Severance pay, or “kıdem tazminatı”, is a critical entitlement under Turkish Labor Law that protects employees during employment termination due to resignation with valid reasons, retirement, military service, or termination by employer without fault. Istanbul Law Firm, a leading Turkish Law Firm, advises both employers and employees on eligibility conditions, calculation rules, payment timelines and litigation processes. Our Turkish Lawyers ensure that termination compensation calculations comply with Article 14 of the Labor Law and align with contract terms, collective bargaining agreements, and union provisions. We support HR departments with severance clause drafting, termination processing flowcharts, and internal audit compliance. As the best lawyer firm in Turkey for employment and labor law services, we provide bilingual guidance through our English speaking lawyer in Turkey. This fully detailed guide explores rights, obligations, calculations, exceptions, procedural timelines, and legal enforcement options—all in one resource.
1. Eligibility Requirements for Severance Pay
To be entitled to severance pay under Turkish law, an employee must have worked continuously for at least one year and leave their job due to reasons covered by law—common causes include employer’s unilateral termination without fault, retirement, military service, or death. Istanbul Law Firm’s Turkish Lawyers verify employment records, contract clauses, and legal grounds for eligible terminations. We also counsel employees who resign for justifiable reasons—such as unpaid wages or unsafe working conditions—to claim severance. Our firm reviews unofficial payment evidences, bonus history, and work time details to calculate entitlement precisely. Employers benefit from standardized termination documentation and discharge agreements that clearly signal severance flow. As a resourceful Turkish Law Firm, we help businesses reduce disputes and liabilities. Our English speaking lawyer in Turkey ensures international staff understand eligibility criteria step by step.
Our team evaluates related cases involving temporary contract expiry, layoff scenarios, and redundancy considerations. For fixed-term contracts, termination will still trigger severance if the contract is not renewed. Istanbul Law Firm educates HR professionals about severance eligibility in collective agreement environments. Employees whose workplace closes due to business sale or relocation are also covered. We prepare coverage memos detailing seniority, disciplinary history, and resign reasons to determine payout obligation. With our plain-language communication, clients avoid misunderstanding and legal claims."
2. Severance Pay Calculation: Salary Components
Severance pay is calculated based on half-month gross salary for each full year of service, factoring in base salary, statutory bonuses, regular allowances, and weighted average components. Istanbul Law Firm’s Turkish Lawyers gather payroll records, bonus histories, and additional benefit materials to determine the “severance base.” We verify that overtime, premium pay, and in-kind benefits are included per Supreme Court rulings. Our calculation spreadsheets and audit templates ensure accuracy and transparency. As a legally precise Turkish Law Firm, we help HR departments avoid miscalculations. Our English speaking lawyer in Turkey explains gross vs. net salary differences and social security bases to foreign executives."
The calculation must reflect inflation adjustments and recent salary changes per monthly indices. If the employment contract or collective agreement provides higher severance terms, those apply. Istanbul Law Firm integrates inflation updates, previous severance payments, and withdrawal deductions to calculate net entitlement. We audit retirement and resignation impact on payouts. As the best lawyer firm in Turkey, we ensure that no contractual or statutory benefits are overlooked. Clients benefit from calculation certainty and defensible financial positions."
Employers are obligated to pay severance within 30 days of employment termination or within a longer period defined by collective agreements. Istanbul Law Firm ensures payroll systems trigger severance correctly together with final payday. We draft payment notices, settlement letters, and calculate withholding obligations. For delayed payments, late payment interest and administrative penalties may apply. Our Turkish Lawyers also assist in agreements to spread large severance payments, ensuring tax and labor compliance."
3. Employer Obligations, Records & Taxation
Employers in Turkey are legally required to document severance pay calculations, maintain signed discharge forms, and submit related payroll records to the tax office and Social Security Institution (SGK). Istanbul Law Firm advises HR departments on drafting discharge protocols, severance acknowledgment letters, and signed mutual settlement documents. Our Turkish Lawyers review whether SGK premiums and income taxes were correctly applied to severance portions when applicable. We also ensure employers file accurate Muhtasar SGK declarations and payroll summaries during termination periods. For large payouts, we develop installment plans or deferred payment structures approved by the labor court. As a compliant Turkish Law Firm, we protect businesses from penalties during labor or financial audits. Our English speaking lawyer in Turkey assists foreign-managed firms in localizing their payroll documentation for Turkish compliance authorities.
Employers must keep severance records for a minimum of 10 years, and disputes may arise long after termination. Istanbul Law Firm helps clients develop centralized HR archive systems and audit trails that align with labor litigation defense. Our Turkish Lawyers support digitalization of termination files, consent forms, and SGK declarations. In collective agreement workplaces, we verify that severance terms align with union-bargained clauses and sectoral minimums. For international HR teams, our English speaking lawyer in Turkey builds dual-language document packs to ensure every file meets both legal and operational expectations. With our support, severance compliance becomes a business strength—not a risk area.
We also train HR managers on taxation issues related to severance, including exemptions for retirement and military service cases. Istanbul Law Firm prepares tax memos comparing different severance triggers and their withholding impact. Our Turkish Lawyers liaise with CPAs and tax offices to ensure proper treatment of lump sum severance on personal income tax filings. Our guidance prevents double taxation and helps employers avoid fines or late interest. Tax-smart severance is not just possible—it’s essential for long-term employer reputation and financial compliance.
4. Disputes, Court Claims & Enforcement Procedures
Disagreements over severance eligibility, calculation, or non-payment frequently result in labor court lawsuits. Istanbul Law Firm represents both employees and employers in mediation sessions, court filings, and enforcement proceedings. Our Turkish Lawyers prepare detailed petitions, gather witness testimony, and build evidence from time cards, contracts, payroll slips, and SGK records. We represent employees claiming underpayment, discriminatory termination, or procedural violations. We also defend employers in cases alleging bad faith terminations or excessive payout demands. As a results-driven Turkish Law Firm, we aim to settle before trial where possible, but pursue full litigation when necessary. Our English speaking lawyer in Turkey provides full support for expat clients navigating the Turkish legal system.
Labor lawsuits regarding severance must be filed within 5 years of termination. Istanbul Law Firm ensures employees meet all procedural deadlines and prepares timely filings. We also challenge late or bad faith lawsuits by invoking statute of limitation defenses. For employers, we audit internal records to show lawful termination and voluntary resignation where applicable. Our Turkish Lawyers act as courtroom counsel and prepare appellate briefs if judgments are disputed. Our firm’s litigation team tracks court precedent to adjust strategies in real time. With us, labor disputes are managed smartly, efficiently, and within legal limits.
Once severance is awarded by court, enforcement procedures may involve asset seizure, wage garnishment, or lien registration. Istanbul Law Firm represents clients during execution by preparing payment protocols, bank account release letters, and installment plans. Our Turkish Lawyers also negotiate with bailiffs and financial institutions for compliance relief where needed. With our litigation-to-enforcement support, severance becomes a settled matter—not an ongoing risk. Our English speaking lawyer in Turkey ensures clients remain informed from filing to final payment.
5. Voluntary Settlements, Mediation & Release Agreements
Many severance pay disputes are resolved through voluntary settlement rather than court litigation. Istanbul Law Firm facilitates amicable resolutions by preparing bilingual release agreements, mutual separation protocols, and mediation statements. Our Turkish Lawyers guide clients through registered mediation (zorunlu arabuluculuk), a mandatory precondition for labor lawsuits. We structure payment schedules, tax clauses, and non-disparagement terms to ensure post-termination peace. Employers benefit from reduced litigation risk, and employees receive clarity on entitlements. As a resolution-focused Turkish Law Firm, we support durable, respectful separation strategies. Our English speaking lawyer in Turkey supports expat executives and foreign HR in aligning global severance practices with local enforcement norms.
We draft enforceable release forms that include waiver of future claims, acknowledgment of payment, and receipt of final settlement. Istanbul Law Firm ensures every settlement is submitted to the court registry or notarized for full legal force. Our Turkish Lawyers integrate templates into employer HR systems for ongoing use. For cross-border employees, we align releases with governing law, tax residency, and benefit recognition rules. Our English speaking lawyer in Turkey bridges employment law gaps between Turkey and foreign headquarters. With our guidance, a signed agreement brings true closure—not hidden legal exposure.
We also advise on strategic settlements when employment ends under strained or controversial circumstances. Istanbul Law Firm assists in negotiating confidentiality clauses, one-time bonuses, or reemployment restrictions within the separation protocol. Our Turkish Lawyers structure payments that are tax-efficient while satisfying employee expectations. We coordinate with accountants and in-house counsel to present severance as a business strategy—not a forced burden. With us, your end-of-service processes are smart, structured, and secure.
6. Retirement, Military Service & Gender-Specific Severance Rights
Retirement-triggered severance occurs when an employee resigns voluntarily after completing 15 years of insured service and 3600 premium days under SGK rules. Istanbul Law Firm assists employees in obtaining “retirement entitlement letters” from SGK and coordinating resignation formalities. Our Turkish Lawyers also advise employers on mandatory severance calculation based on the full employment period. We ensure retirement-related resignations are classified correctly to avoid future disputes. Our English speaking lawyer in Turkey supports foreign retirees navigating Turkish documentation. Istanbul Law Firm ensures retirement is a respected and correctly compensated milestone for both parties.
For male employees, conscription (military service) is a legally accepted ground for resignation and severance entitlement. Istanbul Law Firm helps clients prepare call-up letters, SGK notifications, and termination processing documents. Our Turkish Lawyers verify timing, documentation, and reemployment eligibility rules under Turkish Labor Law. Employers are also advised on non-discriminatory treatment and rehire offers if the employee returns post-service. Our English speaking lawyer in Turkey prepares all documents in English and Turkish to ensure understanding and proper processing. Istanbul Law Firm aligns labor, tax, and SGK obligations for military-based severance.
Female employees enjoy special severance rights related to marriage and maternity. A woman who resigns within one year of marriage is entitled to full severance under Article 14 of Labor Law. Istanbul Law Firm provides resignation letter templates and marriage certificate translation assistance. Our Turkish Lawyers help HR departments avoid discrimination claims and guide internal processing. Maternity leave and return rights are also protected by law—violations may trigger severance claims. Our English speaking lawyer in Turkey assists foreign female professionals in protecting their rights during transitions. Istanbul Law Firm defends equality with precision and compassion.
7. Collective Labor Agreements & Sectoral Severance Enhancements
In workplaces covered by collective labor agreements (CLAs), severance pay rights often exceed the statutory minimums. Istanbul Law Firm reviews each CLA clause and aligns employment contracts accordingly. Our Turkish Lawyers analyze industry-wide and enterprise-level CLAs to determine enhanced severance coefficients, calculation formulas, and eligibility exceptions. We help employers integrate these terms into HR systems and ensure accounting reserves reflect collective obligations. Employees benefit from elevated severance multipliers, additional bonuses, or early vesting clauses. As the best lawyer firm in Turkey for union-sector labor law, we help parties understand their exact entitlements. Our English speaking lawyer in Turkey bridges negotiations between international HR and Turkish unions, ensuring no misinterpretation occurs during employment separation.
We also monitor sector-specific standards in industries like banking, petroleum, construction, aviation, and shipping. Istanbul Law Firm prepares benchmark tables that compare statutory and CLA severance levels to manage cost expectations. Our Turkish Lawyers coordinate with CPAs and labor auditors to verify fund provisioning and payment compliance. In union audits, we represent employers during Ministry inspections and file defense briefs. Our English speaking lawyer in Turkey ensures group companies and foreign investors adhere to their CLA-linked responsibilities with clarity and control.
We assist unionized workers with individual severance claims where employers refuse to apply enhanced CLA clauses. Istanbul Law Firm files labor lawsuits, negotiates with union representatives, and obtains judicial confirmation of entitlement. Our Turkish Lawyers draft demand letters that reference precedent rulings and industry standards. With our legal guidance, CLA rights are not optional—they are enforceable, calculated, and respected.
8. Strategic Severance Planning for HR, M&A and Restructuring
Strategic severance planning is essential during mergers, acquisitions, or restructuring to avoid financial surprises and legal liability. Istanbul Law Firm advises boards and HR executives on workforce risk assessment, cost simulations, and benefit alignment. Our Turkish Lawyers prepare severance matrices listing department, tenure, and liability amounts—supporting pre-deal due diligence. We design exit plans that are equitable, budgeted, and legally protected. In M&A, we help structure asset transfer clauses, employee transfer options, and severance carve-outs. Our English speaking lawyer in Turkey assists global buyers and investors in managing Turkish severance law impact within share purchase agreements.
During restructuring, we help employers reduce labor litigation risk by offering early retirement, voluntary exit, or mutual separation protocols. Istanbul Law Firm’s Turkish Lawyers prepare notices, settlement contracts, and internal communication scripts. We advise management on preserving workplace morale and media reputation while meeting restructuring targets. Our English speaking lawyer in Turkey prepares project timelines, cost forecast reports, and bilingual executive briefings for foreign board review.
Severance is not just an end-of-service payment—it is a financial and reputational decision. Istanbul Law Firm ensures every exit is legally sound, financially controlled, and ethically executed. With our guidance, even difficult workforce transitions become a model of legal strategy and human respect.
Frequently Asked Questions (FAQ)
- Who is eligible for severance pay in Turkey? – Employees with at least one year of continuous service whose employment ends under qualifying legal conditions.
- What is the severance formula in Turkey? – One month’s gross wage per full year of employment, with components like base salary, bonuses, and allowances included.
- Is severance taxable? – Normally yes, but retirement, military, or marriage-triggered resignations may be partially tax exempt.
- Do foreigners get severance pay in Turkey? – Yes. All legal employees are entitled to severance under the Labor Law regardless of nationality.
- Can severance be waived? – Only through a properly signed, notarized, or court-approved release agreement. We draft these legally.
- What if my employer doesn’t pay? – You can file a labor court lawsuit within 5 years and request execution if awarded.
- Can I claim severance after voluntary resignation? – Only in cases of justified resignation (e.g. unpaid wages, unsafe conditions, or special legal reasons like marriage or military).
- Do temporary workers get severance? – Possibly. If contract renewals suggest indefinite employment, courts may award severance.
- Can severance be paid in installments? – Yes, if agreed mutually or ordered by court. We structure payment protocols and enforce them legally.
- Are retirement or military resignations eligible? – Absolutely. These are protected severance entitlement categories under Turkish Labor Law.
- Can Istanbul Law Firm help employers and employees? – Yes. We advise both sides with full confidentiality and legal compliance in mind.
- Who is the best lawyer in Turkey for severance law? – Istanbul Law Firm—recognized as the best lawyer firm in Turkey for labor law, severance disputes, and HR compliance.
Contact Our Turkish Severance Pay Lawyers Today
Need legal clarity on severance rights or obligations? Istanbul Law Firm provides expert labor law guidance to protect employers and empower employees. Our experienced Turkish Lawyers and English speaking lawyer in Turkey deliver fast, compliant, and fair solutions. Contact the best lawyer firm in Turkey today to schedule your legal consultation.