How to Claim Unpaid Salaries and Severance Pay in Türkiye? Justified Termination, Mediation, and Litigation Guide

 

If your employer fails to pay your salary on time, pays it partially, or pays it off the record (in cash), you have the legal right to immediately terminate your employment contract for just cause under Article 24/II-e of the Turkish Labor Law No. 4857 and claim both your full severance pay and all unpaid wages. To recover your receivables, you must first apply for mandatory mediation under the Labor Courts Law No. 7036 and, if no settlement is reached, file a lawsuit before the Labor Court.

One of the most common grievances employees face in professional life is the non-payment or chronic delay of salaries, as well as the refusal of employers to pay severance compensation upon termination. Many employees either continue working without pay out of fear of losing their severance rights, or unknowingly forfeit their legal entitlements by signing standard resignation letters under employer pressure. However, Turkish law grants unpaid employees the unequivocal right to leave their job immediately while claiming their full severance pay.

At Cosmos Legal Law Firm, we provide comprehensive legal representation for both Turkish citizens and foreign nationals working in Türkiye (with or without a work permit) to recover unpaid salaries, severance pay, overtime wages, and annual leave receivables along with the highest bank deposit interest rates.

1. Does Non-Payment of Salary Grant the Right to "Justified Termination" and Severance Pay?

Yes. Under Article 24/II-e of the Turkish Labor Law No. 4857, if an employer fails to calculate or pay an employee’s wage in accordance with the law or the terms of the employment contract, the employee may terminate the contract immediately for just cause.

• Right to Severance Pay: Any employee who has worked at the same workplace for at least 1 year is entitled to full severance pay (kıdem tazminatı) when leaving the job due to unpaid wages.
• Notice Pay Status: Because the employee terminates the contract themselves, they cannot claim notice pay; however, they can leave the workplace on the very same day without waiting for statutory notice periods (2 to 8 weeks).
• What Counts as Just Cause? Complete non-payment of wages, habitual late payments, paying minimum wage via bank transfer while paying the rest in cash (off the record), unpaid overtime or bonuses, and underreporting actual salaries to the Social Security Institution (SGK) all constitute valid grounds for justified termination.

2. Essential Steps to Prevent Loss of Rights

If you decide to leave your job due to unpaid wages, submitting an ordinary "resignation letter" can completely void your right to severance pay. You must follow these crucial steps:

1. Send a Notarized Notice of Justified Termination: Never sign a document stating "I am resigning." Instead, serve an official notice through a Turkish Notary Public stating: "Due to my unpaid salaries and labor receivables, I hereby terminate my employment contract immediately for just cause pursuant to Article 24/II-e of the Turkish Labor Law No. 4857."
2. Do Not Sign Release Forms (İbraname) or Blank Papers: Until the employer deposits all your receivables in full into your bank account, never sign documents stating "I have received all my rights and release the employer." If forced to sign, always add the handwritten reservation: "All my legal rights regarding excess amounts are reserved (Fazlaya ilişkin haklarım saklıdır)."
3. Gather Proof of Employment and Salary: Archive your entry-exit records, bank salary receipts, correspondence proving your actual salary, and your e-Devlet SGK Service Statement.

3. Mandatory Mediation, Litigation Process, and Interest Rates

The legal collection process for unpaid salaries and severance pay consists of the following stages:

• Mandatory Mediation (Prerequisite to Litigation): Under the Labor Courts Law No. 7036, applying to a mediator registered with the Ministry of Justice Department of Mediation is mandatory before filing a lawsuit. Mediation typically concludes within 3 to 4 weeks, allowing rapid recovery if a settlement is reached.
• Labor Court Lawsuit & Highest Interest Advantage: If mediation fails, a lawsuit is filed before the Labor Court. By law, unpaid severance compensation and salary receivables accrue the highest interest rate applied by banks to deposit accounts.
• Statute of Limitations: The statutory limitation period for claiming unpaid wages and severance pay is 5 years. Additionally, administrative complaints regarding unpaid wages and social security premiums can be filed with the Ministry of Labor and Social Security (ALO 170) and the Social Security Institution (SGK).

4. Rights of Foreign Employees Regarding Unpaid Wages and Severance Pay

For foreign nationals working in Türkiye, labor law and immigration law intersect closely:

• Equal Legal Protection: Foreign employees in Türkiye enjoy the exact same labor rights as Turkish citizens. Even foreign workers employed without a valid work permit (informal employment) can prove their actual period of work and recover unpaid salaries and severance pay through the Labor Courts.
• Work Permit Cancellation & Residence Status: If a foreign employee terminates their contract for just cause due to unpaid wages, the employer may cancel their work permit via the Directorate General of International Labor Force. To maintain legal stay in Türkiye, the foreign national must apply for a residence permit or a new work permit through a new employer within the statutory timeframe.

Frequently Asked Questions (FAQ)

• My salary is only 1 month late; can I still terminate for just cause and claim severance pay?
  According to established Court of Cassation (Yargıtay) precedents, if an employee’s wage is not paid within 20 days from the payment due date without force majeure (Article 34 of Law No. 4857), the employee may refrain from working or terminate the employment contract for just cause and demand full severance pay.
• My employer says "The company is in financial trouble, I will pay in installments over 6 months." Do I have to wait?
  No. An employer’s financial difficulties are not a valid legal excuse to withhold wages or severance pay. Severance pay cannot be paid in installments without the employee's explicit consent; it must be paid in full and in a single lump sum.
• What other receivables can I claim alongside unpaid salaries and severance pay?
  Unused annual leave payments, unpaid overtime wages, national holiday and general holiday (UBGT) wages, and weekly rest day receivables can all be claimed within the same lawsuit.

Conclusion and Professional Legal Support

Unpaid salaries and severance pay are fundamental rights representing the value of an employee’s labor and are strictly protected by Turkish law. However, signing an improper resignation letter or failing to serve a properly drafted notarized termination notice can result in losing years' worth of hard-earned compensation.

For drafting notarized justified termination notices, representation in mandatory mediation meetings, Labor Court debt recovery lawsuits, and managing work permit and compensation processes for foreign employees, contact Cosmos Legal Law Firm and follow our @cosmoslegal.global Instagram account for up-to-date legal insights.