Supreme Court Ruling on Employer’s Rightful Termination Due to Employee’s Disloyalty


Employer’s Rightful Termination Due to Employee’s Disloyalty – Supreme Court Decision

According to the 9th Civil Chamber of the Supreme Court of Turkey (Decision No. 2017/12515, Judgment No. 2019/17417, dated 07.10.2019), an employer may lawfully terminate an employee’s contract if the employee engages in dishonest behavior violating loyalty and integrity principles.

Case Background:

  • The plaintiff (employee) sold 1,307 units of a product during an incentive campaign and later returned 957 units after receiving a rewarded trip to the USA.
  • The employer claimed that these sales were made only to win the reward and were later returned, causing financial and moral damage to the company.
  • The employer argued that the employee engaged in fraudulent behavior by manipulating sales to qualify for an incentive trip, thus violating the principles of honesty and loyalty.

Supreme Court’s Reasoning:

  • Article 25(II) of the Turkish Labor Law No. 4857 states that an employer has the right to immediate termination if the employee engages in dishonest or disloyal behavior, including abuse of employer’s trust or fraudulent activities.
  • The court found that the employee’s actions were deceptive, confirming that the sales were made solely to claim the reward and then reversed through product returns.
  • The termination was ruled as justified, and the employee was denied severance and notice compensation.

Legal Implications:

This ruling confirms that manipulative actions that exploit employer incentives constitute just cause for termination. Employers should ensure they:

  • Monitor employee conduct related to sales incentives.
  • Establish clear policies on ethical behavior and reward programs.
  • Document fraudulent activities for legal action in case of disputes.

For legal advice on employment disputes, wrongful termination claims, and compensation rights, contact Üner Law Office in Alanya via uner.av.tr.

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