Rights of Municipal Employees and What a Municipal Worker Can Do in Cases of Unjust Termination
Many individuals working in municipalities under subcontractor (sub-employer) or temporary employee status are in a weak position regarding job security. Due to political changes in local administrations or budget constraints, they may experience unjust dismissals. Turkish labor legislation grants various rights to protect such workers. Pursuant to Labour Law No. 4857 and related regulations, municipal workers subjected to unjust dismissal have the right to file a reinstatement lawsuit and seek compensation.
With Decree-Law No. 696, which came into force in 2018, the majority of subcontracted municipal workers were transferred to permanent employee status in municipal companies. As a result, many municipal employees can now assert their legal rights under the same provisions applicable to private-sector workers.
What Is Unjust or Invalid Termination?
Termination by the employer without a valid reason is called unjust or invalid dismissal. According to the Law, employers must have a valid reason when terminating the employment of job-security-covered employees. Valid reasons include objectively verifiable issues arising from the nature of the job or company—such as serious underperformance or gross disciplinary misconduct. The Law also explicitly lists reasons that cannot be considered valid grounds, including union membership, pursuing legal recourse to assert rights, or discriminatory reasons like race, gender, or political opinion. Such dismissals are deemed invalid. Additionally, whether the notice of termination is written and contains specific justification is also crucial.
Under Article 19 of the Labour Law, if an employer dismisses an employee without providing written notice and a clear reason, the termination may be deemed invalid on procedural grounds alone. Case law by the Court of Cassation emphasizes that the burden of proof lies with the employer to demonstrate that the reason for dismissal complies with legal requirements. In short, if the employer cannot provide a valid or procedurally compliant reason, the dismissal is unjust.
What Can an Unjustly Dismissed Worker Do?
A municipal worker dismissed for unjust or invalid reasons may file a reinstatement lawsuit, provided they meet certain conditions:
Employment under an indefinite-term contract: Municipal company employees under indefinite-term contracts fall under Law No. 4857. Workers with fixed-term contracts may lack reinstatement rights, though they may still claim wages for the remaining contract period if dismissed prematurely.
At least 6 months of service: The employee must have worked at least six months for the same employer (municipality or municipal company) to be covered by job security provisions.
Employer employing at least 30 workers: At the time of dismissal, the employer must have at least 30 employees in the same workplace/sector. Most municipalities and municipal companies meet this threshold.
Not being an employer’s agent: Employees in managerial roles with authority to hire and fire (employer’s agent) are excluded from job security provisions.
Eligible municipal workers must apply to mediation within 30 days of receiving the termination notice. If mediation fails, they must file a lawsuit in the labour court within 2 weeks from the date of the mediation final report. These deadlines are strict, so prompt action is essential.
Burden of Proof and Court Decision
During reinstatement lawsuits, the burden of proof is on the employer to provide evidence for the dismissal. The employee can argue that the stated reason is invalid or that dismissal occurred due to a different motive (e.g., union activity). If the employer fails to justify the dismissal adequately, the court will declare it invalid and order reinstatement.
Court Order and Its Consequences
If the labour court rules the dismissal unjust:
It orders the employee’s reinstatement.
It determines compensation for non-reinstatement, which ranges from 4 to 8 months’ gross salary depending on seniority and reasons for dismissal. For instance, the İzmir 4th Labour Court awarded TL 60,622 (approx. 6-month salary) as non-reinstatement compensation to dismissed workers of Bornova Municipality.
Once the court judgment is final:
The employee must apply to return to work within 10 days. Failure to do so may forfeit the reinstatement right and compensation.
The employer must reinstate the worker within 1 month or pay the designated compensation.
Additionally, the employee is entitled to back pay for a maximum of 4 months (covering wages, overtime, bonuses, etc.) for the period between dismissal and final judgment.
Effect on Severance and Notice Pay
If the employee wins the reinstatement case and actually resumes work, the termination is effectively nullified, and any previously-paid severance or notice pay may be reclaimed by the employer or offset by court order.
If the employer opts not to reinstate the employee and instead pays off compensation, the employment relationship is considered terminated. In that case, the worker can also claim severance pay, notice pay, unused vacation pay, and other outstanding receivables—these are typically specified in the court judgment.
Workers may pursue severance and notice pay through mediation and labour court even if they cannot file a reinstatement lawsuit (e.g., due to not meeting 6-month/30-employee criteria).
Severance and Notice Pay Rights
Independently of reinstatement lawsuits:
Severance pay: Employees with at least one year of service, who are dismissed without cause, are entitled to severance pay equivalent to 30 days of gross salary per year worked (or more if provided by a collective agreement).
Notice pay: Under Article 17 of the Labour Law, employers must give advance written notice (2 to 8 weeks depending on seniority). Failure results in notice pay equivalent to the notice period.
Other receivables: Employees can also claim accrued entitlements like unused annual leave, overtime, and holiday pay immediately via mediation and court procedures.
Union Rights and Union Compensation
Municipal employees often join unions to collectively defend their rights. Dismissal due to union membership or activity is strictly prohibited by Article 25 of the Trade Unions and Collective Bargaining Law (Law No. 6356). In such cases:
The dismissal is automatically deemed invalid.
The employee can file for reinstatement and claim union compensation, which equals at least one year’s gross salary (judges may award more but cannot go below one year).
Notably, even workers who do not meet the 6-month service or 30-employee thresholds may file a reinstatement lawsuit in union-related cases.
If union discrimination is proven, union compensation may substitute for the standard 4–8 months’ compensation, although courts may still award both if sought.
Employees involved in union activities—even if not official union members—are entitled to these protections and compensation.
Additionally, union representatives enjoy greater protection: their dismissal requires union permission or regional labour authority approval (Trade Unions Law Articles 24 and 25). If such dismissals occur without proper procedure, affected workers may claim additional legal remedies.
Conclusion
Municipal subcontracted and temporary workers facing unjust dismissal are not without recourse under Turkish law. The Law provides robust mechanisms—such as reinstatement lawsuits, severance and notice compensation, back pay, and union protections—to prevent arbitrary dismissals. Retain all written termination notices and analyze the stated grounds carefully. If you believe your dismissal is unjust or false, promptly apply to mediation and legal proceedings. Judicial precedents, including Court of Cassation decisions, have consistently upheld workers’ rights in such contexts.
Attorney and Mediator Fatih Mehmet Tercan
References:
Labour Law No. 4857 (Articles 18–21: job security provisions; Article 17: notice periods; Articles 24–25: termination grounds)
Trade Unions and Collective Bargaining Law No. 6356 (Article 25: union protections)
Decisions of the 9th Civil Chamber of the Court of Cassation (various, regarding reinstatement and compensation for municipal workers) – For example, in decision dated 23.10.2017, Case No. 2017/8393 E., 2017/16300 K., the court ruled for reinstatement of a municipal bus driver who was dismissed unjustly and without notice.