Can an Employee Be Dismissed for Providing Services to Another Company?

An employee with more than five years of service booked a hotel room and arranged meetings for a representative of another company in the same industry. The employee also used the employer’s vehicle to take the representative to meetings. The employer dismissed the employee without severance or notice pay. The first-instance court awarded both payments, but the Turkish Court of Cassation reversed the judgment. Attorney Gizem Gonce explains the ruling.

What did the court consider?

An employee’s duty extends beyond performing assigned work. While the employment contract continues, the employee must protect the employer’s legitimate interests and avoid conduct that undermines trust.

The court considered the hotel booking, the meetings organised for the other company’s representative, the continued use of an email address from the previous workplace and the use of the current employer’s vehicle. It found that the conduct was incompatible with the employee’s duties of honesty and loyalty.

Does the employee have to make money?

The Court of Cassation held that financial gain was unnecessary for dismissal for just cause on these facts. An employee can undermine the relationship of trust without receiving payment. Whether another job or assistance to another company warrants immediate dismissal depends on the activity, the employer’s legitimate interests, the employment contract and the circumstances.

Can an employee take a second job?

Secondary employment is generally possible within the employee’s contractual and legal obligations. Working for a competitor, exploiting the current employer’s business relationships or using its resources for another company can raise issues of loyalty. The employment contract, any applicable non-compete terms and the facts should be examined together.

What happens to severance and notice pay?

Length of service alone does not establish entitlement to either payment where an employer has just cause for immediate dismissal under Article 25(II) of Labour Law No. 4857. In that situation the employer owes no notice pay, and Article 14 of Labour Law No. 1475 excludes severance pay. Article 26 generally requires the employer to act within six working days of learning of the conduct and within one year of its occurrence. The one-year limit does not apply if the employee obtained a financial benefit from the conduct.

What evidence matters?

Employers should identify the conduct and substantiate it with concrete evidence obtained lawfully. Relevant material may include emails, company records, meeting arrangements, witness evidence and the employment contract. The employer must assess the evidence and comply with the statutory deadlines.

Why the decision matters

Whether work for another company undermines the existing relationship of trust may be decisive. The ruling focuses on the employee’s conduct and the interests at stake, including where no financial benefit is shown.

Case details

Turkish Court of Cassation, 9th Civil Chamber, 24 June 2026, E. 2026/3315, K. 2026/6247. Labour Law No. 4857, Articles 25(II)(e) and 26, and Labour Law No. 1475, Article 14.

Published text of the decision (Turkish) · Labour Law No. 4857 · Labour Law No. 1475