The 9th Civil Chamber of the Court of Cassation has issued a significant ruling regarding unpaid annual leave that converts into a monetary claim upon the termination of an employment contract. The Chamber decided that the statute of limitations for annual leave pay is not 10 years, but 5 years from the date of termination.
The decision serves as a precedent for employees who demand payment for unused annual leave after leaving their jobs. Accordingly, if an employer raises a statute of limitations objection, claims for annual leave pay filed more than 5 years after the date of termination may be subject to dismissal.
In practice, a 10-year statute of limitations had previously been applied to annual leave pay during the period between the enactment of the Turkish Code of Obligations No. 6098 and the Labor Courts Law No. 7036, which came into effect in 2017. However, following its merger with the now-closed 22nd Civil Chamber, the 9th Civil Chamber of the Court of Cassation re-evaluated the issue and established a precedent setting the period at 5 years.
CASE TAKEN TO THE COURT OF CASSATION
In the case subject to the ruling, it was stated that D.K., who left their workplace after 11 years of employment, did not receive payment for their unused annual leave. Following D.K.'s passing, their relatives filed a lawsuit against the employer company, demanding the payment of severance and notice pay, as well as claims for annual leave, overtime, weekly rest, and national and public holiday pay.
The defendant construction company raised a statute of limitations objection, arguing that the employment contract had ended due to the completion of the work and that no outstanding payments remained. The court of first instance determined, based on Social Security Institution (SGK) records and the case file, that the worker had been employed at the defendant's workplace and that the employer could not prove a termination that would not require severance pay. The court also accepted that the worker was entitled to a total of 110 days of paid annual leave and that it could not be proven that these leaves had been taken or that their wages had been paid.
The Regional Court of Justice also rejected the appeals against the first-instance decision. Upon the appeal of the file, the 9th Civil Chamber of the Court of Cassation overturned the decision on the grounds that the statute of limitations for annual leave claims is 5 years.
In its decision, the Chamber emphasized that the statute of limitations for paid annual leave claims begins from the date of termination. In the specific case, it was noted that the employment contract ended on December 4, 2013, and the lawsuit was filed on October 24, 2019.
The statute of limitations for paid annual leave claims is five years, and this period begins from the date of termination. Given that the plaintiff's employment contract ended on 04.12.2013 and the lawsuit was filed on 24.10.2019, the claim for paid annual leave must be dismissed due to the statute of limitations.
News Source: 12punto
