What is severance pay and severance pay? How is it calculated?
Severance and severance pay are the payments that employees in Turkey are entitled to when they leave the job or are dismissed by the employer. These allowances ensure that employees are compensated for their labor and service. However, it is important to be aware of some of the details and processes related to severance and severance payments.
In this content you will learn what severance and severance pay are, how they are calculated and how to get them.
What is severance pay?
Severance pay is compensation paid based on the number of years of service an employee has spent with the same employer. This compensation is paid in case the employee leaves the job or is dismissed by the employer. Severance pay is considered an important right that ensures that the employee receives compensation for his work and loyalty. As the employee’s seniority in the workplace increases, so does the amount of severance pay.
How is severance pay calculated?
The following formula is generally used to calculate severance pay:
Severance Pay = Gross Salary x Years of Service x Severance Pay Coefficient
In this formula, gross pay represents the employee’s last monthly gross pay and years of service represent the number of full years the employee has spent with the employer. The severance pay coefficient, on the other hand, is a constant determined by law.
Necessary conditions for severance pay
In order for an employee to be entitled to a severance payment, a number of conditions must be met. These are:
- Worked for the employer for at least 1 year
- The employee has not resigned or been fired for any reason other than moral.
- The employee does not work with a fixed-term employment contract (no right of dismissal arises in the case of fixed-term employment contracts)
How to get severance pay?
We have shared with you information on how to get severance pay, which is very important for the employee and the employer. Here, that information…
- The employee did not leave the job voluntarily or died,
- The employee has not been dismissed by the employer because of his behavior contrary to the rules of good morals and good will,
- If the employee leaves voluntarily, the reason for departure is conditional on the employee immediately leaving the job for good cause, as provided for in Article 24 of the Labor Code,
- If the worker leaves voluntarily and if he is male, he had to leave the job because of his active military service,
- If the employee is a woman and is married while working, she wants to leave her job within one year of her marriage,
- The employee has met the pension conditions and has applied for a lump sum payment or salary from the relevant institution,
- The employee must have been employed for at least one year in the same workplace or in different workplaces associated with the same employer.
What are severance pay like?
Severance pay is usually paid after the employee has left the job or been fired by the employer. Payment is usually made in cash or in installments. Depending on employee preference and employer policies, different forms of payment may apply.
What is cancellation compensation?
Severance pay is a compensation paid to the employer if the employee leaves the job before the statutory term. Before leaving the job, the employee must give written notice to the employer for a specified period of time. The notice period depends on the amount of time the employee has worked.
Depending on the time worked, the notice periods are as follows;
2 weeks for employees younger than 6 months
4 weeks for employees between 6 months and 1.5 years
6 weeks for employees aged 1.5 to 3 years
8 weeks for employees older than 3 years
How is the cancellation fee calculated?
The cancellation fee is usually calculated using the following formula:
Termination compensation = Gross salary x Period of notice
In this formula, the gross pay represents the last monthly gross pay of the employee, while the notice period represents the statutory period.
How do you get a cancellation fee?
To be eligible for a cancellation fee, a number of conditions must be met. When the employment contract is terminated by the employer, the employee must use the period of leave granted to him during the job search. If the employer does not grant the leave period or the employee does not use the leave period, the employee can demand a severance payment.
What is the notice period?
Severance pay is paid if the employee leaves the employer without observing the notice period. The notice period is determined by the time the employee has worked. The laws have regulated the notice periods of the employees, and these periods can vary depending on the seniority of the employee. The notice period increases in function of the employee’s working hours at the workplace.
For example, if the employee has been employed for less than 1 year, the notice period can be set at 2 weeks. However, if the employee has been employed for more than 5 years, the notice period can be up to 4 weeks. The notice period is calculated as one week for each full year of service.
Differences between severance pay and severance pay
There are some differences between severance pay and severance pay. Here are the main differences between these two fees:
- While severance pay is paid depending on the length of service the employee has spent with the same employer, severance pay is paid if the employee leaves the job and fails to comply with the notice period.
- While severance pay is paid to reward the employee’s work, severance pay helps the employer organize its work by knowing the employee’s departure in advance.
- The amount of the severance payment increases depending on the seniority of the employee. The severance payment is calculated over the gross salary and the notice period.
What is the importance of severance and termination benefits?
Severance and termination benefits play an important role in protecting workers’ rights and providing security in working life. If the employees work for the same employer for a long time, the severance pay can be high and they can be rewarded for their efforts. Severance pay regulates the dismissal process of employees and ensures a fair transition for both the employer and the employee.
Severance and severance payments are also important to ensure the financial security of employees. These benefits provide financial assistance to employees in finding a new job and minimize the loss of income when they become unemployed.
What is severance pay?
The severance payment is a compensation that is paid based on the number of years of service the employee has spent with the same employer. It ensures that the worker receives the reward of his labor.
Can the employer dismiss the employee without observing the notice period?
No, the employer cannot dismiss the employee without observing the notice period. If the employer dismisses the employee without observing the notice period, he will owe a severance payment.
When is the severance payment paid?
Severance pay is paid when the employee leaves work or is dismissed by the employer. Payment is usually made within a specified period of time from the employee’s termination date.
Is it necessary to file a lawsuit to get severance pay and severance pay?
If the employer does not pay the compensation on time or does not recognize your rights, the employee can sue. Labor courts assess and decide on severance and severance pay.