Legal Evaluation of Short-Time Working in the Framework of Coronavirus (COVID-19)

By Nedim Korhan Şengün, Gazali Soysal, and Betül Önal On Mar 20, 2020

Coronavirüs kapsamında kısa çalışma nedir

I.INTRODUCTION

The viral COVID-19 outbreak has been declared a “Pandemic” by the World Health Organization while Turkey and many countries around the world have announced measures such as fiscal and healthcare programs in order to stem the current/future crisis arising from the outbreak.

Measures to prevent and cope with the financial crisis brought by the COVID-19 outbreak in our country were announced by the Presidency of The Turkish Republic under the “Economic Stability Shield Package” on 18.03.2020.

In order to support employers and employees within the measures included in the Economic Stability Shield Package as per law,

i. short-time working allowance will be available,
ii. the conditions and processes required to benefit from this allowance will be eased; and
iii. as a result employers will be able to reduce their cost.

Although the conditions for the allowance have not been clarified yet, this article briefly explains; what the short-time working allowance is, under what conditions, and what benefits it brings to employers and employees.

II.WHAT IS SHORT-TIME WORKING?

Short-time working can be defined as the partial or complete suspension of production by reducing working hours to avoid laying off any workers due to downsizing by companies in situations of financial, sectoral and regional crises or force majeure.

The short-time working was included in the Turkish Legal System in order to continue production, provide necessary support to employers and to enable employees who are self-employed or in the private sector keep their jobs, in periods of recession caused by the general financial, sectoral or regional crises brought by globalization or force majeure.

The time period for short-time working is determined by the employer as a daily, weekly or monthly working period, taking into account the traditions of the workplace and the nature of the work.

III. WHAT IS THE SHORT-TIME WORKING ALLOWANCE?

In return for short-time working, employees are provided with a short-time working allowance and General Health Insurance premium payments. The short-time working allowance, are the payments made to the employees from the Unemployment Insurance Fund and the short-time working time provided they do not exceed the time indicated in the eligibility requirements. Short-time working can be carried out for at least three months, if needed this period can be extended to six months with a Presidential Decree.

Daily short-time working allowance; is 60% of the average daily gross earnings calculated in consideration of earnings of the insured based on premium for the last twelve months and the calculated short-time working allowance cannot exceed 150% of the monthly minimum gross wage.

The short-time working allowance is paid on fifth of every month and payments are made via PTT Bank. Ministry of Family, Labour and Social Services is the authorized body in determining the payment date.

IV. WHAT ARE THE CONDITIONS FOR SHORT-TIME WORKING?

i. The Necessary Circumstances Need to Appear for Short-Time Working.

Article 3 in the Regulation on Short-Time Working and Short-Time Working Allowance defines the general financial, sectoral and regional crises or force majeure. Accordingly;

“Regional Crisis: are situations in which the workplaces operating in a specific province or region are severely affected financially due to national or international events.

General Financial Crisis: are situations in which events in the national or international economy seriously affect the country and the workplace in financial terms.

Sectoral crisis: are situations in which the sectors directly affected from national and international financial crises, and workplaces in other sectors related to these sectors are severely affected.

Force Majeure: are situations that are not caused by the employer’s own conduct, unpredictable, cannot be disposed of, periodic situations due to external forces resulting in a temporary reduction in working time or a complete or partial cessation of activity or an event such as an earthquake, fire, flood, landslide, outbreak or mobilization.”

In a workplace affected from the abovementioned events; (i) temporarily reducing weekly working hours by at least by one-thirds or (ii) cessation of operations in the workplace completely or partially for at least four weeks without seeking the condition of continuation are necessary.

ii. The employer shall apply to the Turkish Employment Agency that the working hours in the workplace are significantly reduced or suspended.

The employee shall send a written notice to the Directorate of the Turkish Employment Agency and if there is, to the labor union that is a party in the collective labor agreement.

The notice shall include;

The effects of general financial, sectoral or regional crisis and force majeure on the operation and workplace,

The title of the workplace,
Address,
If there is, the labor union that is a party in the collective labor agreement,
Turkish Employment Agency number of the workplace and
Workplace social security number,
A list including the information of employees ready for short-time working according to the format requested by the Directorate of the Turkish Employment Agency.

The request and notice by the employer will be evaluated by the Turkish Employment Agency. The Board of Directors of the Turkish Employment Agency will decide if short-time working will be implemented and if the conditions are met. Otherwise, the application will be rejected by Directorate of Turkish Employment Agency.

The employer will announce the result of the compliance audit carried out by the labor inspectors in locations where employees can see at the workplace and if present, inform the trade union that is a party collective bargaining agreement.

iii. The employee must be entitled to unemployment benefits, determined in terms of working hours and the number of days of unemployment insurance premium payments on the implementation date of short-time working,

The employer should be aware that, the short-time working allowance can be requested for employees who have paid the unemployment insurance premium for at least 600 days in the last three years and have been working at a workplace in the last 120 days with an employment contract. Otherwise, the employee who does not meet this condition will not be allowed short-time working.

V. CONCLUSION

In the “Economic Stability Shield Package” announced in our country due to the COVID-19 pandemic; it was declared that the employer would be provided support towards short-time working at the workplace while this article has provided general information on short-time working. Accordingly; the conditions for short-time working are; temporarily reducing weekly working hours by at least a one-third or completely or partially stopping operations for at least four weeks without seeking the condition of continuity due to the general financial, sectoral and regional crisis and force majeure. The employer who fulfills this requirement should send a written notification to the competent authority in accordance with the determined format. The process will be supported pursuant to the statements made by the Presidency.