Dismissed in Türkiye: severance, notice pay, reinstatement and mediation - a roadmap

It usually happens in a meeting room, in a conversation lasting a few minutes: a termination letter is placed in front of you, sometimes with other papers you are expected to sign. The decisions made that day, and the deadlines missed in the weeks that follow, determine what can be claimed in court months later. This article walks through the path ahead of an employee dismissed in Türkiye, from the first day to the courtroom: which rights arise, when reinstatement is available, how mediation works and which deadlines never come back.

Day one: what to sign and what not to sign

On the day you are dismissed, it is enough to sign that you have received the termination notice. Signing and dating the notice as "received" does not mean you accept its content; it only shows that you were given the document. Other papers placed in front of you at the same meeting, however, can have consequences that are very hard to undo.

Reading the termination notice: what difference the reason makes

An employer terminating an employment contract must give notice in writing and state the reason clearly and precisely (Labour Law No. 4857, Article 19). If the reason relates to the employee's conduct or performance, the employee's defence must be taken before termination. An employer cannot later rely in court on a reason not stated in the notice, so the reason written in it largely determines which claims arise.

The "no" answers in the table are not final. If the employer cannot prove an alleged breach of morality and good faith in court, severance and notice pay become due. If the alleged events fall short of just cause but amount to a valid reason, the termination may be upheld; reinstatement is then refused, but severance and notice pay are still owed. Unemployment benefit also depends on the contribution conditions described below.

"Code 29" and social security exit codes

Employers report every departure to the Social Security Institution (SGK) with an exit code. The morality-and-good-faith code widely known as "code 29" was abolished by an SGK regulation in 2021 and replaced by separate codes (42 to 50) for each situation listed in Article 25/II of the Labour Law. Whatever the number, the exit code is a unilateral statement by the employer: it does not change the real reason for termination and does not bind the court. The real reason is established in the proceedings.

Job security: who can seek reinstatement?

Reinstatement means that the termination is held invalid and the employee returns to work. This route is not open to everyone.

An employee who meets these conditions can be dismissed only for a valid reason (Article 18). A valid reason can come from three sources: the employee's capability (performance, productivity), the employee's conduct (for example behaviour that disrupts work) and the needs of the business, workplace or job (downsizing, restructuring, closure of a department and similar).

Where dismissal is based on business needs, the settled case law of the Court of Cassation does not review whether the employer's decision was wise; it reviews whether the decision was actually implemented, whether it was applied consistently and whether dismissal was the last resort. If someone is hired to replace an employee dismissed for "downsizing" shortly afterwards, or if the possibility of employing the person in another department was not explored, the termination may be held invalid.

The burden of proof is on the employer. The employer must prove that the termination was based on a valid reason. If the employee claims the real reason was something else (for example trade union membership), the employee must prove that claim (Article 20/2).

Reasons that can never be valid

The law expressly excludes certain reasons (Article 18/3). The following do not constitute a valid reason for dismissal:

• Trade union membership, or taking part in union activities outside working hours or, with the employer's consent, during working hours,
• Acting as a workplace union representative,
• Filing a complaint or claim against the employer with administrative or judicial authorities to pursue rights under legislation or contract, or taking part in such proceedings,
• Race, colour, sex, marital status, family responsibilities, pregnancy, childbirth, religion, political opinion and similar grounds,
• A female employee's absence during the periods before and after childbirth in which her employment is prohibited,
• Temporary absence due to illness or accident within the waiting period set by law.

The fork in the road after dismissal

1. The termination notice reaches you
2. You have job security
   You do not have job security
3. Mediation with a reinstatement claim within one month
   Mediation for severance, notice pay and other claims
4. If agreement is reached, the document is enforceable like a judgment; if not, a final report is drawn up
5. Reinstatement lawsuit within two weeks of the final report
   Lawsuit for claims within the five-year limitation period

The reinstatement route: short deadlines, strict order

In a reinstatement case, a missed deadline usually means the right is lost entirely. The timeline below shows the path from the termination notice back to work.

Reinstatement deadlines

1. Service of the termination notice

   The one-month forfeiture period begins.

2. Within one month

   Apply to the mediation office with a reinstatement claim; the claim should be stated expressly in the application.

3. Three weeks, four at most

   The mediator conducts the meetings and concludes the process.

4. Within two weeks of the final report

   If there is no agreement, a lawsuit is filed with the labour court.

5. Appeal

   The regional court of appeal's decision on reinstatement is final.

6. Within ten working days of service of the final judgment

   The employee applies to the employer to return to work.

7. Within one month of the application

   The employer must reinstate the employee or pay compensation.

The one-month period is a forfeiture period: once it expires, reinstatement can no longer be sought. This closes only the reinstatement route, however; severance pay, notice pay and other claims can still be brought within the five-year limitation period.

If the parties agree on reinstatement at mediation, the agreement must state the date of return to work, the monetary amount of wages and other entitlements, and the compensation payable if the employee is not taken back. If these are not written down, the law treats the parties as having reached no agreement. If the employee does not return on the agreed date, the termination becomes valid (Article 21).

If the court finds the termination invalid

The financial consequences of an invalid termination

4 - 8 monthsCompensation for non-reinstatement, measured in months of wages

Up to 4 monthsWages and other entitlements for the idle period until the judgment becomes final

10 working daysDeadline to apply to the employer after service of the final judgment

1 monthTime the employer has to take back the employee who applied

If the employer takes the employee back, any notice pay and severance pay paid in advance at termination are set off against these payments. If the employer does not, it must pay compensation for non-reinstatement and the idle-period wages and, where the conditions are met, severance and notice pay as well.

The employee's application to return after the final judgment must be genuine. Under the settled practice of the Court of Cassation, compensation for non-reinstatement cannot be claimed if the application was made only to obtain compensation with no real intention of returning, or if the employee does not start work despite the employer's invitation. If no application is made within ten working days, the termination is deemed valid and the employer is liable only for the consequences of a valid termination.

Without job security: bad-faith and other compensation

An employee at a workplace with fewer than thirty employees, or one dismissed before completing six months' service, cannot seek reinstatement. Even then, the employer's right to terminate is not unlimited. If that right is abused, for example where an employee is dismissed for asserting a legal right, the employee is entitled to bad-faith compensation equal to three times the wages for the notice period (Article 17/6). If no notice was given, notice pay is due on top.

Where the dismissal is discriminatory, compensation of up to four months' wages may be claimed for breach of the principle of equal treatment (Article 5); where it is based on trade union grounds, union compensation of no less than one year's wages is available under Article 25 of the Trade Unions and Collective Labour Agreements Law No. 6356.

What claims arise?

Whether or not reinstatement is sought, certain claims fall due when the employment relationship ends. The items we see most often are:

Notice periods

Notice periods (Law No. 4857, Art. 17)

2 weeksEmployment of less than six months

4 weeksSix months to one and a half years

6 weeksOne and a half to three years

8 weeksMore than three years

If the employer terminates without giving these periods, it must pay the corresponding wages as notice pay. As with severance pay, regular benefits such as travel and meal allowances are included in the calculation, but unlike severance pay there is no cap. Only stamp duty is deducted from severance pay, whereas income tax and stamp duty are deducted from notice pay. We explain the severance calculation with worked examples in a separate article.

Mediation: the mandatory stop before court

Under Article 3 of the Labour Courts Law No. 7036, applying to a mediator is a precondition for filing a lawsuit over employee claims and compensation based on law or on an individual or collective agreement, and over reinstatement. Compensation claims arising from workplace accidents and occupational diseases are outside this rule.

How mediation works

1. ApplicationYou apply to the mediation office where the other party is domiciled or where the work was performed; the application is free of charge.
2. Appointment of a mediatorThe office appoints a mediator from its list, who invites the parties to a first meeting.
3. MeetingsThe mediator concludes the process within three weeks of appointment; in necessary cases this may be extended by one week at most.
4. AgreementThe points agreed are recorded in writing; the agreement is enforceable like a court judgment.
5. No agreementA final report is drawn up and the route to court opens.

An agreement reached at mediation sets the boundaries for any later lawsuit: as a rule, no claim can be brought later for matters covered by the agreement. Before signing, severance pay, notice pay, annual leave, overtime and every other claim should therefore be correctly calculated. Limitation periods are suspended, and forfeiture periods do not run, from the date of the application to the mediator until the final report is drawn up.

The abolition of the action for an undetermined claim (Code of Civil Procedure, Article 107) by Law No. 7589, in force since 31 July 2026, has made careful calculation of the amounts claimed from the mediation stage onwards more important than ever. Under the new rules, a partial claim can be filed for part of the amount and increased once before the end of the evidence stage.

Unemployment benefit

If your contract ended other than by your own choice or fault, you may receive unemployment benefit from the Turkish Employment Agency, İŞKUR (Unemployment Insurance Law No. 4447, Articles 50 and 51). There are three conditions:

• You must have worked continuously, with contributions paid, during the last 120 days before your contract ended,
• At least 600 days of unemployment insurance contributions must have been paid in the last three years,
• You must apply to İŞKUR within 30 days of the end of your contract. If you apply late without good reason, the delay is deducted from the benefit period.

Duration and amount of unemployment benefit

180 daysIf 600 days of contributions were paid in the last three years

240 daysIf 900 days of contributions were paid in the last three years

300 daysIf 1,080 days of contributions were paid in the last three years

40%Of average gross earnings over the last four months; capped at 80% of the gross minimum wage

Employees who resign, and those dismissed for breach of morality and good faith, are not entitled to the benefit; an employee who terminates for just cause keeps the entitlement. General health insurance contributions are also paid by the Unemployment Insurance Fund while the benefit is received.

Common mistakes

Frequently asked questions

I was dismissed during my probation period. Do I have any rights?

The probation period is at most two months, or four months under a collective agreement. During it, either party may terminate without notice or compensation, but you must still be paid wages and other entitlements for the days you worked.

Can I be dismissed while on sick leave?

An absence due to illness or accident is not a valid reason for dismissal unless it exceeds your notice period, determined by your length of service, plus six weeks. Once that period is exceeded, the employer may terminate without notice; severance pay is still owed.

If I win a reinstatement case, do I have to go back?

No. But to claim compensation for non-reinstatement you must make a genuine application to the employer within ten working days of service of the final judgment. If you do not apply at all, the termination is deemed valid and you are left only with the rights attached to a valid termination, such as severance and notice pay.

Does mediation cost anything?

The application is free. If no agreement is reached, the mediator's fee for two hours is paid from the Ministry of Justice budget. If agreement is reached, the fee is shared equally by the parties unless agreed otherwise.

I had a fixed-term contract and was dismissed before it expired. What happens?

Reinstatement is not available under a fixed-term contract. If the contract was terminated early without just cause, however, you may claim compensation equal to the wages you would have earned for the remaining term, less what you earned, or deliberately chose not to earn, from other work (Code of Obligations No. 6098, Article 438).

When must severance pay be paid?

At the moment the contract ends. If payment is late, the highest interest rate applied to deposits runs for the period of delay. Payment in instalments is possible only with your express consent.

Legislation and sources

• Labour Law No. 4857: Arts. 5, 17-21, 24-27, 29 and 59
• Former Labour Law No. 1475: Art. 14
• Labour Courts Law No. 7036: Art. 3
• Unemployment Insurance Law No. 4447: Arts. 50-51
• Trade Unions and Collective Labour Agreements Law No. 6356: Art. 25
• Code of Obligations No. 6098: Arts. 420 and 438
• Law No. 7589 (12th Judicial Package), Official Gazette 31.07.2026: Code of Civil Procedure Arts. 107 and 109

The current texts of Turkish laws and regulations are available on the official Legislation Information System, and decisions and amendments in the Official Gazette.

If you would like us to assess your rights after a dismissal and plan the deadlines with you, please contact us. For other employment matters, see our Employment Law page.