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Law No. 7244

Law No. 7244 came into force on date 16.04.2020. Many Laws have been amended by the Law No. 7244. The amendments are as follows.

A. New Features Introduced to the Unemployment Insurance Law

  • A daily cash wage support amount of 39.24 Turkish lira from the Unemployment Insurance Fund will be granted to the workers who have had an employment contract since 17.04.2020, who have been made to go on unpaid leave by the employer and cannot benefit from the short-time working allowance as well as to those whose employment contract has been terminated after 15.03.2020 and who cannot benefit from the unemployment allowance as long as the period they are on unpaid leave or during the time they remain unemployed provided that they do not receive any retirement pension-pay from any social security institution.     
  • In the event that it is detected that the worker who benefits from cash wage support upon going unpaid leave is actually employed, the employer will be charged with an employment and administrative fine by the Provincial Directorates of the Employment Agency in the amount of a monthly gross minimum wage.  The paid cash wage support will be collected from the employer together with the legal interest to accrue from the date of payment.
  • In the case employees go on unpaid leave, no wage is paid to their side, the statement made to the SSI will be 0 (zero) since the employment contract is suspended and the reason showed for missing days is notified with the code "21-Other Unpaid Leave" and therefore no insurance premium is incurred by the employer.

B. New Features Introduced to the Labor Law

  • No employment or service contracts may be terminated by the employer as of 17.04.2020, except for the situations that do not comply with the rules of ethics and goodwill and for similar reasons.
  • As of 17.04.2020, the employer can have the employee to go on complete or partial unpaid leave provided that it does not exceed a period of three months. Going unpaid leave will not entitle the employer with the right to terminate the employment contract on the basis of a justified reason.
  • The employer or employer's representative who terminates the employment contract in violation of the law will be charged with an administrative fine at the monthly gross minimum wage amount on the date the action was committed for each employee whose contract has been terminated.

C. New Features Introduced to the Commercial Code

  • Until the date 30.09.2020, only 25% of the net profit for the year 2019 can be resolved to be distributed in stock corporations whereas the previous year profits and free legal reserves may not be subject to any distribution. The General Assembly cannot authorize the Board of Directors to distribute dividend advances. However, this issue shall not apply to companies whose capital more than 50% is directly or indirectly owned by the State, provincial special administration, the municipality, village and other public legal entities and the funds whose capital more than 50% is owned by the state. 
  • If a decision has been resolved by the General Assembly for the distribution of dividends for the fiscal year 2019, but if no payment  or a partial payment has been effected to shareholders, the payments for the part exceeding 25% of the net profit of 2019 will be postponed until the end of 30.09.2020.

D. Postponing, not Receiving and Structuring Some of the Receivables

As of 01.04.2020, the collection of the following receivables, which are to be collected for the quarterly period, has been postponed for a period of 3 months without the seeking for an application.

  • The fees to be paid in accordance with the contract in relation to the immovable property of Treasury as well as the adequate pay values,
  • The permits granted on behalf of real persons and private legal entities in the state forests and promenade spaces and immovables rented out, except for the permits granted for tourism facility purposes,
  • Leases made in places which are subject to the National Parks Law,
  • The parts corresponding to the quarterly period as of 19.03.2020 of the values or amounts arising from the sales, adequate pay and leasing related to the immovable property owned by or disposed of by the metropolitan municipalities, municipalities, special provincial administrations and subsidiaries and the local administration unions of which they are members.
  • Among the income tax stoppage statement and payment periods and all social insurance premium payments of the metropolitan municipalities, municipalities and their subsidiaries as well as the annual installment payments effected to the Directorate General of State Hydraulic Works, the ones required to be collected in relation to the quarterly period as of 17.04.2020.
  • The receivables of metropolitan municipalities, municipalities and their subsidiaries in relation to water consumption of the housings and workplaces whose activities have been suspended or that cannot operate may be postponed for 3 months by the city council limited to those which are required to be collected for the quarterly period as of 17.04.2020. These periods can be extended by the city council up to 3 months as of the expiration of the date. 
  • Metropolitan municipalities and municipalities may make an income support payment to real persons and legal entities who work by means of obtaining license or permits or by leasing a line from its side for a period of 3 months as of 17.04.2020 in a manner to be limited to carry out uninterrupted public transport services.  License, permit, line rental debts corresponding to the determined period can be postponed for 3 months without the accrual of any interest.
  • The portion of the annual announcement and advertisement taxes and annual environmental cleaning taxes of companies whose activities have been suspended or which are not able to operate will not be collected for the suspension or no-operation periods.
  • As of 17.04.2020, the collection of the credit debts within the scope of the Law on Higher Education Credit and Hostels Services will be postponed for a period of 3 months limited to those which are to be collected for the quarterly period.
  • The debt installment payment for the year 2020, arising from the Support and Price Stabilization Fund, which is restructured and paid by the Agricultural Sales Cooperative Unions once in a year has been postponed to 2021 free of any interests and the installment amounts to be paid in the subsequent years, including 2021, have been postponed for one year without any interests.
  • The annual subscription amounts regulated in Article 35 of the Law on Travel Agencies and Union of Travel Agencies wşll noıt be collected in 2020.  

E. Extension of Time, Meeting Postponement and Remote Working

  • The notifications and statement to be served as well as the association general assembly meetings will be postponed until 31.07.2020. The meeting will be held within 30 days from the date of postponement. The authority of the existing bodies continues until the first general assembly.
  • General Assembly meetings will be postponed until 31.07.2020 within the scope of the Cooperatives Law. This period could be extended to three months. The meeting will be held within 3 months from the date of postponement.
  • The periods regarding the issue of authorization determinations within the scope of the Unions and Collective Labor Agreement Law, conclusion of collective labor agreements, resolution of collective labor disputes and periods related to strike and lockout have been extended for a period of three months as of 17.04.2020.
  • Sales, leasing, swap, construction in return for land or floor share of and procedures to establish limited rights in rem on the real estate owned by the Treasury as well as tenders for renting and use of places under the judgment and disposal of the state can be carried out in electronic environment by using the technical infrastructure owned by the affiliated and related institutions of the Ministry of Environment and Urbanization and their subsidiaries in return for a service fee until 31.07.2020.
  • By making legal arrangements related to the prevention of excessive increase in the sales price of a good or service by manufacturers, suppliers and retail businesses, the Unfair Price Assessment Board has been established in order to carry out investigations, audits and sanctions in such cases accordingly. The sanction has been defined as an administrative fine.

Lawyer Abide Birsen

Lawyer Acem Süleyman Alhan

 

Yazar : GülelHukuk

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