(UN)legitimate employment issues?

Last winter I looked several employment matters in which employee’s claimed compensation from their employer’s. The employer in these cases was Home Owners Association and/or the director(s) thereof. During the handling of these cases it became clear to me that, no matter how unfair the employee’s claim was, the evidence that the employer submitted, determined the outcome of the case.

That is why I want to emphasize, to all directors of Home Owners Association, the vital importance of a carefully prepared personnel file for every person employed. The judge will request that the defendant submit the personnel file to the court. If this file is lacking in any detail, the case will be decided in favour of the employee. Now you may be wondering: what is a personnel file and what documents should be contained within it. A personnel file is an employee’s dossier and it should contain the following as an absolute minimum:

• A full employment contract
• A work schedule and/ or division of tasks 
• Certificate of good behaviour
• Salary information
• Medical data
• Education, certificates and references
• Discharge letters and formal notices

Mostly, employee’s claims are related to financial matters. It is therefore very important to keep salary related information up to date. This should include for example: proof of all salary payments, amount paid, holiday pay, overtime payments, national holiday payments, record of annual leave, employer’s liabilities and most importantly, the employee must sign all documents personally. A husband cannot sign on behalf of his wife for her monthly pay check nor can another staff member on her behalf; this has no legal status in court.

The role and legal expertise of the accountant or company that deals with your payroll administration, is very important. All accountants or management companies engaged by Home Owners Association, must take a full and active role in all aspects of the administration process, it is not enough for them to just be involved in the payment of wages and SGK premiums.

If a Home Owners Association doesn't have the legal expertise in-house, they would be well advised to seek advice from a lawyer, so that the necessary payroll administration can be fully complied with. Ultimately, the Home Owners Association is fully responsible. The board of management has a statutory obligation to ensure that all employment obligations are complied with in full with respect to all employees. 

The Kapıcı - Caretaker - Part I

Every Apartment owner will be familiar with the phenomenon kapıcı (congierge/caretaker/janitor). A Kapıcı is a person who is operating in paid employment and is responsable for the daily (cleaning) activities of one or more buildings.

Kapıcı is an honourable profession that earns well, and social rights are adequately protected by legalisation. The minimum salary of a janitor is even official revised every six months by the government, while this is not obvious for a civil servant.

An Owners Association is not obliged to employ a janitor unless it concerns a complex with more than 30 apartments that makes use of a central heating system that works with solid fuel (like charcoal). In complexes with more than 60 apartments, even two caretakers need to be hired.

It is also required to hire a caretaker in a complex with more than 50 apartments with a central heating system that works on liquid fuel (like natural gas or diesel). The number of janitors needs to be doubled when it concerns a building with more than 125 apartments. The idea about this is that the centrally managed system of a complex, like the heating system, needs to be maintained by the same person that is also the central contact person for everyone in the building. The Concierge law therefore requires that the association, in all these cases, provides housing at the complex for the janitor, but also to (make) follow the proper training for the operation and maintenance of the central installations of the complex.

Although in some situations it is obliged to employ a janitor, this doesn’t mean that the director of an association can hire or fire a caretaker to his own judgement. Namely, a concierge can only be hired or dismissed based on the decision of the Owner Association. The decision should be made by majority of votes. A director is an executive body of the association, and not the deciding body.

If it is decided to hire a janitor, the director also needs to take care for the signing of a well-designed employment contract. This written agreement should include the general, as well as the special conditions. For example, the duration of the contract, the task description, distribution of hours, holidays, salary and social conditions like housing on the complex and weather he can make use of the public utilities of the complex freely.

According the Concierge Law, cleaning the public areas like the stairs hallway, the basement, the garage or the swimming pool, as well as delivering services to home owners at fixed hours, are part of the fixed responsibilities of the janitor. But also picking up the trash and taking care of the general pool and gardens belong to the general duties of a concierge.

A person, or persons, that provide only parts of the services to the complex cannot hold the title of caretaker. You can think of a gardener, or cleaner who are responsible for specific tasks. If these people are operating in paid employment or not, depends on the circumstances of each individual.

The article above is limited only to the general rules concerning the janitor employed by an Owners Association. The next article will focus more on the housing of a concierge and the criteria this property must meet. Until next month…..

Minimum Wages Turkey 2014 (1st period)

The Turkish Ministry of Social Affairs and Employment, has announced the minimum wage for 2014, the 1st period of 2014, (1st January 2014 - 30 June 2014).

Every year on the 1st of  January and the 1st of  July the government announces the new wages for the next coming 6 months.

Structure minimum salary

The statutory minimum wage is based on the gross salary for normal working hours, without overtime. You receive this wage on the agreed payment period, f.e. weekly, monthly or every 4 weeks. The gross salary may consist of:

• the (basic) salary in your employment contract has been agreed;
• the allowances for performance, shifts, irregular hours, standby duty and working conditions;
• the fixed bonus for the sales you make any payment and you will receive;
• the rewards of third parties caused by the work.

The total of these amounts shall not be less than the minimum wage.

Pay slip

To avoid problems in the future with the tax authorities, es we recommend to pay the wages exactly as mentioned on the pay slip. If you pay in cash, let your staff monthly sign the pay slip (your accountant will create the slip monthly).

Apartments staff

The legislation distinguishes apartments staff. There are more than 200,000 people who are registered as apartment staff (kapıcı). The government has made ​​an exception for this group allowing an exemption from income tax (gelir vergisi) and withholding tax (withholding tax). The exemption creates a higher net income. The total cost to the employer will remain the same.

MINIMUM SALARY TURKEY
(Period 01.01.2014-30.06.2014)
	Employees	Apartment personnel (kapıcı)
Gross salary	1.071,00 TL	1.071,00 TL
Social insurance employee (14%)	149,94 TL	149,94 TL
Unemployment insurance contribution employee (1%)	10,71  TL	10,71 TL
Income tax (15%)	56,22 TL	---
Cost of living allowance (sagri) (Single and no children)	80,33 TL	---
Stamp tax (0,759%)	6,46 TL	---
Total deductions	225,00 TL	160,65 TL
NET SALARY (incl aig)	846,00 TL	910,35 TL
Total cost for employer	1.258,43 TL	1.258,43 TL