APPLICATION FOR SHORT-TIME WORKING DUE TO COVID-19

24 March 2020

The Board of Directors of Turkish Employment Agency (“TEA”) has decided to receive short-time applications with the reason of “act of god” resulting from external influences via e-mail starting from March 23, 2020 within the framework of “Utilising and expediting the process to benefit Short-Time Working Wage.” indicated in the Economic Stability Shield Programme announced by the President of Turkey on March 18, 2020 to combat the Covid-19 outbreak

WHAT IS SHORT-TIME WORKING?

Short-time working can be carried out in part or as a whole in the workplace, as can be applied by reducing weekly work time (by at least one-third) or by stopping the activity completely/partially (for at least four weeks without any condition of continuity). These will be stated in the request form that the employer submits to TEA. The number of employees who will be working short-time and the information regarding the employees are also reported to TEA. Short-time working wages are granted to employees for a maximum of three months, which can be extended by the President to six months.

WHO CAN BENEFIT FROM IT?

When TEA accepts the request of the employer, the employees working in the workplace and who fulfil the conditions, are paid short-time working wage from TEA, covered by the Unemployment Insurance Fund, for the limited time they work “short-time”. There are two conditions for the employees in order them to benefit from short-time wages.

▶ The employer’s application for short-time working must be accepted.

▶ The employees must fulfil the conditions to benefit from unemployment insurance, that is, they must have 600 premium days in the last three years (they must be subject to employment agreement for the last 120 days) before the Social Security Institution.

WAGES AND EMPLOYEES’ RECEIVABLES

▶ The employees will be able to receive short-time working wages amounting to sixty per cent of their average daily gross payments calculated by taking the last twelve months of their gross payments.

▶ The amount of short-time work wages cannot exceed 150 per cent of the gross minimum wage. (TRY 4414.5).

▶ In addition, the short-time working wages will be calculated on a monthly basis for non-working periods, to complement the weekly work period applied at the workplace. (Article 7/3 of the Regulation on Short-Time Working and Short-Time Working Wages)

▶ In case the short-time working in the workplace is implemented because of act of god, payments of the wages begin after a one-week period stipulated in Article 24 (III) and 40 of the Labour Law No. 4857 (“Labour Law”). Within this one-week period, wage and premium obligations belong to the employer. During this period the employer is obliged to pay half of the employees’ salaries.

If you have any questions regarding our above note, please do not hesitate to contact us.
Kind regards,
Güner Law Office