The new Legislative Content Act sets significant employment matters, the detailed regulation thereof will be effected through relevant forthcoming Ministerial Decisions.
A. Extension of suspended employment agreements
1. Companies severely affected and having suspended the employment agreements of all or part of their personnel may extend the suspension of up to 60% of those agreements for maximum 30 days and in any case up to 31.5.2020.
If the above percentage (60%) is exceeded, then the employer pays the salaries of those additional employees.
It is pointed out that during the suspension and for 45 days after its lapse no dismissals are permitted.
2. In those companies whose operation remains suspended based on a State’s order for May 2020, the suspension of the employment agreements of their personnel is accordingly extended.
3. The employees of both abovementioned categories are entitled to the special scope compensation proportionately to the days of the extended suspension.
B. Final revocation of suspended employment agreements
Companies having suspended the agreements of all or part of their personnel may revoke the said suspension for minimum 40% of the affected employees if the suspension lasted at least for 15 days. Following the said revocation, the employment agreements are not subject to any new suspension and the employees are entitled to a proportion of the special purpose compensation based on the days of the suspension.
C. Temporary revocation of suspension of employment agreements
1. The temporary revocation of the suspension of employment agreements is permitted subject to a relevant notification to ERGANI system in case of extra-ordinary and urgent needs of the employer, whose business has been either entirely suspended with a State’s order or is severely affected, based on the activity codes set by the Ministry of Finance.
During the above revocation the employer is liable to pay the agreed salary in proportion to the days of employment.
2. Upon lapse of the temporary revocation, the suspension of the employment revives up to its expiration
D. Arrangement of working hours
Employers whose companies’ operation has been suspended by virtue of a State’s order as well as those severely affected by the COVID-19 crisis may adjust the working hours of their personnel based on the company’s operation hours, as long as this adjustment does not alter the type of the employment agreement.
You can download the Tax-i in pdf file here.