Release Agreement (İbraname)

A release agreement (ibraname) is a document showing that, after the employment contract has ended, the employee has received their claims from the employer and releases the employer from them. To protect employees, it is subject to strict validity conditions under Article 420 of Turkish Code of Obligations No. 6098.

Conditions for Validity

A release of the employee’s claims against the employer must:

• Be in writing,
• Be made after one month has passed from the end of the employment contract,
• Clearly state the type and amount of the released claim,
• Be accompanied by payment in full of the amount due and via a bank.

Release agreements not meeting these conditions are null and void. A release is also invalid if the payment falls short of the actual amount due.

Effect of an Invalid Release

The Court of Cassation treats an invalid release stating an amount paid as a receipt for that amount. The employee may claim amounts exceeding what was paid. General release wording without amounts (“I have no outstanding claims”) is not sufficient to prove that claims were paid.

In Practice

• Rather than general releases signed on departure, documenting payments with bank receipts and keeping proper payroll records is a safer approach.
• Where the parties conclude a mutual termination agreement, the Court of Cassation requires the employee to receive a reasonable benefit.
• Settlements reached in mediation and recorded in a settlement agreement are final under mandatory mediation rules and are therefore one of the safest ways to close disputes.