The Employee’s Right to Immediate Termination for Just Cause

The Employee’s Right to Immediate Termination for Just Cause. Turkish Labor Law No. 4857, the cornerstone of Turkish working life, builds the relationship between employee and employer not merely as an area of contractual freedom, but also on the principles of protecting the weaker party and establishing social balance. One of the most critical mechanisms of this balance is the institution of “immediate termination for just cause,” which grants parties the authority to end the contract before its term or without waiting for notice periods. For the employee, this right is regulated under Article 24 of the Labor Law and functions as a protective shield in cases where the continuation of the employment relationship becomes unbearable. Whether the employment contract is for a fixed or indefinite term does not hinder the exercise of this right; the legislator has kept the authority for immediate termination broad to protect the constitutional rights and economic interests of the employee.

Legal Nature of Termination for Just Cause and its Place in Doctrine

An employment contract, by its nature, is a contract that establishes a continuous relationship between the parties and imposes mutual obligations. In exchange for the employee’s obligation to perform work, the employer has the obligation to pay wages and look after the employee. However, in some cases, the trust relationship between the parties is so severely damaged that, in accordance with the rule of honesty, the continuation of the relationship can no longer be expected from one of the parties. This is where the concept of “just cause” comes into play. Termination for just cause is a right that produces a new legal situation by annulling the contract, and once exercised, the employment contract ends with effect for the future.

Exercising the right of immediate termination for just cause allows the employee to qualify for severance pay, one of the most fundamental consequences of labor law. This situation is sharply distinguished from a standard resignation; while a standard resignation generally does not grant the right to severance pay, an employee terminating under Article 24 can receive compensation if they have met the one-year seniority requirement. On the other hand, since the employee exercising the right of immediate termination ends the contract instantly and does not provide a notice period to the other party, they do not have the right to claim notice pay for themselves.

Classification of Just Termination Grounds and Legal Framework

Article 24 of Labor Law No. 4857 categorizes the grounds for just termination in favor of the employee under three main headings: health reasons, cases incompatible with morals and goodwill and the like, and compelling reasons. The phrase “and the like” in the text of the law indicates that these reasons are not limited to a specific number (numerus clausus), but that other situations arising in the ordinary course of life that contradict the rule of honesty can also be evaluated within this scope.

Terminations Based on Health Reasons (Article 24/I)

The right to terminate for health reasons serves to protect the physical and mental integrity of the employee. Two basic situations are envisaged under this heading. First, the work performed poses a danger to the employee’s health; second, the employer or another employee contracts an infectious disease.

In cases where the work is dangerous for the employee’s health, it is mandatory that the danger arises directly from the nature of the work. For example, the occurrence of occupational hearing loss in an employee working in a constantly noisy environment or the onset of lung diseases in an employee working with chemical substances falls within this scope. In Court of Appeals practice, the aggravation of an employee’s existing disease by conditions at the workplace is also evaluated within this scope. However, this situation must be documented with a health committee report from a full-fledged state hospital or university hospital. A report given by a single doctor is not considered sufficient to prove the justification of the termination. Furthermore, if the employer can transfer the employee to another position suitable for their health (e.g., from a dusty environment to an office environment), the employee’s right to terminate may be extinguished.

In termination due to an infectious disease, the employer or another employee with whom the employee is in constant, close, and direct contact must contract a disease incompatible with the employee’s work. Here, the elements of “continuity” and “close contact” are sought cumulatively. Occasional encounters or contacts occurring in the open air do not give rise to this right.

Violation of Morals and Goodwill (Article 24/II)

The area where disputes are most intense in labor law is the cases that constitute a violation of morals and goodwill. The situations listed in this article include serious breaches of the duty of loyalty and care between the parties. These reasons, ranging from non-payment of wages to sexual harassment, from insults to mobbing, are the strongest justifications granting the employee the right of immediate termination.

Just Termination Grounds in Favor of the Employee: Analysis of 8 Concrete Examples

Eight basic examples that grant the employee the right of just termination, as crystallized in practice and high court decisions, are examined in depth below.

1. Health Danger Arising from the Nature of the Work

The opportunity for just termination arises if the work the employee is obliged to perform, by its nature, endangers their health or lifestyle. Important point here is not whether the danger was known before starting the job, but the determination of the existence of a concrete danger during the performance of the job. The Court of Appeals accepts environments where the risk of occupational accidents is 80% or higher and where occupational health and safety measures are not taken as “dangerous for life.”

2. Employer Misleading the Employee on Essential Points of the Contract

During the formation of the employment contract, if the employer provides false information to the employee regarding the nature of the work, working conditions, wage amount, or fringe benefits, it constitutes a situation of “error and fraud.” For example, assigning someone hired as “office staff” to constant warehouse inventory and physical carrying tasks means the employee’s will was impaired and grants the employee the right of immediate termination. This state of misleading triggers a 6-business-day forfeiture period from the moment it is discovered.

3. Employer Using Words Touching upon the Honor and Dignity of the Employee or Their Family

It is a ground for immediate termination if the employer or the employer’s representative (manager, supervisor, etc.) insults, curses, or makes unfounded accusations that damage the honor and dignity of the employee or one of their family members. It is not mandatory for the insult to constitute a crime in the sense of the Turkish Penal Code; any kind of rude word or behavior that harms the employee’s honor is within this scope. For instance, calling an employee “incompetent” or a “thief” in a meeting is a serious breach that makes the employment relationship unbearable.

4. Sexual Harassment at the Workplace and Employer’s Indifference

If the employee is subjected to sexual harassment by another employee or third parties at the workplace, the employee must report this situation to the employer. If the employer fails to take necessary measures, such as removing the harasser or separating work areas despite the report, the employee may terminate the contract for just cause. In cases where the employer themselves is the harasser, the right to terminate arises directly without any reporting requirement.

5. Non-payment of Wages According to Law or Contractual Conditions

The wage is the essential element of the employment contract, and its non-payment is one of the most fundamental just termination grounds for the employee. The concept of wage includes not only the basic salary but also overtime pay, weekend holiday pay, premiums, and bonuses. There is no difference in terms of just termination between not paying the wage at all and paying it incompletely. Furthermore, the economic crisis or insolvency the employer falls into does not eliminate the employee’s right to terminate.

6. Underpayment of Insurance Premiums or Hiding the Real Wage

The practice of employers paying part of the employee’s salary through the bank and giving the rest in cash (payroll fraud) to reduce costs and reporting SGK premiums based on the minimum wage directly harms the employee’s social security rights. This situation grants the possibility of just termination under Article 24/II-e of Labor Law No. 4857 within the scope of “failure to apply working conditions.” The Court of Appeals accepts that because the underpayment of premiums is continuous, the 6-business-day period does not apply in this case, and termination can be made as long as the violation continues.

7. Mobbing (Psychological Harassment) and Systematic Pressure

Systematic, continuous, and intentional intimidation policies (mobbing) applied against the employee at the workplace are factors that endanger the employee’s health and mental integrity. Assigning no work to the employee to force them to quit, isolating them, or constantly criticizing them are examples of mobbing. In the presence of mobbing, the employee can terminate the contract and claim severance pay based on health reasons or violation of moral rules.

8. Substantial Change in Working Conditions against the Employee

Situations such as moving the workplace to a very distant address, demoting the employee, or making extraordinary changes to working hours constitute a “substantial change in working conditions.” According to Article 22 of the Labor Law, these changes must be notified to the employee in writing. If the employee does not accept this change and the employer insists on it, the employee gains the right to terminate the contract for just cause.

Technical Analysis of Termination Procedure and Forfeiture Periods

The exercise of the right of termination for just cause is subject to strict formal and time rules. Failure to comply with these rules can result in the termination being considered unjustified even if there is a just cause, leading to losses in compensation.

6 Business Days and 1-Year Time Limit

Article 26 of the Labor Law dictates that the authority to terminate due to violation of morals and goodwill must be exercised within 6 business days starting from the day the incident is discovered.

• Discovery Day: The 6-business-day period starts from the date the authorized body definitively learns of the incident. The day the incident is learned is not included in the period.
• Business Day Concept: Weekly holidays and public holidays are not included in the 6-day period. However, if there is work on Saturdays at the workplace, this day is counted as a business day.
• Upper Limit: In any case, the right to terminate expires after 1 year from the date the incident occurred. However, if the employee gains a financial benefit from the incident, this one-year upper limit does not apply.

Importance of Notary Notice and its Probative Force

Although the law does not prescribe a formal requirement for the notice of termination, sending the termination through a notary is a professional necessity for evidentiary security. In verbal terminations, there is always the risk of the employer keeping an absenteeism record stating “the employee abandoned the job.”

The following points should be noted in the notary notice:

1. Concretization: The reason for termination should not be explained with general expressions but with concrete events (date, time, names of persons).
2. Legal Basis: Referring to the relevant clause of Article 24 of the Labor Law in the notice provides legal clarity.
3. Specifying Demands: A reasonable period (usually 3 or 7 days) should be given to the employer for the payment of receivables such as severance pay, annual leave, and overtime.

Methodology for Calculating Severance Pay and Labor Receivables

The most fundamental financial right of the employee resulting from just termination is severance pay. The calculation of severance pay is based on the “last augmented gross wage.”

Concept of Augmented Wage

In addition to the bare wage, all kinds of benefits provided regularly to the employee that can be measured in money are included in the augmented wage. These benefits include:

• Transport and meal allowances (in cash or in kind),
• Regularly paid bonuses and premiums,
• Fuel, clothing, and education allowances.

However, payments such as the minimum living allowance (AGI) and attendance fees are not considered wage in nature and are not included in the calculation.

Mathematical Calculation Formula

Severance pay is in the amount of 30 days of augmented gross wage for each full year. Periods exceeding one year are also included in the account by proportioning on a daily basis.

$$\text{Severance Pay (Gross)} = \left( \frac{\text{Augmented Gross Wage}}{30} \right) \times \text{Total Days Worked} \times \left( \frac{30}{365} \right)$$

Only a stamp duty at a rate of 0.759% is deducted from the calculated gross amount; no income tax deduction is made.

Other Compensations and Receivables

An employee making a just termination cannot receive notice pay. However, the receivables specified below must be paid regardless of the reason for termination:

• Annual Leave Pay: The value of all unused annual leave is paid based on the last bare gross wage.
• Overtime and Public Holiday Pay: All unpaid overtime and general holiday wages for the past can be claimed with legal interest.

Proof and Evidence Tools in the Litigation Process

In labor lawsuits, as a rule, the burden of proving the reason for termination lies with the party performing the termination. However, the burden of proving that the wage was paid lies with the employer, while the burden of proving that overtime was performed lies with the employee.

Electronic Evidence and WhatsApp Records

With developing technology, WhatsApp correspondence, e-mails, and voice recordings have become important means of proof in labor cases. The Court of Appeals accepts WhatsApp correspondence submitted in accordance with the procedure as “beginning of evidence” or “discretionary evidence.” Especially in claims of insult and sexual harassment, such digital records play a critical role in proving the justification of the termination.

Legal Validity of Voice Recordings

While voice recordings taken without permission are generally accepted as unlawful evidence, there are exceptional decisions by the Court of Appeals. If the employee has no other way to prove a crime committed against them (insult, harassment) and the recording was taken during a “suddenly developing” event, this recording may be considered by the court as evidence. However, planned and staged recordings are always rejected and may constitute a crime.

Mandatory Mediation Process and Litigation Prerequisite

Since 2018, a “litigation prerequisite mediation” system has been introduced in labor law. After termination for just cause, the employee cannot file a lawsuit directly for severance pay and other receivables; they must first apply to the mediation offices at the courthouses.

• Periods: Statute of limitation periods stop when a mediation application is made. The mediator must conclude the application within 3 weeks (up to +1 week in mandatory cases).
• Failure to Reach Agreement: If no agreement is reached in mediation meetings, a lawsuit can be filed within the legal statute of limitation periods (5 years for compensations) starting from the date of the “final minutes.” However, if there is a request for reinstatement, this period is only 2 weeks from the final minutes.

Strategic Analysis and Application Recommendations

Although the employee’s right to terminate for just cause grants very broad powers on paper, in practice, an “unproven claim” can return as an unjustified termination. The employee is recommended to follow these strategic steps when managing this process:

1. Documentation: Before the termination decision is made, all evidence related to the events causing the termination (messages, photos, witnesses) should be safely preserved.
2. Precaution against Absenteeism Risk: Work should not be attended on the day the termination notice is sent from the notary. Leaving work before the notice reaches the recipient can give the employer the opportunity for counter-termination due to “absenteeism.”
3. Resignation Letter Trap: Employers sometimes try to make an employee who will make a just termination sign a paper saying “I am leaving of my own volition.” Signing such documents can lead to the loss of all compensation rights.
4. Comparable Wage Research: If termination is to be made due to wages being shown as low (SGK premium), “comparable wage letters” to be obtained from professional chambers or unions play a key role in winning the case.

Social Security and Labor Peace Perspective

The rules of just termination shaped within the framework of Article 24 of Labor Law No. 4857 not only protect the employee but also prevent honest and law-abiding employers from facing unfair competition. Terminations made for reasons such as the non-payment of insurance premiums over the real wage are also of social importance in terms of combating the informal economy.

The employee’s use of the right to terminate for just cause is not an “escape,” but an effort for “legal restoration.” As seen in the eight basic examples that make the continuation of the employment relationship impossible, the legislator has placed human dignity, health, and the reward for labor above all contractual clauses. A termination made in accordance with the procedure and the subsequent professional legal process is the only way to guarantee the reward for the employee’s years of labor.