Employees who resign voluntarily must meet specific insurance and premium-day requirements to be eligible for severance pay. For those who began work before 1999, the main criteria are 15 years of insurance coverage and 3,600 premium days. However, there are important differences for those who started working after 1999 regarding eligibility for severance.
The Importance of Severance Pay When Leaving a Job
Severance pay is one of the most important protections for workers. Certain conditions must be met for severance payments to be made. Primarily, the employer must terminate the worker for reasons outside of morality and good faith rules for the employee to be entitled to compensation.
Severance is also typically paid in cases such as the employee’s retirement, death, military service, or when a female employee leaves within one year of marriage, according to common definitions.
When employees leave on their own initiative, the conditions differ. In these cases, the resignation must be for a justified cause. If the employer acts against rules of morality and good faith, fails to pay wages, pays wages late or in insufficient amounts, or treats employees unequally, the worker can justifiably terminate the employment contract.
In such situations the employer is obliged to pay severance. However, employees who justifiably terminate their contracts often face long legal battles before receiving their severance pay.
Key Criteria for Those Hired After 1999
Changes made in 1999 gradually raised retirement ages and altered severance rules. Under these changes, if retirement conditions other than age are met, employees who resign voluntarily can become entitled to severance pay.
The legal basis for this is primarily Article 14 of the Labor Law No. 1475. For those insured before 1999, voluntary resignation requires 15 years of insurance and at least 3,600 premium days for severance eligibility.
Although this rule benefits many workers, those who began working after 1999 face greater challenges. For employees entering the workforce after 1999, the earliest date they satisfy the insurance duration and premium payment day conditions specified under Law No. 506 determines eligibility.
Under that law, retirement is possible with at least 7,000 premium days and 25 years of insurance, with women retiring at 58 and men at 60 in the related framework.
Accordingly, those first insured after 1999 who resign voluntarily must meet either 25 years of insurance and 4,500 premium days, or simply accumulate 7,500 premium days in order to qualify for severance pay.
Apply to SGK for a Written Confirmation First
For those who started work after 1999, the 25-year insurance period will be fulfilled in 2024 if they have worked continuously since then, so people in this situation should be especially informed about severance rules. Even if they reach 4,500 premium days, they cannot receive severance pay until the 25-year insurance requirement is met. However, if they reach 7,000 premium days after 1999 and then resign, they may become eligible for severance.
Workers must be careful in this process. Before terminating the employment contract, they should first obtain a severance eligibility letter from SGK. To do this, they should apply to the Social Security Provincial Directorate where the workplace is registered and secure the official letter confirming severance entitlement before resigning. If they terminate the contract before obtaining this document, they risk losing their right to severance.