Results of essential changes in working conditions

Since business relationships continuously give rise to debt relations, the need for changes might emerge in the working conditions over time. However, since unlimited fulfillment of such requests would constitute a contradiction against "pacta sund servanda," application of essential changes in working conditions is only possible within certain limits. Formed substantially with judicial decisions during the period of Labor Law No. 1475, processes of essential changes in working conditions were specifically regulated in Article 22 of Labor Law No. 4857. Therefore, essential changes in working conditions can only be made in accordance with the methods and limits specified in Article 22 of Labor Law. Essential changes made otherwise will not be binding for the laborers. The changes that will be considered as essential and validity of the contract provisions that grant the employer with the right to make changes are determined with views in the doctrine as well as judicial decisions. Change contract is established when the proposal for change made by the employer is accepted by the laborer or parties agree on changing the working conditions. Once the change contract is established, parties must act in line with the new working conditions. Otherwise, the party that is in breach of the contract will be faced with the legal consequences of such breach. The employer whose proposal for change is not accepted will either give up on his proposal or terminate the labor contract by explaining in writing that the change is based on a valid reason or there is another valid reason for termination. However, the valid reason must be accurately put forward in this case. It is also possible for the employer to insist on the change and apply the rejected change. Based on the nature of the situation, this constitutes a default of debtor, default of creditor or unjust termination of the labor contract by the employer, and employer faces the legal consequences thereof.