Abstract:

The concept of seniority indemnity first took place in the Turkish Labour Law no 3008 dated 1936, and it necessitated the employers to pay a senior indemnity of 15 days of gross wage to the employees for each year. Then an amendment was made in the labour law in later years and this figure was risen to 30 days of gross wage, It has always been an issue of argument in the country that the senior indemnity is a reward given to the employees in lieu of their faithfullness to the working place and that there is no insurance of unemployment and work guarantee inTurkey, so this cost figure is relatively high in our law. In item no:8 of the Law Proposal, the Seniority Indemnity Fund prepared by the 61st Government says ‘’A senior indemnity is paid to the Employees as a cost of 30 days based on each total year premium account paid to the Fund. TISK and TOBB complain that this figure is high and they worry that the premium rate to be determined by the Cabinet of the Ministers upon Fund management’s proposal not to exceed 3% of the wage based on the premium account from the employer to the employees which was forseen by the relevant law proposal. In my opinion if a deduction of 2 % is made from the gross wage paid by the employer and a rate of 1 % unemployment insurance is transferred to the fund seniority Indemnity, then the load of the employer will fall down to a reasonable level and also the gained rights of the employees will not be affected badly from this. We consider that this application will be in favour both the employer and the employees, and it will also bring peace to work life and it will be good for our country as well

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