Notice pay is compensation paid by the party who terminates an indefinite-term employment contract without observing the statutory notice periods. Both the employer and the employee may be liable for it if they terminate without complying with the notice period.
Notice periods are determined by the employee's seniority:
It is calculated by multiplying the employee's gross daily wage by the applicable number of weeks. This tool divides the monthly gross salary by 30 to find the daily wage, multiplies by 7 for the weekly amount, and multiplies by the number of weeks corresponding to seniority.
For an employee with a monthly gross of 30,000 ₺ and 2 years of seniority, the notice period is 6 weeks: (30,000 / 30) × 7 × 6 = 42,000 ₺ gross notice pay.
Notice pay is subject to income tax and stamp duty; unlike severance pay, it has no income-tax exemption.
In an immediate termination for just cause, the notice period does not run and no notice pay arises.