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Employee Compensation Policy

EMPLOYEE COMPENSATİON POLİCY

 

1.     PURPOSE

The purpose of the employee compensation policy is to establish a fair and transparent relationship between the employer and employees by safeguarding employees’ legal rights. This policy aims to ensure that employees receive the compensation to which they are legally entitled in a timely and complete manner, to maintain labor peace, and to ensure legal compliance.

 

2. SCOPE

This policy applies to all employees of the company and covers severance pay, notice pay, and other statutory compensation that must be paid in accordance with legal regulations upon termination of employment. The policy outlines all compensation processes and calculations in accordance with relevant legal regulations. Within this scope, it ensures the protection of employees’ legal rights and the fair management of separation processes.

 

3. TERMINATION OF AN EMPLOYMENT CONTRACT OF INDEFINITE DURATION

3.1. Termination for Just Cause

İzdemir Enerji Elektrik Üretim A.Ş. (the “Company”) may terminate employment contracts, pursuant to Article 18 of the Labor Code No. 4857, based on a valid cause arising from the employee’s qualifications or conduct, or from the requirements of the business, workplace, or job, and in compliance with the notice periods specified in Article 17 of the Labor Code. The employee may also terminate an indefinite-term employment contract in writing by complying with the notice periods specified in Article 17.

Notice Periods (durations);

  • 2 weeks for employees who have been with the company for less than six months;
  • 4 weeks for employees who have been with the company for six months to one and a half years;
  • 6 weeks for employees who have been with the company for one and a half to three years;
  • 8 weeks for employees who have been with the company for more than three years.

 

In the event of valid grounds arising from the employee’s conduct or incompetence, the employer shall terminate the employment contract in accordance with the procedure set forth in Article 19 of the Labor Law No. 4857, after obtaining the employee’s written defense. Either the company or the employee may terminate an employment contract of indefinite duration by paying the wages corresponding to the notice periods specified above in advance. The notice period may not be combined with the period of annual paid leave or with periods during which the employee is absent due to sick leave, nor may such periods be included in the notice period.

 

3.2. Termination for Just Cause

The company or the employee may immediately terminate the employment contract based on the just causes specified in Articles 24 and 25 of the Labor Code No. 4857. An employee whose employment contract is terminated pursuant to the grounds set forth in Article 25/II of the Labor Code No. 4857 is not entitled to severance pay or notice pay.

 

4. TERMINATION PROCEDURES

In accordance with the Human Resources Procedure, an Employment Termination Notification Form is sent to all relevant departments so they can complete the necessary procedures for the departing employee (such as deducting advances, closing accounts, etc.).

Human Resources calculates any severance pay and other entitlements owed to the departing employee, if applicable. The employee is then asked to sign the termination documents.

 

5. SEVERANCE PAY

The employment contract;

  • For reasons other than “conduct by the employee that is inconsistent with the rules of ethics and good faith,”
  • In cases where the employee terminates the employment contract pursuant to Article 24 of Law No. 4857 without providing notice and by claiming the right to severance pay,
  • Due to the employee’s mandatory military service,
  • When the employee voluntarily resigns to receive an old-age, retirement, or disability pension,
  • Upon voluntarily meeting the conditions other than the ages specified in subparagraphs (a) and (b) of paragraph (A) of the first paragraph of Article 60 of Law No. 5510 on Social Insurance and General Health Insurance, or upon voluntarily completing the period of insurance coverage and the number of days of premium payments required for the granting of an old-age pension under Transitional Article 81 ,
  • If a female employee resigns of her own volition within one year of her marriage,
  • In the event of the employee’s death, severance pay is paid pursuant to Article 14 of the Labor Law No. 4857. Provided that the statutory cap on severance pay is not exceeded, the employee is paid severance pay equivalent to 30 days’ wages for each full year of service. Payments for periods exceeding one year are made at the same rate.

 

This was approved by our company’s Board of Directors at its meeting No. 24 held on August 28, 2024.