During the termination of an employment contract, employers—similar to employees—face specific legal requirements and procedural complexities. The employer's right to terminate an employment contract immediately for just cause is regulated under Article 25 of the Turkish Labor Law No. 4857. Regardless of whether the contract is for a fixed or indefinite term, the employer may terminate the contract before its term expires or without observing statutory notice periods under the following circumstances:

I. Health Reasons

  • a) If the employee contracts an illness or becomes disabled due to their own deliberate act, loose lifestyle, or alcohol abuse, and the resulting absenteeism exceeds 3 consecutive working days or more than 5 working days in a month.
  • b) If an official Medical Board determines that the employee's illness is incurable and that working at the workplace is medically hazardous.

For other health-related absenteeism (such as illness, accident, pregnancy, or childbirth), the employer's right to terminate without notice arises only after the absenteeism exceeds the employee's statutory notice period by 6 weeks. In cases of pregnancy and childbirth, this 6-week period begins at the end of the statutory maternity and breastfeeding leave periods. No wages accrue while the employment contract is suspended.

II. Cases Inconsistent with Ethics, Good Faith, and Similar Situations

  • a) If the employee misleads the employer by claiming to possess essential qualifications required for the job despite lacking them, or by providing false information when the contract is concluded.
  • b) If the employee utters offensive words or engages in conduct against the honor and dignity of the employer or a member of their family, or makes unfounded allegations against the employer.
  • c) If the employee sexually harasses another employee of the employer.
  • d) If the employee assaults or harasses the employer, their family members, or a co-worker, or comes to the workplace intoxicated or under the influence of drugs, or uses such substances at the workplace.
  • e) If the employee commits acts inconsistent with honesty and loyalty, such as breach of trust, theft, or disclosing professional/commercial secrets of the employer.
  • f) If the employee commits an offense at the workplace punishable by imprisonment for more than 7 days without a suspended sentence.
  • g) If the employee fails to attend work without permission or a valid excuse for 2 consecutive working days, or twice on the working day following a holiday in a month, or 3 working days in a month.
  • h) If the employee persistently refuses to perform assigned duties after being instructed to do so.
  • i) If the employee endangers workplace safety due to intentional misconduct or gross negligence, or damages/loses machinery, equipment, or goods owned by or under the custody of the workplace to an extent that cannot be covered by 30 days of their gross wages.

III. Force Majeure

If compelling reasons arise at the workplace preventing the employee from working for more than one week.

IV. Detention or Arrest of the Employee

If the absenteeism resulting from the employee's detention or arrest exceeds the statutory notice period.

Statutory Limitation Periods and Procedure

Under Article 26 of Turkish Labor Law No. 4857, statutory limitation periods apply exclusively to terminations based on "Breaches of Ethics and Good Faith" (Category II). The employer must exercise the right to terminate within 6 working days from learning of the incident, and in any event within 1 year from its occurrence. Otherwise, the employer is deemed to have waived this right. However, the 1-year limitation does not apply if the employee gained a financial benefit from the misconduct.

Alignment Between SGK Termination Codes and Grounds for Dismissal

Strict alignment between the grounds stated in the termination notice and the Social Security Institution (SGK) termination code is legally critical. In practice, choosing an incorrect or contradictory SGK code may lead courts to deem the termination unjust, resulting in adverse legal liabilities for the employer.

Financial Consequences Following Just Cause Termination

If the employment contract is terminated immediately by the employer for the just causes listed above, the employee is not entitled to severance pay or notice pay. However, the employee's accrued but unpaid rights—including:

  • Basic wage/salary claims,
  • Overtime pay,
  • Weekly rest pay,
  • National and public holiday (UBGT) pay,
  • Unused annual leave pay,

must be fully paid to the employee regardless of whether the termination was for just cause.

Conversely, if an employee abruptly resigns without just cause and without observing the statutory notice period, the employer has the right to claim notice indemnity from the employee based on their length of service.

Disclaimer: The information above is provided for general guidance only and does not constitute formal legal advice for specific situations. Consulting a qualified attorney for specific legal disputes is strongly recommended.