Severance pay

Severance pay (kıdem tazminatı) is a lump sum owed to an employee whose contract ends in circumstances listed by statute, calculated on length of service. It is based on the employee's final gross wage including regular benefits, for each full year of service, with proportional payment for remaining months.

Entitlement requires completion of the minimum statutory seniority and depends on how the employment ends. Dismissal without just cause, resignation for just cause, retirement, military service and, for female employees, resignation within a period following marriage are typical qualifying grounds. Dismissal for immoral or bad-faith conduct, or resignation without cause, in principle defeats the claim.

The amount per year of service is capped by a statutory ceiling updated periodically, and the claim is subject to a statutory limitation period. Pressuring employees to sign resignation letters to defeat severance rights is the most frequent source of litigation in this area.