How notice and severance pay are calculated in North Cyprus
This guide summarises the notice period, severance pay and unfair dismissal compensation that arise when an employment contract ends in the Turkish Republic of Northern Cyprus. The rules are based on Labour Law 22/1992. The North Cyprus scheme is week based and differs from the one month per year model used in Turkey.
Notice periods
When either the employer or the employee ends the relationship, advance notice must be given based on length of service.
| Length of service | Notice period |
|---|---|
| Up to 6 months | 1 week |
| 6 months to 1 year | 3 weeks |
| 1 to 2 years | 4 weeks |
| 2 to 5 years | 5 weeks |
| More than 5 years | 6 weeks |
If notice is not given, wages for the relevant period are paid instead.
Severance pay
When a contract is ended for economic, structural or redundancy reasons, severance pay arises according to length of service.
| Length of service | Compensation |
|---|---|
| 3 to 6 months | 1 week's wage |
| 6 months to 1 year | 2 weeks' wage |
| 1 to 2 years | 3 weeks' wage |
| 2 to 5 years | 4 weeks' wage |
| 5 years and over | 5 weeks' wage |
Unfair dismissal
If a contract is ended unlawfully, the Labour Law provides compensation of three times the wage for the notice period.
Relationship to the Provident Fund
An employee who leaves may also be entitled to their Provident Fund savings. The Provident Fund works as a separate end of service fund and provides a capital payment alongside statutory compensation. The two entitlements do not replace one another.
The key difference from Turkey
This distinction is one of the most common errors for employers who operate in North Cyprus but take Turkey's practice as a reference.
Example
If a three year employee's contract is ended for redundancy: the notice period is 5 weeks and the severance pay is 4 weeks' wage. The net amount is calculated on the employee's weekly wage. The wage calculation should also take income tax and insurance deductions into account.
Frequently asked questions
How long is the notice period?
It ranges from 1 to 6 weeks depending on length of service.
Who is entitled to severance pay?
Employees dismissed for economic or structural reasons with at least 3 months' service are entitled to between 1 and 5 weeks' wage according to service length.
What is the compensation for unfair dismissal?
The Labour Law provides compensation of three times the wage for the notice period.
Sources
This article is for general information; periods and amounts can change with legislation. Contact us for a specific termination calculation.