With the latest decision, short-time working allowance, unpaid leave support and the ban on dismissals have all been extended. This extension, however, raised questions. Although many perceive it as a new application period for short-time working allowance, the extension applies to those already benefiting from the measure.
Short-Time Work Period Extended: Who Will Benefit?
As part of measures to counter the global coronavirus pandemic, employers and employees began receiving short-time working allowance at the end of March to support employment. The allowance had previously been extended to October 31. Because the pandemic continued to be severe, a recent presidential decree extended the period again, now running until December 31, 2020. Accordingly, employees will receive short-time working allowance through the end of the year.
There are important points for those who want to benefit from the short-time working allowance. Since the normalization decision taken in June, the supports provided under this program have changed. Employers who applied for short-time work by June 30 will continue to benefit from the allowance through year-end. Workplaces cannot submit new applications for short-time working allowance nor will they be subject to a new eligibility test. Businesses that were already receiving the allowance will continue to receive it for the same employees under the same conditions until the end of December, while businesses that have not previously applied will not be able to apply during this extension.
Details of the Extended Period
Following the June normalization decisions, a normalization support package was introduced for businesses. For private-sector workplaces that were receiving short-time working allowance, and for employees placed on unpaid leave who received cash wage support from their employers, if those employees return to their normal weekly working hours, the employer and employee contributions calculated on the lower threshold of gross earnings used to determine insured earnings will be covered by the unemployment insurance fund for three months.
For those receiving short-time working allowance, the state also pays contributions equal to the insured’s average monthly days on which the allowance was received. For recipients of cash wage support, contribution subsidies cannot exceed the average monthly days for which they received cash wage support. In this framework, the maximum support available for a worker earning the minimum wage is 956 TL. This support continues until the end of 2020.
Unpaid Leave Extended to January 17
Under the new employment package still being discussed in parliament, the normalization support granted to businesses could be extended through June 2021. In other words, workplaces that exit short-time work and return to normal operations will remain within the support framework until June of next year. The draft law, which includes employment supports, would also authorize the president to extend the short-time working allowance through June 30, 2021.
The cash wage support period has been extended for a longer term. Individuals placed on unpaid leave since April, or those dismissed by their employer who are not eligible for unemployment benefits, receive payments of 39 TL per day and 1,177 TL per month for the duration of their unemployment. A decision in September extended the dismissal ban and the cash wage support through November 17. With the most recent decision, cash wage support has been extended until January 17, 2021, effectively lengthening both the dismissal ban and the daily cash wage support by three months.