Termination of an employment contract not based on rightful reason and its consequences in the Turkish Labour Law

Distinction between an 'employment contract with definite term' and an 'employment contract with indefinite term' is made on the basis of the employment contracts' nature. This distinction is found in the Labour Law No. 4857. As a matter of fact, this distinction is fairly significant in identification of rules to be applied to the contract and their results. Employment contracts with definite and indefinite terms that are made under the pertinent law and on the parties' intent are ended in existence of certain reasons. Reasons for ending employment contracts with definite and indefinite terms include arrangement of the parties (mutual rescission), death, force majeure, expiry of the definite term and termination. Of these reasons for ending the employment contract, termination has a significant place and termination with period of delay, a mode of termination, may only apply to an employment contract with indefinite term. On the other hand, arrangement of the parties, force majeure and the mode of rightful termination are valid for all sorts of employment contracts regardless of their nature and they form shared reasons of ending contracts. Termination, effectively one of the reasons for ending an employment contract, is a prospective mode of termination where the employment contract is ended by unilateral declaration of intent by a party. As of the time of its effect and consequences, termination is divided into two categories: 'Termination with notice (termination with period of delay)' and 'termination without notice (rightful termination).' Termination with notice is a declaration of intent that may be used for employment contracts with definite term and effectively ends the employment contract subsequent to expiry of the periods stipulated in the Labour Law. On the other hand, termination without notice refers to immediate ending of the employment contract with definite or indefinite term by declaration of intent from one of the parties and based on the rightful reasons designated in the law. With regard to the employee and the employer, immediate termination of the employment contract based on a rightful reason depends on existence of the reasons designated in Articles 24 and 25 of the law. In case a rightful reason does not exist or existence of a rightful reason cannot be proven, the termination is one that is not based on a rightful reason. Effect and consequences of a termination based on a rightful reason and effect and consequences of a termination not based on a rightful reason differ. Consequences of a termination not based on a rightful reason also show differences in terms of being affected by an employer or an employee, the employment contract subject to termination being an employment contract with definite term or indefinite term and whether the employee is a beneficiary of employment security or not. Key Words: Labour Contracts, Termination Based On A Rightful Reason, Rescission, Unjust Rescission.