What is Severance Pay? How is the Notice Period Calculated?

We often hear concepts such as severance pay, notice pay, notice period. These concepts are frequently talked about, especially among workers and employers, and sometimes even become a topic of discussion. People who want to seek their rights also conduct research on these concepts. In this article, we have searched for questions about severance pay, notice pay and notice period.

What is Severance Pay?

It is the name given to the compensation to be paid to the employee for each year passed during the working period from the day he/she started to work at the workplace where he/she started to work. Each passing year must be complete. Each passing year determines the employee's seniority and the amount payable. 

Who Can Get Severance Pay?

According to the Labor Law; 

Persons who have worked in the institution as insured for at least 1 year 

In case the employer terminates the employee's employment for unlawful reasons 

Persons terminated by the employer by deviating from goodwill and morals 

Persons leaving work for military service 

Persons who are entitled to retirement 

Female employees who want to quit their job with their marital status 

Severance pay can be obtained in the event of the employee's death.

Who Cannot Get Severance Pay?

Persons who have resigned 

Persons who quit their job due to pregnancy and childbirth cannot receive severance pay.

How is Severance Pay Calculated?

Severance pay is given to the employee by the employer. In this compensation, A 30-day gross wage is calculated for each full year. For example; A 15-year employee calculates his 30-day gross wage for each year and multiplies it by 15.

What is Notice Compensation?

Compensation for notice is another matter of curiosity.

Notice indemnity is the compensation to be paid to the other party by the employee who quits his job without a justified reason or by the employer who terminates the employee's employment without a justifiable reason. The parties are obliged to pay this compensation as they do not give prior notice. Notice pay is not only paid by the employer. If it is faulty, the worker will also have to pay this compensation. 

What is Difference Between the Severance Pay send Notice Pay?

Notice pay and severance pay are often confused with each other. Both are paid as a result of the employee leaving the workplace, but they are completely different from each other.

Severance pay determines that the worker must work for one year at the workplace, but this is not the case with notice pay.

Both the employer and the employee can pay the notice indemnity. So both parties can be responsible for the situation. However, severance pay is only paid to the employee by the employer.

In addition to all these, there are also great differences between the calculation of notice pay and the calculation of severance pay. 

How is Notice Compensation Calculated?

When calculating the notice indemnity;

• Employee's start date,
• Job departure date,

The last gross salary of the worker is calculated.

How is the Notice Period Calculated?

If the working period of the person is less than 6 months, the notice period is completed 2 weeks after the notification of resignation .

If the working period of the person is between 6 months and 1.5 years , the notice period is completed 4 weeks after the termination of employment, provided that it starts from the time when the notification is made .

If the employment period of the person is between 1.5 years and 3 years , the notice period is completed after 6 weeks , on the condition that it starts from the time the dismissal notification is made.

If the person's working period is longer than 3 years, the notice period is completed after 8 weeks, on the condition that it starts from the time the dismissal notification is made .

Considerations Regarding the Notice Period

If the worker is not notified otherwise during the working hour, the notice period starts the next day. 

Weekends and public holidays are included in the notice period. 

In the law, the periods are determined as weeks. 

The notice period is considered a calendar. 

Is It Legal to Look for a Job During the Notice Period?

According to the Labor Law, people can look for a job during the notice period. Even working people have 2 hours of leave per day to look for a job. No salary deductions are made for these leaves. People can use these permissions daily if they want, or in a collective way if they want.