NEWSLETTER-2019-metin

61 COMMERCIAL LAW Conclusion The Labor Law and the TCC both have provisions in relation to the transfer of employees’ rights and claims under spin-off transac- tions. However, considering that the TCC provisions are designed specifically to regulate such transfers in relation to spin-offs, and of- fer a higher level of protection to the transferred employees, it can be argued that the TCC provisions shall apply if there is a conflict between the Labor Law and the TCC provisions. To that end, it may be argued that wages, bonuses, overtime wages, holidays and relevant payments, payments in lieu of notice, as well as severance payments, shall be transferred to the transferor and, in the event of partial spin- offs, the transferee company shall also be liable for such claims with the transferor concerning partial spin-offs. Under full spin-offs, on the other hand, the transferee will be solely liable for claims by the employees, since the transferor loses its legal existence as a result of the transaction.