The concept of short-time working has primarily introduced to Turkish Law with the Article 65 of the Law No 4857. In consequence of encountering some difficulties in practice, the regulation was excluded from the scope of the Labour Law and was included to the Unemployment Insurance Law No.4447 with the Additional Article 2. Thus, short-time working has become applicable to the workers who work under the Press-Labour and Maritime-Labour Law. Briefly, short-time working can be described as reduction of working time or fully shutdown in case of the existence of general economic crisis, sectoral and regional crisis and compelling reasons. In this study, with reference to the short-time working institution, the terms and conditions of making short-time working,the application method, the ending of short-time working, particularly the effects on the employment contract, short-time working allowance will be discussed, in case of occurrence of short-time working,in the light of the decisions of the Supreme Court.