Yargıtay rules employers can reclaim erroneous employee overpayments

The 9th Civil Chamber of the Turkish Court of Cassation (Yargıtay) has issued a landmark ruling regarding the recovery of erroneous payments made to employees. The court ruled that employers may reclaim overpayments made by mistake or error, provided they can prove the mistake occurred.

The case originated in Bursa, involving an employer seeking the return of excess funds paid to a worker who had left the company approximately 15 years prior. While lower courts initially rejected the employer's claim—arguing that the employer holds a superior economic position compared to the worker—the Court of Cassation overturned these decisions.

The ruling specifies that such erroneous payments must be evaluated under the “unjust enrichment” provisions of the Turkish Code of Obligations. The court emphasized that if an employer can prove they were under a misconception at the time of payment, they are legally entitled to request the return of the funds.