Dear HR colleagues, welcome to the Global Workforce Reduction Handbook series. Today, we will delve into the beautiful and prosperous country of Turkey. What are the specificities and challenges of downsizing in this charming nation? Let’s find out together.
I. Overview of Downsizing Regulations in Turkey
In recent years, with Chinese companies continuously expanding into overseas markets, Turkey has become a focal point of attention. In Turkey, downsizing must be carried out in accordance with relevant regulations, primarily including the Labor Law and the Employment Contract Law. The Labor Law is the most important labor regulation in Turkey, specifying the procedures and standards that employers must follow when downsizing, including advance notice periods, payment of severance pay, etc. According to this law, companies must notify employees at least one month in advance, unless the company is bankrupt or undergoing liquidation. During this period, the company must negotiate with employees to find reasonable solutions.
The Employment Contract Law is also an important regulation to consider during downsizing. It specifies the rights and obligations between employers and employees, including the signing of employment contracts, working conditions, wage payments, etc. During downsizing, the company must comply with the labor contracts signed with employees and pay them the compensation due according to the contracts.
Additionally, Turkey has other regulations related to downsizing, such as the Social Security Law, which provide provisions for specific issues during the downsizing process, such as employee social security issues, pension issues, etc.
II. Detailed Explanation of Downsizing Procedures
When conducting downsizing in Turkey, companies must follow the following steps:
Advance Notice: According to the Labor Law, companies must notify employees at least one month in advance, unless the company is bankrupt or undergoing liquidation. During this period, the company must negotiate with employees to find reasonable solutions.
Downsizing Meetings: Within the notice period, the company should hold meetings with the affected employees to explain the reasons for downsizing and pay severance pay based on employees’ length of service and performance. During the meetings, the company should explain the reasons for downsizing to employees and pay them the appropriate severance pay based on their length of service and performance. Additionally, the company should provide detailed information on benefits issues, such as unpaid wages and other benefits, during the meetings.
Departure Procedures: Upon the departure of employees, the company must complete all departure procedures, including payment of unpaid wages and other benefits. Departure procedures should be conducted in accordance with relevant regulations, such as the Social Security Law, etc.
III. Risk Mitigation During Downsizing
When conducting downsizing in Turkey, companies must be mindful of mitigating the following risks:
Legality: Companies must ensure compliance with laws and regulations during downsizing, or they may face legal consequences such as fines, compensation, etc. For example, failure to notify employees one month in advance or failure to pay severance pay according to the contract may violate relevant regulations.
Public Relations Crisis: Unfair downsizing may lead to public resentment towards the company, or even boycott activities. If a company triggers a public relations crisis due to downsizing, it will severely affect the company’s image and business.
Talent Drain: Excessive downsizing may lead to talent drain, affecting the company’s long-term development. If a company frequently downsizes due to economic reasons or other reasons, it may lead to talent drain, affecting the company’s business and development.
IV. Case Analysis – Successful and Failed Downsizing Cases
To better understand the regulations and procedures for downsizing in Turkey, let’s look at two cases.
Successful Case: A technology company, when downsizing, notified employees in advance, paid reasonable severance pay based on employees’ length of service and performance, and actively communicated with employees, effectively alleviating labor disputes and maintaining the company’s image. This case demonstrates that if a company follows relevant regulations and procedures and engages in active communication with employees during downsizing, it can effectively alleviate labor disputes and maintain the company’s image.
Failed Case: A large retailer, when downsizing, failed to notify employees in advance and did not pay severance pay based on employees’ length of service and performance. This action caused strong dissatisfaction among employees, leading to a public relations crisis and talent drain. This case illustrates that if a company violates relevant regulations and procedures during downsizing, it may trigger dissatisfaction and resistance from employees, leading to a public relations crisis and talent drain.
V. Conclusion and Recommendations
When conducting downsizing in Turkey, companies must fully understand local laws and regulations to ensure the legality and fairness of the downsizing process. At the same time, companies should pay attention to employee relations management, try to avoid triggering public relations crises and talent drain due to downsizing. To help companies successfully downsize in Turkey, we offer the following recommendations:
Be Prepared: Understand Turkish downsizing regulations and procedures in advance to ensure compliance with all laws and regulations during the downsizing process.
Fairness: Maintain fairness throughout the downsizing process and avoid downsizing based on any illegal factors.
Advance Communication: Communicate with employees in advance, explain the reasons for downsizing, and provide reasonable solutions whenever possible.
Legal Compliance: Ensure that all steps of the downsizing process comply with Turkish laws and regulations to avoid legal risks. For example, notify employees at least one month in advance according to the Labor Law, and pay severance pay according to the contract or relevant regulations.
Image Maintenance: Pay attention to maintaining the company’s image during the downsizing process, try to avoid triggering public relations crises and talent drain. The company’s image is also crucial during downsizing. If the company can handle downsizing in a responsible and fair manner, it will help maintain the company’s reputation and image, avoid triggering public relations crises. Additionally, the company should provide necessary support and resources to help downsized employees transition smoothly, minimize the impact on their lives and careers, and mitigate the risk of talent drain.
VI. Conclusion
In today’s globalization, expanding overseas has become an important way to expand business for companies. However, regulations and procedures for downsizing vary from country to country, as do the risks and challenges. Therefore, when conducting downsizing in Turkey, companies must have a deep understanding of local laws and regulations, follow relevant regulations, and ensure the legality and fairness of the downsizing process. At the same time, companies should also pay attention to employee relations management and maintaining the company’s image to avoid triggering public relations crises and talent drain due to downsizing. Only in this way can companies successfully downsize in Turkey and ensure the steady development of their business.
