SHORT-TIME EMPLOYEE ALLOWANCE AFTER COVID-19 PANDEMIC

Considering the outbreak of the new generation coronavirus (COVID-19), which affects public health negatively, it appears as a precaution that can be applied to short-time employee allowance and ensure the continuity of the workplace.

Employers are entitled to implement reductions in working hours, or in other words, introduce shorter hours of operation, in response to a general economic, sectoral, or regional crisis or a force majeure event. In such cases, employers are entitled to apply to the Turkish Labor Authority (“Authority”) to decrease the company’s weekly working hours by at least 1/3 or to partially or fully cease operations for a minimum of four weeks. If the Authority approves the application, employers are entitled to reduce working hours. While reduced working hours at workplaces can be applied up to 3 months, this period can be extended up to 6 months by President Decision.

We would like to indicate that, Employer who applied to reduced working hours, have to hold records of working hours in a workplace and submit them if it is asked by the State.

It should also be kept in mind that the time spent in the reduced working hours will be included in the annual leave and severance pay account. The employer can request short-time employee allowance only in a certain unit according to the need. It is also possible to practice short-time employee allowance in different parts of the workplace for different periods of time.

Employers who think that at least one of the elements in the definition have occurred must apply to the Turkish Employment Institution for a short-time working allowance. As a rule, the Board of Directors of the Turkish Employment Institute decides whether these situations occur when applying for short work. In case of compelling reasons, no decision of the board of directors is required..

The President of the Turkish Republic delivered a speech on March 18, 2020 where he stated that the government will furnish short-term working allowances due to the COVID-19 pandemic, and that the application process for short-term working allowance will be facilitated and shortened. In this regard, It has been decided that employers can apply for short-time employee allowance with the reason for a compelling reason for external effects.Also, the Law No. 7226 on Amendments to Certain Laws ("Law") was published in the (second) Official Gazette dated March 26, 2020 and numbered 31080. The Law, among others, also amends the Law No.

Pursuant to the Law:

•Applications for short-term employee allowance due to COVID-19 can be filed until June 30, 2020 

•.Employees must fulfill certain conditions, such as paying unemployment insurance premiums and having worked under an employment for a certain period, to benefit from the short-term working allowance. The time periods for these conditions have been reduced in relation to short-term working allowance due to COVID-19. 

•Accordingly, employees who; 

i.paid unemployment insurance premiums for at least 450 days in the three years prior to the start of the short-term working; and,

ii.worked under an employment agreement for the last 60 days prior to the start of the short-term working, can benefit from the short-term working allowance due to COVID-19, 

iii.Employers are required not to terminate any employees during the short-term working period in order to be able to benefit from the short-term working due to COVID-19. The only exemption is if the employer terminates an employee for just cause due to the reasons that are contrary to ethics and goodwill and similar cases as regulated under Article 25/1-II of the Labor Code No. 4857. 

iv.Applications for short-term working allowance due to COVID-19 shall be evaluated within 60 days as of the application date.  

v.The Presidency of the Turkish Republic is authorized to extend the application for short-term working due to COVID-19, until December 31, 2020.

The duration and application method and evaluation conditions will differ for short-time working allowance applications for reasons other than COVID-19.

APPLICATION PROCODURE

Concerning the COVID-19 pandemic, as of March 23, 2020, employers can file applications for the short-term working allowance with the Turkish Employment Institution via e-mail. required documents are list below:

•Substitutive documents for general economic, sectoral, regional crisis or compelling reasons.  

•Request form, 

•List of the employees. 

•A written statement of the employer regarding the short-time employee allowance request, 

•Wage payrolls, 

•Records showing that employees' wages and related insurance premium and tax deductions are paid, 

•Documents showing the working periods of the period for that short-time employee's allowance is requested  

•Documents regarding orders and contracts received and canceled, 

•If available the documents stating that the activity has stopped, partly or completely, 

•If available a protocol regarding the implementation of short work with the union of the collective labour agreement in the workplace, 

•If available the documents showing the existence of force majeure such as fire, earthquake, flood, flood, epidemic diseases,,

All examinations will be carried out in the department of guidance and investigation without going to the workplace, only through the relevant application documents and annexes and without preparing the determination report.

WHAT IS THE SHORT-TERM WORKING ALLOWANCE AMOUNT?

The daily amount of the short-term working allowance is 60% of the average daily gross income of the employee, calculated based on the employee's earnings subject to social security premiums in the last 12 months. The monthly amount of the short period working allowance cannot exceed 150% of the monthly minimum gross salary, which is currently TRY 2,943. In this regard, the short-time employee allowance will be a minimum of 1,752,40 TL after the stamp duty to be deducted.

The daily amount of the short-term working allowance is 60% of the average daily gross income of the employee, calculated based on the employee's earnings subject to social security premiums in the last 12 months. The monthly amount of the short period working allowance cannot exceed 150% of the monthly minimum gross salary, which is currently TRY 2,943. In this regard, the short-time employee allowance will be a minimum of 1,752,40 TL after the stamp duty to be deducted.

The short-term working allowance is provided to employees during the short-term working period. In any case, the allowance is provided for a term of maximum three months, and the Presidency of the Turkish Republic is authorized to extend this term to six months. During the short term working allowance, the general health insurance premiums of the employees are paid by the Turkish Employee Institutıon, and the premiums for the short term insurance branches and the long term insurance branches required for retirement are not paid. Weekends, holidays, etc. wages are paid proportionally by the Employer and the Institution.

If you have any question please don’t hesitate to contact us.

CANAZ YILMAZ ATTORNEYS