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Turkish Court of Cassation severance pay rulings

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2026-08-28 08:20 UTC → 2026-09-07 10:29 UTC · added ~~removed~~

The Turkish Court of Cassation (Yargıtay) has issued several landmark rulings regarding the calculation and entitlement of severance pay. In an initial decision, the 9th Civil Chamber ruled that variable sales bonuses must be included in the calculation of severance pay, even if the bonuses vary in amount or do not occur every month. ~~Subsequently, the court established a precedent regarding~~ Regarding wage ~~delays. The~~ delays, the 9th Civil Chamber confirmed that a single instance of wage delay can justify a termination with cause and entitle an employee to severance pay, provided the delay exceeds the 20-day legal threshold established under Article 34 of the Labor Law. In a specific case involving a project manager, the court upheld that a delay was legally significant because payment was made five days after the employee had already terminated the contract, thereby exceeding the 20-day limit. Additionally, the court addressed the impact of annual leave on severance eligibility. The 9th Civil Chamber overturned a lower court decision, ruling that if an employee uses annual leave in short periods based on their own request and consent, such usage does not, by itself, constitute a valid reason for the employee to terminate their employment contract with just cause. This ruling clarified that the manner of leave distribution does not necessarily provide sufficient grounds for justified termination if the worker consented to the short-term leave periods.

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