New Decision on Combining Case Law Regarding Labor Contract

Decision (“Decision”) of the Combining Case Law General Assembly of the Supreme Court dated 08/03/2019, numbered E: 2017/10, K: 2019/1, has been published on the 18.07.2019 dated Official Gazette.

The General Assembly of the Supreme Court Presidency has declared its opinion on the penal clause, which is dependent on the unfair termination of the labor contracts agreed by the parties to be a definite term labor contract but considered as indefinite due to lack of objective conditions, will be considered as valid to be limited with the determined duration in the contract.

Accordingly, The General Assembly of the Supreme Court Presidency emphasized liberty of contract as a result of freedom of will, by referring to the Turkish Code of Obligations’ article 27; “In an agreement, invalidity of certain clauses does affect the validity of others”, and decided that the provision of ‘penal clause regarding unfair termination before the end of the contract term’ is valid by being limited with the determined duration in the contract.