17 Eylül 2020

Short-Term Employment Allowance

Short-term employment is defined as temporal shortening of the employment period in the whole or part of the workplace by at least one-thirds or complete or partial suspension of operation for at least four weeks without the condition of continuation not to exceed three months.

- general economic crisis, sectoral and regional crisis and force majeure

- temporal shortening of the employment period in the whole or part of the workplace by at least one-third or; 

- partial suspension of operation for at least four weeks without the condition of continuation not to exceed three months. 

Short-Term Employment Allowance is also an opportunity provided within the scope of the Unemployment Insurance Fund. It is an application that provides income support to the insured for the period in which they are unemployed. The President of the Republic is authorized to extend the duration of the short-term employment allowance up to 6 months. 

To apply for short-term work; employers should submit Short Employment Request Form along with the relevant reasons to Turkey Employment Agency. As a result of the examination made by the Labor Inspectors, it is determined whether the request is appropriate or not, and the employer is notified. The employer also announces the situation in a place visible to the workers at the workplace and informs the labor union, which is a party to the collective labor agreement, in case there is any. In cases where such an announcement cannot be made, written notification is to be made to workers subject to short-term employment. 

For benefit from the short-term employment allowance of the worker; 

- the short-term employment request of the employer should be approved by the Agency 

- the employee must have provided working periods and premium payment conditions at the start of the short-term employment

- the list of the short-term employees which is to be prepared following the inspection by the inspectors shall contain information regarding the relevant employees

The calculation of the Daily Short-Term Work Allowance; 

- amount of daily short employment allowance is 60% of the daily gross average earning calculated by taking into consideration the earnings of the insurant for the last twelve months subject to premium,  

- may not exceed the 150% of the gross amount of the minimum wage paid to the employees older than 16

Short-time employment allowance is paid for the duration of the de-facto short-time employment on the condition that it shall not exceed the time specified in the assessment of conformity in accordance with the effects of economic developments on the operations of the workplace.

In case of short-term employment in the workplace due to forces majeure, payments commence after the one week period provided in item (III) of Article 24, and in Article 40 of the Law no. 4857.

Within the Scope of Short Work the following services are provided; 

- payment of the short-term work allowance to workers, 

- payment of the General Health Insurance premiums, 

Short-term working allowance ends with; 

- the reaching of the end of the period, 

- the employer’s decision to return normal operation (earlier) or; 

- the presence of reasons for the cancellation of short work allowance 

If the employer decides to return normal operation earlier, it is obligatory to notify the Institution, the labor union and the workers in writing minimum six working days in advance. Improper payments arising from late notification are to be reimbursed by the employer with interest. 

The cancellation of the Short Employment Allowance shall occur if the receiver of the allowance; 

- changes the current job,

- starts to get and old-age pension, 

- gets drafted to the army for any reason, 

- leaves a job for any duty arising from a law or starts to receive incapacity pension, by the date of the health certificate subject to the incapacity pension. 

Short-Term Work Allowance within COVID-19

Concerning the COVID-19 pandemic, as of March 23, 2020, employers can file applications for the short-term working allowance with the Turkish Employment Institution via e-mail. 

The employee must provide working hours and premium payment conditions at the start of a short-term job. However, the time limits for these conditions have been shortened for the short-term work allowance due to COVID-19. For the short-term work application, the employee must have paid 450 days of premium in the last 3 years, subject to the contract of service for the last 60 days.

To benefit from short-term work allowance, employees cannot be discharged by the employer for reasons other than the ones specified in sub-clause (II) of the first paragraph of Article 25 of the Labor Law during the relevant period.

Stj. Av. Zehra Rumeysa Çolak

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