What Is Termination for Valid Reason in Turkey? Requirements for a Reinstatement Lawsuit

Termination for valid reason is a termination based on the employee's incapacity, conduct, or the requirements of the business, workplace, or the work itself, carried out in accordance with the procedural requirements set by law; unlike termination for just cause, the notice period must still be observed.

Grounds for Termination for Valid Reason

Under Article 18 of Labour Law No. 4857, at workplaces employing thirty or more employees, the contract of an employee with at least six months' seniority may be terminated for a valid reason arising from the employee's incapacity (such as poor performance), their conduct (such as negligence not rising to the level of just cause), or the requirements of the business, workplace, or work (such as economic difficulty or technological change).

Formal Requirements for the Termination Notice

Under Article 19 of the Labour Law, the termination notice must be made in writing, must clearly and definitively state the reason for termination, and must be given within a reasonable time; a deficiency in any of these requirements may render the termination invalid.

The Requirement to Obtain a Defence Statement

Where the termination is based on the employee's conduct or performance, the employer is required to obtain a written defence statement from the employee before the termination; the employee must be clearly informed of the specific event or allegation they are to defend against and given a reasonable time to do so. A termination made without obtaining a defence statement is considered invalid even if the underlying reason is justified. For terminations based on business requirements, since the reason does not stem from the employee's conduct, this requirement does not apply.

The Principles of Proportionality and Last Resort

According to Court of Cassation case law, the employer must apply termination as a last resort; it must assess whether milder measures — such as reassigning the employee to another position, providing training, or issuing a warning — were available. A termination carried out without observing these principles may be considered invalid.

The Reinstatement Lawsuit

Under Article 20 of the Labour Law, an employee who believes the termination was not based on a valid reason must first apply to a mediator within one month of the termination notice being served, and, if no agreement is reached, file a reinstatement lawsuit with the labour court. If the court finds the termination invalid, it orders the employee's reinstatement; if the employer does not reinstate the employee, compensation of between four and eight months' wages must be paid to the employee.

Practical Recommendations

When you receive a termination notice, establish precisely the date it was served and do not miss the one-month period for applying to mediation; assess with a lawyer whether your defence statement was properly obtained and whether the stated reason for termination can be concretely proven.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.