Labor Receivables

As an Istanbul employment lawyer, we handle calculation and follow-up for overtime, weekly holiday, public holiday (UBGT) and unused annual leave receivables within the 5-year limitation period.

What is a Labor Receivables Lawsuit?

A labor receivables lawsuit covers all unpaid claims arising from the employment contract, including overtime pay, weekly holiday pay, national & public holiday (UBGT) pay, unused annual leave, minimum subsistence allowance (AGİ), bonuses and other contractual payments. These rights are protected by Labor Law No. 4857 and non-payment entitles the employee to terminate with just cause while keeping severance and notice rights.

What Counts as Labor Receivables?

  • Overtime pay: Work exceeding 45 hours/week (1.5× hourly rate)
  • Weekly holiday pay: Sunday work (2.5× daily rate)
  • UBGT pay: National, religious and public holiday work (2× daily rate)
  • Unused annual leave: Daily gross wage for each unused day at termination
  • Unpaid monthly wages, AGİ, bonuses and social benefits
  • Transportation, meal and other contractual payments

Calculation Method

Calculations are based on the composite ("giydirilmiş") gross wage. Hourly gross = monthly gross ÷ 30 ÷ 7.5. Courts evaluate attendance records, payslips, emails, swipe-card logs and witness testimony together via expert review. You can use our Labor Receivables Calculator to estimate amounts.

Burden of Proof and Evidence

Under settled Court of Cassation case law, the burden of proving overtime and weekly holiday work lies with the employee, but it may be discharged via witness statements, message/email correspondence, camera footage and access logs. If a payslip showing overtime accrual is signed by the employee without reservation, claims are limited to periods outside that payslip.

Mandatory Mediation

Per Article 3 of Labor Courts Law No. 7036, mediation is a condition precedent to filing a labor receivables lawsuit. Direct litigation is dismissed on procedural grounds. If mediation fails, the lawsuit must be filed within 2 weeks of the final mediation report.

Statute of Limitations: 5 Years

Per Labor Law No. 4857 Art. 32/8, all labor receivables are subject to a 5-year limitation period running from the date the claim became due. Filing a lawsuit or initiating enforcement interrupts the statute.

Competent Court

Labor receivables lawsuits are filed in the Labor Court at the employer's domicile or workplace. In Istanbul, all labor cases are heard at Istanbul Labor Courts; jurisdiction agreements are not allowed except as permitted by CCP Art. 18.

Frequently Asked Questions

Which labor receivables can be claimed?

Depending on the form of termination, the employee may claim severance and notice pay, unpaid wages, overtime, weekly and public-holiday pay, annual leave pay, the minimum-living allowance and bonuses (Labor Code arts. 32, 41, 46, 47, 59). Overtime is calculated at the premium rate and may be proven by any evidence, including witnesses. The outcome depends on the specific evidence and the court's assessment; consult an attorney for your individual situation.

What is the limitation period for labor receivables?

For the period after 25 October 2017, severance pay, notice pay, bad-faith compensation and equal-treatment compensation are subject to a 5-year limitation period (Labor Code add. art. 3). Periodic claims like wages, overtime and leave pay also follow the 5-year rule. Older claims may keep the former 10-year period. The outcome depends on the specific evidence and the court's assessment; consult an attorney for your individual situation.

Disclaimer

The information on this page is for general informational purposes only. Each matter should be assessed based on its specific facts and circumstances.

Legal Basis (for review)

Statutes cited in this page's curated answers. Application to a concrete dispute is subject to attorney review.

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