So as to prevent the social unrest in society which could emerge as a result of privatisation, to prepare workers to better adapt to the post-privatisation conditions and to help workers find good jobs, privatisation law envisages social and economic rights for the employees.

1. Special Job Loss Compensation Payments and Other Services

Employees who work in organizations in the scope of privatisation (excluding the participations) and whose contracts are terminated due to

-restructuring for privatisation,
-privatisation,
-down-sizing,
-cessation of activities in full or in part,
-permanent or temporary closing or liquidation of such organizations

are entitled to redundancy payments in accordance with labour laws and their current collective bargaining agreements. They are paid a special job loss compensation under the Privatisation Law in addition to the redundancy payment envisaged by relevant regulations and contracts.

Furthermore, these employees are to be given priority in services for finding

-new employment opportunities,
-career development,
-vocational and apprenticeship training,

with the support and financing of the Privatisation Fund.

Disabled employees covering first, second and third degrees of disability as defined in applicable laws may not be dismissed except from organizations which are being closed or liquidated.

In the case of closing and liquidation, the disabled personnel in question are to be offered a special job loss compensation equal to twice the amount set forth herein.

All transactions with respect to special job loss compensation and other services will be carried out by and under the direction and responsibility of the Turkish Employment Authority (Is-Kur).

Employees,

• whose contracts are terminated during

-restructuring for privatisation,
-privatisation,
-down-sizing,
-cessation of activities,
-closing or liquidation of the organizations by their employer without cause,

• or whose contracts are terminated by the employers with cause within one year following the date when public shares in the organization falls below 50%, or,
• if the organization is not converted to a joint-stock company following the date of transfer and delivery,

are entitled to the redundancy payments and other services foreseen by the Privatisation Law.

Those entitled to a special job loss compensation will receive the special job loss compensation for a period between 90 and 240 days depending on the number of service days.

The compensation benefits stated in this section are financed by the Privatisation Fund.

2. Transfer of Personnel in the Organizations

The personnel of the organizations in the privatisation program, who are subject to the Civil Servants Law No. 657, are to be transferred to other Public organizations if one of the followings happens

-privatisation,
-down-sizing,
-closing or liquidation, or
-activity ceasing.

Similarly, remaining employees can also be transferred to other public organizations provided that there are enough job vacancies.

3. Extra Retirement Bonus

If employers who are eligible to retirement and subject to Civil Servants’ State Pension Fund Law No. 5434 in an organisation, in the privatisation program, voluntarily retires within 2 months following the date when the organization is taken into the program, they receive an extra bonus of 30% of the formal retirement bonus . This additional payment is covered by the Privatisation Fund.