Just cause termination in disciplinary investigations under Turkish law

Heightened regulatory expectations and evolving corporate governance standards have placed internal investigations at the centre of corporate compliance frameworks. As these investigations increasingly lead to disciplinary actions, employers must carefully manage the legal consequences of their findings, when particularly considering termination for just cause.

Under Turkish law, termination for just cause constitutes the most severe disciplinary measure available to employers. It entails immediate termination without notice and deprives the employee of severance entitlements. Pursuant to the Turkish Labour Code (“TLC”), just cause grounds include, inter alia, conduct contrary to good faith and loyalty. While the statutory grounds are expressly listed, the assessment of whether a particular act constitutes just cause ultimately depends on the specific circumstances of the case and the established jurisprudence of Turkish courts. Given the significant consequences of such terminations, Turkish courts apply strict scrutiny to such dismissals. Accordingly, employers must carefully consider several key legal factors when exercising the right to terminate for just cause.

1. Statutory time limits and the role of the investigation report

The right to terminate for just cause based on conduct contrary to the principles of good faith and morality must be exercised within six-business-days from the date on which the employer becomes aware of the act giving rise to the termination. In any event, this right cannot be exercised later than one year from the date on which the act occurred. If the employer fails to comply with these statutory time limits, the termination cannot be based on just cause, regardless of the severity of the misconduct.

In the context of internal investigations, the six-business-day period is considered to begin when the person or body authorised to terminate (e.g., board, disciplinary committee) becomes aware of the facts establishing the violation. Where a formal investigation report is prepared, the period commences upon the report’s receipt by the competent authority. Accordingly, the timing of the report’s submission constitutes a legally relevant milestone, and coordination between the investigation team and the decision-making authority is, essential to preserve the employer’s right to terminate for just cause.

2. The role of internal disciplinary policies

Employers frequently adopt internal disciplinary policies that introduce procedural safeguards exceeding the minimum requirements of the TLC, such as mandatory disciplinary committee review, formal hearings, prior written defence requests, or multi-level approval mechanisms. While such frameworks reflect a best-practice approach, they become legally binding once implemented.

A termination carried out in breach of the employer’s established disciplinary procedures may be considered procedurally flawed and, depending on the circumstances, invalid or unjustified. Accordingly, employers should carefully review the applicable internal policies and ensure strict adherence to any procedural steps they have voluntarily undertaken.

In addition, designating certain conduct in an internal policy as “grounds for immediate termination” does not elevate that conduct to the legal threshold required for termination for just cause under applicable law. Whether an act constitutes just cause remains subject to statutory interpretation and established jurisprudence of the courts. Internal policies must therefore be applied in alignment with statutory standards and assessed on a case-by-case basis.

Conclusion

Termination for just cause remains a powerful, but strictly regulated remedy under Turkish law, requiring timely action, proper documentation and full compliance with statutory and internal procedural requirements to remain legally sustainable.

First published in the Edition 10, No. 2 of LIR Türkiye.