Turkey: Short-time work allowance period extended again for two months

Turkey

The period for the short-time work allowance was extended by another two months following the 31 August publication of Presidential Decision no. 2915 in the Official Gazette.  

As a result of the Decision, those employers who meet the conditions for short-time work (see this LawNow article) and applied for the short-time work allowance before 30 June 2020 will continue to benefit from the wage subsidy until 31 October 2020 or a later pre-determined date.

This decision follows an earlier Presidential Decision extending the period for banning dismissals and sending employees on unpaid leave to 17 September 2020 as part of measures implemented to alleviate the economic impact of the COVID-19 pandemic. A detailed explanation on this decision can be found in the following Law-Now article on the prohibition of dismissals.

Background

As explained in detail in this previous Law-Now article, the Turkish government took measures to address the negative impact of the COVID-19 outbreak with the passage of the Law Relating to the Reduction of the Effects of New Coronavirus on Economic and Social Life and Amendments to Certain Laws. Importantly, this law includes amendments to the Law on Unemployment Insurance, which eases the conditions for applying for the short-time work allowance.

According to these amendments, an employer is entitled to apply for a short-time work allowance for each employee who worked without interruption at least 60 days before the beginning of the short-time work period and were registered with the Turkish Social Insurance Institution; and paid at least 450 days of his unemployment insurance premium over the last three years.

The short-time work allowance should be paid for an initial period of no more than three months, but this period could be extended for another six months.

Presidential decisions have already extended the short-time work period twice without the need for employers to submit new applications if they originally applied for the short-time work allowance between 30 June 2020 and 31 July 2020.

For more information on how to extend the period for short-time work compensation, contact your CMS partner or local CMS experts: Dr. Döne Yalçın or Sinan Abra.