Termination for Valid Reason

Also known as: Valid Reason, Job Security, Performance Dismissal, Redundancy, Geçerli Fesih

In short

Termination of the indefinite-term contract of an employee covered by job security based on a valid reason arising from the employee's capability or conduct, or from the requirements of the business, workplace or work.

Termination for valid reason, governed by Article 18 of the Labour Law, means that the employer may terminate the indefinite-term contract of an employee covered by job security only for a valid reason. Termination without a valid reason may lead to a reinstatement claim.

Conditions for Job Security

Thirty or more employees at the workplace (if the employer has several workplaces in the same sector, the total number is used),
At least six months’ seniority,
An indefinite-term employment contract,
The employee is not an employer representative who manages the entire business and has authority to hire and dismiss.

Valid Reasons

Capability: Situations preventing proper performance, such as poor performance, frequent illness or failure to adapt.
Conduct: Conduct not amounting to just cause but making continued employment unreasonable, such as disrupting work, failing to follow instructions or frequent lateness.
Business requirements: Overstaffing due to internal or external factors such as falling sales, restructuring or technological change.

Reasons That Are Not Valid

Trade union membership or activity, acting as a workplace union representative, filing administrative or judicial complaints against the employer, race, colour, sex, marital status, family responsibilities, pregnancy, childbirth, religion, political opinion and similar grounds, absence during maternity leave and temporary absence due to illness or accident within the notice period are not valid reasons.

Procedure and Proof

Termination notice must be in writing and state the reason clearly and precisely. Before termination for reasons of conduct or performance, the employee’s defence must be obtained. The burden of proving a valid reason lies with the employer. The Court of Cassation also requires termination to be a last resort: whether the problem could be solved by lighter measures such as reassignment or training must be considered. For business decisions, the court also checks that the decision was applied consistently.

Frequently Asked Questions

Who is covered by job security?

Employees with at least six months' seniority on indefinite-term contracts at workplaces with thirty or more employees. Employer representatives who manage the entire business and have authority to hire and dismiss are excluded.

Must the termination notice state the reason?

Yes. An employer terminating the contract of an employee covered by job security must give written notice and state the reason clearly and precisely.

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