Precedent-setting salary ruling from the Court of Cassation for employers and employees! Late payment is grounds for severance...

The 9th Civil Chamber of the Court of Cassation has ruled that an employee whose salary was delayed by 20 days was justified in terminating their employment contract for just cause and leaving the job with severance pay.

LEFT THE JOB WHEN SALARY WAS DELAYED

According to the report by Özge Eğrikar from Hürriyet; an employee working as a project manager at a firm had been receiving their salary regularly at the beginning of each month. Allegedly, after their salary was delayed by 20 days, the employee terminated their employment contract for just cause and left the job.

DEMANDED SEVERANCE PAY, LABOR COURT RULED IN FAVOR

Stating that they were justified in terminating the contract due to the delay in salary payment, the employee filed a lawsuit in the Labor Court to collect severance pay, annual leave, and overtime wages. The Labor Court, which partially accepted the case, ruled that the employee whose salary was paid late was justified in terminating the contract and was entitled to receive severance pay.

Commenting on the matter, Istanbul Bar Association Lawyer Dilek Yüksel stated the following:

“In the case in question, the employee's salary was not paid on time only once. In this precedent-setting decision, the Court of Cassation has ruled that even if the salary is paid late only once, the employee can terminate the employment contract through just cause termination. Failure to pay the employee's salary in accordance with the provisions of the law or the contract gives the employee the right to ‘just cause termination.’ Whether the salary was not paid at all or only partially is irrelevant in this regard. Furthermore, according to the Court of Cassation, the fact that the employee's salary was not paid due to the employer's financial difficulties has no effect on the outcome. In other words, an employer cannot say, ‘My business is going poorly. Let me pay late this month.’ In this situation, the employee can terminate their contract with just cause and become entitled to receive severance pay.”