Clawback provisions are contractual mechanisms that enable employers to reclaim incentive-based payments under specific conditions such as underperformance, misconduct, or premature resignation.
Turkey Employment and HR
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Clawback provisions are contractual mechanisms that enable employers to reclaim incentive-based payments under specific conditions such as underperformance, misconduct, or premature resignation. While widely recognized and enforceable in jurisdictions like the U.S. and various EU countries, Turkish Labour Law does not explicitly regulate clawback clauses. Their applicability remains controversial, particularly regarding basic wages, which cannot be reclaimed once earned through labor. However, limited application is possible through bonus arrangements and analogies with penal clauses under the Turkish Code of Obligations, provided they comply with mutuality, fairness, and proportionality as interpreted by the Court of Cassation.
Definition
Clawbacks are contractual provisions that allow the employer to ask for a repayment of the money that has already been paid to the employee. Clawbacks can be seen as a type of compensation for employers, since the demand for repayment is triggered by an event.1 These are special clauses that are put in employment contracts and are very commonly used in EU countries and the USA. Clawback provisions serve as a protection mechanism to ensure...
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