE MADE TO POSTPONE SOME GENERAL ASSEMBLIES AND ELECTIONS
In accordance with Article 2 of the Law; general assembly meetings of associations and cooperatives as well as the general assemblies to be conducted within the scope of Veterinary Services, Plant Health, Food and Feed Law and Agricultural Producers Unions Law were postponed until 31/7/2020. The General Assembly of the Union of Chambers and Commodity Exchanges of Turkey to be held in May 2020, is also decided to be convened together with the General Assembly of next year.
In addition; within the scope of the same article of Law, it is regulated that the elections that should be made within the scope of the Law on the Selection of Local Administrations and Neighborhood Mukhtars and Community Counsels cannot be made in 2020.
FLEXIBILITY IS PROVIDED FOR THE WORKS OF R&D CENTERS
Within the scope of Article 2 of the Law; it is regulated to allow the activities carried out in R&D and design centers, which are conducted under Law on Supporting Research, Development and Design Activities, to be carried out outside the R&D centers and to allow the activities carried out within the Region under the Technology Development Zones Law to be carried out outside the Region, by the Minister of Industry and Technology, for a period of 4 months.
REGULATIONS WERE MADE REGARDING EXORBITANT PRICE APPLICATION AND STOCKPILING
Pursuant to 14th article of the Law, an additional article was added to the Law No. 6585 and it was regulated that manufacturers, suppliers and retail businesses could not make an exorbitant increase in the sales price of a good or service, and prevent the consumer from reaching the goods with activities that create shortness in the market, distort the market balance and free competition.
In addition; Unfair Price Evaluation Board is established in order to make arrangements for exorbitant price increase and stocking practices, to make administrative fines by making audits and inspections when necessary, and to take all kinds of measures.
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