Supreme Court 9th Civil Chamber: Pandemic Unpaid Leaves May Be Included in Severance Calculation to a Limited Extent

A divergence emerged among the decisions of the regional courts of appeal concerning whether the period an employee spent on unpaid leave during the COVID-19 pandemic should be included in the calculation of the service period that forms the basis for annual paid leave and severance pay. As a result of this disagreement, the matter was brought before the High Court (Supreme Court of Appeals).

In its ruling dated 29.05.2025, numbered 2025/3201 E. and 2024/1108 K., the 9th Civil Chamber of the Supreme Court held that, in determining the periods that serve as the basis for annual paid leave and severance pay, the time an employee spent on unpaid leave during the pandemic under the scope of provisional Article 10/2 added to Law No. 4857 should be taken into account, provided that it does not exceed the duration formed by adding six weeks to the statutory notice period. Any period exceeding this limit shall not be included in the calculation of the service period.

Accordingly:

• Unpaid leave taken during the pandemic may be included in the calculation of severance pay and annual leave entitlement, provided that it does not exceed six weeks in addition to the notice period.
• Unpaid leave periods that exceed six weeks in addition to the notice period shall not be considered part of the service period.

Conclusion:

In line with the Supreme Court 9th Civil Chamber's decision numbered 2025/3201 E. and 2025/4965 K., the calculations for severance pay and annual leave entitlements of employees who were unilaterally placed on unpaid leave by the employer during the pandemic must be re-evaluated.

In this context, to prevent potential losses of rights in administrative audits or legal proceedings:

• Notifications regarding unpaid leave practices,
• The dates of such notifications,
• And all documentation relating to the duration of unpaid leave

must be properly prepared and meticulously archived.

Failure to present these documents will place the burden of proof on the employer, which may result in unfavorable outcomes in court proceedings.

Therefore, it is of great importance that human resources and legal departments review their records and calculation procedures in accordance with this ruling.

You may access the relevant decision here (In Turkish).