Regulatory Updates

  • A legislative proposal was submitted to the Grand National Assembly of Türkiye aiming to lower the weekly working hours of workers and to increase overtime wages paid to workers and the right to annual paid leave.
  • The Regulation on Partial Payment in the Individual Pension Scheme (BES), which was published in the Official Gazette dated September 26, 2023 numbered 32321, detailed the conditions for benefiting from the right to receive partial payments. Participants who have been in the scheme for at least 5 years which have not used this right before can now apply to receive up to 50% of their accumulated savings for events such as marriage, buying a house, education, or natural disasters. To benefit from this, participants will have to fulfil certain criteria including having: (i) contributed at least five times the monthly gross minimum wage to their individual pension contract and (ii) committed not to terminate the contract within 3 years after partial payment, excluding retirement, death, or disability. The regulation also envisages conditions and additional criteria to be met in order to benefit from each investment type.
  • The Constitutional Court, in its decision dated July 19, 2023, (Application No. 2021/49219), addressed a case involving an alleged violation of the right to respect for private life. This claim arose due to the termination of an employment contract on the grounds of a breakdown in the trust relationship between the employee and the employer. The employer terminated the applicant's employment contract based on the assertion that the trust relationship had been compromised, citing the applicant's association or affiliation with a terrorist organization. In the decision, the Constitutional Court found the claim admissible and ruled that the right to respect for private life, as guaranteed by Article 20 of the Constitution, was violated.
  • The Constitutional Court, in its decision dated July 11, 2023, (Application No. 2019/345), addressed allegations pertaining to the violation of the right to access to court. The pertinent claims were raised in connection with a compensation claim for a work accident. The claims of the applicant included: (i) the allegation that the relevant court unlawfully rejected a request for increased compensation made by the claimant on grounds that the period to do so has expired and (ii) an alleged violation of the right to be tried within a reasonable time due to the prolonged duration of the proceedings. The Constitutional Court unanimously found the claim regarding the violation of the right of access to the court admissible, whereas it found the claim regarding the violation of the right to be tried within a reasonable time inadmissible, due to the non-exhaustion of remedies.

Miscellaneous Developments

  • The Minimum Wage Determination Commission, consisting of representatives from workers, employers, and the government, held its first meeting as part of the efforts to determine the minimum wage for the year 2024. The second meeting took place on Monday, December 18. Speaking before the first meeting, Minister of Labour and Social Security Vedat Işıkhan stated that they would work to set the minimum wage at a reasonable level that protected workers from the negative effects of inflation. The employer side seeks a balanced figure, and the workers advocate for a wage that is dignified. The increase in the current minimum wage (TRY 11,402) is expected to be agreed on by the end of December, at the latest.
  • Union of Chambers and Commodity Exchanges ("TOBB") President Rifat Hisarcıklıoğlu stated that the business world seeks to meet its qualified human resource need from vocational high schools and vocational training centres. He added that TOBB will continue to work uninterruptedly to make vocational education institutions a centre of attraction for young people, parents and the business world alike.
  • Minister of Family and Social Services Mahinur Özdemir Göktaş announced initiatives to enhance women's work-life balance. Speaking at the Turkic States Parliamentary Assembly in Antalya, Minister Göktaş outlined plans for flexible work models, including remote and hybrid settings, and neighbourhood-type kindergartens. Emphasizing the importance of the family, Minister Göktaş stated that efforts were underway to eliminate the dilemma faced by women between home and work. Minister Göktaş expressed confidence that these measures, once implemented, would be groundbreaking in fostering women's work-life balance. Highlighting the government's commitment to increasing female employment, Göktaş mentioned a significant rise in female employment from 4.7 million in 2005 to around 11 million, as reported by the Turkish Statistical Institute ("TURKSTAT"). Moreover, Minister Göktaş highlighted the inclusion of specific targets for women in the new development plan, focusing on equal opportunities, freedom from violence, and enhanced representation across various fields. Minister Göktaş lastly emphasized the goal of breaking down invisible barriers that impede women's progress.
  • Minister of Labour and Social Security Prof. Dr. Vedat Işıkhan made a presentation regarding the 2024 budget of the Ministry of Labor and Social Security ("Ministry") at the Plan and Budget Commission ("Commission") of the Grand National Assembly of Türkiye ("Parliament"). During the presentation, (i) the 2024 budget of the Ministry, (ii) the budget, final accounts and Court of Accounts reports of the Vocational Qualifications Authority, and (iii) the Court of Accounts reports of the Social Security Institution ("İŞKUR") and the Turkish Employment Agency were discussed. In his presentation, Minister Işıkhan noted that the ultimate goal of making this century the century of labour, investment, production, employment, growth, development, and prosperity. Additionally, he has outlined the aim to provide 5 million additional jobs by the end of 2028 and to reduce the unemployment rate to 7.5 percent. Moreover, he highlighted their objective to permanently decrease the unemployment rate to single-digit levels by 2025, through the implementation of the Household-Based Employment Support System, ensuring that every family has at least one person working.
  • Minister of Labour and Social Security Prof. Dr. Vedat Işıkhan attended the "New Horizons in the Business World: Futuristic Business Lines Workshop". Minister Işıkhan reminded during his speech that they made a one-time bonus payment of TRY 5,000 to retirees last month and made the following remarks: "Our working retirees were excluded from the scope of this payment. With the instruction of the President Recep Tayyip Erdoğan, our pensioners who were excluded from this one-time bonus will also benefit from this one-time bonus. Thus, we will make a one-time bonus payment to all our pensioners, including our farmer and tradesman pensioners ."

News From Around the World

  • The European Commission and the International Bank for Reconstruction and Development signed a financial framework partnership agreement for the Programmatic Single Donor Trust Fund of the World Bank Partnership Program for Europe and Central Asia. Under this framework agreement, a grant agreement was signed between the Republic of Türkiye and the World Bank to finance the Supporting Labour Market Transition Project. A portion of this financing is planned to be used for payments under the contract for the Repair and Relocation of the UPS and Network Distribution Chamber of the Directorate General for International Labour Force.
  • European Commission released a Q&A regarding digitalization in social security coordination. Some important statements made in the document concern (i) measures such as the Electronic Exchange of Social Security Information ("EESSI") system and the Single Digital Gateway Regulation and (ii) how the EU supports member states through legal frameworks, technical assistance, funding, and by best practice exchange.
  • European Commissioner for Jobs and Social Rights Nicolas Schmit, in his speech at the Spanish Presidency conference, emphasized the importance of active labour market policies, especially for groups facing obstacles in entering the job market, such as women returning to work after having children. Commissioner Schmit has also referenced several EU initiatives under the Social Rights Pillar, including (i) Directive on Adequate Minimum Wages to ensure workers earn a decent living, (ii) proposed Directive on Platform Work to make sure people are correctly classified and receive the rights that they are eligible for and (iii) upcoming proposal on traineeships to further improve terms and conditions for those just starting their professional lives.
  • European Commissioner for Jobs and Social Rights Nicolas Schmit made remarks at the launch of "Safe and Healthy Work in the Digital Age" Campaign. Acknowledging the monumental impact of digital technology on economies, labour markets and jobs, Commissioner Schmit stated the advantages and disadvantages of the said impact. Accordingly, (i) safety, (ii) flexibility, (iii) allowing productivity by avoiding repetitive tasks are among the mentioned advantages, whereas (i) the lack of a right to disconnect, (ii) missing out on socializing, (iii) challenges in terms of data and privacy and (iv) ethical considerations and the fear that masses of jobs could be lost are specified as disadvantages.
  • The European Commission referred Belgium, Ireland, and Spain to the Court of Justice ("Court") for not fully implementing the EU Work-Life Balance Directive (2019/158) ("Directive"). This follows the failure of these countries to communicate full transposition measures, despite warnings and a deadline of August 2, 2022. Accordingly, the European Commission seeks financial sanctions from the Court for non-compliance. As you may be aware, the Directive aims to enhance work-life balance for parents and carers by establishing standards for leave and flexible working arrangements.
  • The Joint Employment Report ("JER") showed resilience in the EU labour market, with an overall employment rate of 75.4% in Q2 2023. Additionally, real wages have fallen in most EU Member States in 2022, emphasizing the need for balanced wage-setting mechanisms. Accordingly, while the EU is on track for its 2030 employment target, progress is needed in adult learning and poverty reduction.
  • United Kingdom published a guidance regarding the responsibilities for employment businesses working with umbrella companies. Some of the requirements include (i) submission of the quarterly employment intermediaries return, and (ii) complying with VAT requirements, income tax and corporation tax. Businesses shall also clarify the way employment arrangement would work to the employer and provide workers with a Key information document ("KID") under the Conduct Regulations 2003. In the event of non-compliance with such requirements, sanctions such as prosecution for failure to prevent facilitation of tax evasion, closing businesses, or other penalties may be imposed.
  • United Kingdom announced a consultation regarding welfare reforms, demonstrating the rising trend of flexible remote working and improvement of support for disabled people. This points to the UK government's plans to better support disabled people and those with health conditions, who are currently being held back from improving their lives through work.
  • The Supreme Court of the United Kingdom made a ruling, stating that Deliveroo riders, cannot be considered workers in an employment relationship or have representation from trade unions for collective bargaining. The Independent Workers' Union of Great Britain ("IWGB") fought the case for over seven years on behalf of Deliveroo riders, but the Supreme Court emphasized that the contracts did not establish an "employment relationship" as riders could enlist someone else for deliveries without involving Deliveroo.
  • The Organisation for Economic Co-operation and Development ("OECD") unemployment rate remained steady at 4.9% in October 2023, consistently below 5.0% since July 2022. Among OECD countries, 14 saw a rise in unemployment, 9 remained stable, and 10 observed a decline, with a total of 33.4 million unemployed individuals in the OECD. The youth unemployment rate increased to 10.9%, with notable rises in 17 countries. In Europe, the unemployment rate stayed at 6.5%, and Greece's rate fell below 10% for the first time since August 2009. Beyond Europe, Australia, Canada, and the United States reported stable or slightly increased unemployment rates, while Colombia experienced a notable rise. Recent data for November showed a further increase in Canada's unemployment rate to 5.8%, and the United States saw a decrease to 3.7% from 3.9% in October.
  • The UK instructed local government councils in England to stop testing a four-day workweek for their employees, stating that this concept is not cost-effective for taxpayers. Some companies adopted this scheme, reduced work hours by 20% while maintaining the same pay, arguing that it enhanced work-life balance without harming productivity. Lee Rowley, Britain's minister for local government, emphasized the government's clear stance against implementing a four-day workweek in the local government sector.
  • The Court of Justice of the European Union ("CJEU") ruled that public authorities in member states can prohibit employees from wearing signs of religious belief, such as an Islamic head scarf, in the latest decision on an issue that has divided Europe for years.
  • The UK's Supreme Court delivered a landmark ruling that could bring compensation claims against thousands of British employers for underpaying holiday wages.

News From the Private Sector

  • Tüpraş launched the digital work permit system in refineries, a platform focused on safety, transparency, traceability and sustainability. This application aims to reinforce safe operation by ensuring standardization in business processes and to evaluate high-risk activities in detail.
  • It was reported that FLO plans to improve working experience with an inclusive and people-oriented management approach by forming the "Team for Employee Wellbeing". The company stated that the voluntary team will focus on development and change by focusing on the expectations and evaluations of employees.
  • Coca-Cola İçecek was awarded the 'Equal Salary Certificate' as a result of the evaluation conducted by the Equal Salary Foundation. The company became the first bottling company in the world to receive this certificate within the framework of 2030 Sustainability Commitments.
  • US companies hired fewer people, especially in manufacturing, which saw its lowest employment level since early 2022. Private payrolls in the US went up by 103,000 last month, and the October numbers were revised down. This points to a slowing job market in the US, below the estimated 130,000 increase predicted by economists.
  • The US District Court filed a lawsuit against Amazon.com Inc. alleging that Amazon is paying women less than male colleagues doing similar work. The lawsuit claims that female employees face gender-based bias in promotions and that Amazon retaliates against those who raise concerns about such discrimination. The Amazon spokesperson has stated that the company considers the claims to be false and intends to demonstrate this through the legal process.
  • Ashley Foltz, a former SpaceX employee, filed a class action lawsuit in California state court against the company, alleging unequal pay and promotions for women and minorities compared to white men. Foltz claimed SpaceX paid her $92,000 yearly while men doing similar work and with similar qualifications earned up to $115,000. California law prohibits employers from paying workers less based on sex, race, or ethnicity when they perform comparable tasks.
  • A US labour board dismissed claims that Tesla unlawfully fired Autopilot software workers in a New York factory to stop union organizing. A regional official from the National Labor Relations Board (NLRB) rejected a complaint by Workers United, a union aiming to organize Tesla's Buffalo "gigafactory." Workers United alleged that Tesla fired many Autopilot workers shortly after a union campaign began. Tesla stated the firings were due to performance reviews, not linked to union efforts.
  • A US labour board claimed that Elon Musk's X, previously Twitter, unlawfully fired an employee for posting online against its back-to-office policy. The complaint accused X of breaking federal laws that safeguard employees' rights to discuss working conditions and organize with others.
  • Amazon.com allegedly breached a 2021 agreement with the US labour board that allows worker unionization. The company's supposed violation involved denying post-shift access to certain premises for employees organizing unions, as stated in a complaint by a National Labor Relations Board regional director.

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