Turkey to ban layoffs for 3 months to mitigate economic impacts of coronavirus

Turkey would ban layoffs for three months under draft legislation aimed at protecting those lacking job security and mitigating the blow to the economy from the coronavirus outbreak, two senior officials said.

"The proposed law would be guaranteeing employment and aims to protect employees who are not eligible for short-labour pay and are put on unpaid leave," one of the officials told Reuters.

President Tayyip Erdoğan would be authorised by parliament to extend this period to six months, the sources said.

They said the law would be passed soon but gave no date. However, it would apply to anyone who had been laid off or put on unpaid leave as of March 15, and is not eligible for unemployment benefits. They would be paid a daily 39.24 lira ($5.80) by the government.

Turkey's death toll from COVID-19, the respiratory disease triggered by the coronavirus stood at 812 on Wednesday, the health ministry said, among a total of more than 38,000 confirmed cases.

Ankara has halted all flights, limited intercity travelling, closed schools, cafes and suspended mass prayers to counter the outbreak.

Food stores and online delivery services have announced extra hiring as demand spiked.

The government has also offered to pay 60% of the wages of employees working in businesses suffering from the outbreak, while state banks have offered loans to companies that keep their employee headcount stable during this period.