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Wage Deduction Penalty
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The wage deduction penalty, which is among the disciplinary
punishments inflicted by employers on employees, is stipulated under
Article 38 of Labor Code numbered 4857. The article envisaged limitations
on the wage deduction penalty since wages are the main source of living
for employees. In Article 102/b of the Labor Code, it is stipulated that
employers who fail to comply with these limitations will be subject to
criminal fines.
The first limitation set out in Article 38 of the Labor Code regards
the grounds for imposing fines. Only the reasons specified in collective
bargaining agreements or labor agreements are acceptable grounds for
imposing wage deduction penalties on employees. It is illegal to levy a
wage deduction penalty for reasons other than those specified in collective
bargaining agreements or labor agreements. In addition to that, any wage
deduction penalty must be promptly notified to the employee together with
the reasons for the penalty.
The second limitation regards the amount of the penalty. It is stipulated
under the referred article that such deductions from employees’ wages
cannot exceed two days’ wages in a month or two days’ earnings if wages
are paid at a rate pursuant to piece work or the amount of work performed.
Another issue stipulated in the article is the usage of money as a result
of the wage deduction penalty inflicted by the employer. Accordingly,
the deducted money will not stay in the possession of the employer. Such
deductions must be deposited within one month following the deduction
into the account of the Ministry of Labor and Social Security at a bank
specified by the Ministry, established in Turkey, and entitled to accept
deposits. These funds are used for employee training and social services.
Every employer is obliged to keep a separate account of such deductions
at the place of business.
The places for and the amounts of the allocations of the collected
deductions will be decided upon by a board presided over by the Minister
of Labor and Social Security with the participation of employees’
representatives. The composition of this board, its manner, and working
essentials are indicated in the “
Regulation on Working Essentials and
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Article of September 2010