Severance and Notice Pay for Foreign Employees in Turkey: Your Legal Rights

One of the most common misconceptions among expatriates in Turkey is that their labor rights are tied strictly to the validity of their work permits. However, under the Turkish Labor Law (No. 4857), foreign employees enjoy almost the exact same protections as Turkish citizens regarding termination of employment. If you are working in Turkey, understanding the mechanics of severance pay and notice pay is vital for securing your financial future.

1. What is Severance Pay?

Severance pay is a mandatory lump-sum payment made to an employee whose employment is terminated under specific conditions after a minimum period of service.

• The One-Year Rule: To be eligible for severance pay, you must have worked for the same employer (or at the same workplace) for at least one continuous year.
• Conditions for Eligibility: You are entitled to this payment if:
  • The employer terminates your contract without a “just cause” (excluding cases of serious misconduct).
  • You terminate the contract for a “just cause” (e.g., non-payment of salary, mobbing, or health risks).
  • Your employment ends due to compulsory military service (if applicable) or retirement.
  • A female employee resigns within one year of her marriage.
  • The employee passes away (paid to the legal heirs).

2. How is Severance Pay Calculated? (2026 Caps)

The amount is calculated based on your last gross monthly salary for each full year of service. Pro-rata payments are made for partial years.

• The Calculation Formula: $Gross Salary\times Years of Service = Severance Pay$
• The 2026 Ceiling: It is important to note that there is a government-mandated “ceiling” (upper limit) for this calculation. As of the first half of 2026, the severance pay ceiling is set at 64,948.77 TRY.
• Meaning: Even if your monthly gross salary is 100,000 TRY, your severance pay will be calculated based on the 64,948.77 TRY limit for each year.

3. Understanding Notice Pay

In Turkey, neither the employer nor the employee can terminate an indefinite-term contract “out of the blue.” Both parties must provide a notice period.

• Notice Periods Based on Seniority
  Less than 6 months, 2 Weeks (14 Days)
  Between 6 months and 1.5 years, 4 Weeks (28 Days)
  Between 1.5 years and 3 years, 6 Weeks (42 Days)
  More than 3 years, 8 Weeks (56 Days)
• Payment in Lieu of Notice: If your employer wants you to leave immediately without waiting for these weeks, they must pay you the equivalent salary for that period. This is called Notice Pay.

4. Does a Work Permit Expiration Affect Your Rights?

This is a critical point for foreign workers.

• Automatic Expiration: If your work permit expires and the employer chooses not to renew it, this is generally considered a termination by the employer. If you have completed one year, you are entitled to severance pay.
• Unregistered (Illegal) Work: Even if a foreign national worked without a formal work permit, the Turkish Court of Cassation has ruled that the actual work performed creates a right to compensation. You can still sue for unpaid wages and severance pay, though the employer (and potentially the worker) may face administrative fines for the lack of a permit.

5. Termination for “Just Cause” (Article 25/II)

Be aware of Article 25/II of the Labor Law. If an employer terminates you for “immoral or dishonorable conduct” (theft, harassment, prolonged unexcused absence), they are not obligated to pay either severance pay or notice pay. This is the only scenario where a long-term employee loses these rights.

6. The 2026 Litigation Process: Mandatory Mediation

If your employer refuses to pay your entitlements:

1. Mediation: Before filing a lawsuit, you must apply for mandatory mediation. A large portion of labor disputes in Turkey are settled at this stage within 3-4 weeks.
2. Labor Court: If mediation fails, you can file a lawsuit. In 2026, labor courts are specialized in these matters, and foreign employees can request a court-appointed translator for their hearings.

Conclusion

As a foreign employee in Turkey, your severance pay is your “vested right.” Whether you are a high-level executive or a technical specialist, the law protects your years of service. Ensure that your salary is declared correctly in your SGK (Social Security) records, as the legal calculation will be based on these official figures.