Mass layoffs in Turkey, also known as collective dismissals or redundancies, occur when an employer terminates a large number of employees within a specific period.
In Turkey, the process of collective dismissal is regulated by the Turkish Labor Law, which provides guidelines to ensure fair treatment and reduce the negative impact on employees. This article offers a detailed overview of mass layoffs in Turkey, covering the legal framework, criteria, worker rights, and employer responsibilities.
Legal Basis for Mass Layoffs
Mass layoffs in Turkey are governed by Law No. 4857, known as the Turkish Labor Law. Article 29 of this law defines collective dismissal as the termination of employment contracts by an employer due to economic, technological, or structural reasons affecting the workforce.
Criteria for Mass Layoffs
To execute a collective dismissal in Turkey, employers must meet specific criteria set forth by the Turkish Labor Law. These criteria include:
Number of Employees
A mass layoff is defined as the termination of at least 30 employees within a 30-day period in workplaces with at least 30 employees.
Reasons for Termination
Collective dismissals can occur due to economic difficulties, technological advancements, or structural changes. Economic reasons might include financial problems or loss of profitability. Technological reasons pertain to new technologies that make certain job positions redundant. Structural reasons involve significant organizational changes, such as mergers, acquisitions, or downsizing.
Worker Rights in Mass Layoffs
Employees affected by collective dismissals in Turkey are entitled to several rights to help alleviate the impact of job loss. These rights include:
Notice Period
Employers must provide written notice to employees at least 30 days before terminating their employment. The notice should include the reasons for the dismissal, the number of employees affected, and the proposed termination date.
Severance Pay
In cases of mass layoffs, employees are entitled to severance pay based on their length of service and last gross salary, as specified in the Turkish Labor Law. Severance pay offers financial support during the transition period.
Job Security Benefit
Employers must pay a job security benefit equal to the severance amount to the Turkish Employment Agency. This benefit helps employees find new job opportunities, retraining, or entrepreneurship.
Priority in Reemployment
Employees affected by mass layoffs have reemployment priority for one year. If the employer hires new employees within a year of the dismissal, they must offer the vacant positions to the dismissed employees first.
Employer Responsibilities
Employers conducting collective dismissals in Turkey have several obligations to ensure compliance with the law and protect employee rights. These responsibilities include:
Notification to Labor Authorities
Employers must notify the relevant labor authorities at least 30 days before starting the mass layoff process. The notification should include detailed information about the reasons for dismissal, the number of affected employees, and the proposed termination date.
Consultation with Employee Representatives
Employers are required to consult with employee representatives, such as trade unions or employee councils, before implementing a mass layoff. The consultation aims to explore alternatives, minimize the impact on employees, and agree on the dismissal terms.
Fair Selection Criteria
Employers must use objective and fair criteria when selecting employees for dismissal. Arbitrary or discriminatory practices are strictly prohibited.
Severance and Job Security Benefit
Employers must calculate and pay the appropriate severance pay and job security benefit to the affected employees in a timely manner, as mandated by the Turkish Labor Law.
Conclusion
Mass layoffs in Turkey are subject to stringent regulations to ensure fairness and protect employee rights. The Turkish Labor Law provides a framework that outlines the criteria, employee rights, and employer obligations in cases of collective dismissals. By following these regulations, employers can reduce the negative impact on employees and maintain a supportive work environment, while employees can assert their rights and receive necessary compensation during the transition period.