Latest Court of Cassation Precedents on Severance Pay

Severance pay remains one of the primary areas of dispute between parties upon the termination of an employment relationship. In particular, recent decisions of the Court of Cassation increase the importance of technical accuracy and document discipline in employer practices.

Proof of Termination Grounds and Standard of Evidence The Court of Cassation consistently emphasizes that the burden of proof is on the employer in claims of justified termination that result in the denial of severance pay. An incident report (tutanak) alone is not considered sufficient; the approach that the report must be supported by other evidence showing the occurrence of the incident has been strengthened.

Scope of Regular Benefits in Grossed-Up Salary Calculations The scope of the wage to be taken as the basis for calculating severance pay is another highlighted topic. The Court of Cassation confirms that continuous monetary payments or benefits measurable in money must be included in the grossed-up wage, while accidental and exceptional payments should be excluded. Items such as meals, travel, and housing allowances are included, whereas overtime wages are excluded.

Statute of Limitations With the legislative amendment made in 2017, the statute of limitations for severance and notice pay claims was reduced from 10 years to 5 years. Severance claims not requested within 5 years from the date of termination are barred by the statute of limitations.