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Legal Alerts

Labor and Social Security Measures under the State of Emergency

Legal Alerts
Employment
General

Recent development

With Presidential Decision No. 6785 published in the Official Gazette dated 8 February 2023 and numbered 32098, a state of emergency has been declared in the provinces of Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa for three months starting from 1:00 am on 8 February 2023.

Within the same scope, Presidential Decree No. 125 on the Measures Taken in the Field of Labor and Social Security under the State of Emergency published in the Official Gazette dated 22 February 2023 and numbered 32112 (“Decree“) specifies the measures applicable in the regions where a state of emergency was declared and for the duration of the state of emergency.

Pursuant to the Decree, applications for short-time working have been facilitated. The Decree also prohibits the termination of employment agreement by the employer in provinces where a state of emergency was declared and for the period of the state of emergency, starting from 22 February 2023, except in certain exceptional circumstances. In addition, the Decree stipulates that a cash fee support will be provided to employees. Lastly, some deadlines have been extended under the Law on Trade Unions and Collective Bargaining Agreements No. 6356 (“Law No. 6356“) and Labor Code No. 4857 (“Labor Code“).

What does the Decree regulate?

  1. Measures regarding short-time working

For short-time working applications made to the Turkish Employment Agency on the grounds of the regional crisis caused by the effects of the earthquakes, short-time working allowance will be provided upon application of the employers. This will be provided, without waiting for the completion of the eligibility assessment for the workplaces located in the provinces/districts and to be determined by the Ministry of Labor and Social Security depending on the status of being affected by the earthquake, in the region where a state of emergency was declared and/or in workplaces documented that they are destroyed, to be destroyed immediately, or are heavily or moderately damaged due to the earthquake.

Overpayments made due to incorrect information and documents provided by employers will be collected from the employer, along with interest.

  1. Measures for protection of employment

Employers are prohibited from terminating employment or service agreements in the provinces where a state of emergency was declared, starting from 22 February 2023 and for the duration of the state of emergency, except for the following cases:

  • Terminations arising from the employee’s behavior contrary to the rules of ethics and goodwill and similar cases in section (II) of the first paragraph of Article 25 of the Labor Code and the respective provisions of other laws
  • Expiry of the term in the fixed-term employment or service agreements
  • Closure of the workplace for any reason and termination of its activity
  • Termination of the work in service procurement and construction works conducted in accordance with the relevant legislation

If the employer or the employer’s representative terminates the employment agreement contrary to this prohibition of termination, the employer or the employer’s representative will be imposed an administrative fine equal to the minimum monthly gross salary valid on the date of termination date per employee whose agreement is terminated.

  1. Measures for providing cash fee support

In the provinces where a state of emergency was declared as of 6 February 2023, a cash fee support in the amount of TRY 133.44 per day will be provided from the Unemployment Insurance Fund to employees (i) who are not entitled to short-time working allowance within the scope of short-time working applications made to the Turkish Employment Agency on the grounds of the regional crisis caused by the effects of the earthquakes; and (ii) whose employment agreements are terminated on or after 6 February 2023 due to the closure of the workplace or the workplace being closed due to the effects of the earthquake within the scope of the relevant article of Unemployment Insurance Law No. 4447, and who are not entitled to a new unemployment allowance.

The relevant cash fee support will be provided to the employees, provided that they do not receive an old-age pension from any social security institution. If they have any, support will be provided upon the completion of the remaining periods of their other entitlements  which can be initiated before, during the period of short-time working or the period of unemployment, not exceeding the duration of the state of emergency.

  1. Measures regarding the periods

Pursuant to Law No. 6356, the periods for granting competence; concluding collective bargaining agreements; and resolving collective labor disputes, strikes and lockouts have been extended for the duration of the state of emergency in the provinces where a state of emergency was declared, starting from 6 February 2023 (including this date).

For workplaces in the provinces where a state of emergency was declared, the one-month period regulated in the Labor Code for the payment of salary deduction penalties to the Ministry of Labor and Social Security was extended for the duration of the state of emergency.

Conclusion

The earthquakes that occurred in our country on and after 6 February 2023 have had a major impact on the regions where a state of emergency was declared, as well as on employment in the respective regions. We advise employers to closely monitor all relevant legal developments within the scope of the state of emergency.