Work Permit Cancellation and End of Employment Contract

For a foreign employee employed in Turkey, the work permit is an integral part of their status. Work permit:

• Provides foreigner's legal work in Turkey,
• Functions as residence permit status,
• Is tied to employment relationship.

Cancellation of work permit directly affects employment relationship and faces both employee and employer with legal obligations. This guide examines how labour law applies in case of work permit cancellation and parties' rights.

Reasons for Work Permit Cancellation

Ministry of Labour and Social Security may cancel work permit for following main reasons:

1. End of Employment Relationship

Termination of employment contract for any reason leads to ending of work permit.

2. Employer's Non-Compliance with Notification Obligation

Employer has obligation to notify Ministry when dismissing foreign employee with work permit. Non-notification constitutes violation.

3. False Declaration or Document

When false document or misleading declaration in work permit application is detected, permit is cancelled.

4. Foreigner's Non-Compliance with Permit Conditions

Working outside job description for which permit was given, going outside activity area, or working at another company is unauthorised practice.

5. Deportation or Public Order Reason

Decision being made for foreigner's deportation, assessment of constituting threat to public order or security.

6. Failure to File Renewal Application

When renewal application is not made close to period expiration, permit ends.

Natural Consequences for Employment Relationship

When work permit is cancelled:

• Foreign employee becomes legally unable to work,
• Employer cannot continue to employ this employee,
• If continued, heavy administrative sanctions arise for both employer and foreign employee.

In this case, how employment contract is terminated and sharing of rights and obligations becomes important.

Employer's Justified Reason Claim

Work permit cancellation may be reason allowing employer to make justified-reason termination. However, this is not simple matter:

• Employer must prove that being unauthorised arises from culpable behaviour from employee's side,
• If unauthorised state arose from employer's negligence or on own application, justified reason cannot be claimed against employee,
• When practice is taken to court, concrete documents are evaluated.

Therefore, reasons of work permit cancellation process are critical: why was permit cancelled, who is responsible?

Rights Losses for Employee

In situation where employment contract ends with work permit cancellation, employee's rights losses must be limited:

1. Severance Pay

If foreign employee's employment contract ends due to permit cancellation:

• If permit cancellation doesn't arise from employee, earns severance pay,
• If permit cancellation results from employee's fault, severance right is debatable.

2. Notice Pay

Whether work permit cancellation gives rise to notice pay in employment relationship depends on concrete situation:

• Employer's notification obligation exists for expected or foreseeable permit cancellation,
• Unforeseen deportation or security-reason cancellations may be force majeure nature.

3. Other Rights and Receivables

• Unused annual leave pay,
• Unpaid wage,
• Overtime receivables,
• Contractual additional payments like premium, bonus.

These items must be paid in any case; work permit cancellation does not eliminate these rights.

Obligations and Risks for Employer

Employer's obligations regarding work permit cancellation:

1. SGK Exit

Employee's SGK exit transaction must be conducted, notification submitted on time.

2. Ministry Notification

Ministry must be notified of foreign employee's employment contract ending.

3. Payment of All Earned Compensations

Permit cancellation process is no obstacle to paying earned receivables.

4. Support for Foreigner's Continuation in Turkey

While not employer's legal obligation, in some situations employers help foreign employee in finding new job, give reference for permit, etc.

5. Risk: Unauthorised Employment

Continuing to employ foreigner after work permit cancellation creates very heavy administrative fine. Employers must be careful on this matter.

Maintaining Foreigner's Status in Turkey

Options for foreigner whose work permit is cancelled to continue legally staying in Turkey:

1. Finding New Employer and Work Permit Application

When new job is found, new work permit application is filed. Old permit cancellation reason doesn't adversely affect new application (if cancellation doesn't arise from employee).

2. Short-Term Residence Permit

Through real estate ownership in Turkey, commercial connection, or similar reasons, can transition to short-term residence permit; however, this permit doesn't grant work right.

3. Family Residence Permit

Transition to family residence permit if Turkish-citizen spouse or family member exists.

4. Independent Work Permit

Foreigner meeting professional qualification and capital conditions can transition to independent work by establishing own company.

Period management is critical; immediately alternative permit application must be initiated after permit cancellation.

Legal Routes: Objection to Permit Cancellation

Work permit cancellation decision:

• Can be objected by filing cancellation lawsuit at Administrative Court within period prescribed in administrative procedure rules,
• Stay of execution can be requested,
• It can be defended that reason isn't supported by concrete evidence.

Judicial process can take months; during this period, additional measures should be considered for foreign employee's status in Turkey.

Compensation Lawsuit at Labour Court

When employer doesn't pay compensations during work permit cancellation, employee can file lawsuit at labour court:

• Mediation prioritised,
• Then filing lawsuit,
• Trial using witness and expert evidence,
• Collection by enforcement proceeding after decision.

Foreign employee being outside Turkey doesn't prevent lawsuit; process can be conducted via proxy.

Frequently Encountered Scenarios

Scenario 1: Employer Didn't Renew Permit

Permit ended because renewal application wasn't made by employer. In this case:

• Untimely application is considered employer's negligence,
• Employee earns severance and notice pay,
• Foreign employee remained undocumented in Turkey during this period.

Scenario 2: Foreign Employee Engaged in Unauthorised Activity

Employee's permit was cancelled because they did additional work in area not granted. In this case:

• Employer's terminating employment contract on justified reason can be accepted,
• Employee cannot claim severance,
• Notice pay is debated by situation.

Scenario 3: Permit Cancellation Due to Deportation

Foreign employee's work permit was cancelled due to deportation:

• Employment relationship ends in force-majeure nature,
• Earned compensations must be paid as a rule,
• Application to judicial route against deportation order is additional front.

Legal Support

In Antalya, in work permit cancellation processes, MONA HUKUK provides legal support to both foreign employees and employers. For cancellation lawsuit at Administrative Court, compensation lawsuit at labour court, and coordination of foreign employee's new permit application processes, our professional team is at your side.

Contact us at contact@monahukuk.com or call +90 (242) 606 14 32 to schedule a consultation in Antalya.