In a troubling turn of events, 7,000 workers employed at KFC and Pizza Hut branches across Turkey have found themselves in an uncertain position after both brands shut down their operations in the country. These employees are neither officially laid off nor unemployed according to government statistics, but they are unable to claim compensation or seek new employment without forfeiting their rights. This complex situation has left workers grappling with the question: who will pay for their lost wages and compensations?
The Legal Quandary for Unpaid Workers
KFC and Pizza Hut, owned by the US-based Yum! Brands, transferred their Turkish operations to İş Gıda under a franchise agreement at the end of 2020. However, recent developments have caused a sharp downturn. Yum! Brands ended the franchise agreement, citing unmet operational standards. In January 2025, İş Gıda declared bankruptcy, resulting in the closure of 254 Pizza Hut and 283 KFC branches. As a result, workers at these locations, who have not been formally laid off, find themselves in a precarious position.
The closure of the restaurants has led to an employment conundrum: these workers are officially employed but unable to work, and the law does not allow them to claim justified termination, meaning they cannot access unemployment benefits or severance compensation unless they remain technically “employed.” This legal gap prevents workers from seeking new jobs without losing their compensation rights.
Workers’ Rights in Bankruptcy Proceedings
The situation becomes more complicated due to Turkey’s bankruptcy protection laws, particularly the concept of “composition” — a legal procedure that allows companies on the brink of insolvency to restructure their debts without interest. In this process, workers’ claims for wages and compensation are categorized as “privileged receivables,” meaning they are supposed to be prioritized. However, in practice, these claims often come after financial and state receivables, leaving little to no funds for workers. In 2021, a legal amendment further reduced the priority of workers’ claims, solidifying their position at the back of the line.
In many cases, workers remain employed on paper during this process to prevent their compensation from becoming part of the creditors’ list. But this also means that they are trapped in a limbo where they cannot claim severance or benefits, nor can they find new jobs without losing their rights.
Is Yum! Brands Accountable?
The responsibility for the workers’ plight also falls to Yum! Brands, the parent company of KFC and Pizza Hut. These global brands operate under a franchise model, where the parent company dictates the product specifications, branding, and operational standards, while local franchisees like İş Gıda manage the day-to-day operations. This model has left workers trusting the brand’s promise of stability and employment.
However, Yum! Brands’ termination of the franchise agreement in Turkey raises questions about their role in the workers’ situation. While the company may believe they have legally distanced themselves by ending the contract, the workers, who trusted the brand’s promise of secure employment, are now left to wonder: will Yum! Brands take responsibility for the consequences of this closure?
The Path Forward
As of now, the 7,000 workers are calling for support and action from the Turkish government, as well as from Yum! Brands. The legal battle is ongoing, with workers hoping for justice through the courts and public pressure. The outcome of this struggle will depend largely on the solidarity of the public and the commitment of legal advocates who have been fighting for workers’ rights in similar cases.
In the end, the answer to the question of who will pay the bill for these workers remains unresolved, but it is clear that the resolution will come from a combination of legal action and public support for the workers who have been left stranded by corporate decisions.
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