Changes made to controversial ‘Code-29’ in labor law

ISTANBUL

Turkey’s Social Security Institution (SGK) has made changes in a controversial article in the labor law, widely known as Code-29, after complaints that some firms were using it to dodge a government decision that bans layoffs.

In the wake of the coronavirus pandemic, Turkey introduced the ban in 2020 to limit the impact of the coronavirus pandemic on employment and the economy in general and the ban has been extended several times.

A provision in the labor law allows companies to fire workers on accusations of “immoral, dishonorable or malicious conduct.”

Companies need to inform the SGK when a worker is sacked and why, if a company enters Code-29 in the system, which means the employee is fired because of their inappropriate conduct.

Those who are fired under Code-29 are not entitled to severance payment and unemployment benefit.

The SGK said in a statement that new codes have been defined for immoral and malicious conduct in order to prevent confusions.

The institution also noted that a total of 233,400 people were fired under Code-29, while the corresponding figure for 2019 was 194,524.

Last year, 176,662 workers were sacked under Code-29, it said, adding that before the layoff ban each month on average 17,000 workers were fired under this code, but after the introduction of the ban, it dropped to 15,000.