18.10.2026 11:30
The Court of Cassation ruled that the statute of limitations for annual leave entitlement that converts into pay because it was not used when leaving employment is 5 years from the date the employment contract ends. In the case brought by the relatives of D.K., who worked for 11 years and died, the Chamber unanimously reversed the appellate court's decision on the grounds that the lawsuit was filed after the 5-year period had expired. Employees who do not file a lawsuit within 5 years after leaving employment may have their claims for leave pay rejected if the employer raises a statute of limitations objection.
The Court of Cassation has issued a precedent-setting decision regarding the statute of limitations applicable to wage claims for workers' unused annual leave. It concluded that the period previously applied as 10 years for a certain period is 5 years.
10-YEAR PERIOD REDUCED TO 5 YEARS
A 10-year statute of limitations was applied to workers' unpaid annual leave wages between 2012 and 2017. With Additional Article 3 of Law No. 7036 on Labor Courts, which entered into force in 2017, the statute of limitations for annual leave wage claims arising from an employment contract was set at 5 years.
CASE LAW CHANGED AFTER THE CHAMBERS MERGED
The 22nd Civil Chamber and the 9th Civil Chamber of the Court of Cassation, which hear labor cases, were merged in 2020. After the merger, the 9th Civil Chamber of the Court of Cassation re-evaluated the matter and ruled in its case-law decision that the statute of limitations for paid annual leave claims is 5 years.
WORKED FOR 11 YEARS, COULD NOT GET LEAVE PAY
In the incident that was the subject of the decision, D.K., who left the workplace where he had worked for 11 years due to retirement, could not receive the wages for the annual leave he had not used, despite negotiations. After D.K. passed away, his relatives filed a claim lawsuit in the labor court.
“WORKED 7 DAYS A WEEK” CLAIM
In the petition, it was stated that D.K. worked for 11 years as an ironworker at the defendant company's overseas construction sites. The plaintiff, alleging that the deceased worked 7 days a week and that his claims had not been paid, requested the collection from the defendant of severance pay, notice pay, paid annual leave, overtime pay, weekly rest pay, and national holiday and public holiday pay claims.
COMPANY RAISED STATUTE OF LIMITATIONS OBJECTION
The defendant construction company raised a statute of limitations objection. The company argued that the deceased's employment contract ended due to completion of the work and that he had no remaining claims.
LABOR COURT ACCEPTED 110 DAYS OF LEAVE
The labor court ruled, based on Social Security Institution (SGK) records and the case file, that the deceased had worked as an employee at the defendant's workplace. The court determined that the defendant had not proven that the employment contract was terminated without requiring compensation, and that the deceased was entitled to severance and notice pay and to a total of 110 days of paid annual leave during his employment period.
PARTIAL ACCEPTANCE DECISION ISSUED
The court decided that the employer had not proven that the paid annual leaves were granted or paid. However, on the grounds that the overtime, national holiday, public holiday, and weekly rest pay claims were time-barred, it ruled for partial acceptance of the case. Upon appeal, the Regional Court of Justice (BAM), which examined the file, rejected the objections.
COURT OF CASSATION OVERTURNED BY UNANIMOUS VOTE
Upon the defendant's appeal, the file came before the 9th Civil Chamber of the Court of Cassation. The Chamber, by a unanimous decision, overturned the BAM's judgment on the grounds that the statute of limitations for annual leave claims is 5 years, not 10.
“THE STATUTE OF LIMITATIONS IS FIVE YEARS AND THIS PERIOD STARTS FROM THE DATE OF TERMINATION”
The Court of Cassation decision included the following statements:
“Our Chamber had adopted the view that, between the effective date of Law No. 6098 and the effective date of Law No. 7036, paid annual leave claims were subject to a 10-year statute of limitations, and applied it accordingly. However, after our Chamber merged with the (Closed) 22nd Civil Chamber of the Court of Cassation, the matter was re-evaluated and it was concluded that the statute of limitations for paid annual leave claims is 5 years. Accordingly, during the period between the date Law No. 6098 entered into force and the date Law No. 7036 entered into force, the statute of limitations applicable to paid annual leave claims is five years. In the present dispute, the defendant's representative raised a timely statute of limitations objection against the lawsuit. According to the explanations made, the statute of limitations for paid annual leave claims is five years, and this period starts from the date of termination. Since the plaintiff's employment contract ended on 04.12.2013 and the lawsuit was filed on 24.10.2019, the paid annual leave claim should have been rejected due to the statute of limitations; however, the fact that a judgment was rendered in writing in the manner described was erroneous and required reversal.”