Severance Pay Lawsuit: What Is It and How to File?

In this article, we aim to provide basic information in a brief and understandable manner about severance pay lawsuits filed in case of non-payment or underpayment of severance pay, which the worker is entitled to when the employment contract is terminated under the conditions stipulated by law.

In practice, this lawsuit is one of the most common types of receivables in worker-employer disputes. Along with severance pay, overtime pay, annual leave pay, notice pay, and other labor receivables are often requested together.

In this context, issues such as under what conditions the worker is entitled to severance pay, against whom the lawsuit will be filed, the competent court, statute of limitations, and the lawsuit process are addressed.

1. What Is a Severance Pay Lawsuit?

This lawsuit is an action for receivables filed by the employee against the employer where the employment contract has ended under the conditions prescribed by law but severance pay has not been paid or has been paid in part to the employee.

Through this lawsuit:

• Unpaid severance pay is claimed.

                    * Underpaid amounts are completed.
                    * Employee receivables are collected through legal proceedings.
  
                

The right to severance pay is assessed under Article 14 of Labor Law No. 1475.

2. In Which Cases Is Severance Pay Entitled?

For severance pay to be entitled, the employment contract must end in certain ways. Especially in the following cases severance pay arises:

• Dismissal by the employer without just cause

                    * Employee leaving work for just cause
                    * Leaving work due to retirement
                    * Leaving work due to military service
                    * Female employee leaving work within 1 year due to marriage
                    * Death of the employee
  
                

3. Who Can File a Severance Pay Lawsuit?

This lawsuit may be filed by the employee; upon the employee’s death, by the heirs.

4. Against Whom Is a Severance Pay Lawsuit Filed?

This lawsuit:

• The employer

                    * If the employer is a company, the company
                    * If there is a subcontractor–principal employer relationship, the liable employers
  
                

is filed against the above parties.

5. Which Court Has Subject-Matter and Territorial Jurisdiction in a Severance Pay

                    Lawsuit?

                

The court with subject-matter jurisdiction is the Labor Court; the court with territorial jurisdiction is the court at the employer’s place of residence or where the work is performed.

6. Is There a Time Limit (Statute of Limitations) for a Severance Pay Lawsuit?

A 5-year statute of limitations applies to severance pay receivables. The period begins to run from the date the employment contract ends. Missing the limitation period causes loss of rights.

7. What Should Be Done Before Filing a Severance Pay Lawsuit?

Before filing the lawsuit, the following matters are important:

• Review of SSI service record

                    * Checking employment entry–exit records
                    * Collecting pay slips
                    * Identifying witnesses
                    * Determining the reason for termination of the employment contract
                    * Filing a mediation application (mandatory condition for the lawsuit)
  
                

8. How Does a Severance Pay Lawsuit Proceed?

The lawsuit process generally consists of the following stages:

1. Mandatory mediation process is initiated. 1. If no settlement is reached, the lawsuit is filed. 1. Labor Court proceedings begin. 1. Evidence is collected. 1. Witnesses are heard. 1. Expert calculation is made. 1. The court may award severance pay.

9. How Long Does a Severance Pay Lawsuit Take?

Depending on the specifics of the case, the lawsuit generally concludes within 6 months to 2 years in practice. Expert reports and appeal proceedings may extend the duration.

The information on this page is prepared for general informational purposes. Since the conditions of each concrete case may differ, legal evaluations may vary.

It is important to obtain legal support so that a case-specific assessment can be made regarding severance pay and employee receivables.

The information on this page is prepared for general information purposes. Since the conditions of each concrete case may differ, legal evaluations may vary. In order to obtain an evaluation specific to your concrete situation regarding severance pay and labor claims, it is important to obtain legal support.

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