SUBMISSION OF EMPLOYMENT AND TERMINATION STATEMENTS (FEBRUARY 2016)

Insurance statutes are regulated under Article 4 of the Social Security and General Health Insurance Law ("Law"). In this context, employers are obliged to submit the statements of employment and termination of the employees who considered as “insured” under the Article 4/1-a of the Law within the time periods specified here below.

With regard to Article 4/1-a of the Law, submission periods of the employment and termination statements are as follows;

  • latest one day before the day when the employee starts to work or vocational training or internship under an employment contract pursuant to Article 4/1-a of the Law; at the day when the employee starts to work at construction, fishing and agriculture business under an employment contract pursuant to Article 4/1-a of the Law,
  • within 1(one) month’ period from the start date of work of the employee employed by enterprise(s) which will submit the declaration of work place for the first time; within 1(one) month’ period starting from the employment day of an employee employed during the ongoing route of an international land, air and sea transportation,
  • within 1(one) month’ period from the start date of work of the employee who assigned by public administration to work at abroad subject to Article 4/1-a of the Law;
  • within 2 (two) business days from the start date of work at public institution of the employee who assigned to other public institutions due to privatization as per Law numbered 4046,

The employer is obliged to submit the statement of employment to the Social Security Institution ("Institution"). In case of the last day of legal submission period for the statement of employment coincides with fiscal holiday, the deadline of the submission period shall be extended for 7 (seven) days starting from the last day of the fiscal holiday.

In case of expire of the employment contract of the employees working subject Article 4/1-a of Law; the employer is obliged to submit the statement of termination to the Institution within 10 (ten) days’ period starting from expire date of the employment contract.

In case of failure in submission of the statement of employment within the above mentioned periods, administrative penalty shall be imposed amounting to minimum sum of monthly salary of each employee failed to be declared. In case such failure is determined by a court decision or officials of the Institution or if it is understood from the information and the documents of public institutions, banks or organizations with circulating capitals, administrative penalty shall be imposed two times of the minimum salary of each employee failed to be declared. If such a failure occurs more than one time in a year, an administrative penalty shall be imposed at five times of the minimum salary for each employee failed to be declared.

An administrative penalty shall be imposed in an amount of one tenth of the minimum wage due to failure in submission of termination statement of the employee(s) who left the job after 01.08.2009; provided that such penalty shall not exceed the penalty amount to be accrued due failure in submission of Company books. However, in case statement of employment and termination shall be submitted within 30 (thirty) days after expire date of the legal period to the Institution and administrative penalty shall be paid within 15 (fifteen) days as of the delivery date of the notification, one of four of the penalty shall be collected. Three of four of the administrative penalty shall be collected, if administrative penalty is paid within 15 (fifteen) days following the delivery date of the notification without making an objection to the Institution or before applying to judicial proceedings.

Consequently, employers are obliged to submit employment and termination statements to the Institution within the abovementioned periods. Otherwise, administrative penalties shall be imposed for each employee failed to be declared by the employer.