1. Legal Definition and Statutory Basis of Collective Dismissals
In modern labor relations, economic volatility, sector-specific contractions, and organizational restructuring frequently compel employers to resort to large-scale terminations. This phenomenon, legally referred to as collective dismissal, is defined in Turkish labor legislation as the termination of employment contracts of a significant number of employees within a specified timeframe, either simultaneously or successively.
Pursuant to Article 29 of the Turkish Labor Law No. 4857, titled “Collective Dismissal”, an employer intending to implement dismissals on economic, technological, structural, or similar operational grounds is legally obligated to: “…notify in writing at least thirty days in advance the workplace union representatives, the competent regional labor authority, and the Turkish Employment Agency” Collective dismissals, often employed by employers seeking cost reduction or operational efficiency, are not merely managerial decisions but constitute legal acts that give rise to procedural obligations and substantive scrutiny. Judicial precedents established by the Turkish Court of Cassation consistently emphasize that general economic justifications are insufficient; employers must provide specific, verifiable, and documented grounds for such dismissals.
2. Legal Prerequisites for Lawful Collective Dismissal
In order for a collective dismissal to be considered lawful under Turkish law, the following statutory conditions must be satisfied:
- Numerical Thresholds Based on Workforce Size
A dismissal qualifies as collective if, within a 30-day period:
- In workplaces with 20 to 100 employees, at least 10 are dismissed;
- In workplaces with 101 to 300 employees, at least 10% of the workforce is dismissed;
- In workplaces with more than 300 employees, at least 30 are dismissed.
- Legitimate Grounds for Termination
Dismissals must be based on operational requirements of the enterprise (economic, technological, or structural), not on individual performance or disciplinary issues. These grounds must be substantiated with documentary evidence.
- Mandatory Written Notifications
At least 30 days before implementation, the employer is required to notify in writing:
- The Turkish Employment Agency,
- The authorized trade union representatives (if any),
- The relevant regional labor directorate.
Notifications must include the number of employees affected, the reasons for termination, and the projected termination dates.
- Consultation with Union Representatives
In unionized workplaces, prior consultation with authorized union representatives is mandatory. The content and outcome of such consultations must be documented in writing to ensure legal compliance.
3. The Role of Mediation in Post-Dismissal Dispute Management
Failure to comply with procedural requirements or mere formalistic adherence thereto often results in unfavorable judicial outcomes for employers. The Court of Cassation has held that reliance on broad economic reasoning, absent concrete evidence, renders terminations invalid.
In this context, mediation emerges as a viable and pragmatic alternative dispute resolution (ADR) mechanism. Although Law No. 7036 on Labor Courts mandates mediation for individual employment disputes (e.g., reinstatement, wage claims), there is currently no statutory framework governing collective mediation processes in the context of mass dismissals.
Nevertheless, mediation serves not only as a dispute resolution mechanism but also as a preventive tool, facilitating dialogue and mutual understanding between employers and employees. Participation is voluntary and protected by the principle of confidentiality, fostering a candid negotiation environment.
4. Strategic Advantages of Mediation for Stakeholders
From the employer’s perspective, initiating voluntary or compulsory mediation before or shortly after the commencement of the dismissal process reflects a proactive and good-faith approach. Engaging with affected employees or their representatives in mediated dialogue may prevent litigation and promote organizational harmony.
For employees, collective dismissals often entail more than job loss. The process can generate legal uncertainty, psychological distress, and a loss of trust. Mediation allows employees to better understand their statutory rights, explore compensatory options, and participate in decision-making, thereby restoring a degree of balance to an otherwise asymmetrical power dynamic.
5. Conclusion
Collective dismissal is not merely a procedural or managerial act, but a multifaceted legal event with profound consequences for both internal workplace dynamics and the employer’s external reputation. While not explicitly codified in collective labor law, mediation mechanisms offer significant potential to safeguard industrial peace, minimize litigation risks, and serve as an effective platform for equitable conflict resolution in the aftermath of mass layoffs.
Given the current absence of a structured legal regime for collective mediation, legislative efforts aimed at institutionalizing such processes would contribute significantly to the efficiency, fairness, and sustainability of labor relations in Turkey.
Attorney At Law Zeliha Nur Yıldırım