What Is a Labor Claim Lawsuit? What Are Labor Claims?

LABOR CLAIM LAWSUIT

A labor claim lawsuit is one of the types of cases that employees can file against employers pursuant to the Labor Law No. 4857. Within this scope, employees may request the payment of their receivables such as severance pay, notice pay, overtime wage receivables, and annual leave wage receivables through a labor claim lawsuit. In Türkiye, these cases are heard in Labor Courts and are subject to legal regulations aimed at protecting the rights of employees.

WHAT ARE THE PROCEDURES OF

A LABOR CLAIM LAWSUIT?

A labor claim lawsuit cannot be filed directly under Turkish law due to general and specific legal regulations. It is a process that must be managed step by step in a specific order. Accordingly:

Calculation of Receivables:The first step is to accurately calculate the receivables. These may include unpaid salaries, overtime wages, annual leave pay, severance and notice compensations, and other items to be claimed.

Sending a Formal Notice (İhtarname):If the receivables are not paid, it is advisable to send a formal notice (ihtarname) to the employer via a notary public. Although sending it through a notary is not mandatory, it is recommended because it serves as official proof in later stages of the process. The notice grants the employer a period to make the payment and warns that legal proceedings will begin if payment is not made. Since the content and wording of the notice are crucial, it is highly recommended to seek assistance from a lawyer in preparing it.

Application for Mediation:In the Turkish legal system, “mandatory mediation” applies to all labor receivables except for those arising from work accidents and occupational diseases. Therefore, before filing a lawsuit for severance pay, notice pay, wage receivables, overtime pay, and similar claims, an application for mediation must be made. If a lawsuit is filed without first applying for mediation, the court will dismiss the case due to the “lack of a procedural requirement.” For this reason, it is advisable to work with a lawyer to manage the process properly.

Preparation and Filing of the Lawsuit Petition:If no result is achieved from the notice or mediation process, the next step is to prepare the lawsuit petition to initiate the labor claim lawsuit. This petition should include details of the claimed receivables, legal grounds, witnesses, and evidence.The lawsuit must be filed in the labor court located either where the employee worked or where the employer’s workplace is located. Otherwise, it will be dismissed for being filed in a court without jurisdiction. In Türkiye, labor courts are the competent authorities for labor receivable disputes.

Management and Monitoring of the Court Process:Once the petition is submitted and necessary fees are paid, the court proceedings begin. Both the employee and the employer must submit their evidence regarding the receivables within the specified time limits. Missing these deadlines may result in the loss of the right to present evidence or support claims and defenses. Therefore, it is strongly recommended to work with a lawyer to manage the process. The employee should submit documents such as the employment contract, payrolls, and working hour records to the court to prove their claims.

Court Decision:The court will render a decision based on the submitted evidence and the relevant provisions of the Labor Law and other applicable regulations. If necessary, appeals or objections should be filed with higher courts for re-evaluation. After all legal procedures are completed and the judgment becomes final, the employee will legally obtain their receivables.

Carrying out all these legal steps with the assistance of a lawyer will help ensure that the employee’s receivables are collected fully and in compliance with the law. For more information about our legal services regarding labor receivables, you can contact us using the details provided in the contact section above.

WHAT ARE THE TYPES OF LABOR RECEIVABLES?

• Severance Pay

• Notice Pay

• Annual Paid Leave Receivable

• Bad Faith Compensation

• Wage Receivable

• Overtime Pay

• National and Public Holiday Pay (UBGT Pay)

• Work Accident and Occupational Disease Compensationetc.

SEVERANCE PAY

Severance pay is a form of compensation granted to employees who have worked at the same workplace for at least one year, as a reward for their service and effort. It is calculated based on the employee’s last received gross monthly wage and varies depending on the total duration of employment, with a proportional calculation made according to the number of months worked. Unlike wages, severance pay is considered a vested right earned as a result of employment.

According to the Court of Cassation, severance pay is defined as “a lump-sum payment made by the employer to the employee, within the legal framework, in return for past services, taking into account the employee’s contribution to the workplace, the wear and tear experienced during the employment period, and the difficulties that may be faced in finding new employment after job loss.”

Conditions for Entitlement to Severance Pay:

• Being employed under Labor Law No. 4857,

• Having worked at the workplace for at least one year,

• Termination of the employment contract in a manner that does not forfeit the right to severance pay.

For more detailed information, you can read our article titled “What Is Severance Pay?”

NOTICE PAY

Notice pay is a right recognized under the Labor Law and is payable when either party to an indefinite-term employment contract terminates the contract without complying with the statutory notice periods. The party who terminates the contract without observing the notice period—whether the employee or the employer—must pay notice compensation to the other party.

The length of notice periods is crucial in calculating notice pay and varies according to the employee’s length of service. Pursuant to Article 17 of the Labor Law No. 4857:

• For service up to 6 months: 14 days,

• For service between 6 and 18 months: 28 days,

• For service between 18 and 36 months: 42 days,

• For service of 36 months and more: 56 days of notice period apply.

For more detailed information, you can read our article titled “What Is Notice Pay?”

ANNUAL LEAVE PAY RECEIVABLE

Paid annual leave is the rest right earned by employees who have worked at a workplace for at least one year. According to Article 53 of the Labor Law, “Employees who have worked for at least one year, including the probationary period, from the day they start work at a workplace are entitled to paid annual leave.”

For more detailed information on paid annual leave and annual leave pay receivables, you can read our article titled “Right to Paid Annual Leave.”

BAD FAITH COMPENSATION

An indefinite-term employment contract may be terminated by the employer without stating any reason, either by giving notice or by paying wages in lieu of the notice period. However, in some cases (for example, if an employee testifies against the employer in another lawsuit or is a member of a political party), such termination may be considered unfair. In these situations, the termination of the employment contract is deemed to be in bad faith.

According to Article 17 of Labor Law No. 4857, if the employment contract of an employee who is not protected under job security provisions is terminated through the employer’s abuse of the right of termination, the employee is entitled to receive bad faith compensation equal to three times the notice period. The notice periods are determined based on the employee’s length of service, as mentioned above.

WAGE RECEIVABLE

Wage receivable refers to the salary and all other rights of a financial nature that must be paid to an employee in exchange for the work performed.

If wages are not paid within twenty days after the due date, except in cases of force majeure, the employee may refrain from fulfilling their work obligation. The highest interest rate applied to deposits is applied to overdue wages.

NATIONAL HOLIDAY AND GENERAL HOLIDAY PAY (UBGT PAY)

UBGT (National and General Holiday) pay refers to the additional payment made to an employee for the hours worked during national and public holidays. To be entitled to UBGT pay:

• The employee must have actually worked on the national or general holiday, and

• The employment contract must not be suspended or terminated on that date.

An employee who works on a national or general holiday is entitled to an additional day’s wage for each day worked. For example, if an employee’s daily wage is 500 TL, the payment for working on such a day would be 500 TL + 500 TL = 1,000 TL. Even if the employee works for only one or two hours on that day, they are still entitled to double their daily wage (“daily wage × 2”).

WORK ACCIDENT AND OCCUPATIONAL DISEASE

According to doctrine and the Court of Cassation, a work accident is defined as an accident that occurs suddenly due to an external cause while the employee is under the employer’s control and performing work for the employer. An occupational disease, on the other hand, is defined as a temporary or permanent illness, physical or mental disability caused by repeated exposure or the conditions of the work performed.

Types of compensation claims that may be requested in cases of work accidents or occupational diseases:

In case of death:

• Funeral expenses,

• Medical expenses (if treatment was provided before death),

• Losses suffered by the dependents of the deceased who were deprived of their financial support, etc.

In case of physical harm:

• Medical expenses,

• Loss of income,

• Losses resulting from the decrease or loss of working capacity,

• Losses arising from damage to the victim’s economic future, etc.

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