Employment Law in Türkiye: Complete Guide to Hiring Employees for Foreign Investors

Legal & Compliance January 30, 2025 By FDI Team

Employment Law in Türkiye: Complete Guide to Hiring Employees for Foreign Investors

After successfully establishing your company in Türkiye, the next crucial step is building your team. Understanding Turkish employment law is essential for foreign investors to ensure compliance, avoid costly disputes, and create a productive workplace. This comprehensive guide covers everything you need to know about hiring employees, employment contracts, employee rights, and HR compliance in Türkiye.


Overview: Turkish Employment Law Framework

Turkish employment law is primarily governed by the Labor Law No. 4857 (İş Kanunu), which applies to all employers and employees in Türkiye regardless of nationality. The law provides strong protections for employees and establishes clear obligations for employers.

Key Characteristics of Turkish Labor Law

AspectDescription
Employee ProtectionStrong focus on job security and employee rights
Minimum StandardsEmployers cannot offer less than legal minimums
Written ContractsRequired for employment exceeding 1 year
Termination RulesStrict procedures and severance requirements
Working HoursMaximum 45 hours per week
Minimum WageNationally set, updated twice yearly

Important: Turkish labor law is considered employee-friendly. Foreign investors should carefully understand their obligations to avoid disputes and penalties.


Types of Employment in Türkiye

1. Indefinite Term Employment (Belirsiz Süreli)

This is the standard form of employment in Türkiye:

  • No predetermined end date
  • Continues until terminated by either party
  • Subject to full termination protections
  • Most common for regular positions

2. Fixed-Term Employment (Belirli Süreli)

Used for temporary or project-based work:

  • Has a specific end date or tied to completion of a task
  • Maximum duration not specified, but must have objective reason
  • Cannot be renewed more than once without becoming indefinite
  • Warning: Courts often reclassify improperly used fixed-term contracts as indefinite

3. Part-Time Employment (Kısmi Süreli)

For positions requiring less than full-time hours:

  • Working hours must be significantly less than comparable full-time employees
  • Pro-rata benefits and rights apply
  • Same protections as full-time employees (proportionally)

4. On-Call Employment (Çağrı Üzerine Çalışma)

Flexible arrangement where employee works when called:

  • Minimum 4 consecutive hours per call
  • If weekly hours not specified, minimum 20 hours assumed
  • Must be paid even if not called to work the minimum hours

The Hiring Process: Step by Step

Step 1: Prepare the Job Description

Before advertising a position, clearly define:

  • Job responsibilities and requirements
  • Required qualifications and experience
  • Working hours and location
  • Salary range and benefits

Note: Job advertisements must comply with anti-discrimination laws. Avoid specifying gender, age, or other protected characteristics unless genuinely required for the role.

Step 2: Recruitment and Selection

You can recruit through:

  • İŞKUR (Turkish Employment Agency) - Mandatory for some positions
  • Private recruitment agencies
  • Online job portals (Kariyer.net, LinkedIn, etc.)
  • Direct applications

İŞKUR Requirement: Companies with 50+ employees must fill certain positions through İŞKUR or report vacancies to them.

Step 3: Pre-Employment Checks

Standard pre-employment procedures include:

  • Verify identity documents (Turkish ID or passport/work permit)
  • Check educational certificates
  • Request criminal record (Adli Sicil Kaydı) if relevant
  • Conduct reference checks
  • Health examination (mandatory for certain industries)

Step 4: Employment Contract

Once you’ve selected a candidate, prepare the employment contract:

Mandatory Elements:

  • Parties’ identities (employer and employee details)
  • Start date
  • Job description and duties
  • Workplace location
  • Duration (if fixed-term) and conditions
  • Working hours
  • Basic wage and payment period
  • Notice periods
  • Leave entitlements

Recommended Additions:

  • Probationary period clause
  • Confidentiality provisions
  • Non-compete clause (if applicable)
  • Intellectual property ownership
  • Dispute resolution procedures

Step 5: Registration and Notifications

After signing the contract, complete these registrations:

RegistrationDeadlineAuthority
SGK (Social Security)Before employee starts workSGK (Sosyal Güvenlik Kurumu)
İŞKUR NotificationWithin 15 days of hireİŞKUR
Personnel FileImmediatelyInternal requirement

Penalties: Late SGK registration can result in significant fines and back-payment of premiums with interest.


Employment Contracts in Detail

Language Requirements

  • Contracts can be in any language
  • However, Turkish courts will interpret disputes based on Turkish text
  • Best Practice: Use bilingual contracts (Turkish and English) with Turkish text prevailing in case of conflict

Probationary Period (Deneme Süresi)

  • Maximum 2 months (can be extended to 4 months via collective agreement)
  • Either party can terminate without notice or severance during this period
  • No justification required for termination
  • Employee still entitled to wages for days worked

Salary and Payment

Minimum Wage (2025):

PeriodGross MonthlyNet Monthly (approx.)
January-June 2025TRY 22,104TRY 17,002
July-December 2025To be announced-

Payment Rules:

  • Must be paid at least monthly
  • Must be paid in Turkish Lira (unless otherwise agreed)
  • Payment must be to employee’s bank account (cash payments restricted)
  • Payslips (bordro) must be provided

Working Hours

StandardDetails
Maximum Weekly45 hours
Daily Limit11 hours (including overtime)
Rest BreaksMinimum 30 min (for 4-7.5 hr shifts), 1 hour (for 7.5+ hr shifts)
Weekly RestMinimum 24 consecutive hours

Flexible Working: The 45 weekly hours can be distributed unevenly across days, provided no day exceeds 11 hours and the employee agrees in writing.

Overtime (Fazla Çalışma)

  • Requires employee’s written consent (renewed annually)
  • Maximum 270 hours per year
  • Pay Rate: 1.5x normal hourly wage
  • Alternative: Time off in lieu (1.5 hours for each overtime hour)
  • Weekend/holiday work: 2x normal wage (unless part of normal schedule)

Employee Benefits and Entitlements

Annual Leave (Yıllık İzin)

Minimum paid annual leave based on tenure:

Years of ServiceMinimum Annual Leave
1-5 years14 working days
5-15 years20 working days
15+ years26 working days

Special Rules:

  • For employees under 18 or over 50: minimum 20 days regardless of tenure
  • Cannot be waived or compensated in lieu (except at termination)
  • Must be taken within the year (limited carryover)
  • Employer decides timing but must consider employee preferences

Public Holidays

Türkiye has 14.5 official public holidays per year:

HolidayDuration
New Year’s Day1 day
National Sovereignty Day (April 23)1 day
Labor Day (May 1)1 day
Youth Day (May 19)1 day
Democracy Day (July 15)1 day
Victory Day (August 30)1 day
Republic Day (October 28-29)1.5 days
Ramadan Eid3.5 days
Sacrifice Eid4.5 days

Note: Religious holidays follow the Islamic calendar and dates change annually.

Sick Leave

  • No statutory limit on paid sick leave
  • First 2 days: typically unpaid (unless company policy states otherwise)
  • Day 3 onwards: SGK pays temporary incapacity allowance (approximately 2/3 of daily wage)
  • Employer may top up the difference (common practice)
  • Medical report required

Maternity and Paternity Leave

Maternity Leave:

  • 16 weeks total (8 weeks before, 8 weeks after birth)
  • Can shift up to 3 weeks from pre-birth to post-birth
  • SGK pays maternity allowance during leave
  • Job protection: Cannot be terminated due to pregnancy/maternity
  • Additional unpaid leave: Up to 6 months upon request

Paternity Leave:

  • 5 days paid leave

Nursing Breaks:

  • 1.5 hours daily until child reaches 1 year
  • Can be used as shorter workday

Other Leave Types

TypeDuration
Marriage3 days
Death of spouse/parent/sibling/child3 days
Military dutyUnpaid (job protected)

Social Security and Taxes

Employer’s Social Security Obligations

Every employer must register employees with SGK and pay contributions:

Contribution TypeEmployer RateEmployee RateTotal
Social Insurance15.5%14%29.5%
Unemployment Insurance2%1%3%
Total17.5%15%32.5%

Incentives: Various SGK premium incentives exist for:

  • First-time employees
  • Female employees
  • Young employees (under 29)
  • Employees in certain regions
  • R&D personnel

Income Tax

Employer must withhold income tax from employee wages:

Annual Income Band (TRY)Tax Rate
0 - 110,00015%
110,000 - 230,00020%
230,000 - 580,00027%
580,000 - 3,000,00035%
3,000,000+40%

Minimum Wage Tax Exemption: Minimum wage portion of all salaries is exempt from income tax.


Termination of Employment

Notice Periods

For indefinite-term contracts, notice periods depend on tenure:

Length of EmploymentNotice Period
Less than 6 months2 weeks
6 months - 1.5 years4 weeks
1.5 - 3 years6 weeks
Over 3 years8 weeks

Payment in Lieu: Employer can pay wages for the notice period instead of requiring the employee to work.

Valid Reasons for Termination

Turkish law requires valid reasons for terminating employees with 6+ months tenure (in workplaces with 30+ employees):

Valid Reasons Related to Employee:

  • Insufficient performance
  • Misconduct not amounting to just cause
  • Frequent absences affecting work
  • Inability to perform the job

Valid Reasons Related to Business:

  • Economic difficulties
  • Technological changes
  • Restructuring or downsizing

Just Cause (Haklı Nedenle Fesih): In cases of serious misconduct, employer can terminate immediately without notice or severance:

  • Deception during hiring
  • Attacks on employer/colleagues
  • Serious breach of trust
  • Unauthorized absence for 2+ consecutive days
  • Refusal to perform duties despite warning

Severance Pay (Kıdem Tazminatı)

Employees with 1+ year of service are entitled to severance pay when:

  • Terminated by employer (except for just cause)
  • Resigning for valid reason (health, military service, retirement, etc.)
  • Death

Calculation:

  • 30 days’ gross wage for each year of service
  • Prorated for partial years
  • Subject to a ceiling (updated semi-annually)

2025 Ceiling: Approximately TRY 30,000 per year of service (check current rate)

Notice Compensation (İhbar Tazminatı)

If either party terminates without proper notice:

  • Must pay wages for the notice period
  • Applies to both employer and employee

Special Considerations for Foreign Investors

Hiring Foreign Employees

If you want to hire non-Turkish employees:

  1. Apply for work permit through Ministry of Labor
  2. Employee must have residence permit (or work permit serves as one)
  3. Certain ratio requirements may apply
  4. Process takes 4-6 weeks typically

Ratio Rule: Generally, for every 5 Turkish employees, you can hire 1 foreign employee (exceptions apply for key personnel, specialists, etc.)

Key Personnel Exemptions

Foreign investors can bring key personnel more easily:

  • Shareholders with 10%+ ownership
  • Board members
  • Senior managers
  • Specialists with unique expertise

Expatriate Packages

When employing expatriates, consider:

  • Tax equalization arrangements
  • Housing allowances (taxable)
  • International health insurance
  • Education allowances for children
  • Annual home leave
  • Relocation costs

Compliance and Record-Keeping

Mandatory Records

Employers must maintain:

RecordRetention Period
Employment contracts10 years after termination
Payroll records10 years
Annual leave records5 years
Overtime consent formsDuration of employment
Health and safety records15 years
SGK declarations10 years

Workplace Policies

Recommended (and sometimes required) policies:

  • Employee handbook
  • Anti-discrimination and harassment policy
  • Health and safety policy
  • Data protection policy (KVKK compliance)
  • Disciplinary procedure
  • Grievance procedure

Occupational Health and Safety

Companies must:

  • Employ or contract occupational health and safety specialists
  • Conduct workplace risk assessments
  • Provide safety training
  • Report workplace accidents
  • Have emergency procedures

Requirements vary by:

  • Hazard classification of business
  • Number of employees
  • Industry sector

Common Mistakes to Avoid

1. Misclassifying Employees as Contractors

Using independent contractors to avoid employment obligations is risky:

  • Courts can reclassify as employment
  • Back-payment of all benefits, SGK premiums, and penalties
  • If the person works regular hours, at your premises, under your direction → likely an employee

2. Improper Fixed-Term Contracts

Don’t use fixed-term contracts to avoid severance:

  • Must have genuine objective reason
  • Renewals convert to indefinite employment
  • Courts scrutinize closely

3. Ignoring Termination Procedures

Even with valid reasons:

  • Must follow proper procedure
  • Give written notice stating reasons
  • Allow employee to defend themselves (for performance issues)
  • Failure can result in “bad faith” compensation (4 months’ wages)

4. Unpaid Overtime

All overtime must be compensated:

  • Keep accurate records
  • Get annual written consent
  • Unpaid overtime claims can go back 5 years

5. Withholding Annual Leave

Employees must take their annual leave:

  • Cannot be “bought out” during employment
  • Accumulated leave claims are common in termination disputes

Cost of Employment: Sample Calculation

For an employee with TRY 30,000 gross monthly salary:

ItemAmount (TRY)
Gross Salary30,000
SGK Employee Share (14%)4,200
Unemployment Insurance Employee (1%)300
Income Tax (approx.)2,000
Net Salary to Employee~23,500
SGK Employer Share (15.5%)4,650
Unemployment Insurance Employer (2%)600
Total Employer Cost~35,250

Rule of Thumb: Budget approximately 18-20% on top of gross salary for employer contributions.


Practical Tips for Foreign Investors

1. Use Professional HR Support

Consider:

  • HR consultancy for setup
  • Payroll outsourcing
  • Legal counsel for contracts and disputes

2. Competitive Compensation

Beyond salary, Turkish employees value:

  • Private health insurance
  • Meal cards (Ticket, Multinet)
  • Transportation support
  • Performance bonuses
  • Professional development

3. Cultural Considerations

  • Turkish workplace culture values relationships
  • Hierarchy is respected but approachability matters
  • Religious holidays (Ramadan, Eid) are significant
  • Work-life balance increasingly important to younger workers

4. Stay Updated

Turkish labor law changes frequently:

  • Minimum wage updates twice yearly
  • SGK premium changes
  • New incentives and regulations
  • Court precedents affecting interpretation

Checklist: Hiring Your First Employee in Türkiye

  • Register company with SGK as employer
  • Define job role and requirements
  • Post vacancy (through İŞKUR if required)
  • Conduct interviews and selection
  • Verify documents and references
  • Draft employment contract (Turkish/English)
  • Agree on salary, benefits, start date
  • Sign contract
  • Register employee with SGK before start date
  • Notify İŞKUR within 15 days
  • Set up payroll processing
  • Provide workplace orientation
  • Ensure health and safety compliance
  • Create personnel file

Conclusion

Building a team in Türkiye requires careful attention to employment law compliance. While Turkish labor law is employee-protective, it provides a stable framework once understood. Foreign investors who invest time in understanding their obligations and creating proper HR processes will benefit from:

  • Reduced legal risk
  • Better employee relations
  • Smoother operations
  • Attraction of quality talent

At FDI Consultancy, we help foreign investors navigate Turkish employment law, from drafting compliant contracts to managing complex HR issues. Our team understands both international business practices and local legal requirements, ensuring your Turkish operations are built on solid foundations.


Need Help Hiring in Türkiye?

Contact FDI Consultancy for:

  • Employment contract drafting and review
  • HR compliance audits
  • Payroll setup and management
  • Work permit applications for foreign staff
  • Employment dispute resolution

Contact Us for a consultation on building your team in Türkiye.


Disclaimer: This article provides general information about Turkish employment law as of January 2025. Labor regulations change frequently. Always consult with qualified legal professionals for specific situations.

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