What is the Right to Peace in Türkiye? Who is the Right to Peace Valid for?

 

In order for employees in a business to better manage their responsibilities and risks, a positive work environment is essential. This allows employees to better manage the risks they take on.

An attendance fee is a payment made, in addition to a salary, to board members or audit committee members, usually for attending meetings and taking responsibility for company management. Detailed information on what an attendance fee is and who receives it is included in our article.

 

 

What Does the Right to Peace Mean? 

 

An attendance fee is a right held by members of a company's management, audit committee, and senior executives. This is the payment received by senior executives, board members, and audit committee members to compensate for any losses they may incur as a result of the decisions they make and the risks they take.

Attendance allowance is a payment provided in addition to salary. Attendance allowances are paid regularly and periodically. They can be paid monthly or quarterly . Attendance allowances are calculated based on a specific salary. The amount used to calculate the attendance allowance can vary from sector to sector and company to company. There is no lower or upper limit for calculating the attendance allowance.

 

 

Who is entitled to the right to peace?

 

Attendance payments are granted to members of the board of directors, managers serving on the board of directors, and, if there is an auditing body, to members of the audit committee. Senior executives who assume specific responsibilities and duties within the company and are willing to take risks may be granted an attendance payment. The amount of attendance payments granted to employees in key company departments may vary from company to company.

Not every company is required to pay an attendance allowance to its senior executives or members of the board of directors and audit committees. The recipients of an attendance allowance vary depending on the type of company. In other words, in limited liability companies, the attendance allowance is given to directors on the board of directors, while in joint-stock companies, it is given to members of the board of directors. The decision on whether a company will pay an attendance allowance to its senior executives or members of the board of directors is made by the company's general assembly or board of directors.

 

How is the Permanent Allowance Calculated?

 

The legal basis for the attendance fee is as stated in Article 394 of the Turkish Commercial Code: “Members of the board of directors may be paid attendance fee, wages, bonuses, premiums and shares of the annual profit, provided that the amount is determined by the articles of association or by the decision of the general assembly.”

According to this article, the attendance allowance for board members is determined by a resolution of the company's general assembly. The recipients of the attendance allowance and the amount are determined. The determined amount is paid regularly, monthly, quarterly, or at a time period determined by the company.

 

 

When calculating the attendance allowance amount, the gross salary is calculated first. This is because attendance allowances are subject to tax. Taxes and deductions are calculated based on the gross amount. Taxes and stamp duty deductions for the attendance allowance are deducted from the calculated gross amount, and the remaining net payment is given to the member.

 

Advantages and Disadvantages of the Honoraria Allowance

 

Advantages

 

This fee paid to members encourages regular attendance and active contribution to meetings. It increases motivation and participation.

Board members have legal and financial responsibilities. The honorarium is a financial reward for these responsibilities. In other words, it's a reward for the employees' labor.

-It makes it more attractive for experts in their fields to serve on management bodies. Employees who choose to work for the company gain increased prestige .

-It enables members to make more careful, organized and conscious decisions.

In some cases, it does not result in additional tax liability other than income tax withholding and can be recorded as an expense for the company. It is shown as an expense for tax purposes.

 

Disadvantages

 

-This can be a significant cost, especially in companies with a large number of members and frequent meetings. It increases overhead costs.

-Attendance fees are generally calculated based on meeting attendance; the same amount can be earned even if the member's active contribution is low. Performance may not be as important. Both those who work more and those who work less can receive the same attendance allowance.

-High attendance fees may create discomfort among partners if they result in a decrease in profits.

While board members receive high attendance fees, the low wages paid to employees can undermine the perception of corporate justice. Unequal attendance fees may occur.

- In some companies, attendance fees may be paid to members who do not actually contribute, and this leads to ineffective use of company resources.