Termination of The Employment Contract by the Employer for Just Cause

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Fundamentally, just cause entitles the employee or the employer the right to terminate the employment contract if the conditions set forth under the Labour Law are met. The grounds for just termination are regulated separately for the employee and the employer under the Labour Law, thereby ensuring a balance of interests between the parties.

This article examines the employer's right of termination for just cause. The circumstances granting the employer such right are expressly enumerated under Article 25 of the Labour Law, namely: (i) health reasons, (ii) for immoral, dishonourable or malicious conduct or other similar behaviour, (iii) force majeure, and (iv) custody or arrest of the employee.

1- Grounds For Termination By The Employer For Just Cause

Article 25 of the Labour Law stipulates that "the employer may break the contract, whether for a definite or indefinite period, before its expiry or without having to comply with the prescribed notice periods, in the following cases." The subsequent provisions of the same article explicitly set out the grounds on which the employer may terminate the contract for just cause.

1.1. Health Reasons

The continuation of Article 25 of the Labour Law regulates the employer's right of termination due to health reasons.

"If the employee has contracted a disease or suffered an injury owing to his own deliberate act, disorderly lifestyle or drunkenness, and as a result is absent for three successive days or for more than five working days in any month."

As expressly provided, in cases where the employee's illness or incapacity arises from his/her intent, disorderly lifestyle, or addiction to alcohol, and such incapacity results in absenteeism exceeding three consecutive working days or more than five working days within one month, the employer acquires the right to terminate the contract for just cause.

According to the Labour Law, apart from the circumstances specifically listed in this paragraph, the employer's right of termination for just cause arises only where the employee is unable to work due to illness, accident, childbirth, or pregnancy, and such incapacity exceeds by six weeks the statutory notice period determined according to the employee's length of service. If these periods are not exceeded, the employer may not terminate the contract for just cause on the basis of such suspension of performance. Likewise, during the suspension period, the employee is not entitled to claim wages from the employer for the days he/she is unable to attend work.

It is of particular importance to note that in cases of childbirth and pregnancy, the above-mentioned suspension period commences only upon the expiry of the statutory maternity leave periods stipulated under Article 74 of the Labour Law. Accordingly, during the said statutory periods, the employment contract shall be deemed suspended, the employer shall not be entitled to terminate on such grounds, and the employee shall not be entitled to claim wages for those days.

"If the Health Committee has determined that the suffering is incurable and incompatible with the performance of the employee's duties."

If it is determined by a report of the Health Committee that the employee suffers from an incurable disease and that his/her presence at the workplace is detrimental, the employer shall be entitled to terminate the employment contract for just cause.

1.2. For Immoral, Dishonourable or Malicious Conduct or Other Similar Behaviour

Pursuant to the continuation of Article 25 of the Labour Law, the employer is entitled to terminate the employment relationship in cases of conduct contrary to morality, good faith, or other similar behaviours.

• "If, at the time the employment contract is concluded, the employee misleads the employer by claiming to possess qualifications or conditions that are essential to the contract but which they in fact do not have, or by providing untrue information or statements."
• "If the employee utters words or engages in behaviors that insult the honor and dignity of the employer or their family members, or makes unfounded accusations and allegations that damage the employer's reputation."
• "If the employee sexually harasses another employee of the employer."
• "If the employee assaults the employer, a member of the employer's family, or another employee of the employer, or if the employee comes to work intoxicated or under the influence of drugs, or uses such substances in the workplace."
• "If the employee engages in behavior that breaches trust and loyalty, such as abusing the employer's trust, committing theft, or disclosing the employer's professional secrets."

From the wording of the law, it is understood that the employer's right to terminate the employment contract for just cause due to conduct contrary to truthfulness and loyalty is not limited solely to the examples listed in the relevant paragraph. The circumstances set out therein are of an illustrative nature; therefore, which behaviours shall be considered contrary to truthfulness and loyalty must be assessed separately in light of the specific circumstances of each individual case.

• "If the employee commits a crime in the workplace that is punishable by more than seven days of imprisonment and the sentence is not suspended."
• "If the employee, without the employer's permission or without a valid reason, fails to attend work for two consecutive working days, or twice in a month on the working day following a public holiday, or three working days in a month."
• "If the employee persists in not performing the duties they are responsible for, even after being reminded of them."

It should be noted that, in order for the employer to exercise the right of immediate termination in this case, the employee must first be reminded of his/her duty. Although the article does not expressly require such reminder to be in writing, since the burden of proof that the reminder was given rests with the employer, providing it in writing is of crucial importance.

"If, due to the employee's own willful misconduct or negligence, they endanger workplace safety, or cause damage or loss to machinery, equipment, or other goods and materials belonging to the employer or under the employee's responsibility, in an amount that cannot be compensated by the equivalent of thirty days' wages."

For termination on this ground to be justified, the damage must arise from the employee's willful act or negligence. Additionally, in order for such damage to constitute a ground for just cause, the extent of the damage must exceed the amount corresponding to the employee's thirty day wage.

1.3. Force Majeure

The continuation of Article 25 of the Labour Law regulates the employer's right of termination on the basis of force majeure.

"Where a force majeure event arises that prevents the employee from working at the workplace for more than one week."

Circumstances that prevent the employee from performing his/her work at the workplace for longer than one week due to force majeure may entitle the employer to terminate the employment contract for just cause. Accordingly, if such an event occurs that prevents the employee from working for more than one week, the employer acquires the right to terminate the contract for just cause following the expiry of that one week period.

It should first be emphasized that the force majeure event must directly affect the employee, rendering him/her unable to attend the workplace and perform work. The force majeure envisaged here does not occur at the workplace itself but arises in the employee's environment.

Where a force majeure event prevents the employee from working at the workplace for more than one week, the employee must be paid half wages for each day during the initial one-week waiting period. Upon the expiry of that week, the employer is free to decide whether or not to terminate the contract without notice. If the employer does not opt for termination, the contract shall remain suspended, and during this period the employee shall not be entitled to claim wages.

1.4. Custody or Arrest

The continuation of Article 25 of the Labour Law also regulates the employer's right of termination due to custody arrest.

"Where the employee's absence due to detention or custody exceeds the statutory notice period prescribed in Article 17."

Pursuant to paragraph four of Article 25 of the Labour Law, if the employee is taken into custody or arrested, and the resulting absenteeism exceeds the statutory notice period calculated according to the employee's length of service, the employer acquires the right to terminate the employment contract for just cause.

2- Notice of Termination and Time Limit for Exercising the Right of Immediate Termination

Article 19 of the Labour Law explicitly provides that "the employer must deliver the notice of termination in writing and must clearly and precisely state the reason for termination. An indefinite-term employment contract of an employee cannot be terminated on the grounds related to the employee's conduct or performance without first receiving the employee's defence against the allegations. However, the employer's right of termination in accordance with subparagraph (II) of Article 25 is reserved". In addition, Article 109 of the Labour Law, as amended on 20 July 2025, explicitly provides that "Notifications prescribed under this Law must be made to the relevant party in writing and against signature, or, subject to the employee's written consent, by means of electronic communications including the sending and delivery through a registered electronic mail (REM) account, which constitutes the qualified form of electronic mail that provides legal evidence. Notifications resulting in the termination of the employment contract shall in any case be made in writing. If the person to whom the written notification is delivered refuses to sign, the situation shall be recorded in a written report at the place of delivery. However, notifications falling within the scope of the Law on Notifications No. 720 dated 11/2/1959 shall be made in accordance with the provisions of that Law". Accordingly, an employer exercising the right of termination for just cause is obliged both to make the termination notice in writing and to clearly and precisely specify the reason for termination therein.

On the other hand, paragraph 1 of Article 26 of the Labour Law stipulates that "the right granted to the employee or the employer to terminate the employment contract based on the cases of breach of morality and good faith principles specified in Articles 24 and 25 cannot be exercised after six working days from the date on which the other party becomes aware of such conduct, and in any case after one year from the date of occurrence of the act. However, where the employee derives a material benefit from the incident, the one-year period shall not apply."

Accordingly, if the employer wishes to terminate the employment contract pursuant to paragraph 2 of Article 25 of the Labour Law, this right must be exercised within six working days from the date the employer becomes aware of the event, and in any case within one year from the date of its occurrence. This provision of the Labour Law constitutes a time-barred period (hak düşürücü süre), and the continuation of the article further clarifies that in cases where the employee derives a material benefit from the incident, the one-year period shall not apply. Therefore, if the employee gains a material benefit from the incident, the employer's right to terminate the contract for just cause shall remain valid, provided that the six working day period is observed, regardless of the lapse of time since the event.

For further detailed information regarding the time limit for exercising the right of termination for just cause, you may refer to our article prepared specifically on this matter.

3- Consequences of Termination for Just Cause

Where termination for just cause, as explained above, is carried out in compliance with the law, the employment contract shall be unilaterally terminated. It is of particular importance to note that even in cases of immediate termination for just cause, the employee shall still be entitled to certain statutory receivables, and the employer is obliged to discharge these obligations.

• Severance Pay

Except for cases arising from acts contrary to morality and principles of good faith as stipulated under paragraph 2 of Article 25 of the Labour Law, if the employment contract is terminated for any other just cause, and provided that the employee has completed at least one year of service, the employee shall be entitled to severance pay.

• Notice Compensation

In cases where the employer lawfully exercises the right of immediate termination for just cause, the employee shall not be entitled to notice compensation.

• Job Security Rights

It should be noted that in the event that the employment contract between the employee and the employer is terminated by the employer through just cause or valid termination, and this termination becomes final as a result of judicial proceedings, the employee may not request reinstatement, and the provisions on job security shall not be applicable in this regard.

• Receivables Not Dependent on Termination, such as Annual Leave Pay, Overtime Pay, and Public Holiday Pay

Claims such as overtime wages, pay for work performed on national and public holidays, and annual leave pay are not rights contingent upon termination. Accordingly, even in cases of immediate termination for just cause, the employer remains obliged to pay these receivables to the employee, since they fall due at the moment they are earned during the course of employment.

4- Conclusion

In summary, Article 25 of the Labour Law contains detailed provisions concerning the employer's right to terminate the employment contract for just cause. Among such grounds are health reasons, acts contrary to morality and principles of good faith, force majeure, and detention or custody, which are explicitly enumerated in the statute.

Nevertheless, when invoking termination for just cause, the statutory time limits and procedural requirements must be strictly observed. Otherwise, the termination may be deemed unlawful, thereby giving rise to the employer's liability to pay compensation. It is therefore crucial that the specific circumstances of each case be carefully evaluated and that the termination procedure be duly followed.

Thus, the employer's right of termination for just cause under the Labour Law constitutes a balanced legal mechanism. On the one hand, protecting the employer's interests in cases of breach of obligations by the employee and on the other, safeguarding the employee's accrued rights.