Compliance quarterly

Regulation on the Protection and Processing of Data at the Social Security Institution is published

With the Regulation on the Protection and Processing of Data at the Social Security Institution (“Regulation”) dated February 19, 2022, the procedures and principles to be complied with within the processing of data obtained fully or partially automatically or by non-automatic means by being a part of any data recording system within the scope of the duties and authorities of the Social Security Institution (“SSI”) are regulated. Regulation also includes the procedures and principles regarding the retention of the data processed on behalf of the SSI by the health service providers who have a contract with the SSI. Regulation also regulates data access procedures and conditions and confidentiality obligations of contractual third parties as well as SSI personnel. Regulation also includes regulations such as under which conditions the data in the SSI data recording system can be shared with institutions and organizations, and which shares will not be considered as data transfer.

Administrative fines in Turkey rise by 36.2 percent in 2022

The minimum wage, severance payments and administrative fines prescribed by the Labor Act are revised each year. This article provides an overview of the changes which came into effect on January 1, 2022.

Minimum wage: In 2021, the monthly minimum wage rate was 3,577.50 Turkish liras (gross). from January 1 to December 31, 2022, this has increased to 5,004 Turkish liras (gross). The minimum wage applies to all employees, regardless of age, industry and experience, the only exception being employees who work in underground coal and lignite mines, where the minimum wage must be at least twice the regular rate. Following the publication of the Law Amending the Income Tax Law and Certain Laws in the Official Gazette on December 25, 2021, the portion of salaries corresponding to the minimum wage, after deducting social security contributions and unemployment insurance premiums, are exempt from income tax. Also, the portion of salaries corresponding to the gross monthly minimum wage is exempt from stamp tax.

Severance payments: Subject to several conditions, employees are entitled to a severance payment of one month's salary for each year of service if they are dismissed. The government has determined a ceiling for such payments on a six-month basis. From January 1, 2022 toJune 30, 2022, the maximum severance payment has increased from 7,638.69 Turkish lira (gross) to 10,848.59 Turkish lira (gross). The next adjustment to the maximum severance payment will be made on July 1, 2022.

Administrative fines: Several administrative fines are regulated under the Labor Act, including fines for failure to: (i) ensure the equal treatment of employees; (ii) pay the minimum wage; (iii) hire disabled persons; and (iv) follow collective redundancy procedures. Administrative fines are also revised once a year. Compared with 2021, the rate of administrative fines in 2022 has increased by 36.20%.

Employers must pay for employees’ PCR tests for work-related purposes

Employers must pay for PCR tests carried out for work related purposes, according to the General Directorate of Occupational Health and Safety of the Ministry of Labor and Social Security in a letter sent to the Turkish Confederation of Employer Associations on 19 January 2022.

Turkish Constitutional Court’s recent decision concerning the “Failure to Pay the Applicant’s Wages for Overtime on the Basis of Consent to Overtime Work in the Employment Contract”  

In its recent decision the Turkish Constitutional Court has underlined that the “consent condition” stated in Article 41/7 of the Labor Law No. 4857 and the Article 9 of the Regulation on Overtime is related to “consent to overtime work”, and in this respect, consent of an employee given to overtime work does not mean that the employee has also waived from the payment of overtime.

In this context, the Constitutional Court has stated that the requirement to obtain the applicant’s (employee) consent every year pursuant to the provision in force at the Labor Law at the time the applicant was working, did not abolish with the amendment made in 2017, and with this regulation, the employee’s works carried out without obtaining his approval for overtime working for previous years did not become legal, and the contrary means a violation of the principle of predictability. Even if the employee’s clear waiver of the overtime payment with a contract is the result of an explicit consent, it is inconsistent with the public policy in the protection of the employee’s interests, and therefore the applicant’s right of possession, which is guaranteed by Article 35 of the Constitution, has been violated.

Doing business in the gig economy: A global guideline

The term “gig economy“ describes the business model where workers rely on a digital platform to be put in contact with clients to provide their freelance services. The number of gig economy workers globally is increasing significantly each year. In the UK alone around 5 million people are employed in the gig economy, while, in Canada gig economy workers make up about 8-10% of the national workforce. 

In all jurisdictions, it is predicted that the numbers of such workers will grow, particularly in the current economic climate. Those working within the gig economy do not fit easily within the parameters of the laws that govern the traditional relationship between an employee and the employer and globally jurisdictions have struggled to determine the nature of their employment status. This briefing looks at the position of gig economy workers in various jurisdictions as well as what legal developments are expected in the future.  Doing business in the gig economy: A global guide for employers | Global law firm | Norton Rose Fulbright.