Practice Areas · 03

Employment law: severance, reinstatement and unpaid wages

Dismissed, thinking of resigning, or owed money by your employer? Here is how the deadlines, mandatory mediation and labour court proceedings work in Türkiye.

Employment, claims & propertyIndividuals · Businesses

Employment law governs the relationship between employees and employers, while social security law covers insurance records, premium days and retirement rights. Most disputes surface when the employment ends: severance has not been paid, the termination code is disputed, or the employee wants their job back. Short, strict deadlines start running at that point, so the first steps matter.

Severance pay (kıdem tazminatı) is owed to an employee with at least one year of service whose contract is terminated by the employer without just cause, or who leaves for one of the just causes listed in the law (Article 14 of the former Labour Law No. 1475, still in force). Notice pay (ihbar tazminatı) arises when the statutory notice periods are not observed (Labour Law No. 4857, Article 17). Overtime, unused annual leave, wages and bonuses are usually claimed in the same case. The limitation period for severance, notice pay, annual leave pay and wage claims is five years.

Before filing a claim for employee or employer receivables or for reinstatement, applying to a mediator is mandatory (Labour Courts Law No. 7036, Article 3). If mediation fails, disputes arising in Üsküdar and the Asian side of Istanbul are usually heard by the labour courts at the Istanbul Anatolian Courthouse (Anadolu Adliyesi) in Kartal; jurisdiction lies with the court where the defendant is domiciled or where the work was performed. Compensation claims for workplace accidents and occupational diseases, and service determination actions against the Social Security Institution (SGK), are not subject to mandatory mediation.

We represent employees in severance, notice and overtime claims, in giving notice of termination for just cause, and in reinstatement and workplace accident cases. We advise employers on employment contracts, disciplinary defence procedures, terminations and mediation meetings, and represent them in litigation. In every file we first review the calculation and the available evidence with you, and set out the practical difference between settling in mediation and going to court.

When you may need this

You were dismissed and your severance or notice pay was not paid, or only partly paid.
You were dismissed without a valid reason and want to return to your job.
Your salary is paid late or short, overtime is unpaid, or your insurance is declared on a lower wage, and you are considering leaving for just cause.
You have resigned, or are about to, and do not know whether you are entitled to severance.
The termination code in your SGK record (for example code 29) does not reflect what happened and affects your rights.
You are facing systematic pressure and harassment at work (mobbing).
You had a workplace accident, were diagnosed with an occupational disease, or lost a family member in a workplace accident.
You are an employer who needs to end an employment relationship, or you have received a mediation invitation.

How the process works

01
Deadlines and documents
We review the termination date, the termination notice and your SGK records. Short deadlines, such as one month from notification of termination for reinstatement and six working days from learning of the facts for termination for just cause, are identified at the first meeting.
02
Calculation and strategy
We calculate severance, notice pay, overtime, annual leave and other receivables from payslips and actual working hours. At this stage we decide whether to seek reinstatement or claim receivables only.
03
Mandatory mediation
We apply to the mediation office where the other party is domiciled or where the work was performed. The mediator must conclude within three weeks of appointment, extendable by one week where necessary. If a settlement is reached, the matter ends there.
04
Labour court proceedings
If mediation fails, we file the case with the final mediation report; for reinstatement, the deadline is two weeks from that report. In receivables cases witnesses are heard, records are obtained and the calculation is usually made by a court-appointed expert.
05
Judgment, appeal and collection
In reinstatement cases the regional court of appeal's decision is final; in receivables cases further appeal may be available. After a final reinstatement judgment, the employee must apply to the employer within ten working days; unpaid amounts are collected through enforcement proceedings.

Services in this area

Severance, notice pay, overtime, annual leave and other employee receivables01
Reinstatement cases and mandatory mediation meetings02
Notice of termination for just cause and formal notices03
Compensation claims for workplace accidents and occupational diseases04
Claims arising from mobbing and breach of equal treatment05
Service determination actions and challenges to SGK decisions06
Advice to employers on terminations, defence procedures and mediation07
Drafting employment contracts and internal regulations08

Documents worth bringing

Employment contract, any addenda and workplace regulations
Payslips and bank statements showing salary payments
SGK service record (the 4A service statement from e-Devlet)
Termination notice, formal notice (ihtarname), request for defence or resignation letter
Records of working hours: entry and exit logs, shift schedules, messages and emails about overtime
Names of colleagues from the same period who could act as witnesses
For workplace accidents or occupational disease: the accident report, medical reports and the SGK notification

How fees and costs are determined

Legal fees are set by a written fee agreement between lawyer and client (Attorneys Act No. 1136, Articles 163-164) and cannot be lower than the Minimum Attorney Fee Tariff (AAÜT) published each year by the Union of Turkish Bar Associations. In employment cases the fee may be a fixed amount, a percentage of the amount recovered, or a combination; a percentage fee may not exceed twenty-five percent of the value in dispute. The tariff also sets a separate minimum fee for representation in mediation.

Applying to the mediation office is free of charge. If no settlement is reached, the first two hours of the mediator's fee are paid from the Ministry of Justice budget and later added to court costs; if a settlement is reached, the fee is shared equally unless agreed otherwise. If a case is filed, court fees and an advance for notifications, witnesses and experts are paid; the losing party bears the court costs and the other side's attorney fee set by the tariff. A party who skips the first mediation meeting without a valid excuse faces adverse cost consequences even if they later win the case.

Frequently asked questions

What is the deadline for a reinstatement claim?

You must apply to a mediator within one month of being notified of the termination. If mediation fails, the case must be filed at the labour court within two weeks of the final mediation report. Reinstatement generally requires a workplace with thirty or more employees, at least six months of service and an indefinite-term contract.

Can I get severance if I resign?

As a rule, an employee who resigns is not entitled to severance. However, if the resignation is based on a just cause listed in the law (Article 24 of Law No. 4857), such as unpaid wages, unpaid overtime or under-declared insurance, severance can be claimed. Leaving for compulsory military service, a female employee leaving within one year of marriage, and leaving after meeting the non-age retirement conditions confirmed by an SGK letter also give a right to severance.

How is severance pay calculated?

An employee with at least one year of service receives thirty days' gross pay for each full year worked, with partial years counted proportionally. Regular extras such as transport, meal allowances and bonuses are included. The annual amount cannot exceed the severance ceiling, which is updated every January and July; the current ceiling is published in official announcements.

Is mediation mandatory, and can I attend without a lawyer?

For receivables such as severance, notice pay and overtime, and for reinstatement, mediation is a precondition for filing a case; a case filed without it is dismissed on procedural grounds. You can attend mediation without a lawyer. Because a signed settlement bars a later lawsuit on the matters agreed, it is worth having the calculation checked before signing.

How long does an employment case take?

It depends on the court's workload, the number of witnesses and the expert review. Mediation usually takes three to four weeks. Reinstatement cases are handled as urgent by law; receivables cases often take more than a year at first instance because of the expert calculation, and longer if appealed.

How do I prove overtime?

Overtime is work beyond forty-five hours a week and is paid at one and a half times the normal hourly rate. It is proven with written records (entry and exit logs, shift lists, emails and messages) and with witnesses who worked at the same workplace. If signed payslips show overtime as paid, the position may differ, so the payslips need to be reviewed.

How are an employment lawyer's fees set?

The fee is agreed in writing according to the scope of the work and cannot be lower than the minimum in the AAÜT. It may be fixed, a percentage, or both; a percentage fee may not exceed twenty-five percent of the value in dispute. We discuss the fee, expenses and possible court costs openly at the outset.

This page is for general information only and does not constitute legal advice. Every legal matter has its own circumstances; please request a meeting for your specific situation.