October 16, 2025|
Amendments to the Unemployment Insurance Law (Law No. 4447) introduced to mitigate the economic impacts of the COVID-19 pandemic and the support provided to employers and employees.
Blog
Recent Amendments to the Unemployment Insurance Law (Law No. 4447)
NOVEMBER 2021
Short-Time Working Allowance Regulations
Due to the economic effects of the COVID-19 pandemic, the Economic Stability Shield Package, announced on March 18, 2020, aimed to simplify the process of accessing the short-time working allowance.
- Temporary Article 23:
Introduced through Law No. 7226, published on March 25, 2020. Key provisions include:- The condition requiring termination of employment for employees to qualify for the allowance was removed.
- Employees who had been under an employment contract for the last 60 days and had worked for at least 450 days in the previous three years became eligible.
- Employers were required not to dismiss employees during this period.
- Applications had to be finalized within 60 days.
2020 Updates
Developments on December 1, 2020:
- Presidential Decree extended the deadline for applications for the short-time working allowance until December 31, 2020.
Developments on December 2, 2020:
Temporary Article 26:
Social security premium support was provided to employers whose short-time working period had ended and who restored employees to regular working hours.- The support period was extended until June 30, 2021.
Temporary Article 10:
The duration of employer social security premium support was extended to December 31, 2022.Temporary Article 19:
The duration of income tax withholding incentives was also extended to December 31, 2022.
- Employers who retained employees after the short-time working period ended were granted social security premium support, significantly alleviating financial burdens.
- Income tax withholding incentives were introduced to reduce employers’ financial obligations. To benefit from these incentives, employers were required to comply with legal obligations.
Evaluation
The COVID-19 pandemic created significant economic challenges for both employers and employees. The amendments to Law No. 4447 were implemented to mitigate the effects of the pandemic and ensure economic stability.
- For Employers: The incentives and support reduced the pressure to dismiss employees and alleviated financial burdens on businesses.
- For Employees: The short-time working allowance and unemployment insurance support served as crucial tools to prevent income loss.
However, these measures may not be entirely sufficient, and the development of long-term economic support policies remains essential.
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Amendments to the Unemployment Insurance Law (Law No. 4447) introduced to mitigate the economic impacts of the COVID-19 pandemic and the support provided to employers and employees.
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