Wage Contribution Support for Employers Returning to Normal Operations

Employers Returning to Normal Work Will Receive Premium Support! Under the new employment package, employers who transition from short-time work back to normal working arrangements will receive premium support payments. Additionally, the authority to extend the ban on dismissals is proposed for one more year. For workplaces that applied for short-time work before July 1, 2020, if short-time work ends and normal working resumes, premium support equal to the minimum wage will be provided for three months. The bill, prepared by AK Party deputies and submitted to the Grand National Assembly of Turkey, includes provisions specifically focused on employment.

The proposed legislation submitted to the parliament prioritizes employment measures, and one of the most important items is premium support for employers. For workplaces that applied for short-time work benefits before July 1, 2020, and then return to normal operations after the short-time period ends, premium support will be paid for three months based on the minimum wage. This support will cover both the employer’s SGK premium of approximately 456 TL and the worker’s SGK contribution of around 412 TL. The cost of this support will be met from the Unemployment Insurance Fund. Workplaces that have ended unpaid leave schemes will be eligible for this incentive. The President may extend the three-month period sector-by-sector or as a whole for up to six months.

Premium Support May Be Sector-Based

Premium support may be applied on a sectoral basis. The President will have the authority to extend the facilitative measures related to short-time work sectorally. This approach aims to prolong supportive rules for service sectors that are still struggling to recover while ending the measure for sectors where business has normalized. A new arrangement is also proposed regarding the ban on dismissals. Going forward, businesses will be exempt from the dismissal ban if their workplace closes for any reason, a fixed-term employment contract ends, or the relevant work itself is completed. In relation to dismissals, the President may extend the period in increments of up to three months, with a maximum extension until June 30, 2021.

The obligation to employ occupational health and safety experts in low-risk workplaces with fewer than 50 employees may be deferred for 3.5 years. The draft law, expected to take effect in early 2024, will have an effective date of July 1, 2024.

Another proposal submitted to the parliament grants authority to the public sector to pay compensation to workers dismissed from the Işıklar, Atabacası and Geventepe mines after the accident in Soma on May 13, 2014. The proposal covers workers who earned the right to severance pay but have not yet received their entitlements; it stipulates that their compensation will be paid by the Turkish Coal Enterprises (Türkiye Kömür İşletmeleri).

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