Ending an employment relationship is where Turkish employment law is at its most formal, and where mistakes are most expensive. Turkey (Türkiye) has no "at will" employment: the reason for termination, the way it is communicated and the paperwork that follows all determine whether the employer faces claims for severance pay, notice pay, reinstatement or compensation. Almost every employment dispute must also go through mandatory mediation before reaching the labour courts.
This guide explains the ways employment ends in Turkey, the payments that may be due, the rules that protect employees against unfair dismissal and a practical offboarding checklist. It completes the employment section of our series alongside hiring employees and onboarding.
Key points
- Employment can end by resignation, termination with notice, termination for just cause, mutual agreement, expiry of a fixed term or retirement. Each route has different consequences.
- Statutory notice periods range from two to eight weeks depending on length of service, and notice can be replaced by pay in lieu.
- Employees with at least one year's service who leave on qualifying grounds are entitled to severance pay of 30 days' gross wage per year of service, subject to a statutory ceiling that is updated twice a year.
- Where the job security regime applies, dismissals must be based on a valid reason given clearly in writing, and conduct or performance dismissals generally require the employee's defence to be taken first, other than immediate just-cause terminations.
- Mediation is mandatory before most employment claims, and a settlement reached in mediation is final and enforceable.
How can employment end in Turkey?
| Route | Main features | Severance pay? | Notice pay? |
|---|---|---|---|
| Resignation by the employee | Employee gives the statutory or contractual notice | Generally no, unless the employee resigns for just cause or on another statutory ground | No, unless the employer waives notice |
| Termination by the employer with notice | Employer ends an indefinite contract, giving notice or pay in lieu; valid reason required where job security applies | Yes, if the employee has at least one year's service | Notice given, or pay in lieu |
| Termination for just cause by the employer | Immediate termination for serious grounds listed in the Labour Law | Not where the ground is serious misconduct under Article 25(II) | No |
| Termination for just cause by the employee | Immediate resignation for grounds listed in the Labour Law, such as non-payment of wages | Yes, if the employee has at least one year's service | No |
| Mutual termination (ikale) | Termination agreement signed by both parties | Depends on the agreement | Depends on the agreement |
| Expiry of a fixed-term contract | Contract ends automatically on its end date | Severance may be due in some cases | No |
| Retirement and other statutory grounds | Including retirement, military service and, for female employees, within one year of marriage | Yes, if the employee has at least one year's service | No |
Notice periods and pay in lieu
For indefinite-term contracts, Article 17 of the Labour Law sets minimum notice periods by length of service:
| Length of service | Minimum notice |
|---|---|
| Less than six months | Two weeks |
| Six months to one and a half years | Four weeks |
| One and a half to three years | Six weeks |
| More than three years | Eight weeks |
Contracts may provide for longer notice, but not shorter. The employer can end the contract immediately by paying the wages for the notice period in advance (pay in lieu of notice). During the notice period, the employer must give the employee at least two hours a day of paid time off to look for a new job. The employee may combine these hours into whole days if they notify the employer. If job-search time is not given, the wages for that time are payable; if the employee is required to work during it, the wages are payable with a 100% premium.
Failing to give the correct notice entitles the other party to notice compensation equal to the wages for the notice period.
Severance pay (kıdem tazminatı)
Severance pay is one of the most significant termination costs in Turkey. In general terms:
- Eligibility: the employee must have at least one year of service with the employer, and employment must end on a qualifying ground. Qualifying grounds include termination by the employer other than for serious misconduct, resignation by the employee for just cause, retirement, compulsory military service and, for female employees, resignation within one year of marriage.
- Amount: 30 days' gross wage for each full year of service, with partial years counted proportionately. Regular benefits paid in cash or in kind, such as meal or transport allowances, are generally included in the calculation base.
- Ceiling: the daily wage used in the calculation cannot exceed a statutory ceiling, which is updated twice a year in line with public sector pay. Use the ceiling in force on the termination date.
- Timing and interest: severance is due on termination, and late payment generally attracts interest at the highest deposit rate applied by banks.
- Tax: severance pay within the legal limits is generally exempt from income tax, but stamp duty applies. See the tax guide.
Resigning employees generally do not receive severance pay unless they resign on one of the qualifying grounds.
Termination for just cause
Articles 24 and 25 of the Labour Law list the situations in which the employee or the employer may end the contract immediately for just cause. For employers, these include health reasons in specified cases, conduct contrary to morality and good faith (such as dishonesty, theft, harassment, unexcused absence for two consecutive working days or a set number of days in a month, and serious breach of duties), force majeure preventing work for more than a week, and the employee's prolonged detention.
Termination for just cause on grounds of conduct must be exercised within six working days of the employer learning of the event, and in any case within one year of the event itself (unless the employee obtained a material benefit). Delay can mean the right is lost. Just cause dismissals are strictly reviewed by the courts, so evidence, witness statements and a written record of the employee's explanation are essential.
Job security: dismissals that need a valid reason
Where the job security regime applies, generally to employees with at least six months' service on indefinite-term contracts who work for an employer with 30 or more employees, the employer must have a valid reason for dismissal related to:
- the employee's capacity, such as persistent underperformance;
- the employee's conduct, such as repeated breaches of workplace rules; or
- the operational requirements of the business, such as restructuring or closing a department.
Procedure
- The termination notice must be in writing and state the reason clearly and precisely. The employer cannot later rely on reasons not stated in the notice.
- Before dismissing for conduct or performance, the employer must generally ask for the employee's written defence (savunma).
- For operational reasons, the employer should be able to show that the decision was genuine, consistently applied and a last resort, for example by considering redeployment.
Reinstatement claims
An employee who believes the dismissal lacked a valid reason can challenge it within one month of receiving the termination notice, starting with mandatory mediation. If mediation fails, the employee can file a claim at the labour court within the statutory period after the final mediation report. If the court finds the dismissal invalid and orders reinstatement, and the employer does not reinstate the employee within the statutory period after the employee applies, the employer must pay compensation of four to eight months' wages. In addition, wages and benefits for up to four months of the time the employee was out of work are payable.
Dismissals related to trade union membership or activity attract additional union compensation.
Collective dismissals
Article 29 of the Labour Law applies where an employer plans to dismiss a significant number of employees within one month for economic, technological, structural or similar reasons. Very broadly, the thresholds are at least 10 employees at workplaces with 20 to 100 employees, at least 10% of employees at workplaces with 101 to 300 employees, and at least 30 employees at workplaces with 301 or more. The employer must notify the workplace union representatives, the regional directorate of the Ministry of Labour and Social Security, and the Turkish Employment Agency (İŞKUR) in writing at least 30 days before the dismissals, giving the reasons, numbers and timing, and must consult the union representatives. Dismissals take effect no earlier than 30 days after the notification.
Because the thresholds and procedure are technical, a planned restructuring should be mapped out before any announcement. Workforce changes are also a common issue after a business is bought, as discussed in our guide to acquisitions and joint ventures.
Mandatory mediation and settlements
Under the Labour Courts Law (No. 7036), most claims based on the law or the employment contract, including severance, notice pay, wages, overtime and reinstatement, must first go to mediation (arabuluculuk). Only if mediation fails can the claim proceed to the labour court.
Mediation is also a practical tool for employers. A settlement agreement signed by the parties at the end of a successful mediation has the effect of a court judgment and generally cannot be challenged later on the matters it covers. Many employers use mediation deliberately to close a termination on agreed terms. Our dispute resolution page and the article Understanding Employment Disputes and Employer Rights in Turkey explain the litigation side.
Release documents (ibraname)
Many employers ask departing employees to sign a release (ibraname) confirming they have received everything due. Under Article 420 of the Turkish Code of Obligations, a release is only valid if it is:
- in writing;
- signed at least one month after the employment contract has ended;
- specific about the type and amount of each receivable; and
- matched by payment of the full amounts through the bank.
Releases that do not meet these conditions, or that are signed on the last day of employment, are generally treated only as receipts for the amounts actually paid. A mediation settlement is usually the more reliable way to close all claims.
Mutual termination agreements (ikale)
Employer and employee can agree to end employment by a written termination agreement (ikale sözleşmesi). Courts look closely at these agreements, particularly when the employer proposes them. If the employer initiates the agreement, the employee should generally receive a reasonable benefit beyond their legal entitlements, typically an additional payment above severance and notice pay, and the employee should have had a genuine opportunity to consider the offer. An agreement that lacks a reasonable benefit or was signed under pressure may be set aside.
SGK exit notification, final pay and documents
When employment ends, the employer must:
- Notify SGK of the end of employment within 10 days, selecting the correct exit code (çıkış kodu). The code affects the employee's access to unemployment benefits and must reflect the real reason for termination; an inconsistent code can undermine the employer's position in a later dispute.
- Pay all final amounts, including salary to the last day, pay for unused annual leave, any notice pay and severance due, and pro-rata bonuses or benefits under the contract or company policy, through the bank.
- Issue a work certificate (çalışma belgesi) under Article 28 of the Labour Law, stating the type and duration of the work. The employer must not include statements that would unfairly harm the employee.
- File the final payroll and the related tax and social security declarations.
Non-compete, confidentiality and company property
Non-compete clauses
Post-employment non-compete clauses are governed by Articles 444 to 447 of the Turkish Code of Obligations. To be enforceable, a non-compete must generally:
- be agreed in writing;
- apply only where the employee had access to customer information, trade secrets or business information that could cause the employer significant harm;
- be limited in place, time and type of activity, so that it does not unfairly restrict the employee's economic future; and
- not exceed two years, except in special circumstances.
A non-compete may lapse if the employer ends the contract without a justified reason, or if the employee resigns for a reason attributable to the employer. Courts can reduce excessive restrictions.
Confidentiality and data
Confidentiality obligations continue after employment ends. At departure:
- recover laptops, phones, access cards, documents and other company property, with a signed return form
- disable system access promptly
- deal with the employee's personal data in line with the KVKK, keeping what the law and potential claims require and deleting or anonymising the rest when retention periods expire. Data held in group systems abroad is also subject to the cross-border transfer rules
Foreign employees
When a foreign employee leaves before their work permit expires, the employer must generally notify the Ministry of Labour and Social Security within 15 days. The employee's right to remain in Turkey on the basis of that permit ends, and they may need another permit or residence basis to stay. See work permits for foreign staff.
Limitation periods
Claims for severance pay, notice pay, annual leave pay, wages and similar receivables are generally subject to a five-year limitation period. Reinstatement claims are subject to the much shorter one-month period described above. Statutory retention periods for employment, payroll and social security records can be longer than the limitation periods (social security legislation, for example, generally requires 10 years), so retention should be checked for each type of record.
Offboarding checklist
| Stage | Action |
|---|---|
| Before deciding | Confirm the reason, gather evidence, check whether job security or collective dismissal rules apply |
| Conduct or performance cases | Request and record the employee's written defence |
| Termination notice | Written, signed, stating the reason clearly, with the notice period or pay in lieu |
| Calculations | Notice pay, severance (using the ceiling on the termination date), unused leave, final salary and pro-rata benefits |
| Settlement | Consider a mediation settlement or a properly drafted ikale with a reasonable benefit |
| Payments | All amounts paid through the bank, with payslips |
| SGK | Exit notification within 10 days with the correct exit code |
| Foreign employees | Notify the Ministry within 15 days if a work permit was held |
| Documents | Work certificate issued; release documents only in compliant form |
| Property and access | Equipment returned, system access removed, return form signed |
| Records | Personnel file completed and retained for the statutory retention periods |
For the wider framework, see Employment Law in Turkey (Türkiye): A Practical Legal Q&A Guide for Foreign Employers, A Handbook for Foreign Investors and Employers on Turkish Employment Law, Recent Developments in Turkish Employment Law for 2025 and the overview in Doing Business in Turkey.
Frequently asked questions
Can an employer dismiss an employee in Turkey without a reason?
Where the job security regime applies, the employer needs a valid reason related to the employee's capacity, conduct or the operational needs of the business, stated clearly in writing. The regime is explained in our hiring employees guide. Where it does not apply, for example at employers with fewer than 30 employees or for employees with less than six months' service, notice must still be given and dismissals must not be abusive, discriminatory or in bad faith. Severance and notice rules apply in both cases.
How much notice must be given in Turkey?
Under Article 17 of the Labour Law, the minimum notice is two weeks for service under six months, four weeks for six months to one and a half years, six weeks for one and a half to three years, and eight weeks for more than three years. Contracts may provide for longer periods. The employer can pay wages for the notice period instead of requiring the employee to work.
Who is entitled to severance pay in Turkey?
Employees with at least one year of service whose employment ends on a qualifying ground are entitled to severance pay. Qualifying grounds include termination by the employer other than for serious misconduct, resignation by the employee for just cause, retirement, military service and, for female employees, resignation within one year of marriage. Employees who simply resign are generally not entitled.
How is severance pay calculated?
Severance pay is 30 days' gross wage for each full year of service, with partial years counted proportionately, including regular cash and in-kind benefits. The daily wage used cannot exceed the statutory severance ceiling, which is updated twice a year. The ceiling in force on the termination date applies.
How quickly must an employer act after discovering misconduct?
Termination for just cause on conduct grounds must be made within six working days of the employer learning of the event, and within one year of the event itself unless the employee obtained a material benefit. If the employer waits longer, it may lose the right to terminate on that basis.
What is a reinstatement claim?
An employee covered by the job security regime who believes they were dismissed without a valid reason can challenge the dismissal within one month of receiving notice, starting with mandatory mediation. If the court orders reinstatement and the employer does not reinstate the employee, the employer must pay four to eight months' wages as compensation, plus up to four months' wages for the period out of work, provided the employee applies to return within the statutory period.
Is mediation mandatory for employment disputes in Turkey?
Yes. Under Law No. 7036, most employment claims, including severance, notice, wage and reinstatement claims, must go to mediation before a lawsuit can be filed. A settlement reached in mediation is final and enforceable, which makes mediation a useful way to close a termination on agreed terms.
Is a release form signed on the last day of work valid?
Generally not. A release (ibraname) under Article 420 of the Turkish Code of Obligations must be signed at least one month after the contract ends, state the type and amount of each receivable and be matched by payment through the bank. Otherwise it usually counts only as a receipt for the amounts actually paid.
What is an ikale agreement?
An ikale is a mutual termination agreement. When the employer proposes it, Turkish courts generally expect the employee to receive a reasonable additional benefit beyond their statutory entitlements and to have entered the agreement freely. Agreements that do not meet these standards may be set aside.
When must SGK be notified that employment has ended?
The employer must notify the Social Security Institution within 10 days of the end of employment, using the exit code that reflects the actual reason for termination. The code affects the employee's eligibility for unemployment benefits, and an inaccurate code can cause problems in a later dispute.
Are non-compete clauses enforceable in Turkey?
They can be, if agreed in writing, justified by the employee's access to customers or trade secrets, and reasonably limited in place, time and type of activity, generally to a maximum of two years. Courts can reduce excessive restrictions, and a non-compete may lapse if the employer ends the contract without a justified reason.
What extra steps apply when a foreign employee leaves?
In addition to the normal steps, the employer must generally notify the Ministry of Labour and Social Security within 15 days when a foreign employee's employment ends before their work permit expires. The employee's residence on the basis of the permit also ends. See work permits for foreign staff.
How long can former employees bring claims?
Claims for severance pay, notice pay, wages, overtime and annual leave pay are generally subject to a five-year limitation period. Reinstatement claims must be started within one month of the termination notice. Statutory record-retention periods can be longer (for example, generally 10 years under social security legislation), so records should be kept for the longer of the two.
This guide is general information about Turkish law and practice at the date shown above. It is not legal, tax or customs advice and should not be relied on as such. Rules, thresholds and procedures in Türkiye change frequently and their application depends on the facts, so take advice on your own circumstances before acting. Advice on Turkish law is provided through lawyers qualified in Türkiye.