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ADDITIONAL EXTENSION OF SHORT-TERM WORK ALLOWANCE & PROHIBITION ON THE UNILATERAL TERMINATION OF THE EMPLOYMENT CONTRACT DUE TO COVID-19

As you are aware, the Presidential Decision numbered 2915 published in the Official Gazette dated 31 August 2020, had extended the period of short-term work allowance (in Turkish “Kısa Çalışma Ödeneği”), for an additional two (2) months, within the same framework of the principles determined in The Decision Numbered 2706 of 30 June 2020.

Pursuant to the Presidential Decision numbered 3134, which was published today in the Official Gazette dated 27 October 2020, the period of short-time work allowance has been extended for another two (2) months, again within the same framework of the principles determined in the Decision Numbered 2706, starting after the end of the two-month period extended by the Presidential Decision numbered 2915, dated 30 August 2020.

Thus, the allowance benefit that was due to end on 31 October 2020 shall now end on 31 December 2020 for applications that were made before (including) the date of 30 June 2020.

Moreover, as per the Presidential Decision numbered 3135, also published in the Official Gazette dated 27 October 2020, the prohibition on the unilateral termination of employment contracts by the employer, as well as employers’ option to send their employees on unpaid leave has also been extended for another two (2) months, starting from 17 November 2020.

Therefore, employment contracts cannot be terminated unilaterally until 17 January 2021, except for:

  • the expiration of employment or service contracts made for a determined period,
  • the closure of a workplace for whatever reason and the termination of its activity,
  • the termination of any service procurement made in accordance with its relevant legislation and termination of construction/manufacturing activities (in Turkish, “yapım işleri”).
  • terminations due to the good faith and morality clauses provided in Article 25/1 (II) of the Labor Code or in the relevant articles of other Laws.

Our Law Firm remains at your disposal for any further clarifications or assistance you may need about the subject matter.

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