How Is Notice Pay Calculated in Turkey? Periods Based on Seniority

Notice pay is compensation the party terminating an employment contract must pay to the other party where it fails to observe the notice period set by law; this period increases progressively with the employee's seniority.

Notice Periods Based on Seniority

Under Article 17 of Labour Law No. 4857, the party terminating an indefinite-term employment contract must observe a notice period that varies with the employee's seniority: two weeks for up to six months of seniority, four weeks for between six months and one and a half years, six weeks for between one and a half and three years, and eight weeks for seniority of more than three years.

When Notice Pay Arises

Where termination is carried out without observing these notice periods, notice pay must be paid in the amount of wages corresponding to the notice period; this compensation can be claimed by either the employer or the employee, meaning it is a mutual obligation.

Calculation Method

Notice pay is calculated based on the employee's gross wage; not only the base salary, but all regularly paid benefits that can be measured in money — such as bonuses, meal allowances, transport, and accommodation — are included in the calculation. The monthly gross wage is divided by thirty to find the daily gross wage, and this amount is multiplied by the number of days in the applicable notice period.

Tax Deductions

Income tax and stamp duty are deducted from notice pay; unlike severance pay, notice pay is not exempt from income tax.

Notice Pay Cannot Be Claimed in Termination for Just Cause

Where termination is based on one of the just-cause grounds listed in Articles 25 and 24 of the Labour Law, no notice pay arises in favour of the terminating party; termination for just cause is a statutory exception granting the right to end the contract immediately, without observing the notice period.

Limitation Period

Like other employee claims, a claim for notice pay is subject to a five-year limitation period; this period begins to run from the date the employment contract ends.

Practical Recommendations

Document the date and form (written, through a notary) of your termination notice; before asserting a notice-pay claim, assess whether the termination was based on a just cause, as this directly affects your entitlement to the compensation.

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