30 June 2020

The Decree on the Extension of Short-Time Work Allowance for Workplaces Implementing Short-Time Work on the Grounds of Coercive Reasons within the Context of Periodical Situations Caused by External Effects due to New Coronavirus (Covid-19) (Decree No: 2706) ("Decree No. 2706") and the Decree on the Extension of the Periods Specified in the First and Second Paragraphs of the Provisional Article 10 of the Labour Law No. 4857 dated 22/5/2003 (Decree No: 2707) ("Decree No. 2707") have been published in the Official Gazette dated 30 June  2020 and numbered 31171.

   1.   Time Extension for Short-Time Work Allowance:

Within the framework of the principles set forth under Additional Article 2 and Provisional Article 23 of the Unemployment Insurance Law No. 4447, the duration of short-time work allowance for workplaces who have implemented short-time work until 30 June 2020 (including this date) on the grounds of coercive reasons in the context of periodical situations arising from external effects due to the new coronavirus, is extended by 1 (one) month

starting from 01.07.2020 for the workplaces where the implementation of short-time work has ceased before the publication date of the Decree No. 2706,

starting from the expiration date of short-time work for the workplaces where the implementation of short-work practice continues as of the publication date of the Decree No. 2706,

without a need for a new application and conformity assessment, for the same employees who have previously benefited from short-time work and with the same conditions.

   2.   Time Extension for Prohibition of Termination:

With the Decree No. 2707, the periods specified under Paragraphs 1 and 2 of the Provisional Article 10 of the Labour Law whereby the three-month prohibition of termination is regulated, have been extended by 1 (one) month. The three-month prohibition of termination had been implemented on 17 April 2020 and with the time extension, the new ending date of the prohibition has become 17 August 2020. Therefore, employment or service agreements cannot be terminated for another month, except for termination due to the violation of ethics and good faith rules and other similar reasons stated under subparagraph (II) of paragraph one of Article 25 of the Labour Law and relevant provisions of other laws. However, the employers will be able to make the employees take unpaid leave without exceeding this time period.

If you have any questions regarding our note above, please do not hesitate to contact us.

Kind regards,
Güner Law Office