Law on the Establishment of Digital Platforms Commission and Amendment of Certain Laws (the "New Amendment Law") stipulating additional measures with respect to COVID-19, was published in the Official Gazette on 28 July 2020. The New Amendment Law introduces significant changes in labor law practice. These are summarized below:

  • With Law No. 7226 on Amendments to Certain Laws which entered into force on 25 March 2020, application conditions for short-term working based on the compelling reason of COVID-19 were facilitated and the President was authorized to extend the application date for short-term working until 31 December 2020. With the New Amendment Law, the President is authorized to extend the duration of the short-term working allowance in general or on a sector basis. In this regard, the President is authorized to extend the period of short-term working for different business sectors separately. This provision entered into force as of 28 July 2020.
  • With respect to workplaces in the private sector that have applied for short-term working before 1 July 2020 based on the compelling reason of COVID-19 and made their employees benefit from the short-time working allowance or cash allowance support, if these workplaces return to the normal weekly working hours, as an incentive these employees' social security premium shares calculated based on the minimum statutory salary amount will be covered by the Unemployment Insurance Fund (the "Social Security Premium Support") for three months (at the latest until 31 December 2020), beginning from the month following the date on which the short-term work or cash allowance support ends. The President is authorized to extend this three-month period up to six months in general or on a sector basis. This provision will enter into force on 1 August 2020.

    The New Amendment Law also sets forth the details of the Social Security Premium Support. Accordingly, the duration of the Social Security Premium Support to be provided for each month cannot exceed the average number of days per month for which short-term working allowance or cash allowance support is granted. Additionally, the New Amendment Law provides that employers cannot benefit from other social security premium discounts, incentives and supports for the same employees during the Social Security Premium Support. The Social Security Premium Support will not be taken into consideration as a revenue, expense or cost item with respect to income or corporate tax. It is expressly regulated that employees cannot claim the amount of support provided to the employer and corresponding to the employee's premium share from employers.

    If it is determined that there is unjust utilization from short-term working allowances or cash allowance supports, or inspectors' assessments regarding short-term working concludes in negative results, workplaces cannot benefit from the Social Security Premium Support. These workplaces will also be deemed to have benefited from such social support without any just grounds. If it is determined that there is unjust utilization, the Social Security Premium Support will be collected together with default penalty and interest accrued. The New Amendment Law further stipulates that employees subject to social security support premium, employees working at domestic services and employees working abroad cannot benefit from the practice introduced by the New Amendment Law.

  • Another novelty is related to the termination restriction period introduced by Law No. 7244 on Reducing the Effects of the Novel Coronavirus (COVID-19) Pandemic on Economic and Social Life and the Amendment of Certain Laws, entered into force on 17 April 2020 ("Law No. 7244"). Law No. 7244 imposed termination restriction to employers for three months between 17 April – 17 July 2020. The President was authorized to extend this three-month period up to six months. The President did extend this restriction period, for one month (until 17 August 2020) with the Presidential Decree published on 30 June 2020. The New Amendment Law authorizes the President to extend the termination restriction until 30 June 2021 with an interval of three months at the most. The New Amendment Law also clarifies the exceptions to termination restrictions. In this context, in addition to termination of employment contract by employers with just cause due to employees' immoral, dishonorable or malicious conduct or other similar behavior that are stipulated under Article 25/II of the Labor Law and similar provisions under relevant laws, (i) expiration of the term of definiteterm employment or service contract; (ii) closure of the workplace due to any reason and termination of workplace's activities; and (iii) termination of duty carried out in service procurement and construction work conducted as per the relevant legislation, are included within the scope of exceptions of termination restriction. This provision entered into force as of 28 July 2020.
  • As of 1 July 2020, Articles 6 and 7 of the Law on Occupational Health and Safety would come into force. Accordingly, the obligation to assign an occupational safety specialist and workplace doctor was going to be imposed for public institutions and workplaces with fewer than 50 employees and operating in low-hazard class. With the New Amendment Law, the effective date of relevant obligations has been postponed until 31 December 2023. In this regard, this obligation will not be applicable for workplaces with fewer than 50 employees and operating in low-hazard class until 31 December 2023. This provision entered into force on 28 July 2020, to be effective as of 1 July 2020.

Originally published 05 August, 2020

© Kolcuoğlu Demirkan Koçaklı Attorneys at Law 2020

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