Why does the termination process need care in Turkey?
An employee's departure is usually planned less carefully than a hire, yet its legal and financial consequences are heavier. If the type of termination is misjudged, the employee may lose severance or unemployment benefit rights, and the employer may later face a reinstatement or employee claims lawsuit. Because the limitation period for employee claims in Turkey is 5 years, a mistake made today can resurface years later.
This guide is written for foreign companies operating in Turkey. It covers the termination types under Turkish Labour Law No. 4857, notice periods, how severance pay (kıdem tazminatı) and notice pay (ihbar tazminatı) are calculated, the SGK (Social Security Institution) exit notice and the logic of the exit code, and finally a checklist for HR. Figures use 2026 parameters; for current values see the payroll parameters page.
How can an employment contract end?
An open-ended employment contract ends mainly in the following ways. Each has different compensation and reporting consequences.
| Termination type | Short description | Severance pay | Notice pay |
|---|---|---|---|
| Employer termination for valid reason | Termination with notice based on a valid reason such as performance, conduct or business needs | Paid if conditions are met | Paid if notice is not given |
| Employer termination for just cause (summary dismissal) | Immediate termination for serious reasons such as breach of good faith | Not paid in most of these cases | Not paid |
| Resignation | The employee leaves voluntarily, observing the notice period | As a rule not paid (statutory exceptions apply) | The employee may owe it if notice is not observed |
| Employee termination for just cause | Immediate termination by the employee, for example for unpaid wages | Paid | Not paid |
| Mutual agreement (ikale) | Both parties end the contract by written agreement | Depends on the agreement | Depends on the agreement |
| Retirement, military service, marriage (female employee, within 1 year), death | Special termination cases listed in law | Paid if conditions are met | Not paid |
The table summarises the general rule; each case requires an assessment of the reason and the evidence. Where you are unsure, confirm the current rules with the official source and your legal adviser.
How many weeks is the notice period?
The party ending an open-ended contract with notice must observe the following periods, based on the employee's length of service. These are minimums and can be extended by the employment contract or a collective agreement.
| Length of service | Notice period | In days |
|---|---|---|
| Less than 6 months | 2 weeks | 14 days |
| 6 months to 1.5 years | 4 weeks | 28 days |
| 1.5 to 3 years | 6 weeks | 42 days |
| More than 3 years | 8 weeks | 56 days |
Instead of having the employee work the notice period, the employer can pay the wages for that period in advance and end the contract immediately. This payment is called notice pay. If the notice period is worked, the employee must be given job-search time off (at least 2 hours a day); whether this is taken in a block depends on the employee's request. For a detailed calculation, use the notice pay calculator.
How is severance pay calculated?
Severance pay is owed to an employee with at least 1 year of service who leaves in one of the cases listed in law. It equals 30 days' gross pay for each full year, with partial years calculated pro rata. The base includes regular fringe payments on top of monthly gross salary (the so-called "dressed" wage). This base cannot exceed the severance ceiling in force on the termination date, which for 2026 is TRY 73,729.87. No income tax or SGK premium is deducted from severance pay; only stamp duty (7.59 per mille) is deducted.
Example: TRY 60,000 gross, 4 years 3 months of service
| Item | Calculation | Amount |
|---|---|---|
| Calculation base | TRY 60,000, below the ceiling (TRY 73,729.87) | TRY 60,000.00 |
| 4 full years | 60,000 x 4 | TRY 240,000.00 |
| 3 months | 60,000 x 3 / 12 | TRY 15,000.00 |
| Gross severance pay | TRY 255,000.00 | |
| Stamp duty | 255,000 x 7.59 per mille | TRY 1,935.45 |
| Net severance pay | TRY 253,064.55 |
How does the ceiling apply? TRY 100,000 gross, 4 years 3 months
For an employee with the same service and TRY 100,000 gross pay, the base is capped at the ceiling. Gross severance is 73,729.87 x 4.25 = TRY 313,351.95, stamp duty is TRY 2,378.34 and the net amount is TRY 310,973.61. To run your own figures, use the severance pay calculator.
How is notice pay calculated and what is deducted?
Notice pay is the gross pay for the days in the notice period and is not limited by the severance ceiling. Unlike severance pay, both income tax and stamp duty are deducted from notice pay; no SGK premium is deducted. Income tax is calculated by adding the payment to the employee's cumulative tax base for the year and applying the relevant bracket.
Example: TRY 60,000 gross, 4 years 3 months, terminated in January
Because service exceeds 3 years, the notice period is 8 weeks (56 days). January salary has a tax base of TRY 51,000, and we assume the minimum wage exemption has already been used against the regular salary that month.
| Item | Calculation | Amount |
|---|---|---|
| Daily gross pay | 60,000 / 30 | TRY 2,000.00 |
| Gross notice pay | 2,000 x 56 | TRY 112,000.00 |
| Income tax | Cumulative base 51,000 + 112,000 = TRY 163,000, all in the 15% bracket | TRY 16,800.00 |
| Stamp duty | 112,000 x 7.59 per mille | TRY 850.08 |
| Net notice pay | TRY 94,349.92 |
Had the termination taken place later in the year, the higher cumulative base would push part or all of the notice pay into the 20% or higher bracket. The net amount therefore depends on the month of departure.
What other payments are due on exit?
- Final month's salary: Pay for days worked up to the termination date, with normal payroll deductions.
- Unused annual leave: Earned but unused leave days are paid at the last salary; this is a wage payment subject to SGK premium, income tax and stamp duty. For leave entitlements, see the annual leave guide.
- Overtime, bonus and premium receivables: Earned and unpaid amounts are added to the final payroll.
- Advance and debt offsets: Made only with the employee's written consent and within legal limits.
What is the SGK exit notice and exit code?
The employer must file the SGK exit notice (işten ayrılış bildirgesi) for a departing employee within 10 days of the termination date. The notice includes an exit code describing the reason for departure. The exit code directly affects whether the employee can apply for unemployment benefit and is a declaration by the employer, so it must match the termination letter.
Exit codes broadly fall into groups such as employer termination with notice, employer termination for just cause, resignation, employee termination for just cause, mutual agreement, retirement, military service, death, expiry of a fixed-term contract and transfer. Because SGK can update the code numbers and descriptions, we do not list them here. When preparing the notice, use the current exit code list in SGK's e-Bildirge system and check that the code matches the reason stated in the termination letter.
An incorrect code creates risk in both directions: the employee may be wrongly denied unemployment benefit or may receive a benefit they are not entitled to. Either way, the employer may face an administrative fine and a dispute. If a code needs correcting, file a correction request with SGK.
Why do the employment certificate and release matter?
The employer must give the departing employee an employment certificate (çalışma belgesi) stating the type of work and length of service. The employee needs it for future employers and personal records, and its content must be accurate.
A release (ibraname) is a document in which the employee declares that no receivables remain. To be valid it must be in writing, show the receivable items and amounts clearly, follow a bank payment and be signed a certain time after the termination date, among other conditions. A release that fails these conditions may be treated by courts as a mere receipt. For details, confirm the current rules with the official source.
What should the employer do before terminating?
- Clarify the reason: Collect documents supporting a valid or just cause (warnings, performance records, incident reports).
- Obtain a defence: Where the reason relates to conduct or performance, obtain the employee's written defence.
- Give written notice: State the reason clearly and precisely, and document delivery.
- Prepare the calculations: Work out severance, notice pay, leave pay and final salary with payroll.
- File the exit notice within 10 days: With the correct exit code and date.
- Pay and obtain a release: Pay by bank transfer; prepare the release in line with the statutory conditions.
For the human side of offboarding (handover, exit interview, closing access), it helps to plan the reverse of the steps in the onboarding guide. For paperwork on the hiring side, see the hiring paperwork guide.