- Statutory Basis of the Obligation to Pay Wages in Advance Prior to Annual Leave
For the purpose of enabling employees to enjoy their annual leave without financial concern, Article 57 of the Turkish Labor Law No. 4857 provides that wages corresponding to the leave period must be paid prior to the commencement of such leave. Said provision stipulates as follows:
“The employer shall be obliged to pay, in advance or as an advance payment, the wage corresponding to the annual paid leave period to any employee taking annual paid leave before the employee commences such leave.”
Pursuant to this statutory obligation imposed on employers, the wage corresponding to the number of annual leave days planned to be used by the employee must be paid to the employee in advance or as an advance payment prior to the commencement of the leave. In this respect, whether or not the employee demands payment of the annual leave wage in advance is immaterial, as such payment constitutes a mandatory legal obligation.
- Practical and Interpretative Issues Concerning Short-Term Annual Leave
As the Law does not provide for any differentiation or distinction based on the duration of the annual leave with regard to the obligation to make an advance payment, uncertainty arises in practice as to whether advance payment is also required for short-term annual leave, such as leave of one or two days. In inspections conducted by labor inspectors, a literal interpretation of the statutory provision generally prevails, and the dominant view is that advance payment is required even for short-term annual leave.
Should the employer fail to pay the wage corresponding to the annual leave period to the employee in advance or as an advance payment prior to the commencement of the leave, the employer may be subject to an administrative monetary fine pursuant to Article 103 of Law No. 4857. Furthermore, pursuant to Article 24/II(e) of the same Law, the employer’s failure to duly perform its wage payment obligation may entitle the employee to terminate the employment contract with just cause.
- Conclusion
Pursuant to Article 57 of the Turkish Labor Law No. 4857, employers are under a statutory obligation to pay the wage corresponding to the annual paid leave period to employees in advance or as an advance payment prior to the commencement of such leave. This obligation is not contingent upon the employee’s request but arises directly from the law. However, as the Law does not specify whether this obligation varies depending on the duration of the leave, uncertainties persist in practice as to whether payment is required for short-term annual leave of one or two days. In this regard, labor inspectors generally adopt a literal interpretation and maintain that advance payment is required even for short-term leave.
Failure to comply with this obligation exposes the employer to the risk of an administrative monetary fine pursuant to Article 103 of Law No. 4857, and may also give rise to the employee’s right to terminate the employment contract with just cause under Article 24/II(e).
By way of example, in its decision dated 10 March 2025 and numbered E. 2025/2024, K. 2025/2487, the 9th Civil Chamber of the Court of Cassation held that:
“Article 24/II(e) of Law No. 4857 provides that the employer’s failure to pay the employee’s wage in accordance with statutory provisions, and Article 24/II(f) provides that the non-application of working conditions, constitute just cause for termination. Accordingly, a termination effected on the grounds that the wage corresponding to the annual leave period was not paid in advance by the employer prior to the employee’s commencement of annual leave is based on just cause.”.
Attorney At Law Berfin Naz Ayduk