1-WHAT IS NOTICE PAY?
Notice pay is a kind of compensation paid to the counter party when the employment is terminated by the employer or the employee without a legal notice that must be made in a given time in line with the Labor Law.
2-WHAT IS THE LEGAL BASIS OF NOTICE PAY?
Notice pay is prepared in Article 17 entitled ‘’periodic termination’’ of the Labor Law no. 4857
3-WHEN SHOULD THE NOTICE BE SENT TO THE COUNTER PARTY?
The notice about the termination of the labor contract (the notice for the leave of employment given to the employee by the employer, the notice for the ending date of employment conveyed to the employer by the employee) should be sent to the counter party according to the seniority term stated below.
Before the termination of the employment contract of indefinite duration, the counter party must be informed about the termination.
The statutory notice periods are;
a)2 weeks’ notice if employed for less than 6 months
b)4 weeks’ notice if employed between 6 months and one year and a half
c)6 weeks’ notice if employed between one year and a half and 3 years
d)8 weeks’ notice if employed for 3 years or more
Please go through your contract. Because the employer may give the employee more than the statutory minimum; however, he/she may not give you less.
*If one of the counter parties does not comply with notification condition, he/she is supposed to pay in lieu of notice in accordance with notification period.
*Notice pay is different from seniority indemnity, because notice pay is applied to both employer and the employee. That means if the employee leaves the work without complying with notice periods, he/she has to pay in lieu of notice.
The employer may offer the employee payment in lieu of notice instead of giving a notice, on condition that the payment should be made in advance.
4-WHAT IS THE AMOUNT OF NOTICE PAY?
An example of notice pay calculation table is indicated below. The table belongs to an employee who gets minimum wage without extras.
The amount of notice pay varies between 2 weeks and 8 weeks.
5-WHAT IS THE AMOUNT OF NOTICE PAY?
Whoever does the notice, the employer is entitled to 2-hour permit for job search during notice period.
If the counter parties come to an agreement, that period can be also used collectively.
6-IS THERE A DEDUCTION FROM NOTICE PAY?
Income tax and stamp tax are deducted from notice pay.
SSI and unemployment insurance are not deducted from notice pay.
7-IS THERE AN EXTRA PAYMENT IN LIEU OF NOTICE, IF THE EMPLOYER WORKS DURING THE NOTICE PERIOD?
No.
If the notice period is taken into consideration according to the Labor Law and the termination of labor contract is submitted to the counter party, the payment should be made in line with the term of employment.
Source: Labor Law
Date: 26 January 2017
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