Incentives are back

Spurring employment and speeding up judicial processes top the list for 2019


Among the host of new regulation­s expected to be adopted in the new year, two of the most important relate to new incentives to support employment and steps to accelerate the judicial process. With the “Target Timing in Judgment” initiated by the Ministry of Justice, deadlines for proceeding­s and investigat­ions will be given to the parties for the first time starting on January 1. As of the beginning of 2019, two main policy documents related to the judiciary will be announced: the Judicial Reform Strategy and the Human Rights Action Plan.

President Recep Tayyip Erdogan also recently announced incentives that have been put into practice to address issues in the business world, in particular in the field of employment. “We plan to reduce our unemployme­nt rate to single digits in 2019, and we will achieve this,” Erdogan said. According to the regulation: ►“The regional employment incentive has been extended for another year. Currently, the 6-point Social Security Institutio­n (SGK) incentives we provide to employers in 51 provinces and 2 counties will continue.”

►“Minimum wage support for 9 months in 2018 will be given in 2019 for 12 months. This support will be TRY 101 for companies with 500 or more employees and TRY 150 for companies with less than 500 employees.”

►“The insurance premium incentive applicatio­n will be implemente­d next year with three points for companies with more than 500 employees and five points for companies with less than 500 employees.”

►“All insurance and tax expenses on the minimum wage of each worker employed for the first time in 2019 and 2020 will be covered by the state.”

►“The incentive period for women, youth and the disabled has been increased from 12 to 18 months.”

►“VAT will be waived for new machinery and equipment purchases for the manufactur­ing industry without the need for an investment incentive certificat­e during 2019, and in research and developmen­t activities, without any time limit.”

Support for safe workplaces

In addition, the unemployme­nt insurance premium rate per employee in workplaces with more than 10 employees and in a very dangerous class which have not had an accident resulting in death or permanent disability for three years will be reduced from two percent to one percent as of January 1. 54,000 businesses, covering more than two million employees, are expected to benefit from this incentive.

Med at on w ll be mandatory n commerc al cla ms

The mediation process, which is applied as cause of action in disputes between employee and employer, will also be applied in commercial disputes related to trade receivable­s and compensati­on as of the new year. Applying for a mediator for commercial claims before the lawsuit is filed will be cause of action. The mediator will conclude the applicatio­n within 6 weeks of his or her appointmen­t. The aim is to accelerate the resolution of commercial disputes and to accelerate processes related to business.

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