The employer needs to notify the Social Insurance Institute pertaining to the employment contract’s termination in order not to pay more insurance payments.
Special procedure shall be applied in case of collective terminations. In accordance with the Article 29 of the 4857 Labour Code; when the employer contemplates collective terminations for reasons of an economic, technological, structural or similar nature necessitated by the requirements of the enterprise, the establishment or activity, s/he shall provide written information at least 30 days prior to the intended lay-off to the union shop-stewards, the relevant regional directorate of labour and the Public Employment Office.
Before terminating a continual employment contract made for an indefinite period, a notice to the other party must be served by the terminating party. The notice of termination shall be given by the employer in written form providing the reason for termination which must be specified in clear and precise terms. In addition, the employer may also let the employee know about his/her job seeking leave right 2 hours per day in the termination notice.
If a release agreement shall be signed by the employee, such release should be issued in accordance with Article 420 of Turkish Obligations Code since requirements in mentioned Article are validity conditions. The mentioned Article stipulates that; “The release agreement related to the employee’s receivable from the employer must be in written form, to have at least one month period have passed starting with the date of termination of the contract, the type and amount of receivable subject to release must be clearly described, the payment must be thoroughly done through the bank. Any release agreements or release forms that do not contain these elements are absolutely invalid.”