349 LABOR LAW notice. Pursuant to this article, before terminating a continual employment agreement made for an indefinite period, notice must be served by the party which terminates the agreement. The agreement shall then terminate: i) for employment agreements lasting less than 6 months, 2 weeks after the notice, ii) for employment agreements lasting between 6 months and 1,5 year, 4 weeks after the notice, iii) for employment agreements lasting between 1.5 year and 3 years, 6 weeks after the notice and iv) lastly, for employment agreements lasting more than 3 years, 8 weeks after the notice. A party which does not comply with the requirements of serving notice shall pay compensation covering the salary which corresponds to the notice period specified in Article 17 of the Labor Law. This compensation is known as a “payment in lieu of notice” or a “notice payment.” During the notice period, there will be no change in parties’ conditions and thus, all rights and obligations between the employee and employer will remain the same. The employer may terminate the employment agreement with immediate effect by paying in advance the salary corresponding to the notice period. A mutual rescission agreement (also known as an abrogation agreement) is not one of the methods of terminating an employment agreement, regulated under the labor legislation. However, in practice, within the framework of contractual freedom, parties have the opportunity to terminate an employment agreement by mutual consent. Due to the lack of legislation concerning the conditions under which such agreements are valid, their scope and consequences are determined by scholarly articles and the precedents of the Court of Cassation. On the other hand, salary is defined in Article 61 of the Income Tax Law numbered 193 (“ITL”) as a certain amount of money and benefits provided in return for a service to employees who work subject to an employer and in association with a specific workplace, as well as benefits which are capable of representation in monetary terms. The payment of the salary as allowance, compensation, cash indemnity, allocation, salary increase, advance, dues, daily allowance, premium, bonus, or for expenses or otherwise, or determining the salary as a certain percentage of the income (unless it is related with a partnership), will not have any effect on the nature of the salary. According to the same article, money given in return for a service to be provided in the future is also considered a salary. The amendment made through The
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