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12March2021

Supreme Court Decisions on Fixed-Term Contracts

Supreme Court Decisions on Fixed-Term Contracts

As it is known, after the closure of the 22nd Legal Office of the Supreme Court of Appeals, the disputes with the 9th Civil Chamber of the Supreme Court decision were discussed and the final decisions were announced.

You can find below the details of the policy decisions on fixed-term employment contracts:

1) Regarding whether it is possible for the employer to claim that there are no objective conditions for a fixed-term employment contract:

Although, there is no objective condition to conduct or renew a fixed term employment contract;

If a fixed-term contract is conducted and the employer terminates it without a valid reason, the employee can request the remaining portion of the wages, the employer cannot request notice payment.

2) Regarding the severance pay issue in case the fixed-term employment contract ends automatically at the end of the term:

There is a right to claim severance pay in the termination of a fixed-term employment contract (retirement, rightful termination of the employee, unfair termination of the employer, etc.).

If the employer informs that the fixed-term employment contract will not be renewed at the end of its term, the employee has the right to severance pay.

If the employees inform that they will not renew the fixed term employment contract, they cannot claim severance payment.

In the spontaneous termination of the fixed-term employment contract, severance pay may be demanded, limited only to the cases where a fixed-term employment contract is made as required by the Law (5580 SY).

3) Regarding coaches, trainers, working abroad and being a foreigner in Turkey, within the objective reason factor for a fixed-term contract:

Being a foreigner in Turkey would not be an objective reason for making fixed-term employment contracts. Work permit or resident permit durations are not deemed as a factor on this.

From the perspective of the Turkish employees working abroad; if there is a period on the contract signed via Turkish Employment Agency, that would not indicate that these contracts are fixed-term contracts.

If the employee works abroad for the first time on project-based jobs, it would be possible to make a fixed-term employment contract in line with the duration of the project.

Fixed-term employment contracts with coaches or trainers can be considered fixed-term.

Should you have any queries or need further details, please contact your customer representative.

Written by Erdoğdu Onur Erol, Posted in Social Security Law and Legislation, Labor Law

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