The 9th Civil Chamber of the Court of Cassation has issued a notable ruling regarding the statute of limitations for labor claims related to unused annual leave pay. The Chamber decided that a 5-year statute of limitations, rather than a 10-year one, applies to the right to annual leave that converts into a monetary claim after the employment contract is terminated.
In the case subject to the ruling, the relatives of D.K., who worked for 11 years at construction sites abroad for a construction company, filed a lawsuit against the employer following the worker's death. The lawsuit sought the payment of unused annual leave fees and other labor claims, in addition to severance and notice pay. The employer's side argued that the worker had no outstanding claims and raised a statute of limitations objection.
The Labor Court, which reviewed the file, concluded based on Social Security Institution records and evidence that the worker was entitled to 110 days of annual leave. The court accepted the claim for annual leave pay, stating that the employer could not prove that this leave had been taken or that it had been compensated. The Regional Court of Justice also upheld the local court's decision.
THE PERIOD BEGINS FROM THE DATE OF TERMINATION
The 9th Civil Chamber of the Court of Cassation, which took up the file for appellate review, made a different assessment. The Chamber determined that the employment contract ended on December 4, 2013, and the lawsuit was filed on October 24, 2019. Noting that more than 5 years had passed between these dates, the Court of Cassation emphasized that the employer's statute of limitations objection was also made in a timely manner.
In the unanimous reversal decision, it was stated that, taking into account the provisions of the Labor Courts Law No. 7036 and the Turkish Code of Obligations, claims for annual leave pay are subject to a 5-year statute of limitations. According to the Court of Cassation, this period does not begin from the date the worker actually earns the right to leave, but from the date the annual leave right converts into money upon the termination of the employment contract.
The decision is significant in that it clarifies the period during which employees who have left their jobs can claim annual leave pay. Accordingly, employees who wish to claim unused annual leave pay must resort to legal remedies within 5 years from the date of termination.
Another prominent point in the ruling was that the statute of limitations is not taken into account automatically in lawsuits, but only upon the proper objection of the parties. For this reason, the date of termination, the date of the lawsuit, and any potential legal actions that stop or interrupt the statute of limitations become decisive for both the employee and the employer.
News Source: 12punto
