SSI Has Issued the Excepted Legal Regulation on “The Matters of Company Partners whose work entrance or termination notifications not submitted.”

ssi has issued the exceptedAccording to the announcement made by SSI Istanbul Provincial Directorate of Social Security Institution, dated 09/11/2014, insurance entrance and termination notifications in the format of written documents required by Law for the limited liability company partners, and acting (commandite) partners of commandite companies of which capital divided into shares, the associates of joint - stock companies who are also member to board of directors, shall be deemed to be submitted within the legal period in the case that they are submitted until 12/11/2014 by the business enterprises, and administrative fine shall not be applied. Administrative fines applied to these obligations before, will be cancelled notwithstanding whether they become definite or not; however, the collected amounts cannot be returned, refused or set off.

The Provisional Article Added by Bag Law:

As is known; with The Law Act No. 6552 published in the Official Gazette duplicated no. 29116, on September 11, 2014 amendments have been made on the Labor Law and some laws and statutory decrees, and restructuring some receivables have been enabled.   

With the Article 61 of aforementioned Law, which will enter into force as of the date of its issuance Provisional Article 57 has been added to Law no. 5510. Pursuant to first clause of Provisional Article 57 of Law no. 5510; insurance entrance and termination notifications in the format of written documents required by law for the limited liability company partners, and acting (commandite) partners of commandite companies of which capital divided into shares, the associates of joint - stock companies who are also member to board of directors, shall be deemed to be submitted within the legal period in the case that they are submitted until 12/11/2014 by the business enterprises, and administrative fine shall not be applied. Administrative fines applied to these obligations before will be cancelled notwithstanding whether they become definite or not; however, the collected amounts cannot be returned, refused or set off. Therefore, it was important for company officials/officials whose duty is preparing notification to submit these notifications in the format of written documents until 12/11/2014, for their employers not being faced with administrative fines in upcoming periods.

Note: It is known that in the presence of some applications that may cause difficulties in practice, SSI steps back to prevent potential troubles, and develops convenient formulas. Due to the same reason, it seems probable that Institution may postpone such applications.

Social Security Institution issued the Circular no. 2014/32, dated 12/11/2014, titled “Responsibility of company officials and insured individuals with regard to insurance entrance and termination notifications.”

In the light of information given by this circular, concerning insurance entrance and termination, as there is no explicit provision about application of administrative fines in Article 102 of the Law no 5510 for both company officials and insured individuals who do not submit the entrance and termination notifications within the legal period, no administrative fine will be applied for the reason of their not being able to submit abovementioned documents (that is entrance and termination notifications).

The relevant part in Circular is as follows;

“5.1- Responsibility of company officials and insured individuals with regard to insurance entrance and termination notifications concerning insurance entrance and termination of the partners deemed to be insured under item (b) of paragraph one of Article 4 of relevant Law, commandites and commandite partners of collective, ordinary commandite firms of sole proprietorships, and partners of maritime joint – adventures, the associates of joint - stock companies who are also member to board of directors, liability company partners, and acting (commandite) partners of commandite companies of which capital divided into shares, partners who entered into or left the company by transferring their shares, and partners of companies in bankruptcy or liquidation status or in dissolved status, as there is no explicit provision about application of administrative fines in Article 102 of the Law no 5510, for both company officials and insured individuals who do not submit the entrance and termination notifications within the legal period, no administrative fine will be applied for the reason of their not being able to submit abovementioned documents (that is entrance and termination notifications).

Click here for the full text of the notification issued by the SSI

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