Attention needed for justified termination periods under the Labor Law
According to the Labor Law, exceeding the legal periods of 6 business days and 1 year when exercising the right to terminate for a just cause can lead to compensation losses.
The right to terminate for a just cause granted to parties within the framework of the Labor Law creates compensation risks for the parties if not exercised within the specified legal periods.
Right to terminate for a just cause and its scope
When situations contrary to rules of morality and good faith arise, the Labor Law provides both the employee and the employer with the opportunity to terminate the employment contract immediately. While an employee with at least one year of seniority can leave with severance pay by exercising this right in time, the employer can also terminate the contract of an employee who does not comply with good faith rules without severance pay.
Critical six business days and one-year period
In exercising the right of justified termination, the date on which the event took place is of great importance, as well as its nature. Exceeding the periods stipulated in the law may lead to the loss of the opportunity for termination based on a just cause and expose the parties to compensation liability.
Method of calculating periods
Following the learning of the event subject to termination by the authority authorized to terminate, the six-business-day period begins to run from the following business day. From the date the event occurred, there is a maximum upper limit of one year in any case.
Days not counted as business days
Sundays and official holidays are not evaluated as business days when calculating periods. With the end of working hours on the sixth business day, the period foreseen for the right of termination is also completed.
Consequences of missing the deadline
The right of justified termination not used within its period may later be evaluated as wrongful termination. While the party who misses the period may face the risk of paying notice compensation, the obligation of severance pay may also arise for employers who make timing errors.
Ex officio review by courts
It is stated that the courts take these legal periods determined for justified termination into consideration automatically, without the need for the parties to claim them separately. Experts also point out the importance of carrying out transactions in a timely manner even if there is a just cause.