Your Questions About Short-Time Work Allowance

Global pandemics, economic crises, or natural disasters can deeply shake the business world. In such periods, the government activates various support mechanisms to ensure the economy remains afloat and to prevent employees from losing their jobs. One of the most important of these mechanisms is the Short-Time Work Allowance, managed by the Turkish Employment Agency (İŞKUR). Especially during the Coronavirus (Covid-19) pandemic, this support package has been a lifeline for hundreds of thousands of employees and employers, providing income support from the state to employees when workplace activities decrease or cease. This article serves as a detailed guide to answer all your questions about short-time work allowance.

What is Short-Time Work Allowance? Purpose and Basic Logic

Short-time work allowance comes into play when the weekly working hours at a workplace are temporarily reduced by at least one-third or when the entire activity or part of it is suspended for at least four weeks without the requirement of continuity. This application provides income support to insured employees who have reduced working hours or cannot work at all during extraordinary situations such as general economic crises, regional crises, or compelling reasons. The duration of the allowance is generally 3 months, but this period can be extended up to 6 months by a presidential decision.

In simpler terms, short-time work allowance is the government's commitment to cover a certain portion of employee salaries (usually 60%) to ensure that workplaces can survive during extraordinary periods and that employees do not suffer. This mechanism alleviates the financial burden on employers while contributing to the preservation of employment by preventing layoffs.

Under What Conditions Can Short-Time Work Be Applied?

For a workplace to apply for short-time work, it must be proven that the activities at the workplace have significantly decreased or ceased, and this situation must also be confirmed by labor inspectors. The four main conditions that trigger this situation are as follows:

• General Economic Crisis: The negative impact on workplaces due to a serious disruption in the national economy or international markets.

• Sectoral Crisis: The impact of economic events on a specific sector or other sectors related to it (for example, the tourism sector being affected by a pandemic).

• Regional Crisis: The negative impact on workplaces in a specific province or region due to national or international events (for example, damage to factories in the region after a flood disaster).

• Compelling Reasons: Unforeseen events that develop outside the employer's control, such as fire, epidemic disease (like Covid-19), earthquake, landslide, or mobilization, which necessitate stopping or reducing activities.

In applications made due to compelling reasons such as epidemics, the process is usually expedited without waiting for a decision from the İŞKUR Board of Directors to respond to the urgent needs of employers.

How to Apply for Short-Time Work Allowance?

The application for short-time work allowance is made by the employer on behalf of the employees. The employer fills out the "Short-Time Work Request Form" available on the İŞKUR website and sends the application to the İŞKUR unit to which the workplace is affiliated via email. During the application, evidence showing the situation of the workplace (such as revenue decline, order cancellations) and a list of personnel to be subjected to short-time work must also be submitted.

The application is primarily reviewed by İŞKUR and then sent to the Ministry of Family, Labor and Social Services' Guidance and Inspection Directorate for eligibility determination. Once the labor inspectors complete their review, the result is communicated to the employer. The employer whose application is approved updates the short-time work notification lists and submits them to İŞKUR.

How Much is the Short-Time Work Allowance and Under What Conditions is it Given?

To benefit from this allowance, the employee must have worked as an insured person for the last 60 days from the start date of short-time work and must have paid at least 450 days of unemployment insurance premiums in the last three years. These conditions have been relaxed during extraordinary situations such as the Covid-19 pandemic to allow more employees to benefit.

• Amount of the Allowance: The daily amount of the allowance is calculated based on the employee's earnings subject to premium in the last year and is equal to 60% of their daily average gross earnings. This amount cannot exceed 150% of the monthly gross minimum wage.

• Payment Method: The allowance is paid to employees through PTT on the 5th of each month.

• Record Keeping Obligation: When the application starts, employers are required to keep records of employees' working hours and present these records when requested.

In What Situations is the Allowance Cut?

The allowance of an employee receiving short-time work allowance is cut in certain situations:

• Being conscripted

• Starting to receive old-age pension

• Entering another job

• Leaving due to a work duty arising from laws

• Starting to receive temporary incapacity allowance (In this case, the short-time work allowance is cut from the date of the temporary incapacity allowance start date.)

Early Termination of the Application

If the employer decides to resume normal activities at the workplace while the short-time work application is ongoing, they must notify İŞKUR and employees at least six business days in advance. Otherwise, unnecessary payments made by İŞKUR will be collected from the employer along with legal interest. This notification process is crucial for protecting the rights of both the employer and the state.

Frequently Asked Questions

• Are insurance premiums still paid during the short-time work allowance period?

• During the allowance period, the general health insurance premiums of employees continue to be paid by İŞKUR.

• Can I work another job while receiving short-time work allowance?

• No, if you work another job while receiving short-time work allowance, your allowance will be cut, and the amount paid will be requested back with legal interest.

In conclusion, Short-Time Work Allowance is an extremely important social security mechanism designed to protect the workforce and alleviate the suffering of employees during challenging economic periods. Proper management of this process by both employers and employees plays a vital role in maintaining economic stability. By considering the information in this guide, you can better understand your rights and responsibilities in potential crisis situations.