Dismissing an employee in Türkiye carries significant legal and financial risk if not handled correctly. Turkish labour law is highly protective of employees — particularly those with more than six months’ service — and the consequences of wrongful termination can be severe.

The Statutory Framework

Employment in Türkiye is primarily governed by the Labour Law (İş Kanunu No. 4857). The law distinguishes between definite-term and indefinite-term employment contracts, and between dismissals with and without just cause. The protections available — and the costs of getting termination wrong — differ significantly depending on which category applies.

Job Security Protections

Employees employed for at least six months in a workplace with thirty or more employees are entitled to job security protection (iş güvencesi). For these employees, termination without valid reason entitles them to bring a reinstatement lawsuit within one month of written notice of dismissal.

If the court finds the dismissal invalid, the employer must reinstate the employee — or pay compensation of between four and eight months’ salary plus unpaid wages during litigation (up to four months). The total cost of a wrongful dismissal finding can equal one to two years of the employee’s gross salary.

Valid Reasons for Dismissal

Turkish law requires all dismissals of job-security-protected employees to be based on a valid reason: reasons related to the employee’s conduct or capacity, or operational reasons such as restructuring or redundancy. Economic difficulty alone does not generally suffice — courts will scrutinize whether dismissal was genuinely necessitated by operational requirements.

Notice and Severance

Where dismissal is without just cause, the employer must give statutory notice or pay a notice indemnity (ihbar tazminatı) in lieu. Notice periods range from two to eight weeks depending on length of service. Severance pay (kıdem tazminatı) — calculated at thirty days’ gross salary per year of service — is payable in most circumstances.

Mandatory Mediation

Since 2018, employees must first apply to a mediator before filing most employment law claims. The mediation phase typically takes two to four weeks. For employers, it provides an opportunity to resolve disputes early — often at lower cost than litigation. Well-prepared employers who engage constructively can frequently achieve settlements on favorable terms.

Practical Recommendations

• Always prepare a written termination notice stating the valid reason for dismissal
• Document performance management procedures before proceeding to dismissal
• Calculate severance and notice pay carefully, taking account of all remuneration components
• Consider a mutual termination agreement (ikale) where appropriate — ensure the employee receives adequate additional compensation to confirm validity
• Take legal advice before any dismissal of an employee with significant tenure or seniority

This article is provided for informational purposes only and does not constitute legal advice.