Türkiye: The Regulation on Procedures and Principles Regarding Short-Term Work and Short-Term Work Allowance has been Published

Author: Ipek Unlu Tik and A. Kaan Baser

The Regulation on Procedures and Principles Regarding Short-Term Work and Short-Term Work Allowance (“Regulation”) numbered 32573 has been published in the Official Gazette dated June 11, 2024. It entered into force on its publication date, to be effective since 1 March 2024. Consequently, the Regulation on Short-Term Work published in the Official Gazette dated 30 April 2011 numbered 27920, has been repealed.

The purpose of the Regulation is to regulate the procedures and principles regarding the payment of short-time work allowance to the insured persons in cases where the employer who employs the insured persons is subject to the service contract according to the Unemployment Insurance Law Act. numbered 4447 (“Law”), temporarily significantly reduces the weekly working hours in the workplace or temporarily stops the activities in the workplace completely or partially due to general economic, sectoral or regional crisis, general epidemics and other compelling reasons.

The prominent changes in the Regulation are as follows:

• The relevant Regulation covers the processes of the employer’s request for short-time work and the evaluation of this request in cases of general economic, sectoral or regional crises, general epidemics or the existence of compelling reasons directly affecting the workplace. The short-time working is the temporary reduction of the weekly working time in the workplace by at least one third or the temporary complete or partial cessation of activities in the workplace.
• According to the Regulation, the employer requesting short-time work in the workplace due to compelling reasons must apply to the Social Security Institution (“SSI”) and this request should include information regarding the effects of the crisis on the workplace together with the compelling reasons. The employer must also submit the list of insured persons subject to short-time work.
• SSI will evaluate the employer’s request in terms of reason and form. Concerning the applications of workplaces directly affected by disasters, the decision of the SSI Board of Directors will not be sought. However, the applications made to benefit from short-time working allowance for reasons such as cash shortages, payment difficulties, market contraction and stock increase, which are not directly affected by the disaster, will be rejected directly.
• The short-time working period cannot be less than one third of the normal weekly working time of the workplace.
• In addition to all these, in order for the insured to benefit from the short-time working allowance, the insured must have been subject to a service contract for the last 120 days before the start date of the short-time working and must have worked as an insured for at least 450 days in the last three years.
• The short-time working allowance is 60% of the insured’s average daily gross earnings calculated by considering the last 12 months’ premium-based earnings, and the amount of the allowance cannot exceed 150% of the minimum wage. The duration of the allowance is the duration of the short-time working period, and cannot exceed 3 months. The short-time working allowance will be paid directly to the insured person each month.
• In the event of a situation requiring the interruption and suspension of the short-time working allowance, the employer shall notify the Turkish Employment Agency before the payment is made for the relevant period.
• The short-term work allowance will be interrupted or suspended if the insured employee’s employment agreement is terminated, transferred to a different workplace, or suspended if the employee starts receiving a retirement pension, is recruited to the military, resigns, gets arrested or convicted, travels abroad, dies, or obtains a temporary disability medical report.

Key Points:

• The Regulation on Procedures and Principles Regarding Short-Term Work and Short-Term Work Allowance has been published.
• The previous Regulation on Short-Term Work has been repealed.
• The new Regulation brings certain conditions on employers and employees in order for them to benefit from short-term work allowances.