If the objective conditions defined in the Labour Code No. 4857 are met, it is possible to employ employees with a fixed-term employment contract. If a certain project exist this justifies and can be evaluated as objective condition employing the employee for a fixed term.
However, if the contract is limited to a certain period and the continuation of the project is not envisaged and if the contract is terminated before the term, the wages for the remaining periods/months must be paid to the employee in accordance with the fixed-term employment provisions.
As an example, if a project in which the employee is employed is foreseen to continue for one year, and in the case that it ends at the end of six months, the employee must be paid a six-months balance wage (remaining wage) in advance. At the same time, the employee is partially entitled to the bonus payment that would arise at the end of the contract, if such payment envisaged in the employment contract.
If the employee’s contract will continue in another project of the employer, in case of mutual agreement of the parties, the employment contract can be continued by making a substantial change without terminating the contract. Otherwise, if the employment contract is terminated by the employer before the term of the employment contract is concluded, the balance wage and bonus payment is required to be paid partially to the employee.
The remaining wage is the wage that the employee receives without being obliged to perform the promised work in fixed-term employment contracts, in cases where the employer has the right to terminate for a valid reason or in case the employer terminates the employment contract before the deadline or the employer defaults in accepting the job.
The balance period fee was regulated in the abolished Code of Obligations No. 818, and it is also being regulated within the same principles in the new Turkish Code of Obligations No. 6098, which has entered into force at the date of 1st of July 2012.
The right to demand balance time wage (remaining wage) applies only to fixed-term employment contracts, not to the indefinite term employment contracts.
