Work Permit Cancellation and End of Employment Contract

For a foreign employee working in Turkey, the work permit is an integral part of their legal status. The work permit:

• Provides the legal basis for the foreigner's employment in Turkey,
• Also serves as a residence permit,
• Is tied to the employment relationship.

Cancellation of a work permit directly affects the employment relationship and places both the employee and the employer under immediate legal obligations. This guide examines how labour law applies in cases of work permit cancellation and the rights of each party.

Reasons for Work Permit Cancellation

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

1. End of the Employment Relationship

Termination of the employment contract for any reason results in the work permit becoming void.

2. Employer's Failure to Meet the Notification Obligation

The employer has an obligation to notify the Ministry when dismissing a foreign employee holding a work permit. Failure to notify constitutes a violation.

3. False Declaration or Document

Where a false document or a misleading declaration made in the work permit application is detected, the permit is cancelled.

4. The Foreigner's Non-Compliance with Permit Conditions

Working in a role different from the one for which the permit was issued, working outside the authorised activity area, or working for another company constitutes an unauthorised practice.

5. Deportation or Public Order Grounds

A decision being issued for the foreigner's deportation, or an assessment that the foreigner poses a threat to public order or security.

6. Failure to Apply for Renewal

Where a renewal application is not submitted before the permit's expiry, the permit lapses.

Consequences for the Employment Relationship

When a work permit is cancelled:

• The foreign employee becomes legally unable to work,
• The employer cannot continue to employ that employee,
• If employment continues, severe administrative sanctions arise for both the employer and the foreign employee.

In this situation, how the employment contract is terminated and how rights and obligations are allocated between the parties becomes critically important.

The Employer's Claim of Justified Grounds

A work permit cancellation may provide the employer with a basis for termination on justified grounds. However, this is not straightforward:

• The employer must prove that the unauthorised status arose from culpable conduct on the employee's part,
• If the unauthorised situation arose from the employer's own negligence or through the employer's own actions, justified grounds cannot be invoked against the employee,
• When the matter is taken to court, the concrete documents on file are carefully evaluated.

The reasons behind the work permit cancellation are therefore critical: why was the permit cancelled, and who bears responsibility?

The Employee's Compensation Entitlements

Where the employment contract ends as a result of a work permit cancellation, the employee's compensation entitlements must be protected:

1. Severance Pay

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

• If the permit cancellation did not arise from the employee's own fault, they are entitled to severance pay,
• If the permit cancellation resulted from the employee's own fault, the right to severance is debatable.

2. Notice Pay

Whether a work permit cancellation gives rise to notice pay depends on the specific circumstances:

• Where the cancellation was expected or foreseeable, the employer's notification obligation applies,
• An unforeseen deportation or security-related cancellation may have the character of a force majeure event.

3. Other Entitlements

• Pay for unused annual leave days,
• Any unpaid wages,
• Overtime pay,
• Contractual additional payments such as bonuses and premiums.

These items must be paid in any case; a work permit cancellation does not extinguish these entitlements.

Obligations and Risks for the Employer

The employer's obligations in connection with a work permit cancellation include:

1. SGK Exit

The employee's social insurance exit must be processed and notification submitted on time.

2. Ministry Notification

The Ministry must be notified of the end of the foreign employee's employment contract.

3. Payment of All Earned Compensation

The permit cancellation process is no obstacle to paying earned entitlements in full.

4. Supporting the Foreigner's Continuation in Turkey

While not a legal obligation, in some cases employers assist the foreign employee in finding a new job or provide a supporting reference for a new permit application.

5. Risk: Unauthorised Employment

Continuing to employ a foreigner after their work permit is cancelled creates a very heavy administrative fine. Employers must exercise strict care on this point.

Maintaining the Foreigner's Status in Turkey

Options for a foreigner whose work permit has been cancelled who wishes to continue living lawfully in Turkey include:

1. Finding a New Employer and Applying for a New Work Permit

When new employment is found, a new work permit application is filed. The prior permit cancellation does not adversely affect a new application (provided the cancellation did not arise from the employee's own fault).

2. Short-Term Residence Permit

Through property ownership in Turkey, a commercial connection, or similar qualifying grounds, the foreigner may transition to a short-term residence permit; however, this permit does not grant the right to work.

3. Family Residence Permit

Transition to a family residence permit is possible if a Turkish-citizen spouse or qualifying family member exists.

4. Independent Work Permit

A foreigner who meets the professional qualification and capital requirements may transition to self-employment by establishing their own company.

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

Legal Routes: Objecting to the Permit Cancellation

A work permit cancellation decision:

• Can be challenged by filing a cancellation lawsuit at the Administrative Court within the period prescribed by administrative procedure rules,
• A stay of execution can be requested,
• It can be argued that the reason for cancellation is not supported by concrete evidence.

The judicial process can take months; during this period, additional measures to secure the foreign employee's status in Turkey should be considered in parallel.

Compensation Lawsuit at the Labour Court

Where the employer fails to pay compensation following a work permit cancellation, the employee can file a claim at the labour court:

• Mediation is prioritised as the mandatory first step,
• If no settlement is reached, a claim is then filed at the labour court,
• The trial proceeds with witness and expert evidence,
• After judgment, collection is pursued through enforcement proceedings.

The fact that the foreign employee is outside Turkey does not prevent the claim from being brought; the process can be conducted through a lawyer holding a power of attorney.

Frequently Encountered Scenarios

Scenario 1: Employer Failed to Renew the Permit

The permit expired because the employer did not file the renewal application. In this case:

• The failure to apply in time is treated as the employer's negligence,
• The employee is entitled to severance pay and notice pay,
• The foreign employee was also in an undocumented status in Turkey during the lapsed period.

Scenario 2: Foreign Employee Engaged in Unauthorised Activity

The employee's permit was cancelled because they undertook additional work in a field not covered by the permit. In this case:

• The employer may be able to terminate the contract on justified grounds,
• The employee cannot claim severance pay,
• Whether notice pay is owed is debated on the specific facts.

Scenario 3: Permit Cancellation Due to Deportation

The foreign employee's work permit was cancelled following a deportation decision:

• The employment relationship ends in the nature of a force majeure event,
• Earned compensation entitlements must generally still be paid,
• An application to the judicial route to challenge the deportation order is a separate additional front.

Legal Support

In Antalya, for work permit cancellation processes, MONA HUKUK provides legal support to both foreign employees and employers. Whether you need a cancellation lawsuit at the Administrative Court, a compensation claim at the labour court, or coordination of a new permit application for the foreign employee, 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.