Short-time work regulations were significantly changed under Law No. 7256, which was issued while the short-time work period continued. According to the amendment, overpayments and undue payments caused by employers’ incorrect actions before October will not be collected.
Overpayments and Undue Payments Will Not Be Collected
The short-time work measures applied during the pandemic are temporarily regulated under Article 29 added to Law No. 7256. One clause in this temporary article provides an important clarification for business owners regarding overpayments and undue payments. It states that ministry and institution personnel bear no responsibility for the submission, assessment, or payment procedures related to short-time work applications filed on the basis of compelling reasons caused by the coronavirus pandemic. Accordingly, overpayments and undue payments resulting from employers’ errors for periods before October 2020 that have not yet been collected are written off. Amounts already collected will not be refunded.
How the write-off of undue and overpayments arising from employers’ errors for the periods of October and earlier under the temporary Article 29, which entered into force on November 17, 2020, was clarified by a circular issued by İŞKUR.
Commission on Undue Payments
İŞKUR explained how employers should proceed and under what conditions these measures apply in Circular No. 2020-5. Under this circular, an overpayment or undue payment must be related to short-time work implemented on the grounds of compelling reasons due to the coronavirus pandemic. Regardless of when the overpayment was created, the payment period must be October 2020 or earlier. Additionally, as of November 17, 2020, the amount must not have been collected.
Furthermore, the overpayment or undue payment must result from an employer’s erroneous action. If an overpayment related to the short-time work scheme due to the pandemic was collected, it will not be refunded or offset regardless of whether the employer’s action was erroneous or when it was collected. In such cases the employer must apply to İŞKUR to demonstrate that the transaction was erroneous. Any point that raises doubt about whether the transaction was an employer error will be evaluated and concluded by a commission established by the provincial directorate of İŞKUR.
Situations Not Considered Erroneous Actions
Circumstances that will not be treated as an employer’s erroneous action for the purpose of relieving employers from repaying undue and overpayments are determined as follows:
- Overpayments and undue payments resulting from employers’ errors will be written off. However, in the situations listed below, if employers take the specified actions, those actions will not be considered erroneous and collection or follow-up procedures for those payments will be initiated;
- Overpayments and undue payments identified by audit reports regarding whether the short-time work request was appropriate are excluded from the write-off;
- Overpayments and undue payments arising from dismissals carried out by the employer during the short-time work period, except for those excluded under Law No. 4857,
Cases within this scope will not be accepted as erroneous actions and overpayments will not be eligible for write-off. In addition, short-time work payments made before October 2020 may be reclaimed from employers if they violate the prohibition on dismissal. If employees who are actually working were reported to SGK with reduced working time, the resulting undue payments identified will also be collected from the employers.