Payment in lieu of notice

In accordance with the 4857 numbered Labour Act and 6098 Turkish Code of Obligations, it is regulated that the part not complying to the rules established by the termination of the employment contract, should be obliged to pay compensation. This compensation is referred to as payment in lieu of notice in practice and doctrine. Therefore, this thesis, will focus on the related issues in regard to payment in lieu of notice. The main subject of our thesis is payment in lieu of notice which is regulated in 4857 numbered Labour Law but in order to compare and clarify other issues related payment in lieu of notice, the payment regulated in 6098 numbered Turkish Code of Obligations has been mentioned also where necessary. This research contains two fundamental parts. First part will discuss the claims to receive payment in lieu of notice based on contractual rights. Getting payment in lieu of notice requires a valid labour contract between the two interested parts. Hence, this section mainly analyses the essential components and effectiveness of the Labour Contract along with other various contract types. Secondly, payment in lieu of notice should be done in accordance with the notice period. Thereby the details about termination of notice are examined under the light of Turkish Code of Obligations and the Labour Act. Second part of the thesis, studies the significant characteristics of payment in lieu of notice along with its calculation methods, and its relationship with other compensations. Accordingly, this thesis primarily deals with; legal characteristics and the interested parts of payment in lieu of notice, amount of the compensation, interest and tax rates along with its limitation period and the thesis continues to delve into further details regarding; unjust termination of the employment contract, death, employment security and its relation to pecuniary and non-pecuniary damages.