Mrs. A.K. has been working as an “Operations Specialist” for 7 years in an insurance agency with 60 employees. She has always been an appreciated employee, but started experiencing communication problems with the new manager appointed in the last 6 months.

Towards the end of the shift on a Friday, she is called into a meeting by her new manager and the HR manager. In the meeting, she is verbally informed that her employment contract is terminated pursuant to Article 18 of Labor Law No. 4857 (Termination for Valid Reason) due to “observed poor performance in the last 6 months, failure to adapt to the team, and lack of motivation,” and she is asked to sign a termination letter.

Prior to the termination, Mrs. A.K. was not presented with concrete data (emails, reports, target tables, etc.) indicating that her performance was low, and no written defense was taken from her regarding these allegations.

Legal Evaluation This case shows how the termination of an employee covered by “job security” (having more than 6 months of seniority in a workplace with more than 30 employees) for a “valid reason” becomes unlawful.

1. “Termination for Valid Reason” and Employer’s Burden of Proof Labor Law Article 18 grants the employer the right to terminate the contract for valid reasons arising from “the employee’s competence or behavior.” Poor performance falls under “competence.” However, the Supreme Court imposes a heavy burden of proof on the employer to ensure this termination is not arbitrary:

  • Performance Criteria Must Be Objective: Subjective manager opinions like “lack of motivation” are not valid reasons. The employer must demonstrate with concrete data which targets (e.g., X number of policies per month) were not met.

  • Continuity: Poor performance must be continuous for a certain period, not momentary.

  • Warning Must Be Given: The employer is expected to first warn the employee found to be underperforming, giving them an opportunity to correct themselves.

2. The Most Critical Error: Failure to Take Defense Even if all these conditions are met, Labor Law Article 19/2 is very clear: “The indefinite-term employment contract of an employee cannot be terminated for reasons related to the employee’s competence or behavior without taking their defense against the allegations.”

In this case, the employer’s failure to take a written defense from Mrs. A.K. makes the termination process procedurally invalid from the very beginning. The court may decide on the invalidity of the termination solely due to the violation of this formal condition, without even entering into the merits of the termination (whether the performance was truly low).

Legal Result and Solution Methods Mrs. A.K. has the right to file a “reinstatement lawsuit” in the Labor Court within 1 month (30 days) from the date she received the termination notice.

  • Lawsuit Result (Invalidity of Termination): The court will rule for the invalidity of the termination and the reinstatement of Mrs. A.K. because no defense was taken.

  • Main Legal Consequence (Compensation): When Mrs. A.K. applies to the employer to start work after this decision, the employer faces two options:

    1. Reinstating: Re-employs Mrs. A.K.

    2. Not Reinstating (Usually Preferred): If the employer does not want to take the employee back, they are obliged to make the following payments as a result of the invalidity of the termination:

      • Mrs. A.K.’s 7-year Severance Pay.

      • 8 weeks (for 7 years seniority) Notice Pay.

      • “Non-Reinstatement Compensation” usually amounting to 4 to 8 months’ salary, determined by the court according to the employee’s seniority.

      • “Idle Time Wages” for up to 4 months, accepted as if worked during the lawsuit period (usually 4-5 months).

Conclusion and Advice “Poor performance” is the termination reason most used by employers but costs the most when the legal infrastructure is not prepared. Dismissing an employee for performance does not mean “getting rid” of that employee; on the contrary, it is a technical legal transaction requiring taking the employee’s defense, documenting performance with objective data, and strictly applying the legal process. Conducting this process without a legal consultant can leave companies facing additional compensation burdens amounting to 10-15 months’ salary.