In Turkish labor law, the two most fundamental compensation items protecting employee labor are Severance Pay (Kıdem Tazminatı) and Notice Pay (İhbar Tazminatı). Severance pay, regulated under Article 14 of the active parts of Labor Law No. 1475, and notice pay, regulated under Article 17 of Labor Law No. 4857, are calculated based on the termination status of the employment contract. The calculation metrics, definition of broadened gross salary, and legal conditions are strictly defined by statutes and precedents.

1. Eligibility Requirements for Severance Pay in Turkey

To claim severance pay, an employee must first accumulate at least 1 full year of continuous employment with the same employer. Furthermore, the employment contract must terminate due to one of the following reasons:

  • Dismissal by the employer for reasons other than code of conduct violations (Article 25/II of the Labor Law).
  • Resignation by the employee based on just cause (Article 24 of the Labor Law), such as unpaid salaries, lack of social security declarations, health hazards, or mobbing.
  • Military service (for male employees).
  • Resignation of a female employee within 1 year of her marriage date.
  • Retirement or fulfilling the required contribution days (excluding age) for retirement.
  • Death of the employee (in which case, payments revert to their heirs).

2. Understanding Broadened Gross Salary (Giydirilmiş Brüt Ücret)

Severance pay calculations are not based on the net monthly salary, but on the broadened gross salary (giydirilmiş brüt ücret). This includes the employee's base gross salary plus regular cash and in-kind benefits provided by the employer:

  • Regular travel and meal allowances, or shuttle and cafeteria services,
  • Regular bonuses, premiums, heating, or holiday allowances,
  • Regular health insurance premiums or housing expenses covered by the employer.
  • Note: Overtime pay, annual leave pay, and one-off premium payments are not included in the calculation of broadened gross salary.

3. Notice Pay and Statutory Notice Periods

The party seeking to terminate an employment contract must notify the other party beforehand, respecting the statutory notice periods based on the employee's tenure:

  • Under 6 months of work: 2 weeks notice.
  • Between 6 months and 1.5 years: 4 weeks notice.
  • Between 1.5 years and 3 years: 6 weeks notice.
  • Over 3 years of work: 8 weeks notice.

If the employer terminates the contract without respecting these notice periods, they must pay Notice Pay equivalent to the salary of the corresponding notice duration. Conversely, if an employee resigns without notice, they may be liable to pay notice compensation to the employer.

4. Can Resigning Employees Claim Severance and Notice Pay?

A common misconception is that resigning employees forfeit all compensation. If an employee resigns for just cause (such as systematic delay of wages or mobbing), they are entitled to full severance pay. However, even under just cause resignation, the employee cannot claim notice pay, as notice pay is designed to compensate the party who did not initiate the termination.

Frequently Asked Questions

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What is the annual severance pay ceiling (Kıdem Tazminatı Tavanı)?

Severance pay is capped annually at a limit matching the retirement bonus of a top-tier civil servant. Regardless of how high the employee's broadened gross salary is, the calculation is limited by this tavan amount.

What is the statute of limitations for labor claims?

The statute of limitations to sue for severance and notice pay is 5 years from the termination date of the employment contract.

Is mediation mandatory before filing a labor lawsuit?

Yes. Under Turkish law, filing for mandatory mediation (arabuluculuk) is a prerequisite to filing a lawsuit in Labor Court for severance and notice claims.

1. Court of Cassation General Assembly Precedent Decision: Calculation of Dressed Wage for Severance Pay

Court of Cassation, General Assembly of Civil Chambers – File: 2023/352, Decision: 2023/968

Summary: In calculating the dressed wage (giydirilmiş ücret) that forms the basis of severance pay, all regular and recurrent benefits provided to the employee, such as meal allowances, transportation allowances and regular bonus payments, must be included in the calculation.

"...Hukuk Dairesinin 21.01.2021 tarihli ve 2021/171 Esas, 2021/1914 Karar sayılı BOZMA kararı..."

(Translated excerpt; Turkish original is authoritative)
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2. Court of Cassation 9th Civil Chamber Precedent Decision: Time-Bar Defence Against Amendment in an Indeterminate-Receivable Claim

Court of Cassation, 9th Civil Chamber – File: 2026/1055, Decision: 2026/1342

Summary: The 9th Civil Chamber reversed the judgment below. Severance and notice pay had been claimed in an action for an indeterminate receivable; the first-instance court treated it as a partial action and, giving effect to the defendant's time-bar defence raised against the amendment (ıslah), dismissed the increased portions as time-barred. The Regional Court of Appeal upheld that. The Chamber held this to be erroneous and reversed, noting that no reversal had been issued dismissing the claim for want of legal interest, and having regard to its own case law on the prohibition of surprise decisions.

"[…] although the Regional Court of Appeal considered the first-instance judgment to be correct, that conclusion was erroneous. […] in the present case, in respect of the severance and notice pay claims that were adjudicated, the action was brought as an action for an indeterminate receivable, and it was erroneous to reach a conclusion by giving weight to the time-bar defence raised by the defendant against the amendment; the judgment therefore had to be reversed."

(Translated excerpt; Turkish original is authoritative)
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3. Court of Cassation 9th Civil Chamber Precedent Decision: The Mediation Precondition Is Assessed Only From the Final Mediation Minutes

Court of Cassation, 9th Civil Chamber – File: 2025/10086, Decision: 2026/1518

Summary: The 9th Civil Chamber reversed the judgment below. Whether the mandatory mediation precondition has been satisfied is determined solely from the final mediation minutes; a claim item that does not appear there has not been negotiated, and the precondition is not met for it. As the claim for accrued annual leave pay was absent from the final minutes, it should have been dismissed on procedural grounds rather than decided on the merits.

"[…] Accordingly, since the question whether the mediation precondition has been satisfied can be determined only on the basis of the final minutes, whether the claim items set out in the application form were negotiated can be understood only from the final minutes. A receivable that has not been negotiated cannot be said to satisfy the precondition. […] That being so, it was erroneous to decide the merits of the claim for annual leave pay, in respect of which the mediation precondition had not been satisfied, instead of dismissing it on procedural grounds for want of a precondition of action; this required reversal."

(Translated excerpt; Turkish original is authoritative)
View Full Decision (Turkish)