The decision of the 9th Civil Chamber of the Court of Cassation (“Court of Cassation”) dated 13/03/2025 and numbered 2025/1100 E. 2025/2595 K. (“Decision”) was published in the Official Gazette dated 13 March 2025 and numbered 32952.
The Decision concerns whether financial rights arising from a collective labor agreement (such as meal allowance, responsibility compensation, bonuses, etc.) must be paid during the periods in which employees were deemed to be on administrative leave during the COVID-19 pandemic. In this context, it has been ruled on whether employees working for a private legal entity employer may be considered within the scope of the Presidential Circular dated 22 March 2020 and numbered 2020/4 (“Circular”).
The Decision explicitly states that employees working for companies that are private legal entities do not fall within the scope of the Circular. Accordingly, financial rights contingent upon actual work cannot be claimed for periods spent on administrative leave.
The Court of Cassation stated in its Decision:
“Based on the case file, it is understood that the plaintiff employee is currently employed by İzdoğa AŞ, which was established by the İzmir Metropolitan Municipality and is a capital company subject to the provisions of Law No. 6102, and that it is a private legal entity separate and independent from the legal personality of the municipality. For these reasons, the plaintiff employee and the defendant Company do not fall within the scope of the Presidential Circular No. 2020/4.”
Within this framework, it is not possible to claim financial rights from employers who are private legal entities based on the provisions of the Circular, which applies solely to public personnel. Therefore, with respect to financial rights dependent on actual work, periods spent on administrative leave are not deemed as worked, and no payment obligation arises accordingly.
The full text of the relevant Decision can be accessed at the website Yargıtay 3, 9, 10 ve 12. Hukuk Dairelerine Ait Kararlar.
Best Regards,
Balay, Eryiğit & Erten
