One of the major risks threatening the managements in Turkey is breaching their contractual obligations towards third parties due to the force majeure situation caused by the Corona crisis. Accordingly, the managements shall immediately take measures to mitigate such risks and if necessary and possible trigger the force majeure clauses in their contracts and consider the options provided by the law such as hardship (aşırı ifa güçlüğü).
Another risk threatening the managements in Turkey is from a financial aspect. In case the company is forced to cease production or cannot collect its debts from third parties, this may lead to a financial crisis in the company. As a result of this, the companies may be forced to terminate employment agreements of employees on an individual or collective basis.
In this case, the employment security regulations shall be carefully observed since any such individual or collective termination of employment may lead to legal claims which may create a heavy compensation burden on the company.