With the return of restrictions after the end of the normalization period under coronavirus measures, limitations were reintroduced for many businesses, especially restaurants, cinemas and cafes. In this context, second applications for the short-time work allowance have become an important topic of interest.
New Decisions Within the Scope of Pandemic Measures
As the coronavirus outbreak intensified, the Ministry of Interior issued a circular stating that food-service businesses such as restaurants, cafes, diners and bakeries may only offer takeaway services until further notice. Many businesses cannot sustain operations with takeaway only or do not have enough customers, and therefore have to close temporarily. Additionally, movie theaters, coffeehouses, garden restaurants, internet cafes, electronic game arcades, billiard halls and tea gardens will remain closed until a second decision is announced. Shopping malls, barbershops, beauty salons and markets will be allowed to operate between 10:00 and 20:00.
The restrictions affect mainly retail trade and the food sector, both of which employ large numbers of workers. According to August figures, these two sectors alone employ around 2 million insured workers. Including related sectors, the total number of insured employees reaches approximately 2.2 million. Considering that the total number of insured workers across Turkey is about 14 million, these sectors represent roughly 15% of insured employment and are significantly affected economically by the restrictions.
Second Period for Short-Time Work Allowance
During the first months when workplaces were closed, a total of 3.2 million people benefited from the short-time work allowance. From June onward, as the industrial sector entered a normalization phase, the number of allowance recipients declined to around 1 million. Connected to the ban on dismissals, unpaid leave arrangements that began on April 17 have been used by 2,082,000 people to date. In October, 540,000 people received unpaid leave support.
With the new restrictions, sectors whose activities are limited or halted have brought the short-time work allowance and unpaid leave arrangements back to the agenda. Employees who worked at workplaces that applied for short-time work by the end of June and whose names were reported to İŞKUR will be eligible for the allowance. Workers hired by those workplaces after that reporting period will not be eligible for the short-time work allowance.
How to Receive the Second Short-Time Work Allowance
To receive the second short-time work allowance, applicants must meet the conditions in effect at the time of the allowance application: at least 450 days of premium contributions in the last three years and at least 60 days of service under an employment contract. If the required premium days are completed after the application date and the employee’s name was not on the list submitted by the end of June, they will not be eligible for the allowance. Those who cannot benefit from short-time work and are placed on unpaid leave will continue to receive the daily cash wage support of 39 TL.
It should be noted that a large portion of those employed in Turkey work without formal insurance. However, to receive cash wage support or the short-time work allowance, one must be insured under SGK. Therefore, uninsured workers whose workplaces have closed or who have been put on leave will not be able to benefit from these payments. The short-time work allowance period was announced to run until December 31, 2020, but with the new decisions it is expected that this period will be extended until June 2021. For now, the ban on dismissals is in force until January 17, 2021; this measure may also be extended until June 2021 by presidential decree.