Depending on the economic developments experienced nationwide or at the sector or at the enterprise level, mass layoffs may be made in some enterprises. Mass layoffs are being specially regulated in all labour regimes as they have a potential to harm the labour market.
In this regard, the Article 29 of the Turkish Labour Code No. 4857, which is the primary legislation of the Turkish Labour Law, has set forth certain rules regarding collective dismissals and imposed an obligation of notifying such layoffs. In order to avoid administrative fines, it is important for employers to pay attention to the rules regarding collective dismissals and the notification requirement regarding it.
Accordingly, collective dismissals notification is the notification of employers who intend to terminate their employment relations due to economic, technological, structural or similar reasons, as regulated in international documents recognized by Republic of Türkiye, to the employee representatives and competent public authorities.
According to the Article 29 of the Turkish Labour Code No. 4857, termination of certain number of employees’ employment contracts for a valid reason on the same date or on different dates but within a one-month period is considered a collective dismissal. The number of employees as to be considering the act as a collective dismissal is calculated as follows:
- If the number of employees is between 20 and 100, layoff of at least 10 workers.
- If the number of employees is between 101 and 300, layoff of at least ten percent of the total number of workers.
- If the number of employees is 301 or more, layoff of at least 30 workers.
According to the relevant regulation of the Code No. 4857, when the employer wants to make a collective dismissal due to economic, technological, structural or similar enterprise, workplace or job requirements, he/she is obliged to notify the workplace union representatives and the Turkish Employment Agency (İŞKUR) in writing at least thirty days in advance.
The types of termination within the scope of collective dismissal may be based on economic, technological, structural and similar requirements of the business, the workplace or the job.
For the calendar year of 2024, an administrative fine of 5,506 Turkish Liras per employee will be imposed on the employer or employer representative who have violated the rules and notification obligation regarding collective dismissal defined in the Article 29 of the Labour Code No. 4857.
