What is Short-time Working Allowance?
Law No. 4447 regulates the short-time working allowance, which is a practice that provides financial assistance to insured workers in the workplace for a period not exceeding three months in cases where the weekly working hours in the workplace are temporarily reduced or the activities in the workplace are completely or partially suspended due to general economic, sectoral, regional crisis or compelling reasons. In order to benefit from the short-time working allowance, the working hours in the workplace must be reduced by at least one third, and if the workplace activities are suspended, this suspension must last at least four weeks. For example, if the working time is reduced by at least 2 days or more in a workplace that works 6 days a week, short-time working will be in question. The same applies if a workplace stops its activities for 5 weeks. The employer can determine when and at what intervals the short-time work will be carried out according to the nature of the work.
There is no restriction in the law on the number of times the short-time working allowance can be utilized. There is also no restriction on the minimum or maximum number of workers to benefit from this allowance, and foreign workers who meet the working conditions can also benefit from the short-time working allowance. In addition, workers will be able to benefit from health services during the period they receive short-time working allowance.
What are the Conditions to Benefit from Short-Term Working Allowance?
According to the Unemployment Insurance Law No. 4447, the conditions for benefiting from the short-time working allowance are as follows:
- General economic crisis; Situations in which events occurring in the national or international economy seriously affect and shake the country's economy and thus the workplace
- Sectoral crisis; Situations in which workplaces in sectors directly affected by events occurring in the national or international economy and other related sectors are severely shaken
- Regional crisis: Situations in which businesses operating in a specific province or region are significantly affected and shaken economically due to national or international events.
- Compelling reason: Situations arising from external factors that are not caused by the employer's own management and control, cannot be anticipated in advance, and result in a temporary reduction of working hours or a complete or partial halt of activities. Such situations include periods caused by events like earthquakes, fires, floods, landslides, epidemics, and mobilization.
- Due to these reasons, working hours must be reduced by at least one-third or work must be completely halted.
- The employer must submit a short-time work application.
- The worker who will benefit from short-time working allowance must meet the conditions to qualify for unemployment insurance, that is, must have been subject to a service contract in the 120 days before the start of short-time working and must have paid at least 600 days of premium in the last 3 years. However, in the presence of compelling reasons arising from Covid-19, being subject to a service contract in the last 60 days and paying premiums for 450 days in the last 3 years are deemed sufficient by the Provisional Article 23 of Law No. 4447.[N1]
How to Apply for Short-Time Work?
During short-time work, the short-time work allowance is covered by the Unemployment Insurance Fund. To benefit from this opportunity, the employer must promptly notify the Turkish Employment Agency of the short-time work request using the application form and a list of employees. Notification can be made via email or the employer can apply through the e-Government portal. If there is a collective bargaining agreement at the workplace, the short-time work application must also be notified to the union party to the collective agreement. The suitability of the short-time work application will be determined by labor inspectors, and if the necessary conditions are met, the short-time work application will be accepted. To avoid any issues regarding the application conditions and suitability during the application process, our colleagues who are experts in labor and social security law will be there to assist you at every stage. If the employer applies with incorrect information or documents and overpayments occur, the excess payment will be collected from the employer along with legal interest. Therefore, it is very important to seek information and assistance from experts during the application process.
Duration and Calculation of Short-Time Work Allowance
Short-time work can generally be carried out for a maximum of 3 months. However, the President is authorized to extend the short-time work period up to 6 months.
The daily short-time work allowance is 60% of the average gross earnings calculated based on the employee's earnings subject to premiums over the last 12 months. However, the calculated short-time work allowance cannot exceed 150% of the gross amount of the monthly minimum wage applicable for workers over the age of 16. Additionally, payments made to employees under the short-time work allowance are deducted from the unemployment benefit period. The short-time work allowance is calculated monthly for the periods not worked, ensuring it corresponds with the working hours applied at the workplace.
Rights of Employees Working Full-Time During Short-Time Work Period
During the short-time work period, the employer must pay the insurance premiums for the days the employee works. However, malicious employers may benefit from the short-time work allowance while employing the worker full-time. In this case, the employee will receive lower wages and their insurance premiums will be insufficient. Insufficient payment of insurance premiums constitutes a violation of ethical and good faith principles by the employer, and under Article 24/2 of the Labor Law, the employee has the right to terminate the employment contract for just cause. We are always ready to assist employees who are working in this manner and have questions or legal issues related to the topic, through our expert team.
In addition, the employer will be subject to an administrative fine under the Social Insurance and General Health Insurance Law No. 5510 for underpayment or non-payment of insurance premiums. According to Article 101 of Law No. 5510, the employer pays a fine equal to twice the minimum wage for each month in which they made insufficient notifications.
When is the Short-Time Work Allowance Suspended?
Individuals Receiving Short-Time Work Allowance
- Starting Work
- Starting to Receive Retirement Pension
- Being Drafted
- Leaving the Job Due to a Work Obligation Arising from Any Law
- If the individual starts to receive temporary incapacity allowance, the short-time work allowance will be suspended from the date the health report begins.
Termination of Short-Time Work Allowance
The short-time work allowance ends in the event of the termination of general economic, sectoral, regional crises, or compelling reasons. If these reasons cease before the end of the 3-month period, the benefit of the short-time work allowance will end without waiting for the completion of the 3-month period.
If the employer voluntarily returns to normal working conditions while the conditions for benefiting from the short-time work allowance continue, the short-time work allowance will end. In this case, the employer must notify the employees and the labor union, if there is a collective bargaining agreement, at least 6 working days in advance.
[N1] An extension of 6 months was granted for Covid, but it ended in March 2021. Therefore, the 60 days + 450 days requirement is no longer valid and can be removed.
