HOW TO COMPENSATE A FOREIGNER SEVERANCE PAY
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An employee who quits satisfying the conditions indicated in the Labor Law or whose employment contract is terminated by the employer must be compensated with a severance pay to be calculated based on the employees’ seniority at the work place. This indemnity pay is calculated on the basis of the last thirty days’ gross wage per year of the employment contract from the commencement date of employment. The thirty days’ payment per year of employment may not exceed the upper limit determined semi-annually. However, severance pay may be agreed to be paid at an amount higher than the limit indicated above in case there is a provision in the employment contract.
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The reasons on the basis of which employees are entitled to receive severance pay are as follows:
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- Leaving the workplace due to the compulsory military service (for males)
. - Retirement (in order to receive old age, retirement pension or disability allowance from the relevant insurance institutions)
. - Resignation of the employee after completing 3,600 premium days and 15 years of insurance period (in case of fulfillment of retirement conditions except the age limit and resignation with the submission of the document from the Social Security Institution indicating the fulfillment of retirement conditions, excluding the age limit, to the employer)
. - Voluntary termination by female employees within one year following the date of marriage
. - Death of the employee
. - Termination of the employment contract not based on a valid reason listed in the Labor Law by the employer and termination of the employment contract by the employer with valid a reason
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