26 March 2020 SHORT-TIME WORKING ALLOWANCE
Esteemed Clients, ISKUR (Turkish Employment Agency) associated with T.R. Ministry of Labour and Social Services released a statement that COVID-19 Corona pandemic has been included in the scope of “force majeure event arising from seasonal circumstances caused by external factors” in consideration of potential effects of the virus in question., and informed that applications shall be submitted as of 23 March 2020.
Employers are required to send:
- Short-Time Working Application Form (ANNEX-1) and additional information/ documents specified in the form;
- List Containing Information on Workers Subject to Short-Time Working (ANNEX-2),
- Documents that shall substantiate adverse effects of Corona virus pandemic on Employer (documents whether employers are included in the scope of not
in connection with businesses of which operations are suspended by the Presidency, Ministries or the relevant public organizations and institutions),
to the relevant ISKUR unit via e-mail (ANNEX- 3).
Eligibility of the application shall be evaluated by the Guidance and Inspection Department. If deemed necessary, additional documents may be required by
the relevant Provincial Directorate of ISKUR. In addition to the aforementioned explanations,
a worker may benefit from short-time working allowance only when term of service and premium payment conditions are met as of the date of commencing short-time working practice and information on the worker should be available in the list of workers subject to short-time working.
Short-time working applications are submitted by employer for and on behalf of employees. An employee is not entitled to apply for short-time working.
Further, it is worth noting that a new regulation has been made on durations of work and premium payment conditions for benefiting from short-time working allowance. Pursuant to the conditions imposed, employees who are subject to employment agreement
during the last 60 days before commencement of short-time practice should have worked as an insured employer for 450 days within the last three years and unemployment insurance premium should have been paid.
In case the application of the short-time working allowance is accepted, according to the Labour Law No.4857, the employer shall pay the employee’s first
7-days salary, on a half day salary basis. Short-time working allowance to be paid by ISKUR, starts to be paid 7 days after the application. Therefore,
the employer done the employee’s Social Security Institution notice from 7 days.
In addition, it is worth noting that new regulations have been enacted about short-time working allowance with the Law on Amendment of Certain Laws that has been promulgated in the Official Gazette dated 26 March 2020:
- Pursuant to Provisional Article 23 included in Unemployment Insurance Law No. 4447 with the Amendment Law, for short-time working applications made by reason of coronavirus pandemic
subject to validity until 30 June 2020, those subject to employment agreement for the last 60 days before commencement of short-time working should have worked as an insured employee for 450 days in the last three years and unemployment insurance premium should have been paid. Those who do not meet this criterion are entitled to benefit from short-time working allowance for the remaining period of the final unemployment allowance provided that short-time working period is not exceeded.
- In order to benefit from short-time working practice, employee should not terminate employment agreement of any worker in the period during which short-time working is implemented. “Behaviours that are not compliant with the ethics and good faith principles and similar other actions” described in Article 25/1-(II) of the Labour Law have been determined as only exception to the prohibition on dismissal by employer during short-time working period.
Kind Regards,
DEDEOĞLU & BALABAN LAW FIRM
