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Nov 255 min read

A Handbook for Foreign Investors and Employers on Turkish Employment Law

Most of the foreign companies, which enter into Turkey to make all arrangements and investments for getting settled in Turkey, feel it necessary to know the various considerations and implications impacting Turkish employment law in terms of legality and business consideration. Movements and implications put into effect by Turkish employment law are very complex and very detailed concerning the rights of employees, obligations of workplaces, and liabilities of employers. This is a complete guide that thoroughly surveys and relates the visibility essentials to foreign investors who have just started learning about Turkish employment law from A to Z.


A Handbook for Foreign Investors and Employers on Turkish Employment Law

1. Employment Contracts: Basis of Relations in the Workplace A handbook for foreign investors and employers on Turkish employment law

Employment contracts provide the basis of the relationship between employers and employees in Turkey law. The most important categories of contracts are:

  • Indefinite-term contracts: This is the standard form of contract unless otherwise defined as the contingency for its presence.

  • Fixed-term contracts: Permissible only for works of a temporary character. Misuse may convert the said relationship into one having no definite width.

  • Full-time vs. Part-time: Determined by the common working hours as compared to standard weekly hours. A Handbook for Foreign Investors and Employers on Turkish Employment Law

There shall be no oral contracts on any matter where the term exceeds one year.

All contracts must include the following conditions of wages, job description, duty hours, and notices.


2. Working hours and overtime.

  • According to standard regulations, a workweek should not exceed 45 working hours over the course of six working days. There are strict guidelines regarding compliance and compensation: 

  • Hours worked in a single day: 11 hours. 

  • Overtime: The additional time spent for work is beyond the forty-five-hour week and will be paid at one hundred fifty percent of the normal hourly rate. 

  • Extra hours of work (under flexible arrangement below forty-five hours) shall be paid at one hundred twenty-five percent of the normal hourly rate.


3. Holiday Rights A Handbook for Foreign Investors and Employers on Turkish Employment Law

  • Under the Turkish law, employees are entitled to the right to paid leave according to their length of service as follows:

  • 1-5 years: 14 days.

  • 5-15 years: 20 days.

  • 15 and above: 26 days.

  • Paid Public Holidays: 15 days each year, including New Year's Day, national holidays, and other religious festivities.


In addition, employees are entitled to unpaid leave for any personal or family emergencies, at the discretion of the employer.

Employees are entitled to personal leave recognition up to 10 days within a year on account of bereavement or funeral rites for a relative. Employees will be entitled to utilize the said vacation within this maximum time, once per annum, on occasions like family trip at least one week long.


4. Termination of Employment

  • Various Modes of Termination

  • Resignation: Employees are free to terminate their contract once the prescribed notice period is served.

  • Termination by Employer:

  • Ordinary Termination: Appropriate procedures, notice and severance pay must be adhered to.

  • Summary Dismissal: Must be for major misconduct; lack of good faith or reason of health, it has to follow procedural rules to be valid.


Notice Periods (On the Basis of Employment Tenure):

  • Duration less than 6 months will call for a notice of two weeks.

  • Duration between 6 to 18 months will call for a notice of 4 weeks.

  • For a period between 18 to 36 months, the notice period applicable will be 6 weeks.

  • Employment for 36 months will draw an 8-week notice.


Severance Payments

Severance payments, as applicable to employees in any work establishment, will be provided to those employees who have put in, at least, a year's service and will amount to an equivalent number of months' gross wage, at the statutory cap, for every year of employment with the company


Legal Risks

Breach of procedure in termination may leave employers exposed to:

  • Reinstatement Demands: If termination is not validly proved.

  • Claim for Compensations: Including severance pay, notice pay and damages due to wrongful dismissal.


5. Discrimination and Equal Treatment

No employer shall discriminate against any person on account of his sex, race, religion, political opinions, or other characteristics protected by law. The law also ensures:

  • Equal Pay for Equal Work.

  • Equal treatment given to employees working full-time, part-time, or on fixed terms.

  • Such breaches can lead to claims for damages and reputational injuries.


6. Social Security and Payroll Compliance

Employers must fulfill the following responsibilities:

  • Register employees with the Social Security Institution of Turkey (SGK).

  • The contribution payments made up roughly 37.5% of the gross salary (37.5% consisting of 22.5% from the employer and 15% from the employee).

Payroll documents must be accurate and comply with tax laws, especially those relating to income tax and social security withholding.


7. Compliance Occupational Health and Safety

The Occupational Health and Safety Act compels employers to do the following:

  • Conduct assessments of risks.

  • Appoint safety officer and occupational physician.

  • Training employees to fully comply with safety requirements. 

Non-compliance may lead to administrative fines, work stoppages, or even criminal liability in instances of accidents in the workplace.


8. Widespread Legal Controversies

The scope of legal issues foreign investors should expect cuts across the following axes: 

  • Unfair Dismissal Claims: Which often stem from procedural lapses at termination; 

  • Overtime and Wage Claims: Where hours worked would not have been properly documented along with payments made; 

  • Workplace Discrimination: Allegations of unfair treatment or harassment related to the individual; 

  • Data Protection Breaches: Relevant breaches of KVKK (Personal Data Protection Law). 

Documentation and proactive compliance will be key in insulating this eventuality.


9. Data Protection and Confidentiality 

Under the KVKK, employee data should be well processed. Employers must: 

  • Obtain clear consent for the collection and processing of such data. 

  • Safe and maintain confidentiality of employee records. 

  • Limit access to the sensitive data to the authorised people.


10. Key Issues for Foreign Employers 

Get accustomed to the Turkish way of working 

  • Employment policies in conformance with Turkish culture and laws. 

  • Engage an in country legal expert to keep on top of changes in employment law.


Documentation and Record-Keeping

  • Keep adequate and proper personnel files; maintain documents such as contracts, performance records and termination documentation.

  • Be sure to meet the SGK reporting requirements.


Dispute Resolution

  • Most of the disputes regarding employment require mediation before litigation. A resolution can be expedited by arbitration or settlement agreements.


Turkish employment law possesses subtle differentials, comprising an enhanced focus on employee rights and stringent compliance obligations for the employers. CCS Law offers foreign investors and employers comprehensive legal support in addressing diverse complexities emerging from Turkish employment law, be it contract drafting or dispute resolution, among others; we are here to help safeguard your enterprise from all legal risks.


Contact us for tailored advice on establishing and managing your workforce in Turkey.


Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.

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