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

As you are aware, the Presidential Decision numbered 3592 published in the Official Gazette dated 9 March 2021 and numbered 31418, had extended the period of the prohibition on the unilateral termination of employment contracts by the employer and employers’ option to send their employees on unpaid leave, for an additional two (2) months, starting from 17 March 2021.

Moreover, pursuant to the Presidential Decision numbered 3930, which was published today in the Official Gazette dated 30 April 2021 and numbered 31470, the period of the prohibition on the unilateral termination of employment contracts by the employer, as well as employers’ option to send their employees on unpaid leavehas been extended until 30 June 2021, starting from 17 May 2021.

Therefore, employment contracts cannot be terminated unilaterally until 30 June 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.
We kindly remind you that, as per the Presidential Decision numbered 3910 published in the Official Gazette dated 23 April 2021 and numbered 31463, the period of short-time work allowance (in Turkish “Kısa Çalışma Ödeneği”), has also been extended until 30 June 2021, within the framework of the principles determined in the Decision Numbered 2706, starting after the end of the period extended by the Presidential Decision numbered 3556 which was published in the Official Gazette dated 19 February 2021 and numbered 31400.

Hence, the allowance that was due to end on 31 March 2021, shall now end on 30 June 2021 for applications that were made before (including) the date of 31 January 2021.

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

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