The Law On The Reduction Of The Effects Of The Novel Coronavirus (“Covid-19”) Pandemic On Economic And Social Life And Amendments In Some Laws

Law No. 7244 on “The Law on the Reduction of the Effects of the Novel Coronavirus (“Covid-19″) Pandemic on Economic and Social Life and Amendments in Some Laws” (The Law) has been approved by The Grand National Assembly of Turkey on 16/04/2020. The Law shall enter into force on the date of publication in the Official Gazette. You may reach the original text of the law here.

The Law has made numerous changes in the current legislation in order to minimize the effects of COVID-19 on economic and social life.

The Law has regulated the following topics;

• The limitation of dividend distribution of companies,
• The postponement of the general assembly meetings of institutions such as The Union of Chambers and Commodity Exchanges of Turkey (TOBB), Associations, cooperatives and agricultural producers union,
• A ban on the termination of employment contracts for three months,
• The allowance of unpaid leave for workers,
• The providing of wage support to workers who are on unpaid leave during the prohibition of termination period,    
• The formation of collective labor agreements, resolution of collective labor disputes and extension of strike and lockout periods for three months,
• The returning of excessive and improper short-time work payments with interest,
• The audit reports of Turkey Wealth Fund Management Inc. (“TWFM”) and other companies set to be established by TWFM to be presented in September;
• The expansion of exemptions granted towards TWFM.
• The non-collection of annual announcement, advertising and environmental cleaning taxes of businesses whose activities have stopped or cannot be operated during periods where activity has ceased.         
• The postponement of debts regarding water bills for residences and workplaces whose activities has ceased, for three months by the Municipalities,
• The supporting of public transportation activities for three months by the Municipalities,
• The postponement, non collection or the restructuring of some receivables of the Administration,
• The restructuring of The Turkish Electricity Distribution Corporation’s (“TEDAŞ”) receivables arising out of electricity consumption,
• The postponement of credit debts of the Agricultural Sales Cooperative, Extending the validity period of licenses granted under the Agricultural Products Licensed Warehousing Law,  
• The extension of the duration of merchant ships’ seaworthiness certificates and inspections thereof,
• The postponement of the 2020 dues of travel agencies and making the transfer of business documents independently from the agency title possible, 
• The  ability to conduct R&D and design activities outside the R&D and design centres and Technology Development Zones for four months,    
• The auctions of the immovable property of the Treasury being made electronically,  
• The postponement of the elections for the neighbourhood representatives and the board of alderman.
• The imposing of penalties in case of supervision and determination of exorbitant pricing and stocking practices.

Best Regards,

Berker Berker Law Office

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