The legislative system regarding the hiring of foreign workers in Turkey has seen numerous changes and modifications and it appears that more recent modifications have the purpose of making the system more elaborate and sector-oriented. The new Work Permit Assessment Criteria, effective 1 October 2024, make substantial modifications and present specific industries-based provisions. This paper discusses the new criteria and other trends in employment law in more detail.
The new criteria for work permit applications as set by the Ministry of Labour and Social Security under Article 22 of the Regulation on the Implementation of the International Workforce Law are much improved. The revisions analyses work, means and wage requirements. which are within the scope of different industries and occupations.
Amended Provisions
Employment and Wage Standards: Under the new changes, criteria are distinguished according to the sector in which the workplace is situated, as well as in the capacity of a foreign employee. For instance, specialized criteria have been formulated in respect of information technology, health- care, tourism, advanced technology, and aviation among others.
Financial Adequacy Requirements: In meeting the financial adequacy provisions, workplaces should possess a minimum paid-in capital of TRY 100,000, operate gross sales of TRY 800,000 or better still, have export revenue of at least USD 150,000 for the previous year. In the case of foreign company partners the capital contribution should not be less than TRY 40,000. These thresholds shall continue to apply until 1 January 2025 when the new financial requirements shall become operational. New Work Permit Assessment Criteria and Recent Developments in Employment Law in Turkiye
Increase in the Scope of Exemptions
The ambit of work permit exemption has considerably widened to include the following:
Nationals with valid permits who have resided in Turkey for at least 8 years and has not renewed their permit (short-term, family residence or otherwise).
Individuals of Turkish origin, who depending on certain conditions are permitted and are not occupying positions which only Turks are allowed to work in.
Long-term resident foreign nationals.
Demands for Efficiency in the Employment of Foreign Students
Specialised assessment criteria have been introduced for work permit applications by foreign students. These provisions aim to facilitate the participation of international students in Turkey's workforce without neglecting the sectors which have labour demands.
Modifications in Social Security Legislation
Policies on Registration of Subcontracting Entities
On 3rd October 2024, the Social Security Institution (SGK) broadened the scope of notification requirements regarding the registration of subcontractors in a circular.
In the event that the procurement contract has a clause forbidding the use of any subcontractors, the SGK should inform the contracting authority following the registration of the subcontractor.
In the absence of such a clause, the contracting authority need not be informed.
Amendments to the Procedures for Deferred Payment and Instatement of Payments
A circular dated 8 October 2024 provides the provisions on means of payment made on delayed applications stipulated in Article 48 of Law No. 6183.
The number of violations that a deferral request can incur before being denied has been reduced from three to two.
Debts settled under force majeure shall in no case be subjected to breach assessment in advance.
The ruling of the Constitutional Court regarding fair trial rights within employment disputes
In its ruling of 11 June 2024, the Constitutional Court of Turkey (‘AYM’) declared that it was a breach of the right to fair trial provided in Article 36 of the Constitution, to ignore witness statements and to fail to carry out adequate investigations into the matter. The rest of the case examined concerned a reinstatement claim of an employee against an alleged pressure to accept a termination settlement agreement.
Judicial Process and Decisions
Initial Trial: The court declared the dismissal void on account of the witness evidence suggesting that the employee was coerced into signing the termination agreement.
Appellate Court: Reversed the trial court's ruling due to a lack of evidence presented to demonstrate any coercive activity and reaffirmed the enforceability of the agreement.
ECHR: It held that the appellate court’s assessment of the pertinent testimony of the key witnesses breached an individual’s right to a fair trial and ordered that the case be retried.
This decision highlights the vital significance of objective evaluation by the court and the evaluation of all the relevant evidence in employment matters.
The above-discussed regulatory changes and court decisions underline the dynamic trends in employment law and work permit regime in Turkey. The criteria for assessment of work permit applications based on sector indicates the attempts of the government to regulate the workforce policies in compliance with the economic and technological needs. Besides, the procedural fairness in employment even clauses pointing out federal employment policy stresses the need for a strong legal shield.
At CCS Law, the firm is dedicated in offering legal services to its clients in a way that they are able to cope with all the changes imposed by the regulations. This is whether it is work permit applications or employment conflicts, we provide the sector and client specific solutions.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.
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