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Corona Outbreak: Conditions of the Short-Time Working Modified

28 March, 2020

Conditions of the Short-Time Working Modified

The Law on The Amendment of Certain Acts No.7226 published in the repeating Official Gazette No. 31080 dated March 26, 2020 provides for certain modifications on the conditions of the short time working funds under Art. 41.

Anteriorly, employees working under an employment contract for the last 120 days prior the commencement of the short-time working were eligible for the short-time working fund, granted that they had paid unemployment insurance premium for at least 600 days in the last three years. Pursuant the last changes, the employees working under an employment contract for the last 60 days prior the commencement of the short-time working are also deemed eligible to receive the short time working fund until June 30, 2020, granted that they have paid unemployment insurance premium for at least 450 days in the last three years upon their application regarding Covid-19. In addition, employees who are not deemed eligible pursuant to the relevant premium payment criterion will be granted the right to benefit from the short-time working fund for the period remaining from their last unemployment benefit entitlement, limited to the short-time working period.

Employers who want to benefit from the application of the short-time working fund under Art. 41 shall not terminate any employment contracts, excluding terminations on grounds of incompliance with the rules of ethics and good faith and other similar behavior during the short-time working period.

What is short-time working?

Short-time working refers to either the temporary reduction by at least one third of the work-time within the workplace partially or entirely; or a complete or partial shutdown of all operations for a period of not less than four weeks, permanency unstipulated, both of which shall last for at most three months.  

Employers applying for short-time working funds to units of Turkish Employment Agency established in provinces, due to short-time working periods applied within their establishments as a result of COVID-19; shall be deemed partially exempt from regarding payment obligations to the employees, granted that their applications are found eligible.

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