SGK exit codes are the codes employers must report to the Social Security Institution after an employee’s employment contract ends. These codes indicate the reason for the termination and determine whether the employee is eligible for severance pay or unemployment benefits. Through these codes, the SGK can see why the employment ended. Employers are required to submit the appropriate code within 10 days following the termination of the employment contract.
What Are the SGK Exit Codes?
SGK exit codes must be reported to the SGK within 10 days after the termination of the employment contract. These notifications are submitted electronically via the SGK website. The termination reasons are conveyed using codes defined by the SGK.
The SGK exit codes include:
- 01: Termination of a probationary employment contract by the employer
- 02: Termination of a probationary employment contract by the employee
- 03: Termination of an indefinite-term employment contract by the employee
- 04: Termination of an indefinite-term employment contract by the employer without stating a valid reason
- 05: Expiration of a fixed-term employment contract
Is Submitting an SGK Termination Notice Mandatory?
Submitting an SGK termination notice is mandatory under Law No. 5510. Accordingly, the employer must notify the SGK of the reason for termination within 10 business days following the employee’s departure. This notification must be sent to the Social Security Institution within 10 days of the contract ending. The system determines why the contract ended and which rights the employee is entitled to. If the employer terminates the contract, the employee may apply for unemployment benefits. Conversely, if the employee was dismissed for valid reasons such as disciplinary violations, they may be ineligible for unemployment payments or severance.
How Can I Find Out the Exit Code?
Exit codes are important for an employee to receive their rights. To learn the exit code, it must first be entered by the employer.
- 08 – Exit due to retirement or lump-sum payment
- 09 – Exit due to disability retirement
- 10 – Death
- 11 – Death due to a workplace accident
- 12 – Exit due to military service
Why Are Exit Codes Important?
Exit codes are a mandatory reporting system the employer must use so that the Social Security Institution can determine the employee’s entitlements. If exit codes are entered incorrectly, the employee may be prevented from accessing the benefits they are entitled to.
Other exit codes include:
- 13 – Termination due to a female employee’s marriage
- 14 – Retirement
- 15 – Collective layoffs
- 16 – Transfer of the employee before the contract ends to another workplace of the same employer
- 17 – Closure of the workplace
- 18 – End of the work
- 19 – End of seasonal work
- 20 – End of a campaign
- 21 – Change in employment status
- 22 – Other reasons
- 23 – Voluntary termination by the employee
Which Exit Code Should Be Used to Receive Unemployment Benefits?
Unemployment benefit eligibility is influenced by the exit code. Unemployment payments are granted to insured workers whose required insurance contributions have been paid and who lost their job for reasons beyond their own will or fault. The employee must have contributions paid for the last 120 days and at least 600 days of unemployment insurance contributions within the last three years. In addition, unemployment benefits are paid if the employee was dismissed without committing misconduct, disciplinary offenses, or breaches of the employment contract.
What Should Be Considered When Entering an Exit Code?
Choosing the exit code is important for both employer and employee. Entering incorrect or misleading codes may lead to legal penalties for the employer. Exit codes determine the rights the employee will receive, the procedure to follow after dismissal, and whether unemployment benefits will be paid. The primary rule is to select the code that best fits the actual situation.
The key point when choosing a code is matching it to the real reason for the termination. Examples include:
- 31 – Termination without fault under laws like the Code of Obligations, Trade Unions Law, or laws governing strikes and lockouts
- 32 – Termination due to privatization under Article 21 of Law No. 4046
- 33 – Termination by a journalist
- 34 – Termination due to transfer of the workplace or changes in the nature of the work or workplace
Can a Wrong Exit Code Be Corrected?
Correcting an incorrect exit code is possible within the first ten days. Incorrectly chosen codes may create legal fault for the employer, so it is important for both parties to ensure the code is accurate. Corrections should be made within the initial 10-day window and can be submitted electronically by the employer. If the error is discovered after 10 days, the employer must submit a written petition to the local SGK office to request a correction. After correction, the employee can claim unemployment benefits or severance pay based on the corrected exit code.
SGK Exit Codes
Exit codes determine employees’ entitlements, especially whether they qualify for unemployment benefits.
Additional SGK exit codes include:
- 36 – Closure of the workplace by decree-law (KHK)
- 37 – Dismissal from public duty by decree-law
- 39 – Transition to public employment under Decree-Law No. 696
- 40 – Transition to public employment under Decree-Law No. 696
Exit codes determine which rights an employee can claim. If codes are entered incorrectly or obstruct an employee’s entitlements, they must be corrected within the first 10 days.
Does the SGK Exit Code Determine Unemployment Benefit Eligibility?
The SGK exit code is decisive for unemployment benefits. Individuals whose employment contract is terminated by the employer may be eligible for unemployment benefits depending on the exit code and contribution history.
Exit codes associated with eligibility for unemployment benefits include:
- 24 – Termination by the employee due to health reasons
- 25 – Termination by the employee due to the employer’s breach of moral and good-faith obligations
- 26 – Termination due to a disciplinary committee decision
- 27 – Termination due to compulsory circumstances (imprisonment, detention, etc.)
- 28 – Termination by the employer for health reasons
- 29 – Termination by the employer for the employee’s breach of moral and good-faith obligations
- 30 – Termination due to visa expiration
One of the most critical codes is 22, labeled “Other Reasons.” Because it lacks a clear and specific reason, code 22 creates uncertainty about the employee’s eligibility for unemployment benefits and other rights. When an employment contract is terminated using code 22, employees typically cannot apply for unemployment benefits. Since code 22 is ambiguous, it can block employee entitlements. In such cases, employees may pursue legal action against the employer to assert their rights.