Legislation

09March2021

Termination Ban and Pandemic Unpaid Leave are Extended to 17.05.2021

Cash wage support/pandemic unpaid leave and termination ban due to Covid19 have been extended to May 17, 2021.

The decision was published in the Official Gazette dated 09.03.2021 and numbered 31418.

The related regulations are located on the Labor Law Temporary Article 10 as below:

"TEMPORARY ARTICLE 10 - Regardless of whether this Law covers it or not, any employment or service contract cannot be terminated by the employer for three months from the effective date of this article other than these cases: if they do not comply with the rules of ethics and good faith that are stated in item (II) of the first paragraph of Article 25 and the relevant provisions of other Laws and in similar cases, if fixed-term work or service contracts expire, if the workplace closes for any reason or its activities stop, if there are any kinds of services purchased in accordance with the relevant legislation and if the work is over in the construction work.

The employer may leave the worker entirely or partially on unpaid leave for a period of three months from the effective date of this article. Being entitled to unpaid leave under this article does not give the employee the right to terminate the contract based on the justified reason.

In violation of the provisions of this article, the employer or his/her representative, who terminates the employment contract, is given an administrative fine at the monthly gross minimum wage amount for the employee whose contract is terminated.

The President is authorized to extend the three-month periods in the first and second paragraphs up to six months."

Author Erdoğdu Onur Erol, Category Social Security Law and Legislation, Labor Law

08March2021

Employer Support Payments on Short-Term Employment

As known, the short-term employment period expires as of March 31, 2021 (The deadline for cash wage support/pandemic unpaid leave and termination ban is on March 17, 2021).

Accordingly, it is necessary to recall the issue of social security and income tax declarations of employers' payments as a support in the short-term employment period.

Social Security Premiums

Per the Article 80 of the Law No. 5510;

"Earnings subject to premium for insurance holders under item (a) of paragraph one of Article 4 shall be determined as follows.

a) In the calculation of earnings subject to premium, a gross total of;

Author Erdoğdu Onur Erol, Category Social Security Law and Legislation

03March2021

Cancellation of Retrospective Benefit in Employment Incentives

According to the recent amendments on the Law, the opportunity to benefit retrospectively from premium incentives, supports, and discounts that were not utilized on time is eliminated.

The draft statement is as below:

ARTICLE 27 - The first paragraph of the additional article 17 of the Law No.5510 has been changed as below.

"The premium incentives, supports and discounts provided by this Law or other laws for the months / periods that were not utilized cannot be utilized retrospectively, and the premium incentives, supports and discounts that were used cannot be changed with another premium incentive, support and discount."

Based on this, employers can check whether they utilized their incentives in the previous periods, and take the necessary actions immediately to benefit from them.

Author Erdoğdu Onur Erol, Category Social Security Law and Legislation

02March2021

Tax Map For Rent Income Earners

Each year, the rent income that individuals earn is declared through the Annual Income Declaration within March. The declarations for 2020 income should be submitted until March 31, 2021. The types of income that are within the scope of GMSI except for the rental income, are stated in the Income Tax Law Number 70.

In order to declare the rental income, the lump sum expense method and real expense methods are implemented. After deducting the amount of exception from the rental income, 15% of the remaining amount can be deducted against actual expenses. Lump sum expense method is not applicable for lease of rights. Information is only provided for rental income from residental and commercial places in the table below. For further detailed information, please contact your customer representative or an expert.

Author Selma Kıy, Category Taxation Law