A divergence emerged among the decisions of the regional courts of appeal concerning whether the period an employee spent on unpaid leave during the COVID-19 pandemic should be included in the calculation of the service period that forms the basis for annual paid leave and severance pay. As a result of this disagreement, the matter was brought before the High Court (Supreme Court of Appeals).

In its ruling dated 29.05.2025, numbered 2025/3201 E. and 2024/1108 K., the 9th Civil Chamber of the Supreme Court held that, in determining the periods that serve as the basis for annual paid leave and severance pay, the time an employee spent on unpaid leave during the pandemic under the scope of provisional Article 10/2 added to Law No. 4857 should be taken into account, provided that it does not exceed the duration formed by adding six weeks to the statutory notice period. Any period exceeding this limit shall not be included in the calculation of the service period.

Published in the Official Gazette dated July 23, 2025, and numbered 32502, the "Regulation on the Recovery of Various Expenses from Employers of Foreign Nationals Who Are Subject to Deportation Due to Unauthorized Employment" introduces a new legal obligation directly affecting employers.

According to this Regulation, any public expenses arising during the deportation process of foreign nationals working without a permit in Türkiye shall be recovered from the employer or the employer's representative who engaged these individuals.

With the Law No. 7555 on the Protection of the Value of the Turkish Currency and Amendments to Certain Laws and Decree Law No. 635, published in the Official Gazette dated July 24, 2025, various regulations have been amended, including notably the Labor Law No. 4857, the Law No. 5746 on Supporting Research, Development and Design Activities, and the Law No. 4691 on Technology Development Zones.

Among the key changes, the amendment establishes new principles for calculating income tax withholding incentives for design and support employee working in R&D, design, and technology development zones. It also introduces new procedures for written and electronic notifications under the labour law.

The domestic per diem amounts exempt from tax, applicable between July 1, 2025, and December 31, 2025, have been determined based on the coefficients for civil servant salaries for the January-June 2025 period, in line with Annex H of the Central Government Budget Law published in the Official Gazette dated December 31, 2024, No. 32769, and Article 24/2 of the Income Tax Law.

The overseas per diem amounts, effective as of January 1, 2025, have been determined within the framework of the "Decision on Allowances for Travel to the Turkish Republic of Northern Cyprus" and the "Decision on Overseas Allowances" published in the Official Gazette dated January 11, 2025, No. 32779, under Decision No. 9396.