Friday, November 4, 2016

Labour Contracts For a Specified Term and Labour Contracts For a Non-specified Term in Turkish Labour Law




In Turkish law, labour contracts can be signed either for a specified term or a non-specified term. Unless otherwise agreed by the parties the labour contracts are deemed to be contracts for a non-specified term. The principal is that the labour contracts are made for a non-specific term.

When the parties set a term of employment in a written labour contract, this contract terminates at the end of the period without parties having to give a notice of termination to each other.  

The contract whether tied to a term or not is significant because of the possible mutual claims connected to it. 

When an early termination is given by the employer in a Labour Contract For a Specified Term, the employee has the right to request the remaining wages that were to be paid monthly till the termination date of the contract. Severance pay and compensation for term of notice are quite controversial when the contract is for a specified term.

The disputes in Turkish Law regarding the subject generally arise when Labour Contracts For a Specified Term are signed one after the other (in chain).  

According to Article 11 of The Labour Law (#4857), "when a labour contract is not tied to a specific term, the contract is a Labour Contract For a Non-specific Term. It is a Labour Contract For a Specific Term when a contract is signed between the employer and the employee depending on the objective conditions like bringing out a specific result or completing a specific duty or in works that can be finished within a specific period. Labour Contracts For a Specific Term cannot be signed one after the other more than once (in chain) unless there is a substantial/solid/sound reason for it. Otherwise, the labour contract shall be deemed to be Labour Contract For a Non-specific Term as of the beginning of the contract. Chain labour contracts signed for a specific term keep their characteristics of being for a specified term depending on substantial/solid/sound reason".

In addition to the Article 11 and in line with the International Agreements, The Supreme Court (Yargıtay)'s interpretation appears as, the essence of the work is significant in a Labour Contract For a Specific Term. Labour contract for a specified term shall only be possible if the characteristics/essence of the work requires it. The characteristics of the work have been defined as the objective conditions like bringing out a specific result or completing a specific duty or in works that can be finished within a specific period.

In cases where the essence/characteristics of the work do not necessarily require a stipulation of period of time in a labour contract, the chain contracts are deemed to be a Labour Contract for a Non-specific Term. 

So, in some Supreme Court resolutions, it is possible to see that signing the second contract i.e signing a new contract only once (not more than once) is sufficient for the contract to be deemed Labour Contract for a non-Specific Term.  

I will be writing soon about the Labour Contracts for a Non-specific Term.

Please do not hesitate to leave your comments if you have any.




The term of notice for termination of Labour Contracts Signed for a Non-specified Term Under Turkish Law

According to the Turkish Labour Law (Article 17), depending on the period of time the employee has worked for the company, the period/term of notice for termination is stipulated as follows (Unless otherwise agreed between the parties):

i) For a work period less than six months, the contract can be terminated in two weeks after the notice of termination.

ii) For a work period more than six months but less than one and a half year, the contract can be terminated in four weeks after the notice of termination,

iii) For a work period more than one and a half year and less than three years, the contract can be terminated in six weeks after the notice of termination.

iv) For a work period more than three years, the contract can be terminated in eight weeks after the notice of termination.

So, let's say, if an employee has been working for more than one and a half year but less than three years, a term of six weeks must be granted before the date of termination.

If there is a written contract signed between the parties, the provisions of the contract will prevail. 

The terms of notice cannot be reduced against the benefit of the employee.