Severance pay is a compensation that should be paid by the employer in case of termination of employment contract under certain condition.
Severance payment is arranged in article 14 (still in effect) of Former Labor Law no. 1475.
An employee who has worked at least one year is entitled to severance pay under the following conditions;
- Where employee terminates the contract for just cause, such as for reasons of health, immoral or dishonorable conduct by the employer and force majeure
- Where Employer terminates the contract without a valid reason (the reasons other than for malicious, immoral or dishonorable conduct or other similar behavior specified in Labor Act)
- Leaving the workplace due to the compulsory military service (for males)
- Leaving in order to receive an old age pension, pension fund or disability insurance pension or to receive a lump-sum payment from the statutory institutions or retirement funds
- Leaving voluntarily in order to receive partial pension (after completing 3,600 premium days and 15 years of insurance period - a document must be submitted to employer from the social security agency stating that he has worked for the period).
- Where the female employee terminates the contract voluntarily within one year following the date of marriage
- In case of death of the employee