When leaving a workplace, employees must sign a release document (known in Turkish as an ibraname) stating they have no remaining claims. Workers should sign this document with care. In particular, signatures given without observing required timeframes may be considered invalid.
Be Careful When Leaving a Job
When an employee leaves a job, employers often ask them to sign a release confirming that all claims have been paid. Such a release typically records that the employee has received severance pay, overtime, annual leave pay, holiday and festival pay, and any other due amounts, and that the employee will not make any future claims. Once a release is legally executed, it can be very difficult to invalidate without going to court, so employees should exercise caution before signing.
The release agreements currently in use are governed by the Turkish Code of Obligations, which came into force in 2012. The law sets specific criteria for a valid release in the employment context. A release concerning an employee’s claims against an employer must be in writing. Generally, the release should not be made immediately at termination; a minimum period of one month should pass after the contract ends before a release is valid. The type and amount of the claim being released must be clearly stated. To ensure the payment is complete and can be proven later, payments should be made through a bank rather than in cash. Releases that do not comply with these conditions have been declared invalid by the Court of Cassation. Documents that do not demonstrate payment of the actual owed amount are treated as receipts rather than valid releases, and even then the requirement that payments be made via bank remains in force.
Should Be Done One Month After Termination
There is a recent ruling by the Court of Cassation regarding the timing of releases after termination of an employment contract. According to the ruling, release agreements executed within one month after termination are not considered valid if they take effect immediately upon the end of the employment relationship. The court also emphasized that a release stating that only part of the owed amount has been paid is valid only when the payment was made via bank transfer.
The decision highlights that employees whose contracts are terminated under the Labor Law have a one-month statutory period in which they can bring a reinstatement or similar claim. The one-month window after termination is important because it allows the employee to determine whether they can return to their previous job. The court noted that this period reduces the employer’s potential pressure and helps protect job security. The ruling also confirmed that releases related to dismissals for valid and justified reasons by the employer should be arranged after this one-month period.
Employer Held Responsible
Under the Court of Cassation’s ruling and the Code of Obligations, rules that limit employee rights apply only when the employee is the creditor. Employers may claim contractual penalties or training costs, and in cases where the employee has caused damage, unjust enrichment rules may apply so that the employee can be held liable to the employer. In such circumstances, parties may settle the employee’s debts through a release without specific limitations.
Requiring a release to be executed after one month helps ensure the employer has actually fulfilled all obligations. This timing requirement also prevents employers from acting in bad faith by forcing employees to sign releases at exit that promise payment later and could otherwise cause unfair harm to employees.