In short
When the employer terminates the employment contract with notice, the notice period and annual leave cannot overlap (Labour Law, Art. 59). According to the Court of Cassation, if they do overlap the notice period is invalid and the employer owes payment in lieu of notice. When an employee resigns with notice, an overlap has been accepted. However the contract ends, unused annual leave days are paid at the final wage.
Key points
- When the employer gives notice, the notice period and job search leave cannot overlap with annual leave (Art. 59).
- If they overlap, the notice period is treated as invalid and the employer owes payment in lieu of notice (Court of Cassation, 7th Civil Chamber, E.2015/39535, K.2016/12040).
- When an employee resigns with notice, the Court of Cassation has accepted that the notice period and annual leave may overlap (9th Civil Chamber, E.2016/25817, K.2020/12037).
- During the notice period the employee gets at least two hours a day of paid job search leave, which they may take in one block (Art. 27).
- Unused annual leave is paid at the basic wage on the date the contract ends; the limitation period is five years (Art. 59, Additional Art. 3).
What is the notice period?
A party wishing to terminate an indefinite employment contract with notice must notify the other party in advance. Notice periods depend on the employee's seniority (Labour Law No. 4857, Art. 17):
| Seniority | Notice period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months – 1.5 years | 4 weeks |
| 1.5 – 3 years | 6 weeks |
| More than 3 years | 8 weeks |
The employer may also terminate immediately by paying the wage for the notice period in advance (Art. 17). This payment is called payment in lieu of notice.
Employer termination: notice period and annual leave
The law is clear: when the employer terminates with notice, the notice periods in Art. 17 and the job search leave in Art. 27 cannot overlap with annual paid leave (Art. 59). Art. 6 of the Annual Paid Leave Regulation repeats the same rule.
The purpose is to let the employee use the notice period to look for a new job, while annual leave is for rest; if both fall on the same days, the employee effectively loses one of the rights.
According to the Court of Cassation, if the notice period and annual leave overlap, it is the notice period, not the leave, that becomes invalid (7th Civil Chamber, E.2015/39535, K.2016/12040). As a result, the employer must also pay the employee in lieu of notice.
In practice the employer's options are:
- If the employee is on annual leave, start the notice period after the leave ends.
- Have the employee take the remaining annual leave before the notice period.
- Pay the notice period in advance, end the contract immediately and pay for unused leave.
When the employee resigns
The situation is different when the employee resigns with notice. The Court of Cassation has accepted that the notice period and annual leave of a resigning employee may overlap (9th Civil Chamber, E.2016/25817, K.2020/12037). So after resigning, the employee may ask to use the remaining annual leave during the notice period; this is possible with the employer's approval.
Job search leave
During the notice period, the employer must give the employee at least two hours a day of paid leave within working hours to look for a new job (Art. 27). If the employee wishes, these hours can be combined and taken in one block, in which case the job search leave falls on the days immediately before the employee leaves. If the employer does not grant job search leave or grants too little, it must pay the wage for that time; if the employee works during this leave, the wage is paid with a 100% premium.
When the employer terminates, job search leave cannot overlap with annual leave either (Art. 59).
Dismissal during annual leave
The law does not expressly prohibit giving notice to an employee who is on annual leave. But because the notice period cannot overlap with annual leave in a termination with notice, a notice given during leave should in practice start running after the leave ends; otherwise the notice period is invalid. If the employer ends the contract immediately by paying in lieu of notice, it must also pay for unused leave days.
In an immediate termination for just cause (Art. 25) there is no notice period; unused leave is still paid.
Pay for unused leave
However the employment contract ends (resignation, dismissal, retirement, death), the employee or their heirs are paid for annual leave days earned but not used, at the wage on the date the contract ends (Art. 59).
- The calculation uses the basic wage; overtime pay, bonuses and social benefits are not included (Regulation, Art. 21; Court of Cassation, 9th Civil Chamber, E.2016/1579, K.2019/7058).
- The limitation period is five years from the date the contract ends (Additional Art. 3).
- Unused annual leave does not expire; all days carried over from earlier years are paid.
We explain how the amount is calculated, with examples, in our guide to holiday pay and payout on termination.
How İzin360 handles it
- Remaining leave is always visible: the employee's entitlement, use and carried-over days for every service year appear in the transaction history; annual leave is never deleted.
- Leave liability: the liability report in the advanced reports shows each employee's remaining leave days and their value at the daily gross wage; because it contains salary data, only the Account Owner and HR Managers can see it.
- Payroll export: leave transactions for the month of departure are included in the payroll file.
Frequently asked questions
Can annual leave be taken during the notice period?
Not when the employer gives notice: the notice period and annual leave cannot overlap (Labour Law, Art. 59); if they do, the notice period is invalid. When the employee resigns with notice, the Court of Cassation has accepted an overlap.
Can I be dismissed while on annual leave?
The law does not prohibit giving notice during leave, but because the notice period cannot overlap with leave it should in practice run after the leave ends. The employer may end the contract immediately by paying in lieu of notice; unused leave is paid separately.
What happens to my remaining leave if I resign?
Unused annual leave is paid at the wage on the date the contract ends (Art. 59). By agreement with the employer, it is also possible to use the remaining leave during the notice period.
How many hours of job search leave are there?
At least two hours a day within working hours during the notice period, and it is paid (Art. 27). The employee may combine these hours and take them in one block.
Legal basis
- Labour Law No. 4857, Arts. 17, 25, 27, 59, Additional Art. 3
- Annual Paid Leave Regulation, Arts. 6, 21
- Court of Cassation, 7th Civil Chamber, E.2015/39535, K.2016/12040
- Court of Cassation, 9th Civil Chamber, E.2016/25817, K.2020/12037
- Court of Cassation, 9th Civil Chamber, E.2016/1579, K.2019/7058