Compliance Quarterly

Global

Working time compliance: The German Federal Labour Court's ruling on systematic recording of working time

Read the full publication, "Working time compliance: The German Federal Labour Court's ruling on systematic recording of working times."

US Federal Trade Commission proposes ban on non-compete clauses

Read the full publication, "US Federal Trade Commission proposes ban on non-compete clauses."

Turkey

Age limit on retirement right is removed

The Law No 7438 Amending the Social Securities and General Health Insurance and the Decree No 375, removing the age limit on the retirement right for certain persons (EYT) is published in the Official Gazette dated 3 March 2023. Accordingly, EYT covers the persons who:

1. have started working under insurance on or before 8 September 1999; or whose insurance records may be brought back to a date before 9 September 1999 due to certain reasons (i.e incurred service debt) although they have started working after 9 September 1999;
2.  have gradually paid 5000-5975 days of statutory social security insurance; and
3. have completed a social security period of 20 years for women or 25 years for men

The persons fulfilling the above conditions will be entitled with the retirement right and benefit from the rights attached to an ordinary retirement. Accordingly, employees, who have submitted to their employers the official letter obtained from the Provincial/District Social Security Directorate proving that they have been entitled to the retirement right shall be entitled to severance pay. Employees terminating their employment relationship due to EYT shall also be fully granted with all their outstanding employment benefits i.e overtime payment, unused annual leave payment and premium payment. In such a case, neither the employee nor the employer would benefit from a notice pay.

Retirement within the scope of EYT is a right granted to the employee solely, therefore, it does not entitle the employers to force their employees to terminate their employment relationship. 

It is possible for the employees who benefitted from EYT retirement to continue working in the same workplace if there is a mutual agreement between the employee and the employer in that respect. In that case, five percent of the social security support contribution that will be paid by the employer shall be borne by the Treasury. In other words, the employers will benefit from a five percent social security support contribution incentive.

Turkish Constitutional Court has ruled on the right to fair trial and expected property right

Upon an application by an employee claiming that his right to a fair trial is violated during a reemployment lawsuit due to conflicting opinions of different chamber of the Court of Appeal, the Turkish Constitutional Court (TCC) has ruled that the right to a fair trial is not violated since a new legislation has entered into force at the time of the lawsuit and the right to fair trial shall not be deemed as violated unless there is a manifest discretion error in terms of interpretation of new legislations. The TCC has also ruled that the expected property right regarding the wages which are not yet earned by the employee will not be protected by the court since it does not constitute existing property of the employee.

Minimum wage for 2023 is announced

As per the decision of the Minimum Wage Determination Commission dated 22 December 2022, the monthly minimum wage is increased to net TL and 8,506.80 and gross TL 10,008.00 as of 1 January 2023. The total cost of minimum wage for the employer will be TL 11,759.40 TL. The employer share of the Social Security Institution premium will be 15.5% corresponding to TL 1,551.24. These amounts will be applicable until the end of 2023.

Incentive provided for the employment of young, women and persons holding profession certificates is extended

According to the Presidential Decree published in the Official Gazette dated 29 December 2022, the application period of the Provisional Article 10 of the Law No.4447 regarding application of an incentive for the employment of young, women and persons holding profession certificates is extended to 31 December 2023. Accordingly, the amount of the employer's share of the insurance premiums calculated over the premium based earnings will covered by the Unemployment Insurance Fund.