Court of Cassation rules on severance pay for delayed wages

The Turkish Court of Cassation has issued a precedent-setting ruling regarding severance pay in cases of delayed wage payments. The decision follows a legal dispute where a project manager terminated their employment contract after their April salary was not paid on time.

Although the employer argued that the delay was a one-time occurrence and not a habitual practice, the court focused on the specific duration of the delay. It was determined that the payment was made five days after the employee had already terminated the contract, exceeding the 20-day legal threshold established under Article 34 of the Labor Law.

The 9th Civil Chamber of the Court of Cassation upheld the lower court's decision, confirming that even a single instance of wage delay can justify a termination with cause and entitle the employee to severance pay if the delay exceeds the 20-day limit.