The situations in which severance pay (kıdem tazminatı) is not paid vary according to the ground on which the employment contract came to an end. Where one of the situations of conduct contrary to the rules of morality and good faith listed in the second paragraph of Article 25 of Labour Law No. 4857 (İş Kanunu) is present, the employer has the right to terminate without paying compensation; in terminations outside those situations, severance pay arises as a rule. This article examines the specific situations in which severance pay is not paid, the periods and formal conditions under which the employer may exercise that right, and the avenues of objection open to the employee.
- As a rule, severance pay is paid to every employee who completes 1 year of service, according to their length of service; the exceptions are set out exhaustively in m.25/II of Law No. 4857.
- The employer’s right to terminate on the ground of conduct contrary to the rules of morality and good faith is limited to 6 working days from the date on which it learned of the incident and, in any event, to 1 year from the date on which the incident occurred (İş K. m.26).
- The 2026 severance pay ceiling is applied as 64.948,77 TL for the period 1 January-30 June 2026 and 73.729,87 TL for the period 1 July-31 December 2026.
- In certain situations of indefinite duration (the probationary period, service that has not completed 1 year), the contract may come to an end without any entitlement to severance pay arising.
- An employee who considers that they have been dismissed without compensation unjustly must apply to mandatory mediation before bringing a reinstatement action or an action for outstanding entitlements.
Under What Conditions Is Entitlement to Severance Pay Acquired?
Severance pay arises where the employment contract of an employee with at least 1 year of service comes to an end for one of the reasons listed in the law (1475 sayılı Kanun m.14, still in force). An employee who resigns of their own accord without showing a just cause does not satisfy this condition. Retirement, compulsory military service, a female employee leaving within 1 year on the ground of marriage, and the employee’s right of termination for just cause are, by way of exception, grounds that do give rise to an entitlement to compensation (1475 s. Kanun, mevzuat.gov.tr).
Length of service is calculated on the basis of the total of the periods worked for the same employer; in situations such as a transfer of the workplace, the earlier period is also included in the length of service. The wage taken as the basis for severance pay is the employee’s final gross all-inclusive wage (giydirilmiş ücret), and it may not exceed the ceiling referred to above.
Under İş Kanunu m.66, periods spent on annual leave, the weekly rest day, public holidays, short-term military service or other leave arising from the law are treated as if actually worked when calculating length of service. The effect on length of service of long-term sick leave reports or of periods of unpaid leave, on the other hand, is a matter that must be assessed separately according to the duration and nature of the particular case.
Terminations Without Compensation Under m.25/II of Law No. 4857
The employer’s right of immediate termination without paying severance pay arises only in the situations of conduct contrary to the rules of morality and good faith listed one by one in Article 25/II of the İş Kanunu. These situations are exhaustive and cannot be extended by analogy; every incident must be proved by concrete evidence (4857 s. İş Kanunu, mevzuat.gov.tr).
| Sub-paragraph | Ground of Termination | Severance Pay |
|---|---|---|
| 25/II-a | Giving misleading information/documents on being recruited | Not paid |
| 25/II-b | Words/conduct offending honour and dignity, picking a quarrel | Not paid |
| 25/II-c | Sexually harassing another employee at the same workplace | Not paid |
| 25/II-d | Coming to the workplace drunk or having taken narcotics, or using them at the workplace | Not paid |
| 25/II-e | Conduct contrary to honesty, such as theft or disclosure of trade secrets | Not paid |
| 25/II-f | Committing at the workplace an offence carrying more than 7 days’ imprisonment that is not suspended | Not paid |
| 25/II-g | Absenteeism (2 consecutive working days, twice in a month following a holiday, 3 working days in a month) | Not paid |
| 25/II-h | Persistently refusing to perform a duty despite being reminded of it | Not paid |
| 25/II-ı | Endangering the safety of the work, causing damage exceeding 30 days’ wages | Not paid |
| 25/I, 25/III, 25/IV | Health grounds, force majeure, detention/custody exceeding 1 week (including the employee’s own termination for just cause) | Paid |
Source: 4857 s. İş Kanunu m.25, mevzuat.gov.tr.
Intoxication, Narcotics and Conduct Contrary to Honesty
Sub-paragraph 25/II-d covers the employee coming to the workplace under the influence of alcohol or of a narcotic substance, or using such substances at the workplace; even a single incident may be assessed under this sub-paragraph. Sub-paragraph 25/II-e, for its part, governs conduct contrary to honesty and loyalty, such as theft, abuse of the employer’s trust or leaking trade secrets to outsiders, and allegations of this kind must likewise be supported by concrete evidence.
Sexual Harassment and Neglect of Duty
Allegations of sexual harassment within the scope of sub-paragraph 25/II-c require the employer to carry out an immediate and effective investigation and to take protective measures for the employee who has been subjected to it; this sub-paragraph is also closely connected with the employer’s obligation to take preventive measures at the workplace. Sub-paragraph 25/II-h, on the other hand, requires the employee to refuse PERSISTENTLY to perform a duty of which they have been reminded; a single instance of forgetfulness or negligence is not regarded as sufficient for this sub-paragraph, and the element of persistence must be proved.
When Is Severance Pay Lost in a Termination for Absenteeism?
The periods required by İş Kanunu m.25/II-g for termination without compensation on the ground of absenteeism are strict: the employee must fail to attend work for 2 consecutive working days without permission, on the working day following a holiday twice in one month, or for 3 working days in one month. A single day’s absence does not by itself make out this sub-paragraph, and in that case the employer may remain liable to pay severance pay.
In practice, the failure of employers to draw up absenteeism records in due time and in the proper form may lead the court to refuse to accept the claim that the termination was one without compensation. Where the employee has an excuse justifying the absence (a medical report, force majeure), that situation is also assessed separately.
Preclusive Period: By When Must the Employer Give Notice of Termination?
Under İş Kanunu m.26, the employer must give notice of termination within 6 working days from the date on which it learned of the conduct contrary to the rules of morality and good faith and, in any event, within 1 year from the commission of the act. A termination effected after those periods have elapsed may extinguish the right to terminate without compensation.
The start of the period is subject to the condition that the person who learned of the incident holds the authority to terminate; the mere fact that an employee is aware of it does not set the period running. For that reason, consistency between the dates of the incident record, of the notification and of the decision directly affects the course of the case.
What Is the Position During the Probationary Period and in Service of Less Than 1 Year?
In employment contracts that come to an end during the probationary period, or before 1 year has been completed, no right to severance pay arises in principle, because the law requires 1 full year of service. Where a probationary period has been agreed in the contract, the parties may terminate during that period without notice and without compensation; allegations of termination in bad faith, however, are a separate matter of legal assessment.
How Much Is the 2026 Severance Pay Ceiling?
The part of the daily wage taken as the basis for severance pay that exceeds the ceiling determined by the Hazine ve Maliye Bakanlığı (the Ministry of Treasury and Finance) according to the civil service salary coefficient is not paid. For 2026 this ceiling has been announced as 64.948,77 TL for the period 1 January-30 June and 73.729,87 TL for the period 1 July-31 December (T.C. Çalışma ve Sosyal Güvenlik Bakanlığı (the Ministry of Labour and Social Security), csgb.gov.tr).
Although employees on high wages cannot claim compensation for the part exceeding the ceiling, an employee may claim that difference as a right separately agreed in the employment contract or in a collective labour agreement. To see an approximate amount by entering your current ceiling and wage details in the severance pay calculation, you may use our severance and notice pay calculation tool.
How Is Severance Pay Calculated? Step by Step
The calculation of severance pay consists of four basic steps: determining the length of service precisely, establishing the gross all-inclusive wage, working out the amount on the basis of 30 days’ wages for each full year, and finally comparing it with the current ceiling. Each of these steps requires a separate calculation that directly affects the final amount.
Step 1: Determining the Length of Service
Length of service is the period from the employee’s date of entry into work until the date on which the employment contract came to an end; periods spent on annual leave, days covered by sick leave reports and certain interrupted periods such as unpaid leave may be assessed in different ways. Where the employee has moved between workplaces belonging to the same employer, or where the workplace has been transferred, the earlier periods are also included in the length of service.
Step 2: Establishing the Gross All-Inclusive Wage
The all-inclusive wage is found by adding to the employee’s bare gross salary the regular and continuing benefits in money, or capable of being measured in money, such as transport, meals, bonuses and premiums. Calculations made on the basis of the basic salary alone most often result in the true amount of compensation coming out lower than it should.
Step 3: Calculating 30 Days’ Wages for Each Year
Severance pay is calculated at the rate of 30 days’ gross all-inclusive wage for each full year of the employee’s service; for periods exceeding 1 year, a proportionate payment is made on a daily basis. For example, for an employee with 5 years and 6 months of service, the amount is found by adding the equivalent of the 5 full years to the proportionate equivalent of the remaining 6-month period.
Step 4: Ceiling Check and Stamp Duty Deduction
If the daily wage calculated exceeds the official severance pay ceiling for the period concerned, no compensation is paid for the part exceeding the ceiling and the calculation is made on the basis of the ceiling. Severance pay is exempt from income tax and is subject only to a stamp duty (damga vergisi) deduction; although the rate of this deduction is low, it should be taken into account when calculating the net amount that will reach the employee.
What Should an Employee Who Believes They Were Dismissed Without Compensation Do?
An employee who considers that the ground given by their employer does not fall within the scope of 25/II must first apply to mandatory mediation (arabuluculuk) under Law No. 7036 on Labour Courts (İş Mahkemeleri Kanunu); this is a condition of the action. If no settlement is reached in mediation, an action may be brought before the labour court within 2 weeks of the date of the final record. You may obtain detailed information about the conditions for bringing a reinstatement action, the time limits and the mediation stage from our separate article.
In the course of the proceedings, whether the notice of termination was given in writing, the existence of incident records and witness evidence, and whether the 6-working-day and 1-year periods were observed are examined by the court of its own motion. The assessment of your particular situation on the facts of your own file requires all these elements to be examined together; for detailed information you may visit our employment law practice area.
What Happens to Severance Pay on Departure Under a Mutual Termination (İkale) Agreement?
An ikale is the ending of the employment contract by mutual agreement between employee and employer, and is not a unilateral termination; for that reason the statutory conditions relating to severance pay do not apply directly. In the case law of the Yargıtay (the Court of Cassation), for a mutual termination agreement to be regarded as valid the employee must be provided with a reasonable benefit (an additional payment) over and above their statutory entitlements; otherwise the ikale may be regarded as a termination that does not reflect the employee’s true intention.
A right to compensation may likewise arise in terminations for just cause following an occupational accident; you may review our separate article for the steps that prevent a loss of rights. In practice, employers may agree to pay severance and notice pay separately, together with an “additional benefit”, within the scope of a mutual termination agreement. It is also important, in terms of the course of any action later brought on the ground that no reasonable benefit was provided, for the employee to examine carefully all the financial terms contained in the agreement before signing the ikale offer.
What Is the Limitation Period for Severance Pay?
Under additional Article 3, added to the İş Kanunu by Law No. 7036, the statute of limitations (zamanaşımı) for employment claims, including severance pay, is 5 years from the date on which the employment contract came to an end. That provision applies to employment contracts that came to an end after 25.10.2017; transitional provisions apply to limitation periods that had begun to run before that date (4857 s. Kanun Ek Madde 3, mevzuat.gov.tr).
The expiry of the limitation period does not mean that the claim ceases to exist; if the employer does not raise the plea of limitation, the court does not take it into account of its own motion. For that reason it is important for the employee, in order not to lose their right, to keep track of the period and to bring an action or make a mediation application in time.
Do Part-Time Employees Have a Right to Severance Pay?
Part-time (kısmi süreli) employees acquire a right to severance pay in the same way as full-time employees; the law ties the entitlement not to weekly working hours but to the 1 year of service spent at the workplace. In calculating the amount of severance pay, a proportionate wage reflecting the employee’s part-time work is taken as the basis.
Periods worked intermittently at different workplaces belonging to the same employer may be combined when calculating length of service, provided that there is a reasonable connection between them and that the employee did not leave of their own accord. In employment histories of this mixed kind, calculating the length of service correctly is a technical matter that directly affects the amount of compensation.
How Are Severance Pay Claims Affected by a Transfer of the Workplace and by Collective Redundancy?
Where the workplace is transferred, the transferring and the transferee employer are jointly liable for the severance pay debt that arose before the date of the transfer; the liability of the transferring employer is, however, limited to 2 years from the date of the transfer (İş K. m.6). The employee may also direct their severance pay claim to the transferring employer within that period.
Collective redundancy under İş Kanunu m.29 governs only the notification and waiting procedure that the employer must follow when dismissing a given number of employees in the same period; that procedure does not extinguish the right to severance pay. In a collective redundancy too, severance pay must be paid if the termination is based on a ground other than 25/II.
What Will the Other Side Do?
In a dispute it is not enough to know only that you are in the right; the other side also has a defence strategy of its own, and being prepared for that strategy in advance largely determines how the process will unfold. The defences below are the typical objections frequently encountered in files of this kind; which of them will be raised in your file depends on the documents you hold and the sequence of events.
The termination is based on a just cause within the scope of İş K. m.25/II, and no compensation is payable.
The employer proves the existence of the act through incident records, the letter requesting the employee’s statement of defence and witness evidence. The employee, for their part, defends by producing counter-evidence showing that the act did not take place or that it does not constitute a just cause. Whether a statement of defence was taken, and whether the incident record was drawn up in due time, are also important points in the examination.
The notice of termination was given within the time limit.
Compliance with the 6-working-day and 1-year preclusive periods is shown through the records of the notification and of the date of knowledge. The employee may object that the period has expired by proving that the date of knowledge was earlier. When the person holding the authority to terminate became aware of the matter is decisive at this point.
The employee resigned of their own accord, and no right to severance pay arises.
The genuineness and content of the letter of resignation are examined; the employee may prove through witnesses and correspondence that it was signed under pressure, or that a just cause for termination existed (unpaid wages, mobbing and the like). The employee’s conduct after the resignation and any release document (ibraname) are also included in the assessment.
The severance pay claim is time-barred.
Whether the 5-year period has expired is calculated by comparing the date on which the employment contract came to an end with the date of the mediation application. Unless the plea of limitation is expressly raised by the employer, the court does not take it into account of its own motion.
Which of these defences will come to the fore varies according to the specific circumstances of the file, the documents you hold and the order in which events occurred. In some files the other side concentrates on a single defence, while in others several objections are seen to be raised together. For that reason, gathering the evidence that will neutralise a possible defence in advance, before moving on to the stage of proceedings or enforcement, directly affects the course of the process. To assess in advance which defence your file will meet, you may get in touch.
Frequently Asked Questions
Does the employer pay severance pay if it dismisses an employee without giving a reason?
Yes. In terminations carried out by the employer without showing a valid or just cause, the obligation to pay severance pay continues so long as the limited situations set out in 25/II are not in issue; such a termination may in addition give rise to compensation for invalid termination.
Can an employee who resigns receive severance pay?
As a rule no; however, departures that have the appearance of a resignation may also give rise to an entitlement to compensation in cases of retirement, military service, marriage (within 1 year for a female employee) or termination for just cause on the ground of the employer’s serious fault.
Can a termination without compensation be made without an absenteeism record?
In practice this creates a risk of weak proof; the courts require the dates, duration and procedural conditions of the absence to be established by concrete evidence, and allegations unsupported by a record are generally construed in favour of the employee.
Is the severance pay ceiling applied in the same way to every wage earner?
Yes, the ceiling is a common upper limit for all employees; only the part of the wage above the ceiling is not reflected in the compensation, while for wages below the ceiling the full wage is taken as the basis.
How is the 6-working-day period calculated?
The period begins to run from the date on which the employer, or the manager holding the authority to terminate, learned of the incident, and only working days (excluding the weekly rest day and public holidays) are counted.
Can an action be brought directly without applying to mediation?
No; in disputes over employee-employer claims and reinstatement, mediation is a condition of the action, and an action brought without applying to a mediator is rejected on procedural grounds.
Does an employee who leaves on the ground of retirement receive severance pay?
Yes; an employee who has completed the insurance period and the number of premium days required for an old-age pension to be granted acquires a right to severance pay if they leave on that ground, and the employer’s obligation to pay compensation in a termination of this kind is not extinguished.
Who is liable for severance pay if the workplace is transferred?
The transferring and the transferee employer are jointly liable for the severance pay debt that arose before the date of the transfer; the liability of the transferring employer is limited to 2 years from the date of the transfer.
Which party will bear the counterparty attorney’s fee (karşı vekâlet ücreti) awarded at the end of the proceedings is another matter that is often asked about; for the details you may review our article on the counterparty attorney’s fee, and for the differences between the statutory interest, default interest and advance interest applicable to overdue employment claims you may review this article. For the course to follow where the insurance company refuses to pay compensation after an occupational accident that is the subject of a severance pay calculation, you may also take a look at a separate article.
Table of Periods
| Period | How long | Starting point |
|---|---|---|
| Employer’s notice of termination without compensation (knowledge) | 6 working days | From learning of the conduct contrary to the rules of morality and good faith |
| Employer’s notice of termination without compensation (absolute) | 1 year | From the commission of the act |
| Limitation period for severance pay | 5 years | From the date on which the employment contract came to an end |
Sources
- Mevzuat Bilgi Sistemi (the Legislation Information System, mevzuat.gov.tr)
- Mevzuat Bilgi Sistemi (the Legislation Information System, mevzuat.gov.tr)
- Çalışma ve Sosyal Güvenlik Bakanlığı (the Ministry of Labour and Social Security)
Related Articles
- Reinstatement Action 2026: Conditions, Time Limits, Mediation
- Steps That Prevent a Loss of Rights After an Occupational Accident
- Who Pays the Counterparty Attorney’s Fee? (2026 AAÜT Guide)
- Statutory Interest, Default Interest and Advance Interest: The Differences
- If the Insurance Company Refuses Payment: Arbitration or Court?
This article is for general information purposes and does not take the place of legal advice. Your particular situation requires a separate assessment of your own file.
This article was prepared on the basis of the legislation in force as at 17.09.2026.
Av. Mehmet İlker Dinç
Insurance Law, Compensation Law, Employment Law, Corporate Law, Corporate Advisory
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