Compensation Rights for Employees Without Social Security Coverage

Measures designed to prevent unregistered employment and to protect the rights of both employers and employees are being implemented across the country. These steps aim to curb the informal economy, reduce tax evasion, and stop violations of workers’ rights.

The Cost of Employing Uninsured Workers Will Be High

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Penalties for hiring uninsured workers have been increased. If an employer is found to employ workers without insurance, a fine will be imposed for each uninsured worker for every month worked: the fine equals two months of the minimum wage per month worked. As a result, if an uninsured employee is determined to have worked for one year, the employer’s fine can approach nearly 100,000 TL. If the employer repeats the offense and is again found to have uninsured employees, the penalty will rise to five times the minimum wage per worker. In this way, penalties for uninsured employment will be strictly enforced on employers.

Uninsured Workers Can Claim Compensation

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Under the law, workers who leave their job for reasons beyond their control or not due to their own fault are entitled to severance pay equal to one month’s gross salary for each year of employment. This severance pay is available even to those who worked without social insurance. To claim it, affected individuals should submit applications and supporting evidence to the provincial directorates of the Social Security Institution (SGK) and file a written petition. Thus, an uninsured worker can receive severance pay and the employer can be penalized for employing uninsured labor.

Conditions for Receiving Severance Pay

Receiving severance pay requires meeting certain conditions. The main qualifying circumstances include:

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1. The employer dismisses the employee without just cause

2. The workplace or working conditions are unsuitable or pose health risks

3. Marriage of a female employee

4. Military service obligations

5. The death of the employee

6. Acquisition of retirement rights

If an employee leaves work for any of these reasons, they can file a complaint or submit a petition—by email, written application, or verbally—to request severance pay.

To obtain severance pay, the complaint regarding uninsured employment must be filed within the prescribed period. After an uninsured worker files a complaint, the authorities will investigate. If the claim is validated, the employed periods can be registered and credited toward social security premium days, which may count toward retirement entitlements.