According to Islamic law, there is a principle of freedom of contract between the employee and the employer. Therefore, the parties may freely enter into an employment contract, provided that it does not contravene religious values—especially fairness and justice—or legal regulations. The state may add provisions or framework rules to contracts made by the free will of the employee and employer, taking certain benefits into account. In matters not explicitly stipulated in the contract, relevant legal regulations and general custom are taken as the basis.
Accordingly, in today’s employment contracts, it is clearly stated or commonly known that if an employee is dismissed without fault or retires, the employer is legally obliged to pay “severance pay.”
Therefore, if an employee is dismissed unjustly—not due to behavior contrary to morality and good faith—and receives severance pay within the bounds of fairness, this is permissible, as it is approved by the contract, the law, and prevailing custom. In the case of retirement, the severance pay received may also be considered compensation for long-term service, in addition to the three reasons mentioned above.
Source: T.C. Diyanet İşleri Başkanlığı, Din İşleri Yüksek Kurulu
This content was drafted with AI assistance and reviewed by an editor.