Termination of Employment: Just and Valid Causes under Turkish Labour Law

Termination of employment in Türkiye is one of the most legally sensitive aspects of human-resources management.
The Turkish Labour Law No. 4857 sets detailed rules governing how, when, and on what grounds an employment contract may be ended—whether by the employer or the employee.

Understanding the distinction between just cause and valid cause is crucial, as it determines the legal consequences such as notice obligations, severance pay, and reinstatement rights.
This article explains the legal framework, outlines both just and valid causes, and highlights key compliance steps based on current legislation and case-law practice.

Legal Framework

Employment termination is regulated primarily by:

• Labour Law No. 4857 – Articles 17 to 26 set out procedures and legal grounds.
• Social Security and General Health Insurance Law No. 5510 – governs employment termination notifications to the SGK.
• Law No. 6325 on Mediation – makes mediation mandatory before litigation.
• Recent Amendment (Article 109, July 2025) – recognizes written and electronic delivery (via Registered E-Mail) as valid termination notice forms.

Every termination—whether immediate or with notice—must follow formal written procedures. Failure to comply can render a dismissal unlawful, exposing the employer to reinstatement or compensation claims.

Just Cause vs Valid Cause: The Core Distinction

Type	Legal Basis	Typical Grounds	Key Legal Effect
Just Cause	Arts 24–25	Serious breach (health, ethics, force majeure, detention)	Allows immediate termination without notice; certain rights may remain
Valid Cause	Arts 18–21	Performance, behaviour, or operational reasons	Requires notice and payment of all accrued entitlements

In essence:

• Just cause concerns grave misconduct or impossibility of continuation.
• Valid cause relates to objective business or performance grounds.

Termination by the Employer

3.1. Termination for Just Cause (Article 25 of Law No. 4857)

The employer may terminate a fixed-term or indefinite-term contract before its expiry or without observing notice periods under four main categories:

Health Reasons

• If the employee becomes unfit for work due to their own intent, disorderly lifestyle, or drunkenness, and is absent for
  three consecutive working days or more than five working days in one month.
• If the Health Committee confirms that the illness is incurable and incompatible with the employee’s duties.
• If illness, accident, or pregnancy continues for more than the notice period + six weeks, the employer may terminate after that duration.

Note: In pregnancy or maternity cases, this additional period starts after the statutory maternity leave under Article 74; termination before that time is invalid.

Immoral, Dishonourable or Malicious Conduct

The employer may terminate immediately for misconduct contrary to honesty and good faith, including:

• Misleading the employer about essential qualifications during hiring.
• Insulting or defaming the employer or co-workers.
• Sexual harassment in the workplace.
• Assault, intoxication, or use of narcotics at work.
• Breach of trust and loyalty, such as theft or disclosure of trade secrets.
• Committing a crime punishable by more than seven days’ imprisonment (unsuspended).
• Unexcused absenteeism for two consecutive days, the day after a holiday twice in a month, or three separate days in a month.
• Persistently failing to perform duties after written warning.
• Damaging employer property through willful or negligent conduct where damage exceeds 30 days’ wages.

These examples are illustrative, not exhaustive; the existence of just cause must be assessed case-by-case considering proportionality and proof.

Force Majeure

If a force-majeure event (e.g., natural disaster, transportation blockage) prevents the employee from working for more than one week, the employer gains the right to terminate for just cause after that period.

During the first week, half wages are payable. Thereafter, the contract may either remain suspended (without pay) or be terminated.

Custody or Arrest

Where the employee’s absence due to detention or custody exceeds the statutory notice period determined by seniority under Article 17, the employer may terminate for just cause.

Procedural Requirements (Articles 19 & 26 & 109)

• Written Notice & Reason: The employer must clearly state the reason for termination in writing.
• Electronic Validity: As of 20 July 2025, notifications via Registered E-Mail (REM) with employee consent are legally valid.
• Time Limit: The right of termination for immoral or bad-faith acts must be exercised within 6 working days from the date of awareness and within 1 year of the act, except where the employee gains a material benefit—then the one-year limit does not apply.
  (This six-day period is a statute of forfeiture, not merely prescription.)

Termination for Valid Cause (Articles 18–21)

Employers may also terminate for valid reasons related to:

• Performance or productivity,
• Behavioural issues (neglect, disobedience, poor attendance),
• Economic or organizational reasons (downsizing, restructuring).

Key procedural obligations:

1. Written termination letter stating the specific reason.
2. Observance of notice periods (2–8 weeks depending on seniority).
3. Payment of all accrued rights (severance if applicable, unused leave, overtime).
4. Timely notification to SGK with the appropriate termination code.

Arbitrary or discriminatory terminations are unlawful and expose the employer to reinstatement and compensation liabilities.

Termination by the Employee

Employees also possess the right to terminate immediately for just cause (Article 24):

• Health: When working conditions endanger health or safety.
• Ethical & Good Faith Breaches: Non-payment of wages, harassment, deceit, or mistreatment.
• Force Majeure: Where external events make work impossible for over one week.

Employees exercising this right retain entitlement to severance pay if they have completed at least one year of service.

Notice Periods and Procedures

Seniority	Minimum Notice Period
< 6 months	2 weeks
6–18 months	4 weeks
18–36 months	6 weeks
> 36 months	8 weeks

Employers may substitute payment in lieu of notice.
All notices must be written and delivered against signature or via REM.

Job Security and Reinstatement

Employees with ≥ 6 months of service in workplaces employing ≥ 30 people are protected by job-security provisions.
Unlawful termination without valid cause enables reinstatement claims through mandatory mediation and subsequent court filing.

If reinstatement is ordered but not fulfilled, compensation between 4 and 8 months’ gross salary is payable, along with wages for the litigation period.

Financial Consequences

• Severance Pay :
  Payable when termination is not due to the employee’s immoral acts (Article 25/II) and service exceeds one year.
  Calculated as 30 days’ gross wage per year of service, subject to the Treasury-announced ceiling.
• Notice Compensation :
  Due when notice periods are not observed.
• Other Receivables:
  Wages, overtime, unused leave, and public-holiday pay must be settled regardless of termination reason, as these rights arise during employment.

Documentation and Compliance Best Practices

For Employers

• Keep detailed disciplinary and attendance records.
• Prepare written notices compliant with Article 109.
• Observe time limits (6 days + 1 year) under Article 26.
• Use accurate SGK termination codes and report within 10 days.
• File all termination documents in the personnel file for inspection readiness.

For Employees

• Retain signed copies of all notices and pay slips.
• Attend mediation within 30 days of termination.
• Request written reasons if dismissed verbally or by message.

Judicial Practice Trends

Recent Court of Cassation decisions underline that:

• Terminations based on unproven allegations are invalid.
• Performance-based dismissals require objective evaluation records.
• Repeated fixed-term renewals without objective grounds imply indefinite-term employment.
• Persistent wage delay gives employees just cause for resignation with severance entitlement.

Termination of employment under Turkish Labour Law demands meticulous compliance with statutory procedures.
Employers must ensure every dismissal—particularly for just cause—is based on verifiable facts, within statutory time limits, and documented in writing.
Employees, in turn, should be aware of their rights regarding severance, notice, and reinstatement.

A lawful, transparent termination process protects both sides and upholds workplace fairness in line with modern Turkish labour standards.