Coronavirus (COVID-19) Pandemic and Short-Time Working Scheme

The measures taken to prevent the spread of the novel coronavirus (COVID-19) pandemic are making the sustainability of economic activities increasingly difficult day by day. For this reason, the dismissal of employees has started to come up frequently. The utilization of the short-time working scheme by employers adversely affected by coronavirus, instead of terminating employment contracts, will prevent employees from losing their jobs and employers from losing their experienced workers. At the same time, the ''short-time working allowance'' to be paid by the state under certain conditions will support employees' income.

1-What Are the Short-Time Working Scheme and Short-Time Working Allowance?

Short-time working is a scheme that provides income support to insured employees for the period they are unable to work, for a period not exceeding three months at the workplace, in cases where weekly working hours at the workplace are temporarily reduced by at least one-third due to general economic, sectoral, regional crises, or force majeure, or where operations at the workplace are fully or partially suspended for at least four weeks without requiring continuity. This period may be extended up to 6 months by Presidential decree. Within this scope, in addition to income support, the service of payment of General Health Insurance premiums is also provided to employees. Daily short-time working allowance; is 60% of the daily average gross earnings calculated based on the insured person's premium-based earnings for the last twelve months. The short-time working allowance amount calculated in this manner cannot exceed 150% of the gross monthly minimum wage applied to workers over 16 years of age pursuant to Article 39 of Law No. 4857. The short-time working allowance is paid to the employee personally, on the fifth of each month, for the periods during which the employee did not work. Payments are made through PTT Bank.

2-Is It Possible to Benefit from the Short-Time Working Allowance Due to Coronavirus?

Taking into account the possible effects of the novel Coronavirus (Covid-19), the short-time working scheme has been initiated within the scope of "force majeure arising from periodic situations caused by external effects." Employers wishing to benefit from the short-time working scheme on the grounds that they have been adversely affected by the coronavirus may apply to ISKUR (Turkish Employment Agency) with supporting evidence.

3-What Are the Required Criteria to Benefit from the Short-Time Working Allowance?

For the employer's request for a short-time working allowance to be accepted, due to general economic, sectoral, regional crises, or force majeure, the working hours at the workplace must have been reduced by at least one-third on a weekly basis, or the activities at the workplace must have been fully or partially suspended for at least 4 weeks without requiring continuity, an application must have been made to ISKUR for this reason, and it must be determined through an eligibility assessment conducted by Labor Inspectors that the workplace has been affected by these circumstances. For the employee to benefit from the short-time working allowance, primarily, they must be insured and working under an employment contract. In addition, the employer's short-time working request must be found appropriate, and the employee must have qualified for unemployment benefits in terms of the working period and the number of unemployment insurance premium payment days pursuant to the Unemployment Insurance Law. According to the said law; For those who were subject to an employment contract during the last 120 days before the termination of the employment contract, within the last 3 years;

1. a) Insured unemployed persons who have worked as insured for 600 days and paid unemployment insurance premiums shall receive 180 days,
2. b) Insured unemployed persons who have worked as insured for 900 days and paid unemployment insurance premiums shall receive 240 days,
3. c) Insured unemployed persons who have worked as insured for 1080 days and paid unemployment insurance premiums shall receive 300 days,

of unemployment benefits. A provisional article was added to the Unemployment Insurance Law by Article 41 of Law No. 7226, dated March 26, 2020. Provisional Article 23, regarding short-time working applications made due to the impact of COVID-19, states, “Valid until 30/6/2020, for short-time working applications made on the grounds of force majeure caused by the novel coronavirus (Covid-19), the provision in the third paragraph of supplementary article 2 stipulating that the employee must meet the conditions for qualifying for unemployment insurance, excluding the termination of the employment contract, in order to be entitled to short-time working allowance, shall be applied as having been subject to an employment contract for the last 60 days before the start date of short-time working and having worked as insured and paid unemployment insurance premiums for 450 days within the last three years.” Thus, the 120-day insurance premium payment period has been reduced to 60 days and the 600-day premium payment day count has been reduced to 450 days. Those who do not meet this condition will continue to benefit from the short-time working allowance for the remaining period from their last unemployment benefit entitlement, not exceeding the short-time working period. This article shall be valid until June 30, 2020. Additionally, during the period in which short-time working is applied, employees should not be dismissed except for reasons related to non-compliance with rules of morality and good faith and similar cases. Otherwise, the workplace will not be able to benefit from the short-time working scheme.

4-Application Procedure for the Short-Time Working Scheme

If the conditions are met, the employer may apply to the ISKUR unit to which the workplace is affiliated via e-mail to request the short-time working scheme. The request must include the list of persons to whom short-time working will apply, the application form, and evidence that their business has been adversely affected due to coronavirus. Applications are concluded within 60 days from the date of application. The President is authorized to extend the application date until December 31, 2020, and to differentiate the specified days. In conclusion, the provisional article has improved the legally required conditions for employees to benefit from the short-time working allowance in order to reduce the negative effects of the COVID-19 pandemic on economic life. The working period condition has been reduced from 120 days to 60 days, and the premium payment day count has been reduced from 600 to 450 days. For the Legal Dimensions, Legislation, and Latest Developments Regarding the Coronavirus Pandemic, click here. Trainee Att. Kevser TURAN