Regulatory Updates

  • In the aftermath of the destructive earthquakes in February, CHP Group Deputy Chairmen Engin Altay, Özgür Özel and Engin Özkoç submitted the Law Proposal on Amendments to the Unemployment Insurance Law and Certain Laws ("Law Proposal") to the Presidency of the Grand National Assembly of Türkiye on February 27. The Law Proposal envisages the following measures regarding the earthquake:
    • The death pensions shall be granted to the beneficiaries of the deceased regardless of the premium payment and working period conditions,
    • Administrative fines shall be imposed on those who violate the prohibition of dismissal,
    • The minimum short-time working allowance and the cash wage support to be provided to the insured whose workplace is closed or unemployed shall be at the level of the minimum wage,
    • No co-payment for treatment and drug co-payment and prosthesis, orthotics, tools and equipment costs will be collected from the insured, retired and beneficiaries in the earthquake zone,
    • The pre-earthquake insurance debts of the insured in the earthquake zone will be postponed for 3 years.
  • The Regulation Amending the Regulation on Social Insurance Transactions ("Amendment Regulation") was published in the Official Gazette on November 11, 2022. With the Amendment Regulation, the seventh paragraph of Article 97 of the Regulation on Social Insurance Transactions has been amended. Accordingly, alongside meal payments made to insured parties, meal payments made to third parties for insured persons are also exempted from the scope of the calculation of earnings subject to contribution. Additionally, it is stated that this rate is calculated by multiplying the daily minimum wage rate determined by the Board of Directors of the Social Security Institution, by the number of days actually worked.
  • The Social Security Institution suspended the seizures on the rights and receivables of employers and pensioners in the earthquake zone and postponed the general health insurance premium debts until August 31, 2023.
  • The Communiqué No: 23 Amending the General Communiqué No: 5 on the Financial Crimes Investigation Board was published in the Official Gazette on February 11, 2023, as per which the earthquake victims will be able to make transactions regarding their salary payments with any document showing their identity, or if not possible, banks will check the information they have declared.
  • The Presidential Circular No. 2023/5 on Measures for Public Personnel in Disaster Areas was published in the Official Gazette on February 15, 2023. Accordingly, the provincial governors will have the authority to grant administrative leave or flexible working methods (remote working or rotational working) for public personnel in provinces affected by the earthquakes, provided that the necessary measures are taken and services are not disrupted. Employees, who will be deemed to be on administrative leave will be deemed to have fulfilled their duties; and their financial rights and benefits and other personal rights will be reserved.
  • The Presidential Decree No. 122 on Measures Regarding Public Personnel Under the State of Emergency was published in the Official Gazette on February 15, 2023. The Presidential Decree stipulates that public personnel may be assigned to the necessary units or services in the provinces where a state of emergency has been declared, without being subject to the conditions and restrictions in the relevant legislation.
  • The Presidential Decree No. 125 on Measures Taken in the Field of Labour and Social Security under the State of Emergency was published in the Official Gazette on February 22, 2023. The Presidential Decree envisages the payment of short-time working allowance in workplaces determined by the Ministry of Labour and Social Security in relation to the earthquake. The Presidential Decree also prohibits employers from dismissing their employees during the State of Emergency, with several exceptions. Moreover, a daily cash support of TRY 133.44 will be provided (i) to those who have an employment contract but do not have a new entitlement based on the short-time working application, and (ii) to those whose employment contract is terminated due to the closure of their workplaces and who do not have any entitlement to unemployment allowance, provided that they do not receive an old age pension from any social security institution.
  • The Law Amending the Social Security and General Health Insurance Law and the Decree Law No. 375 ("Law") was published in the Official Gazette dated March 3, 2023 after being approved by the Grand National Assembly of Türkiye. Accordingly, the Law abolishes the age requirement for those who were insured for the first time before September 8, 1999, thereby making them eligible for retirement. Moreover, in order to prevent fluctuations in the employment market and to support individuals who are eligible for retirement by benefiting from the Law to continue working subject to social security support premium, the Law envisages a support mechanism, which will be covered by the Treasury.

Miscellaneous Developments

  • The Court of Cassation issued a decision that closely concerns private sector employees. As per the precedent-setting decision, calculation of overtime wages should not be based solely on witness statements if signed payroll documents exist, in which case these should be considered as well.
  • The Labour and Social Security Ministry announced that foreign athletes, farmers and researchers will be able to work in Türkiye for a determined period without a need to obtain a work permit. Foreign athletes are allowed to practice their professions until the conclusion of their employment contracts, while foreigners who work seasonally in agriculture and animal husbandry will receive an exemption for up to six months.
  • The regulation on the "Retirement Age Victims" ("EYT"), was put into force in the Grand National Assembly of Türkiye. The text of the law has been signed by the President and published in the Official Gazette and entered into force on March 3, 2023. With the entry into force of this law, the pre-existing conditions (i.e., number of premium days paid) have remained in place but the age requirement for retirement has been abolished.
  • President Recep Tayyip Erdoğan stated that they increased the civil servant and pensioner raise, which was announced to be 25 percent on January 2, 2023, to 30 percent. President Erdoğan also announced that they increased the lowest pension from TRY 3,500 to TRY 5,500.
  • The Social Security Institution announced that the e-Notification Application is now available in all provinces in Türkiye. As of 01.11.2022, e-Notifications will start to be sent to those who have applied to take part in the new system. Real and legal persons who have not made an application will continue to be notified in the old way.
  • The General Directorate of International Labour Force of the Ministry of Labour and Social Security announced that the E-Employment Permit Exemption Application System has been launched. The "Work Permit Exemption System", for which the technical work has been completed and put into practice as of October 1, 2022. Work permit exemption applications will now be received through this system.
  • President Recep Tayyip Erdoğan announced the new minimum wage as TRY 8,500 in 2023 in a statement he made at the Presidential Complex with the participation of Minister Bilgin and the Chairman of the Confederation of Employers' Associations of Türkiye (TİSK) Özgür Burak Akkol. With the new increase, the minimum wage has increased by 94 percent compared to January and 50 percent compared to July in the previous year, and the average annual increase rate was realized at a rate of above 70 percent.
  • The Ministry of Labour and Social Security announced the details of the appointment of contracted personnel to civil servant positions. According to the statement made by the Ministry, with the regulation, approximately 197 thousand contracted personnel who are currently on duty and fulfil certain criteria, will immediately be converted into full-time civil servants.
  • Public sector employment figures for the fourth quarter of 2022 were announced. While the total number of employed personnel has been announced as approximately 5 million, it has been stated that 1 million 165 thousand of them are permanent workers whereas 52 thousand of them are temporary workers.
  • Labour Market Developments for December 2022 were announced on February 10. According to labour force statistics, unemployment rate was recorded as 10.4 percent in December 2022. The number of employed people was 31 million 173 thousand and the employment rate was 47.9
  • Turkish Statistical Institute (TurkStat) published the statistics on paid employees for February 2023. Accordingly, the number of paid employees in industry, construction and trade-services sectors increased by 7.1 percent in February compared to the same month of the previous year.
  • The International Labour Organization (ILO) announced on International Equal Pay Day that women are often paid 20 percent less than males worldwide. Black and Hispanic women experience an even greater pay disparity than white women, with Black women earning nearly 63 percent less than white men and Hispanic or Latina women earning 57.3 percent less. Another look at how women are unfairly treated has been offered by a recent Web Summit study. According to the report, over the past 12 months, about 67 percent of women believe their pay is unreasonably low compared to that of their male colleagues. In 2019, 46.4 percent of respondents said they were paid properly; by 2022, this percentage had dropped to 33.1
  • It was reported that female employment rate in the service sector reached 59.6 percent, and women's labour force participation expanded dramatically across the board in Türkiye.
  • İŞKUR's statistics for January were announced. Accordingly, in November 2023, 82,274 job placements were realized through İŞKUR, of which 55,901 (67.9 percent) were male and 26, 373 (32,1 percent) were female. In the January-December period of 2022, 1,164,838 job placements were mediated.
  • On January 27, 2023 a cooperation protocol was signed between the Association of Turkish Travel Agencies (TÜRSAB) and İŞKUR. It is reported that the purpose of the cooperation protocol is to ensure the employment of candidates who want to engage in travel agency activities, including the trainees participating in the trainings under the roof of TÜRSAB Academy, through the "On-the-Job Training Program".
  • Organisation for Economic Co-operation and Development (OECD) announced the unemployment rates for December 2022. Accordingly, the OECD unemployment rate was stable at 4.9% in December 2022, the sixth consecutive month at this record low since the start of the series in 2001. Moreover, it has been reported that gross domestic product (GDP) in the OECD rose by 0.3% quarter-on-quarter in the fourth quarter of 2022, down from 0.4% growth in the previous quarter, according to provisional estimates.
  • The Independent Industrialists' and Businessmen's Association (MUSIAD) announced that it has launched an "employment mobilization" for those affected by the earthquakes and that it will provide support for citizens who have settled in Ankara, trying to rebuild their lives to find jobs.

News From Around the World

  • On September 28, 2022, the Commission called on Member States to modernise their minimum income schemes as part of the ongoing pledge to reduce poverty and social exclusion in Europe. The proposed Council Recommendation on adequate minimum income ensuring active inclusion, sets out how Member States can modernise their minimum income schemes to make them more effective, lifting people out of poverty, while promoting the labour market integration of those who can work.
  • The European Statistical Office (Eurostat) published January 2023 unemployment data for the European Union (EU) and the Eurozone. The unemployment rate in the Eurozone, which was 6.9 percent in January 2022, decreased to 6.7 percent in January. The EU unemployment rate was 6.3 percent in January 2022, decreased to 6.1 percent in January.
  • European Parliament and of the Council's directive on adequate minimum wages in the European Union that introduces new rules was approved by EU member states and entered into force. Member states will adopt the measures to comply with the directive by 15 November 2024. According to the new directive, while it will remain the competence of member states to set minimum wages, minimum wages will have to be set and updated according to clear criteria. Collective labour agreements will also be encouraged. Updates to the statutory minimum wage will have to be made at least every two years, while countries with an automatic indexation mechanism will update it every four years at the latest.
  • The Danish three-party coalition government took a stand against the minimum wage guidelines of the European Union by filing a legal challenge. Denmark and Sweden have voiced their opposition to the EU's minimum wage directives as they conflict with the existing national labour models, where wages are determined through talks between trade unions and employers. Despite the EU's assurance that Denmark will not be compelled to adopt the minimum wage guidelines since it recognizes the Danish model, the government remains firm on its decision to have the directives revoked entirely.
  • The German government announced that to address the country's need for talented employees, it intends to amend immigration law and loosen entry requirements for immigrants from outside the European Union. As the country's workforce ages, experts estimate that Europe's largest economy needs approximately 400,000 qualified immigrants annually, mainly to fill openings in the construction, health care, and information technology industries. According to Economy Minister Robert Habeck, a lack of personnel puts Germany's ambitious intentions to accelerate the rollout of renewable energy in jeopardy.
  • The effort to fundamentally alter Britain's view of work reached a significant milestone with the signing-up of 100 UK companies to a permanent four-day workweek for all their employees with no pay loss. With experts from the Universities of Cambridge and Oxford, Boston College, and thinktank Autonomy, the UK campaign is also organizing the largest pilot program in the world for roughly 70 enterprises, which employ about 3,300 people, to adopt the four-day week in a trial.
  • The ILO Global Care Policy Portal and Care Policy Investment Simulator was launched by the ILO to help encourage progress towards the goals of adequate maternity protection, paternity and parental leave, and quality childcare and long-term care services. The ILO Global Care Policy Portal is a resource centre that provides information about legal and statistical measures related to national care leave policies and services. Its purpose is to support the ILO's mission to promote gender equality and prevent discrimination. The Care Policy Investment Simulator is the largest care policy-modelling tool available online.
  • Inditex, the world's largest clothing retailer joined the ILO Global Business and Disability Network ("GBDN"). Established in 2010, GBDN is a global network of multinational enterprises and national business and disability networks. Its main goal is to advocate for the integration of people with disabilities in the private, profit-oriented sector, and it is primarily led by employers. Currently, the network consists of 36 multinational corporations and 34 national business and disability networks who work together towards this common objective.
  • ILO published a new report on employment-related gender gap on March 6, 2023. According to the report, 15% of women in the working-age group desire to work but are unable to find employment, whereas the corresponding figure for men is 10.5%. This gender disparity has remained relatively consistent over the last two decades (2005-2022). Despite this, the worldwide jobless rates for men and women are quite similar, as the definition of unemployment tends to unfairly disregard women. The report highlights that women are disproportionately impacted by familial and personal duties, including unpaid care work, which can impede not just their ability to find work but also their capacity to actively seek employment or be accessible for work at short notice.
  • ILO Director-General Gilbert F. Houngbo urged all nations to ratify and implement ILO Convention 190 ("C190") to eradicate violence and harassment at work while highlighting the International Day for the Elimination of Violence Against Women and the 16 Days of Activism Against Gender-Based Violence. The C190 and its accompanying Recommendation 206, the first-ever international treaty on violence and harassment at work, were adopted by the ILO three years ago. C190 recognizes the right of everyone to a world of work free from violence and harassment, including gender-based violence and harassment. According to C190 a more comprehensive, integrated, and gender-responsive approach is required to prevent and stop all types of violence and harassment at work. Albania, Antigua and Baubuda, Argentina, Bahamas, Barbados, Canada, Central African Republic, Ecuador, El Salvador, Fiji, Greece, Ireland, Italy, Mauritius, Mexico, Namibia, Nigeria, Panama, Peru, San Marina, Somalia, South Africa, Spain, UK and Uruguay have ratified C190 and Argentina, Ecuador, Fiji, Greece, Italy, Mauritius, Namibia, Somalia, South Africa, UK and Uruguay have implemented the convention.
  • Houngbo called for the necessity of assisting low-income households by raising the minimum wage and social protection benefits in a statement to the International Monetary and Financial Committee (IMFC). Director-General Houngbo emphasized the value of universal social protection to keep the most vulnerable people's purchasing power intact and claimed that coordinated international support is essential for advancing quickly in nations with weak fiscal and economic infrastructure, particularly in low-income nations with marked underinvestment in social protection.
  • A Dutch court ruled that it is a human rights violation to require employees to turn on their cameras. The employer insisted that the worker activate his webcam. The employee, however, objected to being watched "for 9 hours a day" by a program that streamed his webcam and shared his screen. Public court documents claim that because of his refusal, the corporation terminated his employment contract for "insubordination" and "refusal to work." Although it disagreed, the Dutch court declared that "instructions to keep the webcam turned on is in conflict with the respect for the privacy of the workers." The court even suggests that ordering webcam surveillance is a violation of human rights in its ruling.
  • The U.S. National Labour Relations Board stated that employers are required to reimburse employees for "direct or foreseeable" financial harms, such as credit card debt and out-of-pocket medical expenses, caused by unlawful labour practices, including illegal terminations. The decision in a case involving Thryv Inc, a Texas-based company that offers Yellow Pages advertising, broadens the narrow range of financial remedies available to employees whose employers have violated the National Labor Relations Act.
  • The Age-friendly Employer Pledge, which is a program operated by the Centre for Ageing Better to encourage inclusive working practices for all ages, was endorsed by the Department for Work and Pensions (DWP) of the UK on a nationwide scale. It has been reported that signing the pledge will result in significant advantages from having a workforce that spans multiple generations and may motivate other government agencies and employers to also pledge their commitment.
  • A law that provides every worker with a legal entitlement to request a predictable working schedule received the endorsement of the UK government. Following a review that identified a prevalent issue of "one-sided flexibility" among zero-hours contract workers, the proposed measure is set to encompass all workers, including agency workers.

News From the Private Sector

  • Acrylic fibre producer Aksa Akrilik started a four-day work week trial, a first in Türkiye. The trial, which will be tested until March 31, 2023, aims to increase productivity and employee satisfaction. The practice will be applied to approximately 200 employees out of 1,450 employees who do not receive overtime pay.
  • According to 2022 results of the 'World's Best Employers' survey conducted by Forbes since 2017, Koç Holding was ranked as the number one employer in Türkiye for 6 years in a row in the 'World's Best Employers' list, while becoming the 161st best employer worldwide. Umut Günal, Human Resources Director at Koç Holding, said that as Türkiye's largest group companies, operating in more than 10 different sectors and in over 50 countries, they always focus on understanding the needs and expectations of their co-workers and offering them different solutions.
  • Ak Finansal Kiralama A.Ş. ("AKLease"), a wholly-owned subsidiary of Akbank received the 'Best Workplace in Türkiye' award within the scope of the 'Kincentric Best Employers 2022' program organized by Kincentric. According to the statement from AKLease, within the program that took place between October 1,2021 and September 30, 2022, 40 different sectors as well as 250 different companies have been evaluated. AKLease has received the 'Best Workplace in Türkiye' award not only for employee loyalty and experience index but also for agility, leadership that render people committed and talent focus index. Çetin Düz, General Manager of AKLease, stated that, in this evaluation, where all their employees participated fully, they increased their loyalty result even more when compared to the previous year.
  • It was reported that Fujitsu is testing its new dog office until the end of the year at its building in Kawasaki, as a way to improve employee well-being and productivity. A 2021 study published in the journal "Animals" found that having a dog in the office leads to more social interactions and inter-departmental exchange and contributes to greater well-being and job satisfaction.
  • It was announced that Yenibiriş is establishing 'Yenibiriş Employment Centers' (Yenibiriş İstihdam Merkezleri) in temporary settlements in 11 provinces affected by the earthquake disaster in order to determine the needs of citizens and help them find a job. With a target of 100,000 jobs, Yenibiriş is calling all companies that can provide employment support for cooperation. Yenibiriş aims to instantly identify new needs that will arise in the region and bring together companies and earthquake victims looking for work.
  • net announced the Earthquake Employment Mobilization project to support employees affected by the earthquake and businesses and institutions in the region. Within the scope of the project, Kariyer.net brings together earthquake victims with organizations that want to provide them with employment.

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