1. Overview of the Regulation

The Ministry of Labour and Social Security has published the Regulation on the Procedures and Principles of Short-Time Work and Short-Time Work Allowance (the “Regulation”) in the Official Gazette dated June 11, 2024, and numbered 32573. The Regulation has been enacted retroactively as of March 1, 2024, thereby repealing the Regulation on Short-Time Work and Short-Time Work Allowance published in the Official Gazette dated April 30, 2011, and numbered 27920 (the “Previous Regulation”). This Regulation introduces significant amendments to short-time work practices, providing more detailed arrangements for employers and insured employees.

2. Key Amendments

The Regulation introduces several key changes to short-time work practices. Below are the main amendments:

• Effective Date of Short-Time Work

The Regulation stipulates that the provisions of the Previous Regulation will remain applicable to insured employees for whom short-time work commenced prior to March 1, 2024. Moreover, for short-time work initiated before this date, if the employer fails to notify İŞKUR that insured employees were not actually engaged in short-time work, no payments will be made, and entitlement to the short-time work allowance will be revoked.

• New Grounds for Short-Time Work

The Regulation expands the grounds for short-time work to include “sectoral crisis,” “regional crisis,” and “general pandemic,” which are all explicitly defined in the section Definitions.

• Applications for Short-Time Work

Employers submitting short-time work applications must now include a list of insured employees specifying their names, the duration of short-time work, and the relevant periods. Additionally, where multiple applications are made based on the same grounds, the total duration of short-time work cannot exceed three months, calculated from the date of the first application. The duration of short-time work cannot be less than four weeks.

• Employers’ Notification Obligations

Under the Regulation, employers must submit more detailed information regarding the working hours of insured employees listed in the short-time work application form. Furthermore, the authorities responsible for determining the suitability of short-time work applications and the process for such assessments are explicitly regulated.

3. Eligibility Criteria and Calculation of Short-Time Work Allowance

To qualify for the short-time work allowance, insured employees must have been subject to an employment contract for at least the 120 days immediately preceding the commencement of short-time work and must have worked a minimum of 450 days under an insurance scheme within the last three years. The calculation method for the allowance, previously based on 60% of the insured employee’s gross earnings over the last 12 months, has been revised.

• Calculation of Short-Time Work Allowance

The short-time work allowance will be calculated as 60% of the insured employee’s gross earnings over the last 12 months and capped at 150% of the gross minimum wage. Weekly rest day and public holiday payments will be shared between the employer and İŞKUR. The allowance will only be subject to stamp duty and will now be paid on the fifth day of each month, rather than the last day.

• Suspension of Short-Time Work Allowance

The Regulation introduces new provisions for suspending the short-time work allowance. If inspectors identify inaccuracies in employers’ reports regarding the working hours of insured employees, the allowance will be suspended. Additionally, termination, transfer, or suspension of the employment contract during short-time work will result in suspension. Employers are obligated to notify İŞKUR of these changes.

4. Employers’ Record-Keeping and Early Termination Notifications

Employers must record the working hours of insured employees during the short-time work period and present these records upon request. If short-time work concludes earlier than scheduled, employers are required to notify İŞKUR at least six business days in advance. Failure to comply will result in the recovery of undue payments from the employer.

• New Arrangements for Termination and Suspension

The Regulation elaborates on the circumstances leading to the cessation and suspension of the short-time work allowance. If the employment contract of an insured employee subject to short-time work is terminated, transferred to another workplace, or suspended, the allowance will cease. Furthermore, if the insured employee is issued a temporary incapacity report, the allowance will be suspended from the date the report takes effect.