EXTENSION OF TERMS WITH RESPECT TO LABOUR LAW PROVISIONS IMPLEMENTED DUE TO COVID-19

We would like you inform you that Pursuant to Paragraph 1, Provisionary Article 10 of the Labor Law No.4857, the prohibition on the unilateral termination of employment contracts by the employer, except for those terminated for just reason (those that do not comply with good faith and morality clauses specified in Article 25.I.II of the Law and relevant provisions of other statutes) has been extended further for one month as from 17 July 2020, as per the Presidential Decision published in the Official Gazette on 30 June 2020. Thus, such prohibition shall now continue until 17 August 2020.

Furthermore, in accordance with Paragraph 2 of Provisionary Article 10, within the aforementioned extension period of one month the Employer may place Employees on partial or total unpaid leave; as you may know this placement shall not give the Employee(s) the right to terminate their employment agreements with just reason.

Moreover, in accordance with a second Presidential Decision (No.2706) published in the Official Gazette on 30 June 2020, Short Time Work Allowance benefit, (in Turkish “Kısa Çalışma Ödeneği”) put into effect in light of force majeure circumstances due to Covid-19, has also been extended for one month. This extension shall apply to workplaces that have applied for short time work allowance before the date of 30 June 2020 (included), without having to submit a new application or wait for the determination of suitability for the allowance, under the condition that it is for the same employees who are already benefiting from the allowance and within the same limitations. With respect to workplaces that have ended their allowance benefits before the date of enforcement of this extension decision, the one month extension shall apply starting from 1 July 2020. As to workplaces that are still benefiting from short time work allowance, the extension shall apply for one month following the end of the current allowance.

Please also note that the temporary payments made to employees due to force majeure (Covid-19) shall not be deducted from the duration of the unemployment allowance determined on their behalf.

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