Hiring people is often the point at which a foreign company's presence in Turkey (Türkiye) becomes real, and also the point at which most compliance obligations begin. Turkish employment law is codified, protective of employees and enforced through labour inspections, social security audits and an active labour court system. Many rules apply automatically and cannot be excluded by contract, whatever the employment contract or the group's global policies say.
This guide explains the ways a foreign business can employ staff in Turkey, the core rules of the Labour Law (No. 4857), and the payroll, social security, health and safety and data protection obligations that apply from the first day of work. It is a companion to our practical guides on onboarding employees, termination and offboarding and work permits for foreign staff.
Key points
- A foreign company can employ staff in Turkey through its own Turkish entity, a branch, an employer of record or payroll provider, or in some cases directly. Each model has different legal and tax consequences.
- Temporary agency work (worker leasing) is permitted only in limited situations, and staff working in Turkey for a foreign company can create a permanent establishment for tax purposes.
- The Labour Law sets mandatory minimums on contracts, working time, overtime, annual leave and termination that contracts cannot reduce.
- Employees must be notified to the Social Security Institution (SGK) before they start work, and occupational health and safety duties apply from the first hire.
- Employers with 30 or more employees face the job security regime, under which dismissals must be based on a valid reason and can be challenged through reinstatement claims.
How can a foreign company employ people in Turkey?
The right employing model depends on how many people you need, how long you need them for, what they will do and whether you want a taxable presence in Turkey. The main options are summarised below and compared in more detail in our guide to choosing a business structure.
| Model | How it works | Main points to consider |
|---|---|---|
| Turkish subsidiary | The company you incorporate employs staff directly | Full control and the most common long-term route; requires a registered company, payroll and SGK registration |
| Branch of the foreign company | The registered branch employs staff | No separate legal personality, so the parent is ultimately liable; branch registration needed first |
| Liaison office | The office employs staff for permitted non-commercial activities only | Staff cannot carry out sales or other commercial work; ministry permit required |
| Employer of record or payroll provider | A Turkish provider employs the individual and makes them available to you | Must be structured lawfully given the limits on worker leasing; does not remove permanent establishment risk in itself |
| Direct employment by the foreign company | The foreign company employs a person working in Turkey | Possible in limited cases; registration, payroll withholding and permanent establishment questions need careful analysis |
| Independent contractors | Individuals invoice for services | Risk of reclassification as employment if the relationship looks like employment in practice |
Employers of record and the limits on worker leasing
Many international groups use an employer of record (EOR) to test the market before setting up an entity. In Turkey this needs care. The Labour Law permits temporary agency work (geçici iş ilişkisi) through licensed private employment agencies only in specific situations and for limited periods, such as replacing employees on certain types of leave, seasonal work or periods of unexpected increase in workload. Separate rules allow an employee to be temporarily assigned to another company in the same group, with the employee's written consent and for limited periods. Outside those cases, arrangements in which one company supplies workers who are in reality managed by another can be challenged, and the end user may be treated as the employer or as jointly liable.
Commercial EOR arrangements are therefore usually structured as the provider's own employment of the individual, with services supplied to the client. Whether that structure holds up depends on how the relationship works in practice, so contracts and day-to-day management should be reviewed with Turkish counsel before relying on it.
Permanent establishment risk
Employing people in Turkey, directly or through an intermediary, can create a permanent establishment (PE) of the foreign company for Turkish tax purposes, particularly where staff habitually conclude contracts or carry out core business activity. A PE can make part of the foreign company's profits taxable in Turkey. This is explained further in our tax guide.
Contractors and misclassification
Engaging individuals as freelancers can look simpler, but Turkish courts look at substance rather than labels. Where a person works under the company's direction, at set times, as part of its organisation and for regular pay, the relationship is likely to be treated as employment, with retrospective social security contributions, severance and other entitlements. Our employment law Q&A for foreign employers discusses classification in more detail.
What must a Turkish employment contract contain?
Employment contracts are governed mainly by the Labour Law and, where it is silent, the Turkish Code of Obligations (No. 6098). Key points:
- Indefinite or fixed-term. Indefinite-term contracts are the default. A fixed-term contract requires an objective reason, such as a specific project or the replacement of an absent employee, and repeated fixed-term contracts without such a reason may be treated as indefinite.
- Written form. Contracts with a fixed term of one year or more must be in writing. Where there is no written contract, the employer must give the employee a written document setting out the main terms (such as working conditions, working time, pay and the duration of the contract) within two months. In practice, written contracts are used for almost all employees.
- Language. Contracts are usually prepared in Turkish or in bilingual form. A Turkish version makes enforcement before Turkish authorities and courts much easier, and bilingual contracts commonly state which language prevails.
- Probation. A probation period of up to two months may be agreed, or up to four months under a collective agreement. Either party can end the contract during probation without notice or compensation, although wages for the days worked remain payable.
- Duties, place of work and pay. Changes to essential working conditions generally need the employee's written consent, so it helps to define these terms carefully at the outset.
Template contracts used elsewhere in a group rarely work without adaptation. Clauses on unpaid overtime, unilateral variation, long notice periods for one side only or broad non-compete restrictions may be unenforceable in Turkey.
Working time, overtime and leave
The Labour Law sets minimum standards that apply to most employees:
| Topic | General rule under the Labour Law |
|---|---|
| Weekly working time | Up to 45 hours per week, usually spread evenly over the working days |
| Daily limit | No more than 11 hours of work in a day |
| Overtime | Work above 45 hours a week is paid at a 50% premium (or taken as time off in lieu where agreed) |
| Overtime cap | Overtime is limited to 270 hours a year and generally requires the employee's consent |
| Night work | Generally limited to 7.5 hours |
| Weekly rest | At least 24 hours of uninterrupted rest in each seven-day period |
| Annual leave | 14 working days with 1–5 years' service, 20 days with 5–15 years and 26 days with 15 years or more; at least 20 days for employees aged 18 or under or 50 and over |
| Public holidays | Work on national and public holidays attracts additional pay |
Annual leave cannot be waived, and unused leave is paid out when employment ends. Keeping accurate records of working hours, overtime and leave matters: in disputes, the employer generally has to prove that leave was granted and that overtime pay was paid, and its records are often decisive evidence of the hours worked.
Pay, payroll and social security
Wages and the minimum wage
The national minimum wage is set periodically by the Minimum Wage Determination Commission, usually at least once a year. All employment costs, including social security contribution bases, are linked to it, so payroll budgets should be revisited whenever it changes. Wages must generally be paid at least monthly, and employers above a statutory headcount threshold must pay wages through bank accounts. In practice, almost all employers pay through banks.
Can salaries be agreed in foreign currency?
Turkish currency protection rules (Decree No. 32 and its implementing communiqué) generally restrict Turkish residents from agreeing employment contract payments in foreign currency or indexed to foreign currency. There are exceptions, for example for employees who are not Turkish citizens, and other limited exceptions. These rules change from time to time, and their legal basis was the subject of a Constitutional Court decision and legislative change in 2025–2026, so the currency of pay should be confirmed with Turkish counsel for each role before contracts are signed.
SGK registration and contributions
Every employee must be insured with the Social Security Institution (Sosyal Güvenlik Kurumu, SGK). The employer registers the workplace with SGK and notifies each employee's start of employment before the employee starts work (generally at least one day before, with limited sector exceptions). Monthly premium and service declarations are then filed and contributions paid. Contributions are shared between employer and employee and are calculated on gross earnings within a floor and ceiling linked to the minimum wage. Rates have changed several times in recent years, most recently through the legislation discussed in Key Changes to Turkish Tax and Social Security Laws.
Income tax and stamp duty on wages
Employers withhold progressive income tax and stamp duty from salaries and file monthly withholding returns, usually combined with the social security declaration. Payroll is normally run by a licensed financial adviser (mali müşavir) or a payroll provider. Some incentive regimes, for example in technology development zones or the qualified service centre regime introduced in 2026, provide payroll tax exemptions for qualifying employees. See the tax guide.
Obligations that depend on headcount
Several obligations are triggered by the number of employees. How headcount is counted differs by obligation: for example, the disabled-employee quota counts the employer's workplaces in the same province, the job security threshold counts all workplaces in the same branch of activity, and collective dismissal thresholds are applied per workplace. Growth can trigger new duties without anyone noticing.
| Headcount | Obligations commonly triggered |
|---|---|
| First employee | SGK workplace registration, employee notifications, payroll, occupational health and safety duties, personnel files |
| 20 or more (per workplace) | The collective dismissal procedure may apply where dismissals within one month reach the thresholds in Article 29 of the Labour Law |
| 30 or more | The job security regime applies to employees with six months' service |
| 50 or more | Employing disabled persons at a rate of 3% of the workforce (private sector); certain health and safety committee obligations |
| Larger female workforces | Nursing rooms or childcare facilities, depending on the number of female employees |
Failing to meet the disabled employee quota results in administrative fines for each unfilled position and month, which are updated annually.
Occupational health and safety
The Occupational Health and Safety Law (No. 6331) applies to all employers, whatever their size or sector. Core obligations include:
- carrying out and keeping up to date a written risk assessment
- appointing an occupational safety specialist and a workplace physician, either employed or through an authorised joint health and safety unit (or, for certain small less-hazardous workplaces, by the trained employer or other permitted providers), with the required time allocated according to the workplace's hazard class and headcount
- giving employees health and safety training before they start work and at regular intervals
- preparing emergency plans, carrying out drills and appointing emergency response staff
- arranging health examinations where required, particularly in hazardous and very hazardous work
- recording and reporting workplace accidents and occupational diseases to SGK within the statutory deadline
The hazard class of the workplace (less hazardous, hazardous or very hazardous) is determined by its activity code and drives many of these requirements. Rules for smaller workplaces were updated from 1 January 2025: see New Regulations on Workplace Safety Effective from 1 January 2025. Breaches can lead to fines, suspension of work and, in the case of an accident, civil and criminal liability, as discussed in Understanding Claims for Workplace Accident Compensation in Turkey.
Data protection for employee data
Employee data is subject to the Personal Data Protection Law (No. 6698, known as KVKK). For employers this generally means:
- giving employees and candidates a privacy notice (aydınlatma metni) explaining what data is processed, why, on what legal basis and to whom it is transferred
- relying on explicit consent only where no other legal ground applies, and not making consent a condition of employment
- applying stricter rules to special categories of data, such as health data, criminal records and biometric data
- meeting the rules on cross-border transfers, which matter for groups using global HR systems or cloud providers. These rules were overhauled in 2024: see our analysis of the updated cross-border data transfer regulations
- registering with the data controllers' registry (VERBIS) where the employer exceeds the thresholds set by the Personal Data Protection Board (based on employee numbers and annual balance sheet total), or where the data controller is resident outside Turkey; lower thresholds apply where the main activity is processing special category data
Job security, equal treatment and workplace rules
The job security regime
Employees with at least six months' service who work at a workplace (or for an employer) with 30 or more employees and who are on indefinite-term contracts are generally protected by the job security provisions of the Labour Law. Senior managers who represent the employer and have authority to hire and dismiss are excluded. A protected employee can only be dismissed for a valid reason related to their capacity, conduct or the operational needs of the business, and may bring a reinstatement claim. See termination and offboarding.
Equal treatment
The Labour Law prohibits discrimination based on language, race, colour, sex, disability, political opinion, philosophical belief, religion and similar grounds, and requires equal pay for work of equal value regardless of sex. The Law on the Human Rights and Equality Institution adds further protection. Employees who prove less favourable treatment may claim compensation of up to four months' wages in addition to other rights.
Internal regulations and policies
Many employers adopt a written set of workplace rules, disciplinary procedures and policies (on working hours, IT use, expenses and confidentiality, for example). Having employees acknowledge these in writing makes them easier to rely on later, particularly in disciplinary or dismissal situations.
Trade unions and collective agreements
Collective labour relations are governed by the Trade Unions and Collective Labour Agreements Law (No. 6356). Employees have the right to join a union, and a union that reaches the statutory membership thresholds in the relevant branch of activity and at the workplace or enterprise can seek authorisation to negotiate a collective agreement. Employers should not interfere with union membership. Dismissal for union reasons attracts special protection and compensation.
Employment compliance checklist for foreign employers
| Area | Before the first hire | Ongoing |
|---|---|---|
| Structure | Choose and register the employing entity; assess PE and worker-leasing risk | Review the model as headcount grows |
| Contracts | Turkish or bilingual contracts reviewed for mandatory rules | Written amendments for changes to essential terms |
| SGK and payroll | Workplace registration; payroll provider or mali müşavir appointed | Start notifications before work begins; monthly declarations and payments |
| Working time | Working-hours policy and timekeeping | Overtime consent and records; leave records |
| Health and safety | Risk assessment; OHS specialist and workplace physician arranged | Training, drills, health checks, accident reporting |
| Data protection | Privacy notices; data inventory; transfer mechanism for group systems | VERBIS where required; retention and deletion |
| Foreign staff | Work permits obtained before the start date | Renewals; notifications on termination |
| Headcount triggers | Monitor the 20, 30 and 50 employee thresholds | Disabled employee quota; collective dismissal rules |
Common mistakes to avoid
- Letting people start work before the SGK notification has been made.
- Using group-wide contract templates without adapting them to Turkish law.
- Treating long-term freelancers as contractors when they work like employees.
- Paying fixed salaries that "include" unlimited overtime, without records or agreement.
- Agreeing salaries in foreign currency without checking the currency rules.
- Forgetting that annual leave cannot be waived and must be recorded.
- Overlooking headcount thresholds after a period of growth.
- Running HR data through foreign systems without addressing KVKK transfer rules.
For an overview of how employment fits into the wider market-entry process, see Doing Business in Turkey. Our articles A Handbook for Foreign Investors and Employers on Turkish Employment Law and Recent Developments in Turkish Employment Law for 2025 cover specific topics in more depth, and our regulatory and compliance page gives an overview of the regulatory landscape.
Frequently asked questions
Can a foreign company employ staff in Turkey without a Turkish company?
It can, through an employer of record, a branch, a liaison office (for non-commercial activities only) or, in limited cases, directly. Each route raises different questions, including the restrictions on temporary agency work under the Labour Law and the risk of creating a permanent establishment for tax purposes. Many companies use an interim arrangement and then move staff to their own entity once the business is established. See choosing a business structure.
Is an employer of record legal in Turkey?
Employer of record services are offered in Turkey, but they must be structured carefully. Temporary agency work is permitted only through licensed agencies and in specific circumstances, so arrangements in which the client effectively manages the provider's employees can be challenged. The client may then be treated as the employer or held jointly liable. Review the contract and the day-to-day working arrangements before relying on the model.
Do employment contracts in Turkey have to be in writing?
Contracts with a fixed term of one year or more must be in writing. For other contracts, the employer must give the employee a written statement of the main terms within two months if there is no written contract. In practice, written contracts in Turkish or bilingual form are used for almost all employees.
How many hours can employees work in Turkey?
The standard maximum is 45 hours per week, with no more than 11 hours of work in a day. Work above 45 hours is overtime, paid at a 50% premium or compensated with time off where agreed, and overtime is capped at 270 hours a year. Night work is generally limited to 7.5 hours.
How much annual leave are employees entitled to?
Employees with one to five years' service are entitled to at least 14 working days a year, those with five to fifteen years to 20 days and those with fifteen years or more to 26 days. Employees aged 18 or under and 50 or over receive at least 20 days. Leave cannot be waived, and unused leave is paid when employment ends.
When must a new employee be registered with SGK?
The employer must notify the Social Security Institution of the employee's start of employment before work begins, generally at least one day in advance, with limited exceptions for certain sectors. The workplace itself must also be registered with SGK when the first employee is hired. See our onboarding guide for the practical steps.
Can salaries be paid in euros or US dollars?
Turkish currency rules generally restrict Turkish residents from agreeing employment pay in foreign currency or indexed to foreign currency, subject to exceptions, including for certain foreign national employees. Because the rules, their exceptions and their legal basis have been changing, the currency of pay should be confirmed for each role before the contract is signed.
What is the job security regime?
Employees with at least six months' service on indefinite contracts, working for an employer with 30 or more employees, can only be dismissed for a valid reason related to their capacity, conduct or business needs. They can challenge a dismissal through a reinstatement claim, which starts with mandatory mediation. Senior managers with authority to hire and dismiss are excluded. See termination and offboarding.
Do small employers have health and safety obligations?
Yes. The Occupational Health and Safety Law applies to all employers, including those with a single employee. Duties include a written risk assessment, health and safety services from a safety specialist and workplace physician (depending on hazard class and headcount), training before work starts and emergency planning.
Does an employer need to register with VERBIS?
Registration with the data controllers' registry is required for employers above the thresholds set by the Personal Data Protection Board, which are based on employee numbers and annual balance sheet total, and for data controllers resident outside Turkey. Even employers below the thresholds must comply with the rest of the KVKK, including privacy notices and data security.
What happens when headcount reaches 50 employees?
Private sector employers with 50 or more employees must generally employ disabled persons at a rate of 3% of their workforce, and further health and safety organisation requirements apply. For the quota, headcount is usually calculated across the employer's workplaces in the same province, so it should be monitored as the business grows.
Do foreign employees need a work permit?
Foreign nationals generally need a work permit before they start working in Turkey, whether they are employees or actively managing the business on the ground. The permit is applied for by the employer and also serves as a residence permit. See work permits for foreign staff.
This guide is general information about Turkish law and practice at the date shown above. It is not legal, tax or customs advice and should not be relied on as such. Rules, thresholds and procedures in Türkiye change frequently and their application depends on the facts, so take advice on your own circumstances before acting. Advice on Turkish law is provided through lawyers qualified in Türkiye.