The Effect Of Paid Military Service On The Employment Contract 03 September 2018
The provisional article added to the Military Law Act No.1111 about “Paid Military Service” with “The Law Concerning Amendments in the Military Law Act No.7146 and Other Laws and in the Statutory Decree No. 663” published on the Official Gazette No.30498 dated August 3, 2018 claimed its place in the business world’s agenda
According to the customized regulation; citizens born before January 1, 1994 (inclusive) who will apply for military service by paying 15,000 TRY to the military branch offices(or representations in foreign countries) within 3 months from 3 August 2018 providing that they complete 21 days of basic military training will be considered to have performed military service. It is understood that this regulation is different and special than the previous regulations concerning paid military service. Likewise, it is emphasized that those who provided the relevant conditions and those who participated in the compulsory military training should be granted "unpaid leave of absence" leave during this period. What brings the regulation in the terms of Labor Law and the things that people has been curious about are as follows:
1) Within The Scope Of The New Regulation, The Employee Benefitting From The Paid Military Service Will Be Granted “Unpaid Leave Of Absence” During The 21-Day Basic Military Training.
The regulation on “unpaid military service” which entered into force on 3 August 2018 with Act No.7146 requires the payment of a certain price right along with participation to a basic military training for 21 days. In this respect it is different from the previous regulations as with it is also special for the suspension of the business relationship during the relevant training period. It is clearly stated in the article that the employee who benefited from the unpaid military service will be considered "unpaid leave of absence” during the 21-day compulsory basic military training period.1 With this special arrangement by the legislator, it is necessary to make the deduction that the aimed result is the continuing of the employment contracts of the employees who will benefit from the unpaid military service. Therefore, in spite of the application for unpaid military service under the provisions of Provisional Article 55 of the Military Law No. 1111 requires to attend compulsory military training, there is no necessity for the employee to leave his job.
It is sufficient that the written notice to the employer clearly indicates that the employee is taking his unpaid leave of absence for the participation of compulsory basic military training within the scope of the unpaid military service with the addition of the certificate obtained from the military service branch. Upon this notification of the employee, the employer must notify the SSI of the "unpaid leave" not "severance".
2) Is The Employee Who Leave The Job In Order To Perform The Unpaid Military Service Entitled To Severance Pay?
According to Article 14 of the Labor Law No. 1475 which is still in force in accordance with Article 120 of the Labor Law No. 4857, the employee who has to leave his job in order to perform his active military service and whose total duration of work is at least 1 year in the establishment is eligible to claim severance pay. The "active military service" mentioned here is a citizen's duty that every Turkish male citizen who turned 20 years old has to fulfill. The employee who has to leave his job is entitled to severance pay if he has completed at least one year of working time due to the absence of an arrangement to suspend the employment contract during the period in which he fulfills this military task.
On the other hand, in the provisional article added to the Military Law by Law No. 7146, employees who will enter into the unpaid military service have been specially designated as “unpaid leave of absence” in the 21-day compulsory military training period.2 Consequently, even there may be many opinions and criticisms on the subject, we have the opinion that the employee who applies for a military service under the new regulation and who is not confronted with the risk of becoming unemployed because his employment contract will be suspended during compulsory military training period will not be entitled to severance pay even if he leaves his job for this reason.
_______________________________
1See provisional article 55/4: “…During the 21-day basic military training, the ones benefiting from the paid military service will be granted unpaid leave of absence by the workplaces, institutions and organizations that they work for.”
2The closest arrangement to the new conditions to the unpaid military service was made on 1981 According to this, the labourer who provided the age requirement had to participate in the temporary military training and also had to pay the determined financial amount. However; there was no regulation that contained an indication that the worker would be considered to be on leave during the mandatory military training period. For this reason, it was accepted that the labourers who had to leave their job were entitled to severance pay (See “..the short-term military obligation replaces active military service too and a labourer who terminates his employment contract in order to perform his short-term military service is entitled to severance pay.” Court of Cassation 9.HD, T.09.06.1983, E.3488, K.5183). It is possible to say that the employee who leaves his work for this reason is not eligible to severance pay due to the regulation in the provisional article entered into force on August 3, 2018 which clearly indicates that the employee who participated in the compulsory education is considered on unpaid leave.
Other News
-
8.12.2025
What is OFAC? Its Strategic Importance For Investors And Areas Of Application
As the world changes and with each passing day, one of the terms we encounter more frequently is "OFAC". In today's globalized world, investors seeking to make international investments come across OFAC or interact with it in one way or another. This is because the sanctions imposed by OFAC relate not only to U.S. citizens or U.S.-origin companies, but also to individuals who have direct or indirect economic or financial contact with the United States. So, what is this OFAC?
-
4.12.2025
Loans To Shareholders And Adat Invoice
In practice, it is quite common for companies to extend loans to their shareholders. In situations where the company becomes a creditor of its shareholders, adat interest must be calculated on the outstanding balance and an invoice must be issued. Accordingly, adat is a method used to calculate accrued interest based on the period during which company funds are utilized by shareholders or related parties, ensuring that any potential tax loss is compensated. These calculations are important for compliance with transfer pricing rules, accurate determination of the tax base, and the fulfillment of legal obligations such as Value Added Tax (“VAT”).
-
28.11.2025
Notification Process To The Central Securities Depository & Trade Repository Of Türkiye For Bearer Share Certificates And Legal Consequences
1. Issuance and Notification of Bearer Share Certificates Pursuant to Article 484 of the Turkish Commercial Code ("TCC"), joint stock companies have two types of share certificates: registered shares and bearer shares. While the transfer of registered shares is completed through delivery, certain conditions have been introduced under the Communiqué on the Notification and Registration of Bearer Share Certificates with the Central Securities Depository ("Communiqué") for the transfer of bearer shares. Within the scope of the Communiqué, the registration of bearer shares with the Central Securities Depository & Trade Reposıtory of Türkiye ("MKK"), the adoption of a board resolution, and the registration and announcement of this resolution before the relevant trade registry directorate and in the Turkish Trade Registry Gazette are required.
-
20.11.2025
The Letter Of Intent Procsess in Merger and Acquisition Transactions
Merger and acquisition ("M&A") transactions are multi-layered processes from both legal and commercial perspectives. Before the parties proceed to the contractual stage, they enter into a preparatory phase in order to articulate their transactional intentions, exchange commercial expectations, and establish the legal framework. This preparatory phase constitutes the initial stage in which the parties discuss the fundamental principles of the transaction structure, formulate their negotiation strategies, and assess the transactional risks.
-
14.11.2025
New Constitutional Court Decision On Violation Of The Right To A Reasoned Decision Published İn The Official Gazette
1. INTRODUCTION The reasoning constitutes the part of judicial decisions that demonstrates the cause and justification for resolving the matter in the manner indicated in the operative section, and it is an extension of adjudication. The fact that the reasoning is satisfactory and consistent is crucial for ensuring the right to be legally heard and the right to a fair trial. By setting forth the court's impartiality, a reasoned judgment enables the parties to understand and be satisfied with the material and legal grounds upon which they have won or lost the case, owing to reasoning that genuinely aligns with the contents of the file, as well as with logic and law.
-
7.11.2025
Decision Of The Constitutional Court Concercing Excluded Pernonnel
In the Constitutional Court's Judgment published in the Official Gazette dated 22 September 2025.
-
24.10.2025
The Obligation for the Principal and Subcontractor Employers to Jointly Participate in Mediation Has Been Annuled by the Constitutional Court
An important Constitutional Court decision has been published regarding the mediation process that an employee can apply to with a request for reinstatement after the termination of employment relations in the workplace. The Constitutional Court ruled that the provision in paragraph (15) of Article 3 of the Labor Courts Law No. 7036, which states, "In cases where there is a principal employer-subcontractor relationship, for a request for reinstatement to be submitted to a mediator, the employers must participate in the mediation talks together and their intentions must be compatible for an agreement to be reached," is unconstitutional. The decision was published in the Official Gazette dated October 17, 2025, and numbered 33050.
-
23.10.2025
The Constitutional Court Has Annulled The Provision Granting The President Authority To Restrict Foreign Exhange And Money Movements!
In its decision No. 2024/193 Merits 2025/136 Decision1 dated 17 June 2025 ("Decision"), published in the Official Gazette on 15 October 2025, the Constitutional Court ("Court") annulled Article 1 of Law No. 1567 on the Protection of the Value of the Turkish Currency ("Law"). The annulled provision had stated that: "The President is authorized to make decisions for the regulation and restriction of the export from or import into the country of currencies, securities, and bonds, and of the purchase and sale of foreign exchange, cash, securities, bonds, precious metals, precious stones, and any goods and valuables made of or containing them; as well as of commercial papers and all means and instruments used for payment, and to take decisions aimed at protecting the value of the Turkish currency."
-
21.10.2025
Seizure of Property Belonging to Persons Other than the Debtor and Protection of Legal Rights
In enforcement proceedings, the seizure of property that does not belong to the debtor but rather to third parties is a situation frequently encountered in practice that leads to significant aggrievements. Uncertainties arising from property regimes complicate ownership relations, making it difficult to accurately determine to whom the property belongs during enforcement measures. Within this framework, when seizure is imposed on property belonging to the debtor's spouse or another third party, the most important legal remedy is the ownership claim (assertion).
-
20.10.2025
Mergers and Acquisitions and the Notification Obligation within the Framework of Competition Law
Mergers and acquisitions (M&A) are at the center of the growth and restructuring strategies of companies. These transactions, serving the purpose of companies to expand both nationally and internationally to increase their market shares or to enter into new markets, not only give rise to economic and commercial consequences but also carry the potential to directly affect the competition dynamics in the relevant market. Therefore, merger and acquisition transactions may affect the competition structure in the market. In this respect, while M&A transactions create strategic opportunities, they are also among the areas carefully scrutinized by regulatory authorities to preserve competitive order.
-
17.10.2025
Important Amendment to the Organized Industrial Zones (OIZ) Implementation Regulation: Additional Time Granted To Participant
Published in the Official Gazette No. 33050, dated October 17, 2025, the "Regulation Amending the Organized Industrial Zones Implementation Regulation" introduces a new Provisional Article 13 to the existing regulation.This new provision allows OIZ participants who have not yet obtained a building permit or a workplace opening and operating license to apply for an extension period under certain conditions.
-
15.10.2025
Current Status Of The Obligation To Maintain Commercial Books In Electronic Form
1. INTRODUCTION With the Communiqué Amending the Communiqué on Keeping Commercial Books Not Related to the Accounting of the Enterprise in Electronic Form, published in the Official Gazette dated September 20, 2025 and numbered 33023 (“Amendment Communiqué”), significant amendments have been introduced to the Communiqué on Keeping Commercial Books Not Related to the Accounting of the Enterprise in Electronic Form, published in the Official Gazette dated February 14, 2025 and numbered 32813 (“Communiqué”).
-
25.9.2025
Social Security Procedures To Be Carried Out By The Employer Following A Reinstateme
Upon receiving notification of a final and binding reinstatement decision, if the employee communicates their intention to return to work within 10 business days, the employer may either reinstate the employee or refuse reinstatement by paying both the four months' idle period wages determined by the court and the compensation for non-reinstatement. As seen, the employer has two alternative courses of action in this situation; however, the procedures to be carried out before the Social Security Institution (SGK) differ in each case.
-
19.9.2025
The Court of Cassation has Ruled That The Competent Court Fot Cases Brought On The Grounds Of Volation Of The Non-Competition Clause Is The Commercial Court of First Instance
1. Introduction The duty not to compete is a type of loyalty obligation owed by the employee to the employer. The employee undertakes not to compete with the employer during the term of the employment contract as part of their loyalty obligation. However, Turkish law does not contain any legal provisions prohibiting the employee from competing with the employer after the employment contract has ended. However, the parties may freely agree that the employee will not compete with the employer after the termination of the employment contract. Articles 444-447 of the Turkish Code of Obligations also contain provisions and restrictions regarding non-competition agreements that may be established between the employee and the employer.
-
16.9.2025
Transfer Fee: Legal Characterization and Practical Application
1. Introduction The concept of a transfer fee is not directly defined in the Turkish Labor Code; its framework and legal nature in practice have largely been shaped by the decisions of the Court of Cassation (Turkey). This practice, which arises particularly in sectors with intense competition and limited skilled labor, is a type of payment that employers must carefully consider within the scope of their employment policies.