Number: 23

Date: 26/03/2020


Significant amendments made to the implementation of short-time working allowance through the Law no.7226.

We have provided context on short working allowance applications and the relevant legislation through our circulars published recently.

The legal amendments providing significant advantages in the existing criteria to benefit from short-time working allowance has been released within the Law Regarding Amendments to Certain Laws no.7226 published in the repetitive Official Gazette dated 26/3/2020 no.31080.

The amendments introduced through the Law no.7226 are as follows:

1. The requirement of working under a service contract for the last 120 days before the short-time working start date will be considered as 60 days and the requirement of 600 days unemployment insurance premium payment in the last 3 years before the short-time working start date will be considered as 450 days.

2. Those who do not meet the requirement mentioned in the first item will be able to continue to benefit from the short-time working allowance for the period remaining from the right of last unemployment benefit entitlement provided that it does not exceed the short-time working period. Applications can also be made for these.

3. Amendments introduced in the first item will be valid for short-time working applications submitted due to a compelling reason arising from the new coronavirus (Covid-19) outbreak, to be effective until 30/6/2020.

4. So as to benefit from short-time working allowance for this reason, during the short-time working period, excluding the reasons indicated in the sub-clause (II) of the first paragraph within Article 25 of the Law no.4857; (II- Cases that do not comply with the rules of ethics and goodwill and alike) the employees should not be dismissed by the employer.

5. Short-time working applications will be finalized within 60 days from the application date.

6. The President is authorized to extend the application deadlines until 31.12.2020 and/or to differentiate the conditions for 90/450 days.

7. Requirement of 120 days and 600 days of premium payment will continue to apply for insured people in short-time working applications submitted currently and that are not arising from coronavirus.

Our explanations provided above include general information on the issue. No responsibility can be claimed against EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. due to the implications arising from the context of this document or emerging with respect to its context.

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