Articles 24 and 25 of the Labor Law regulate the termination of the employment contract for just cause from the perspective of both the employee and the employer. Termination is the unilateral declaration of intent directed at the other party, resulting in the conclusion of the employment contract.
If the termination is based on just cause, both the employee and the employer can immediately terminate the employment contract without adhering to the notice period. If the termination occurs due to a violation of ethical and good faith principles, the party exercising the right to terminate must do so within 6 working days from the day they became aware of the other party's unethical or bad faith behavior, and in any case, within 1 year.
The termination declaration is a statement that must be communicated to the other party. There is no formal requirement in the law regarding the communication of termination for just cause; it is sufficient for the intent to terminate to be clearly expressed. However, to prevent potential disputes in the future, it is advisable for the party terminating the contract to provide written notice of the termination. Clearly stating the reasons for termination, determining the date the employment contract ended, and identifying who terminated the contract are crucial aspects in legal proceedings. Therefore, collaborating with specialized attorneys in preparing the termination notice will help prevent any loss of rights for the parties involved.
Employee's Termination of Employment Contract for Just Cause
According to Article 24 of the Labor Law, the employee may terminate the employment contract for the following just causes:
1. Health Reasons:
- If the performance of the work covered by the employment contract poses a danger to the employee's health or livelihood due to the nature of the work,
- If the employee is in close and direct contact with the employer or another employee who contracts a contagious disease or an illness that is incompatible with the employee's work,
2. Violation of Ethical and Good Faith Principles
- If the employer misleads the employee by presenting false qualifications or conditions regarding one of the essential points of the contract at the time the employment contract is made, or by providing inaccurate information or making misleading statements,
- If the employer makes remarks or engages in behavior that insults the honor and dignity of the employee or a member of their family, or if the employer sexually harasses the employee,
- If the employer harasses the employee or a member of their family, threatens them, or encourages, incites, or entices the employee or a family member to act against the law, or commits a crime that requires imprisonment against the employee or a family member, or makes false and defamatory heavy accusations against the employee that damage their honor and dignity,
- If the employee is subjected to sexual harassment at the workplace by another employee or third parties, and despite reporting this situation to the employer, necessary precautions are not taken,
- If the employee's wages are not calculated or paid in accordance with the legal provisions or the terms of the contract by the employer,
- If the payment of wages is agreed to be on a piece-rate or job-based basis, and the employer gives the employee less work than what could reasonably be expected, and the wage difference is not compensated based on time, or if the working conditions are not applied,
3. Compelling Reasons
- If compelling reasons arise that necessitate the cessation of work at the employee's workplace for more than one week.
Employer's Termination of Employment Contract for Just Cause
Article 25 of the Labor Law enumerates the just causes that allow the employer to terminate the employment contract. These reasons are listed as follows:
1. Health Reasons
- In the event that the employee suffers from an illness or becomes disabled due to their own intent, disorganized lifestyle, or alcoholism, and if the resulting absenteeism lasts for more than three consecutive working days or exceeds five working days within a month,
- If it is determined by the Health Board that the illness the employee suffers from is incurable and that there are risks associated with their work at the workplace,
2. Violation of Ethical and Good Faith Principles
- If the employee misleads the employer by claiming to possess the necessary qualifications or conditions regarding one of the essential points of the contract at the time the employment contract is made, despite not actually having them, or by providing inaccurate information or making misleading statements,
- If the employee makes remarks or engages in behavior that insults the honor and dignity of the employer or any of their family members, or if the employee makes false accusations or defamatory statements against the employer that damage their honor and dignity,
- If the employee engages in sexual harassment of another employee of the employer,
- If the employee harasses the employer or a family member of the employer, or another employee of the employer, comes to the workplace intoxicated or under the influence of drugs, or uses such substances at the workplace,
- If the employee engages in behavior that violates trust and loyalty, such as abusing the employer's trust, committing theft, or disclosing the employer's trade secrets,
- If the employee commits an offense at the workplace that is punishable by imprisonment for more than seven days and the sentence is not deferred,
- If the employee fails to attend work for two consecutive working days without obtaining permission from the employer or without just cause, or if they miss the first working day following a holiday on two occasions within a month, or if they do not attend work for three working days in a month,
- If the employee jeopardizes the safety of the work due to their own negligence or carelessness, or causes damage or loss to the employer's property, including machinery, equipment, or other items in their possession, amounting to an amount equal to thirty days' wages,
3. Compelling Reasons
- If a compelling reason arises that prevents the employee from working at the workplace for more than one week,
4. The Employee's Detention or Arrest Exceeding the Termination Notice Period
The just causes for termination listed are limited to those specified in the law for both the employee and the employer and cannot be expanded. Provisions that restrict or prevent the exercise of the right to terminate for just cause through an employment contract cannot be made. Even if such a provision is created, it would be invalid as it contradicts the mandatory provisions of the law.
Consequences of Termination for Just Cause
In the event of termination of the employment contract for just cause, the contract will end upon the delivery of the termination notice to the other party. If the employer terminates the contract for just cause, the employee cannot request reinstatement, nor claim notice and severance pay. Additionally, if the just causes arise from the employee's failure to comply with ethical and good faith principles, the employee will not be eligible for unemployment benefits due to their own fault in becoming unemployed. However, other unused rights, such as annual leave, national holidays, general holidays, transportation and meal allowances, and overtime compensation, will still be preserved.
If the employee terminates the employment contract based on just cause, they cannot request reinstatement or notice compensation. However, if the employee ends the contract for just cause, they will be entitled to severance pay and may be eligible for unemployment benefits, provided that other conditions are met. Additionally, they can also assert claims related to other employment-related entitlements.
Employee Rights in Cases of Unjust Termination by the Employer
If the reasons stated by the employer for terminating the employment contract are not among those specified in the law, or if one of the legal reasons is cited but does not actually materialize, this will be considered an unjust termination of the contract. The employer may act in bad faith to prevent the employee from claiming compensation or may mistakenly believe that a just cause exists due to a lack of sufficient knowledge. To avoid adverse consequences for the employer, it is essential to evaluate whether a valid reason for termination exists in consultation with experts. Our specialized attorneys will be happy to assist you to prevent larger losses in the future.
If the employer terminates the employment contract in bad faith or due to ignorance, the employee will have the right to claim reinstatement, severance pay, and notice compensation. Additionally, compensation for the time spent out of work and for not being reinstated may also come into play. Moreover, other employment-related claims can certainly be pursued. It is crucial for employees who have been unjustly terminated to promptly consult with qualified labor law attorneys. A short time frame for requesting reinstatement can lead to loss of rights. To prevent such losses during this process, our expert team will be by your side at every stage if you reach out to us.
