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What Is Seniority Indemnity?

The employees have right to the seniority indemnity under prescribed conditions within the scope of the law no. 1475/14.

**The conditions of having right to the seniority indemnity are indicated below:
                1.1- The term of employment (for the same employer) should be at least 1 year
                1.2- The labor contract should be terminated by the employer because of some reasons other than good will and contradiction to ethics
                1.3- The labor contract should be terminated by the employee because of some reasons like health problems, good will and contradiction to ethics or business interruption in the workplace etc.
                1.4- The termination of employment because of military service
                1.5- Being entitled to pension or completing the insurance period (reasons other than age) within this framework or filling the premium days
                1.6- The marriage of the workwoman or applying for the seniority indemnity within 1 year as from the date of marriage
                1.7- The death of the employee.
In case of labor contract termination, seniority indemnity should be paid as required by the term of employment.

2- CAN A RESIGNER BECOME ENTITLED TO RECEIVE SENIORITY INDEMNITY?
**As a rule, the employee, who leaves the job voluntarily(the resigner), has no right to receive seniority indemnity.
However, there are some exceptions of this rule.

The exceptions are stated below:
                2.1- The termination of employment because of military service
                2.2- Being entitled to pension
                2.3- If the employee document that his/her health problems constantly pose an obstacle for the job
                2.4- If the employer acts against good will and moral principles and the employee resigns
An employee has right to the seniority indemnity on condition that the term of employment is at least 1 year.

3- SENIORITY INDEMNITY FOR A WORKWOMAN WHO WILL MARRY
If a workwoman leaves the job because of marriage, she has right to the seniority indemnity as required by the term of employment.

In order to take advantage of this right, the labor contract should be terminated in written form within 1 year as from the date of marriage, marriage certificate should be submitted to the employer and the reason for the termination of the labor contract should be expressed clearly.

4- THE CALCULATION OF THE SENIORITY INDEMNITY
If a labor contract is terminated because of a reason that requires seniority,
                4.1- The seniority indemnity should be calculated in the amount of 30-day gross fee for the number of each full year worked.
                4.2- The residual terms out of a year must be calculated by proportioning
                4.3- While calculating the seniority indemnity, the gross amounts of all fees that the employee receive regularly and all the pecuniary interests (travel allowance, food allowance,         bonus payments (they should be paid regularly) etc.) should be taken into account.
                4.4- The amount of seniority indemnity that is paid for the each full year is limited with the maximum seniority indemnity that is valid in the date of termination.

4- WHAT IS MAXIMUM SENIORITY INDEMNITY?
MAXIMUM Seniority Indemnity: 4.426,16 TL
(For The Period Of 01.01.2017-30.06.2017)

5- SAMPLE SENIORITY INDEMNITY CALCULATION TABLES
Sample 1:

Sample 2:

Sample 3:

Sample 4:


Source: Labor Law

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If there is a Foreign Partner during Incorporation, What Should be Done According to Turkish Laws?

If there is a foreign partner during incorporation, the followings will be needed.
1- Translated and notarized copy of foreign real person (partner)
2- Tax number taken from tax office or a document which shows ID number peculiar to foreigners
3- Notarized residence permit (if he/she resides in Turkey)
4- (For Turkish citizens residing abroad) a document which proves that he/she resides/works abroad and is taken related institutions of that country

***If foreign partner is also the Director of the company, work permit will not be necessary.

Source: Turkish Code of Commerce

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Can One Use Letters Which Are Not In Turkish Alphabet In Company Titles?

According to the communique about business names established in the Official Gazette numbered 28913 and dated 14.02.2014, now it is possible to use letters which are not included in Turkish Alphabet like W, X, Q in the root of the company title.

Before the enactment of New Turkish Commercial Code, the companies with foreign partners could use foreign letters in their company titles. However, companies consisting of Turkish shareholders couldn’t use those letters. This restriction was abrogated with this amendment.

Now, everyone can use letters that are not included in Turkish Alphabet in the root of the company title.

Moreover, on condition that the shareholders of a company were consisting of Turkish citizens, they couldn’t use foreign names corresponding in Turkish according to the previous communique (such as, White Tarım Co. Ltd.). Nevertheless, all of the companies might use foreign words in the company title with this amendment.

The amendments done with the communique and some points about the new implementation are indicated below.

1- Business Names;
One can designate business names without constraint only if the field of operation and the expressions related to the kind of Corporation is Turkish.

SAMPLES

  • Blue Sea Denizcilik Ltd. ŞTİ. (Proper)
  • Blue Sea Maritime Ltd. ŞTİ. (NOT proper. The sector name should be Turkish. There should be written ‘’Denizcilik’’ instead of ‘’Maritime’’.

2- It is not allowed to use information that might give false impressions in business names of the company.
The expressions in the business name that might give false impressions about the identity of the trader, the scale, importance and financial condition of an enterprise for the third parties cannot be used and contrary to facts.

3- The expressions in business names cannot be contrary to local legislation, implementation and values.
(3) The expressions in business names cannot be against public order, national interests and morals and tarnish cultural and historical values.

4- Some words used in business names are subject to approval of Council of Ministers.
Words that are “Türk(Turkish)”, “Türkiye(Turkey/Turkiye)”, “Cumhuriyet(Republic)” and “Milli(National)” should be used plain, simple and thorough with the approval of Council of Ministers.

In accordance with articles 41 and 42 of the Turkish Commercial Code, If these words are involved in the name or the surname of the real person that should be used in business name, then it will not be obligatory to get the approval of Council of Ministers.

5- At least one sector should be stated in the company title.
It is obligatory to state at least one sector in the title of corporations and limited companies. There shouldn’t be any abbreviations in the expressions about the field of operation.

6- Pay attention to the incorporation of Holdings…
There should be written “holding” in the title of corporations whose primary objective is incorporating into another enterprises.

7- Place names can be used, but country names are subject to approval.
Officially identified place names can be used in business names; however, it is obligatory to get an approval from the competent authorities of related countries in order to use country names.

8- It is forbidden to use the names of state institutions and organizations.
It is forbidden to use the names of state institutions and organizations, other national and international agencies or abbreviated names defining those institutions in business names. Nevertheless, state institutions and organizations are allowed to use their own names and abbreviations in business names of the companies which they operate or in which they have shares.

9-If the record of a company is cancelled in the Trade Registry, someone else might use that title 5 years later.
The title of a company which is cancelled in the Trade Registry cannot be used by another trader again, because he/she should wait 5 years from the date when the declaration regarding to the disenrollment is published in Turkey Trade Registry Gazette.

10- What is the condition of using a title registered previously?

  • If a business name is registered previously in a registry of commerce in Turkey, it cannot be registered without making a distinctive addendum in order to distinguish it from the previous one.
  • If a business name registered previously has the same addendum and the first expression indicating the field of operation with the newly-established company, it cannot be registered without making distinctive amendments within the scope of article 46 of the Turkish Commercial Code.

Sample-1: If a title called “A İnşaat Otomotiv Tekstil Sanayi ve Ticaret Anonim Şirketi” is registered previously, the title called “A İnşaat Tekstil Turizm Sanayi ve Ticaret Anonim Şirketi” cannot be registered without making a distinctive addendum.

  • If the two companied share the same addendum in their titles, but their first expressions indicating the field of operation are different, that title can be registered without making an addendum.

Sample-2: If a title called “B İnşaat Otomotiv Sanayi Anonim Şirketi” is registered previously, the title called “B Turizm İnşaat Sanayi Anonim Şirketi” can be registered without making an addendum.

  • If the two companies have the same expressions indicating company type in their titles, that title cannot be registered without making a distinctive addendum.

Sample-3: If a title called “C Turizm Limited Şirketi” is registered previously, a title called “C Turizm Anonim Şirketi” cannot be used without making a distinctive addendum.

Source: The Communique about Business Names Established in the Official Gazette Numbered 28913 and Dated 14.02.2014

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WHAT IS TRAVELING EXPENSE AND HOW TAX EXEMPTION IS APPLIED TO IT?

WHAT IS TRAVELING EXPENSE AND HOW TAX EXEMPTION IS APPLIED TO IT?

1- WHAT IS TRAVELING EXPENSE?
Traveling expense means the money that your employer pays you because you are spending that amount on travel that is necessary for your work. It includes boarding; food and drink and accommodation.

2- WHICH PAYMENTS MADE AS EXPENSES ARE EXEMPT FROM TAX? 
Below mentioned payments made as expenses are exempt from the Income Tax,
2, 1- By the institutions subject to travel expense law;
2.1.1- Travel Expense,
2.1.2- Payments made for business trip expenses
2.2- By the institutions out of the scope of travel expense law
2.2.1-With the board of directors and its members,
2.2.2- With auditors,
2.2.3- With liquidators,
2.2.4- To employee, (including each and every employee with and without being subject to travel expense law)
2.3- Including fuel allowance paid to the civil servants according to the civil servant law numbered 657

***Including payments made as advances to retired employer, civil servants and self-employees. 
2.4- Payments made as loss reserve according to the special laws;
2.4.1- The ones working poll counting and
2.4.2-Elections.

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HOW SHAREHOLDER’S REPRESENTATION IS MADE?

1-HOW SHAREHOLDER’S REPRESENTATION IS MADE?
1.1-  The one who uses shareholder’s rights on behalf of him, has to abide by the directive of the actual shareholder. Shareholders’ responsibility to the representative is reserved.
1.2- Representative having rights of bill payable to bearer, share certificate, pledge and right of retention can use his rights only if he is endowed with the authority by the shareholder.

2- BY WHOM INDEPENDENT AUDITOR, ORGANIZATION AUDITOR AND CORPORTAE AUDITOR ARE CHOSEN?  
2.1-
 If company suggests the representatives carrying out the transactions for the company, to the shareholders, it also has to suggest another representative, completely independent from the company itself, and to display the names of these two representatives on the website of the company according to the articles of incorporation.
2.2- Apart from this, the board of management makes invitation to a meeting in trade registry gazette before 45 days of displaying it on the website of the company. The company also needs to share the contact details and the addresses of these 2 representatives on their website within seven days at most. The ones willing to be the representatives are also wanted to apply for the company. The board of management also displays their names and contact details on the web site.
2.3- Corporation representation is a shareholding entrepreneurship; Corporation representative cannot demand the shares he represents according to the Turkish code of obligations numbered 510.
2,4- Declaration is an instruction given to the representative by the shareholders.
2.5- Representatives will be held responsible for his deeds according to the Turkish code of obligations numbered 506, agreements restrictive of responsibility is invalid.
2.6- The other representatives given authorities by the ones given representation authorities and shareholders are not liable to the articles of 429 and 431 of the relative law.

3- WHO IS DEPOSITOR REPRESENTATIVE AND BY WHOM WAS IT CHOSEN? 
3.1-
 If depositor representative has the right to use of voting and taking part of general assembly, he is supposed to demand information by the one making him the depositor before general meeting in order to learn how to behave.
3.2-   If he is not helped even if he demanded information regarding company management before, voting is oriented to the decision of the board chairman.
3.3 Depositor representatives are liable to the articles of ministry of customs and trade.

***According to Turkish Trade Law article number 428, representatives are supposed to explain their decision on voting and representation documentation via radio television and journals.  

4- WHAT ARE THE DECLARATION OBLIGATIONS OF THE DEPOSITOR REPRESENTİTEVES? 
4.1-
 Representatives decided on Turkish Trade Law article number 428, has to declare the numbers, rates, types and values of the share they represent.
In this declaration, according to the capital market law, regarding the shares, notification provisions are exercised. Otherwise, Decisions taken in the general assembly can be invalid.
4.2- If Chairman does not make explanation despite of the one of the shareholders’ demand, every shareholder has the right to demand the canceling of general meeting decisions.

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What Is Overworking? How Is It Calculated?

What is overworking?
It refers to a period of time that exceeds ordinary working hours (45 hours) stated in Labor Law.

On the other hand, if weekly working time in an office is determined less than 45 hours and the employee works more than that period of time or completes his/her working hours to 45 hours, it is called “extra labor”.

1- How are the fees of overworking and extra labor calculated?
The fee given hourly for overworking should be calculated by increasing 50% of normal hourly fee.

Furthermore, the fee given hourly for extra labor should be calculated by increasing 25% of normal hourly fee.

2- How can one use his/her free time in overworking and extra labor?
In case of overwork and extra work, a worker may demand to use
-1 hour 30 minutes in return for every overtime,
-1 hour 15 minutes in return for extra labor time as a free time instead of increased fee on condition that the employee makes a written declaration to the employer.

The employee may use that free time,

-Within semiannual period,
-within working hours without salary deduction.

3- On which conditions will there be no overworking and extra labor?
These conditions are listed below:

– In night works (article 69 of Labor Law)
– Works with limited duration because of health problems (article 63 of Labor Law)
– employees working in mining works in underground (article 42-43 of Labor Law)
– If an employee overworks in an underground work as a result of force majeure, his/her hourly fee should be increased at least 100% for every extra hour (the period exceeding ordinary working hours which is 37,5 hours).( article 42-43 of Labor Law)

– Under age workers
– Pregnant, women after childbirth and breastfeeding mothers
– Employees with employment contract of definite duration
– There should be approval of employee for overtime works.

What is the maximum overwork time for an employee?
Overwork time cannot be more than 270 hours in a year.

Source: Labor Law No. 4857

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Questions And Answers About The Automation System For The Work Permits of Foreigners

20.10.2017

1- HOW TO UPDATE THE INFORMATION FOR PREVIOUS EMPLOYER WHILE APPLYING FOR FOREIGNERS’ WORK PERMIT?
If there is a completed application for a foreigners’ work permit from before, the employer’s files can not be updated, changed or new files can not be added to it. The applications must be completed with the current documents. While forwarding the application to the Ministry of Labour and Social Security, the documents that will be renewed must be stated in a petition which is added to the Employer file. The specialists who will evaluate the application will state these documents missing.

2- WHICH ACTION SHOULD BE TAKEN IF AN ERROR MESSAGE IS SHOWN WHEN THE PREVIOUS DOCUMENT NUMBER IS USED FOR QUERIES?
You can continue the process if you have made a query with the TR Foreign Identification number belonging to the foreigner the application is made for.

3- WHAT SHOULD BE DONE IN CASE THE REFERENCE NUMBER GIVEN BY THE TURKISH FOREIGN REPRESENTATIVE DOES NOT MATCH THE NUMBER IN THE SYSTEM?
An embassy in the “E-konsolosluk” system creates a reference number such as: 2012-asdf1234-0101 (year-embassy code-the day and month of the application) and informs the foreigner who made the application. An online embassy will not produce a number in any other format. Eğer referans numarası aynı formatta değilse bağlı bulunan temsilcilik ile irtibat kurulması gerekmektedir.

4- WHAT IS THE DOCUMENT THAT IS OPENED WITH THE “OTHER DOCUMENTS” TITLE WHILE APPLYING ONLINE FOR A FOREIGNER WORK PERMIT?
This document type is reserved for the user to upload the documents they want to present to The Ministry of Labor and Social Security related to the work place or the foreign person. If there is no document to upload, you can scan an empty A4 paper in order to pass this part.

5- WHAT SHOULD BE DONE IF THE PROFESSION OF THE FOREIGNER CAN NOT BE FOUND IN THE SYSTEM?
The profession that needs to be found should be searched for in the İŞKUR website’s Turkish Profession Dictionary. If the searched profession is found in the Turkish Profession Dictionary, the duty branch should be checked in the details and can be found in the automation system with the same options. If the profession isn’t found in the İŞKUR website, you need to contact İŞKUR and make them add the profession to their profession dictionary.

6- HOW TO MAKE A CORRECTION IF THE EMPLOYER REALIZES THEY HAVE MADE A MISTAKE IN THE FOREIGNER WORK PERMIT APPLICATIONS?
Unless the foreigner work permit applications are sent to The Ministry of Labor and Social Security the applications have no legal value. This is why you can make a new application by choosing Applications -> New Application.

7- WHAT DOES ERROR 500 MEAN AFTER COMPLETING THE ONLINE FOREIGNER WORK PERMIT?
ERROR 500 means that an obligatory information was left out or there was an input of incorrect information. You need to check all entries made on the online application.

8- WHAT SHOULD BE DONE AFTER YOU APPLY ONLINE FOR A FOREIGNER WORK PERMIT?
After the online application for the foreigner work permit, you need to choose the application state option which can be seen next to the application. You can monitor the actions taken about your application on here. Or you can ask for information via The Ministry hotline ALO170.

9- HOW TO UPLOAD THE MISSING DOCUMENTS AFTER THE ONLINE APPLICATION FOR FOREIGNER WORK PERMIT?
The missing documents from the online foreigners work permit application can be uploaded from the Applications menu by choosing Tracking Applications and then the Application State options. After you upload the missing file choose “complete the procedure” to finish the process.

Source: Ministry of Labor and Social Security

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Pay Your SSI Premium At All Costs!

20.07.2017

1-WHY IS IT SO IMPORTANT TO PAY YOUR SSI PREMIUM?
The compulsory payment of SSI Premium is related to the accrued SSI Premium payment of the working places. Because as is known to all, there have been various reinforcements on the basis of SSI and work place for several years.

Such as, if a workplace pays its SSI Premium in the ratio of 37.5% at due date, the rate of its SSI Premium will be decreased to 32.5% by obtaining premium discount in the value of 5 points. Workplaces which don’t pay it at due date will not be able to take advantage of this discount.
A sample calculation is indicated below:
SSI Premium Basis       : 12.794,00 TL
Amount of Premium     :   4.797,75 TL
Discount (5 points)      :     639, 70 TL
Amount to be paid        :   4.158,05 TL
As one can see in the sample, if SSI Premium is 4.797,75 TL (SSI +Unemployment Premium), there will be 5 points discount and it will decrease to 4.158,05 TL. If stated as a percentage, the discount rate runs around 13 %.

2-THE LATE FEE IS 14.5%!
As can be seen in the sample, if a workplace does not pay it at due date, it will not make use of the Premium discount in the value of 5 points, which is equal to 13 % discount. On the other hand if it is not paid at due date, the workplace should pay monthly late fee in the ratio of 1,4 % and the cost will be 14,5 % for the first month.

3-IF YOU OWE MONEY TO SSI, RESTRUCTURE IT IN REGARD TO THE LAW NO. 6183!
You may make use of this advantage;
-If you restructure your SSI Premium debt within the scope of Amnesty Law,
-If you paid your debts that were not in the scope of Amnesty Law or made an installment plan according to the law no. 6183,
-If you have no overdue Premium debt.
Provided that you have overdue Premium debt, except the debts for which you make an installment plan, you need to go to one of SSI branch office in order to make an installment plan within the scope of the law no. 6183 and take advantage of Premium.

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WHAT IS THE LIMIT ON VAT CUT?

WHAT IS THE LIMIT ON VAT CUT?

If every transaction within the scope of limited cut doesn’t exceed 1.000 TL,calculated vat will not be subject to cut. If it exceed the limit, cut will be practiced on the whole amount.

In the transaction exceeding detected amount, the amount will not be separated into pieces in order not to be liable to vat cuton the other hand, total amount of the same amounts will be taken into account and if the limit is exceeded, cut will be practiced.

In order not to be subject to vat cut, there can be more than one invoices issued. If this situation is detected, necessary transactions will be carried out by the tax Office.

Accordingly;
1Amount in the invoice issued according to the service provided monthly in low limit account with vat will be taken into account for the services provided step by step in the taxation period.

2- If an institution provide services in accordance with the public finance management and control law numbered 5018; they will be evaluated for each maintenance period. Maintenance services without periodicity will not be subject to cut if they don’t exceed 1000 TL including vat.

However, if it exceed 1000 TL with vat, it will subject to the cut.


3- If contact is issued for the manufacturing of a specific amount of commodity, service charge with vat amount will be taken into account over the low limit of the cut.

However, if the amount is separated into parts and more than one invoice is issued, it is obvious in the law that necessary transactions will be carried out.

On the other hand, vat calculated on the delivery and services within the scope of limited cut procedure will not subject to cut no matter which situation of the buyers in. (Excluding, the services and the delivery provided by professional sports club)

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