AN EVALUATION OF “THE GUIDE ON GOOD REMUNERATION PRACTICES AT BANKS” PUBLISHED BY THE BANKING REGULATION AND SUPERVISION AGENCY IN TERMS OF LABOR LAW

Abstract

The Banking Regulation and Supervision Agency publishes "good practice guides" to comply with the international principles and standards of the Basel Committee. One of these guides is “Guide to Good Remuneration Practices in Banks”. The purpose of this Guide is to explain the good practices expected from banks in order to ensure that remuneration policies, processes, and practices in banks are established and implemented within the framework of a healthy and effective risk management approach. The guide includes general principles for remuneration of bank employees and principles for remuneration of “specialized employees”. When bank employees working with an employment contract are remunerated in accordance with the principles set out in the Guide, these principles may contain violations of the principles and rules of labor law. Especially, deferred and long-term payment of variable wages, payment only on condition that the financial situation of the bank is favorable during the payment period, payment by non-cash instruments and agreements for cancellation and refund of variable wages are of this nature.