Key Things to Know About the New Short-Time Work Allowance

Two important regulations have been introduced regarding short-time work and normalization support. A new one-month application right has been established for short-time work, and this change requires employers and employees to pay attention to several points about the new short-time work allowance.

New Decisions Adopted for Support

As coronavirus restrictions returned in November, many workplaces were negatively affected. Significant changes were made to short-time work and normalization support by presidential decree. The eligibility period for short-time work allowances that began in March was extended through December 31, 2020. However, this extension initially applied only to employers who had submitted short-time work applications and to employees who were listed by employers by June 30, 2020. Employers that did not apply for short-time work because they did not need it up to July could be affected by the restrictions reintroduced in November; in such cases, their employees were not eligible for the short-time work allowance.

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To receive the short-time work allowance, an employee must have been working under an employment contract for at least the last 60 days and must have paid contributions for at least 450 days within the last three years. Employees who did not meet these requirements during the application period that ended in July but returned to normal work after July could face problems: while other colleagues received the allowance, they were excluded. Under the new decision, employers that have not previously applied may submit short-time work applications through the end of December, and eligible employees will receive the allowance.

Payment Considerations

Employers who filed short-time work applications before July may also submit new applications to include employees who became eligible afterward or who started work after July 1. Employers that applied before July do not need to reapply for employees who already gained the right to benefit from the short-time work allowance; those employees will retain their entitlement for the extension period.

One key point is that employers must declare the short-time work application for their employees to be eligible for the allowance. Labor inspectors subsequently perform checks to verify whether short-time work actually took place at those workplaces and whether any employees who were working were nonetheless listed as short-time workers. If inspections reveal improper payments, the overpaid amounts will be reclaimed from the employer with statutory interest. For improper payments made from November 1 onward, employers will be held responsible, and penalties will be imposed on those who listed actively working employees as being on short-time work.

Normalization Support Extended

The normalization support period has also been extended. Employers who bring employees from short-time work or unpaid leave back to regular work are eligible for wage and premium support, and the premium support period has been increased from three months to six months. Employers who applied for cash wage support for employees placed on short-time work or unpaid leave before July 1, 2020 may benefit from this support if those employees have returned to normal work. For workers who return to normal work, employers will receive a premium support payment of 1,103 TL per month. Previously, this premium support lasted three months; under the new decision, employers who bring employees back to work will receive premium support for six months.

These changes aim to provide additional support and flexibility for employers and employees affected by renewed public health restrictions while setting clear rules and accountability for the use of short-time work allowances and normalization incentives.