Termination indemnity is the type of indemnity given by the employer to the employee whose employment contract has ended. In order for the employee to be entitled to severance pay, the employment contract must be terminated for one of the following reasons:
Due to the right of termination of the service contract by the employee, the employee is entitled to immediate termination of the service contract, due to the active military service, the old age, pension or disability pension from the institutions or funds established by the law to which the employee is affiliated, or in order to receive wholesale payments, that the woman has been voluntarily terminated within one year from the date of her marriage as she has left her job voluntarily by completing the insurance period and the number of premium payment days foreseen for the annuity.
The service contract is terminated by the employer for reasons other than morality and good faith, which are specified in Article 25 of the Labor Law No. 4857 and which give the employer the right to terminate the service contract immediately,
The employee cannot be entitled to severance pay in case of expiration of the employment contract, agreement of the parties (termination), termination of the contract with invalidity, termination of the employment contract in accordance with irregular and unfair termination of the contract by the employee. However, if the service contract is terminated by the employee at his own request or terminated by the employer due to situations that do not comply with the rules of morality and goodwill, the employee is not entitled to severance pay.
Termination of severance pay is subject to general provisions and is 10 years in accordance with Article 125 of the Code of Obligations. The starting date of the statute of limitations is the date of termination of the service contract for the worker.
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