Decision from the Court of Cassation Concerning Millions of Workers: Unpaid Leaves Will Be Added to Severance Pay!

ANKARA - The 9th Civil Chamber of the Court of Cassation has signed a historic decision by ruling that the periods spent on unpaid leave by workers who were taken on compulsory unpaid leave during the pandemic period should be included in severance pay and annual leave calculations. This May 29, 2025 ruling paves the way for hundreds of thousands of workers to claim underpaid benefits.

Pandemic Period Unpaid Leaves Included in Seniority

According to this precedent-setting decision of the Supreme Court of Appeals, these periods of workers who were taken on compulsory unpaid leave by employers during the pandemic process in accordance with the provisional Article 10/2 added to the Labor Law No. 4857 will be taken into account in severance pay and annual leave calculations. The decision clarified that the periods spent on unpaid leave will be added to the employee's seniority, provided that they do not exceed the 6 weeks added to the notice period specified in the Labor Law.

This regulation aims to eliminate the loss of rights arising from compulsory unpaid leave practices that employers resorted to as an alternative to the ban on layoffs due to the pandemic. Even if they do not actually work during this period, workers will be able to protect their seniority and leave rights by counting these periods from the service period under certain conditions.

Disputes in Regional Courts of Appeal Ended

This decision of the Court of Cassation has put an end to the different interpretations and disputes that have been experienced in the regional courts of justice regarding the effect of unpaid leave periods on seniority and annual leave calculations. All courts are now expected to take this case law as a basis.

Experts consider this important development of the Court of Cassation as a turning point that paves the way for hundreds of thousands of workers to claim their underpaid rights in severance pay and annual leave calculations. In line with the relevant legislation and the decision of the Supreme Court of Appeals, workers will be able to apply to have their time spent on compulsory unpaid leave added to their severance pay and annual leave.

This decision is expected to provide an important legal basis for many employees victimized during the pandemic.

Source: universal.net