Job Security and Reinstatement Claims in Turkey

Overview

Job security provisions under Labour Law No. 4857, enacted on 22 May 2003, were designed to limit an employer’s unilateral right to terminate open-ended employment contracts.
These rules ensure that dismissals are supported by valid reasons and follow lawful procedures. If not, the employee may file a reinstatement (re-employment) lawsuit before the Labour Court.

Given the significant increase in such claims in recent years, understanding the scope of job security and the reinstatement procedure is crucial for both employers and employees operating in Türkiye.

Scope of Job Security: Establishments

According to Article 18 of the Labour Law:

• Workplaces employing 30 or more employees fall under job-security protection.
• If an employer operates multiple establishments in the same branch of activity, the total number of employees across all such workplaces is considered.
• This prevents employers from circumventing the law by artificially dividing their business units.

All employees — regardless of full-time, part-time, or fixed-term status — are counted in determining the 30-employee threshold.
However, apprentices, interns, subcontractor personnel, and temporary workers are excluded.
The number of employees is assessed on the date of termination.

Scope of Job Security: Employees

To benefit from job-security protection, the employee must:

1. Work under an open-ended employment contract
   – Fixed-term contracts generally fall outside the scope, unless they are repeatedly renewed without objective justification, in which case courts may deem them indefinite.
2. Have at least six months of continuous service
   – All previous employment periods with the same employer (even if intermittent) are added together.
   – Probation periods and inactive intervals are included in this calculation.
3. Not hold a senior managerial position
   – Employees representing the employer and authorized to hire or dismiss staff (e.g., general managers, vice general managers) are excluded.
   – However, job titles alone are not decisive; the courts examine the actual managerial authority.

Valid Grounds for Termination

Employers may terminate an employment contract only for valid reasons, which can relate to:

• The employee’s behavior or performance, or
• Operational requirements of the enterprise (economic, structural, or technological).

Dismissals based on personal dislike, union membership, or discrimination are invalid and subject to reinstatement claims.

Procedure for Reinstatement Claims

1. Mandatory Mediation:
   The employee must apply to mediation within one month of receiving the termination notice.
2. Labour Court Application:
   If mediation fails, the lawsuit must be filed within two weeks after the mediator’s final report.
3. Burden of Proof:
   The employer must demonstrate that the termination was based on a valid reason and followed proper procedure.
4. Court Decision and Consequences:
   If termination is deemed invalid, the court orders reinstatement.
   The employer must reinstate the employee within one month of the final judgment.
   If the employer refuses, they must pay compensation equal to four to eight months’ salary, in addition to up to four months’ wages for the period between dismissal and reinstatement.

Court Practice and Precedents

The Court of Cassation has clarified key issues such as:

• Counting employees across multiple workplaces in the same business line (decisions 2006/ and 2007/ series).
• Inclusion of probationary periods when calculating six-month seniority.
• Exclusion criteria for managerial staff — requiring both managerial authority and power to hire/fire.

These rulings ensure consistent interpretation and prevent employers from exploiting procedural gaps.

Challenges and Employer Defenses

Employers often defend reinstatement cases by alleging:

• Documented poor performance or disciplinary violations,
• Economic necessity (downsizing or restructuring), or
• Breakdown of mutual trust preventing continued employment.

Employees, conversely, must produce strong evidence (emails, witness testimony, performance records) to disprove such claims.
Courts evaluate these disputes on a case-by-case basis, balancing employee protection with business necessity.

Practical Guidance for Employers

To minimize legal exposure:

• Keep comprehensive personnel files and performance records,
• Conduct termination interviews with written justification,
• Deliver dismissal notices in writing and signed,
• Maintain equality and non-discrimination,
• Document mediation and HR actions carefully.

Proper documentation is the best defense against reinstatement litigation.

Job security and reinstatement regulations under Labour Law No. 4857 form the backbone of employee protection in Türkiye.
Compliance requires employers to ensure transparent, documented, and lawful termination processes.
For employees, timely action and understanding of procedural deadlines are key to safeguarding their rights.

Aligning HR practices with these legal standards not only reduces litigation risk but also strengthens corporate integrity and fair-work principles.