In Turkey, the legal framework governing employment relationships is primarily defined by the Turkish Labor Code No. 4857. One of the fundamental concepts within this code is the “indefinite term employment contract.” This type of contract plays a crucial role in regulating the rights and obligations of both employers and employees in the Turkish Labor Market. This essay aims to provide a comprehensive definition of the indefinite term employment contract as outlined in the Turkish Labor Code No. 4857.
Definition of Indefinite Term Employment Contract
An indefinite term employment contract, as stipulated in the Turkish Labor Code No. 4857, is a binding agreement between an employer and an employee that establishes an ongoing working relationship without specifying a predetermined end date. This type of contract is the default form of employment in Turkey, and it represents the most common employment arrangement. This is one of the main reasons why the Turkish Labor Law is considered quite rigid, rather than being flexible.
Key Characteristics of Indefinite Term Employment Contracts:
- Lack of Specified End Date: The defining characteristic of an indefinite term employment contract is that it does not have a fixed expiration date. Unlike fixed-term contracts, which have a predetermined duration, indefinite term contracts continue until terminated by either party in accordance with legal provisions or the terms of the contract.
- Continuity and Job Security: Employees under indefinite term contracts generally enjoy greater job security compared to those on fixed-term contracts. They are typically protected from arbitrary dismissals and have a reasonable expectation of ongoing employment, subject to certain conditions.
- Termination Procedures: Termination of indefinite term employment contracts must adhere to specific legal procedures outlined in the Turkish Labor Code No. 4857 and the Act No. 1475. Both employers and employees have the right to terminate the contract, but valid reasons must be provided, and due process must be followed.
- Notice Periods: In cases of termination, a notice period is often required, depending on the length of service of the employee. The notice period allows both parties to prepare for the termination of the employment relationship. The notice period is at least 2 to 8 weeks, depending on the seniority of the employee.
- Severance Pay: If an employee is dismissed without just cause, they may be entitled to severance pay as outlined in the Turkish Labor Code. Severance pay serves as financial compensation to help employees during the transition to new employment. The severance pay is being calculated from the last gross wage, as subjected to an upper limit.
- Collective Bargaining Agreements: In addition to the statutory provisions of the Labor Code, the terms and conditions of indefinite term employment contracts can also be subject to collective bargaining agreements negotiated between employers and labor unions.
In conclusion, the concept of the “indefinite term employment contract” is a cornerstone of labor relations in Turkey, providing employees with job security and outlining the legal framework within which employment relationships are established and maintained. Understanding the key characteristics and legal implications of such contracts is crucial for both employers and employees to ensure compliance with the Turkish Labor Code No. 4857 and to foster a fair and balanced working environment.
