No employer should be dishonored, but unfortunately many incidents in our country regarding employee rights come to the detriment of the employee. Many employees, who fail to see the value they earn during their working hours, may not receive severance pay and wages, which is their most fundamental right, even after they leave their jobs. Labor Act No. 4857, severance pay and severance pay sets very strict rules.

If you resign from your job for any reason, you are entitled to a severance payment and if your employment is terminated without observing the notice period, you are entitled to a severance payment. Certain conditions must of course be met in order to be entitled to compensation. After you have met these conditions, it is a good calculation that you should make. Bride what is severance pay, what is severance pay, how do you calculate severance pay and severance pay? Let’s answer the most frequently asked questions in detail.

What is a cancellation and termination fee, how is it calculated?

What is a severance payment?

According to the Labor Code No. 4857, when an employee leaves a workplace after working for a certain period of time. lump sum payment called severance pay. Except in a few cases, every employee who leaves the workplace is entitled to a certain amount of severance pay under the conditions.

What are the conditions of the severance pay?

• Being an employee in an employer’s workplace with a written or oral contract in accordance with the Labor Code No. 4857.
• Have worked continuously at the workplace or workplaces of the same employer for at least 1 year.
• Termination of the contract by the employer for unfair reasons or by the employee for valid reasons before the agreed period.

What is the limitation period for a severance payment?

The employment contract is terminated by the employer for unreasonable reasons or by him for valid reasons. The employee has 5 years to claim severance pay. An employee who does not submit a severance payment within 5 years after the termination of the employment contract cannot claim a severance payment again.

Situations in which the employee is entitled to severance pay:

• Termination of contract for health reasons
• Termination of the contract due to non-payment of claims
• The employer commits a crime against the employee
• Termination of the contract due to the employee’s military service
• Termination of contract due to changed business terms
• Employee’s pension
• Termination of the contract due to the marriage of the female employee
• Termination of the contract because the employee is a union leader
• death of the employee
• Termination of the contract due to less work for the pieceworker

Situations in which the employee is not entitled to severance pay:

• Unfaithful behavior of the employee that affects the employment relationship
• Illness of the employee as a result of own fault
• Employee gives misleading information when entering the job
• Bad behavior of the employee towards the employer and his family
• Employee who commits a crime at work
• Disclosure by the employee of the employer’s professional secrets
• If the employee commits a crime punishable by 7 days in prison
• Employee’s absence status
• Endangering the employee’s job security
• Existence of compelling reason
• Arrest of the employee

How is the severance pay calculated?

Let’s explain the severance pay calculation process with an example;

• The employee started working on 10.12.2016.
• The employee left the job on 12.02.2019.
• The employee’s gross monthly wage is 4000 TL
• There is no time to strike.
• He receives a monthly bonus of 333 TL and an annual bonus of 4000 TL.
• He receives 1500 TL of fuel assistance annually from 125 per month.
• He receives food aid from 375 TL per month to 4500 TL per year.
• He receives a language allowance of 200 TL per month and 2400 TL per year.
• He receives an additional work allowance of 666 TL per month and 8000 TL per year.
• Multiply the amount by the duration of employment 5699 TL
• Service period 2 years 4 months 2 days
• 2 years x 5699 TL = 11,398
• 4 months x 5699/12 = 1899
• 2 days x 5699 / 365 = 31
• Total severance payment due 11,398 + 1,899 + 31 = TL 13,328

You can calculate the severance pay using this example. Severance pay, is the 30-day minimum wage for each full year the employee spends. The roughest formula for the calculation process of severance pay; severance pay = 30 days wages x years of service.

What is cancellation fee?

The Labor Code no. 4857 provides that the contract between the employee and the employer is terminated. If the other party is not informed in accordance with the notice period, is entitled to compensation. If the employee does not comply with this term, the employer is entitled to a severance payment if the employer does not comply with this term.

What are the cancellation periods?

• Termination if the employee has worked for less than 6 months 2 weeks ago not informing the other party
• Termination if the employee has worked for 6 months – 1.5 years 4 weeks ago not informing the other party
• Termination if the employee has worked for 1.5 years – 3 years 6 weeks ago not informing the other party
• Termination if the employee has worked for more than 3 years 8 weeks ago not informing the other party

How is the cancellation fee calculated?

• When the employee has worked for less than 6 months 2 weeks wages notice compensation.
• If the employee works 6 months – 1.5 years amounting to 4 weeks’ wages notice compensation.
• If the employee has worked for 1.5 years – 3 years amounting to 6 weeks’ wages notice compensation.
• Where the employee has worked for more than 3 years amounting to 8 weeks’ wages notice compensation.

Calculation of cancellation fee by example To tell you;

• The employee started working on 10.12.2016.
• The employee left the job on 10.12.2017.
• In other words, he worked in the range of 6 months – 1.5 years, the severance pay is the amount of 4 weeks of wages.
• The gross monthly wage of the employee is 2800 TL
• He receives a monthly bonus of 233 TL and an annual bonus of 2800 TL.
• He receives food aid from 426 TL per month to 5000 TL per year.
• He receives a language allowance of 166 TL per month and 2000 TL per year.
• The amount to be multiplied by 4 weeks, so 1 month, is 3615 TL
• 1 month (4 weeks) x 3615 = 3615 TL
• The above cancellation fee is 3615 TL

One of the most fundamental rights of an employee, in whatever sector he works. what is severance pay, what is severance pay, how is it calculated? We answered the frequently asked questions and talked about the details you need to know about the topic. What we describe is for informational purposes only. You can get the most accurate and specific information on the subject from attorneys who are experts in the subject.