The rise of remote work has transformed the way companies source and manage talent. Today, it’s common for businesses to collaborate with freelancers around the world—especially in regions with strong technical and creative workforces like Turkey. But what happens when a business wants to transition a Turkish freelancer into a full-time employee without establishing a legal entity in the country?
The solution lies in partnering with an Employer of Record (EOR) in Turkey. In this article, we explain how freelancers can become full-time employees through an EOR, why companies make this shift, and what both parties need to know about the legal, tax, and operational implications.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party company that legally employs workers on behalf of another company, taking care of:
- Employment contracts
- Payroll administration
- Income tax withholding
- Social security (SGK) contributions
- Work permits (if needed)
- Compliance with Turkish labor laws
For companies without a legal entity in Turkey, an EOR allows them to hire local workers legally, while maintaining day-to-day operational control.
Why Companies Convert Freelancers to Full-Time Employees
There are many reasons why businesses decide to transition a freelancer to full-time status via an EOR:
✅ Legal Compliance
Freelancing arrangements can carry misclassification risks, especially when:
- The freelancer works exclusively for one client
- The company sets working hours and tools
- Payment is recurring and consistent
- The freelancer is economically dependent on one company
Such setups often fall under the definition of employment under Turkish labor law, making the company liable for retroactive taxes and penalties.
An EOR eliminates this risk by creating a compliant employer-employee relationship.
✅ Talent Retention
Top freelancers may want:
- Job stability
- Social security and healthcare
- Paid holidays
- Career growth within a company
Offering full-time employment through an EOR enhances loyalty and reduces turnover.
✅ Access to Benefits
As full-time employees, workers in Turkey gain:
- Health insurance via SGK
- Retirement contributions
- Paid sick leave and annual leave
- Legal severance rights
- Maternity/paternity protections
These are often not available to freelancers, especially if they are unregistered with tax and SGK institutions.
Can a Freelancer Legally Become an Employee Through an EOR in Turkey?
Yes, a freelancer can legally become a full-time employee through an EOR in Turkey—provided certain conditions are met.
Here’s how it works:
Step-by-Step: Transitioning a Freelancer to a Full-Time Employee via EOR
Step 1: Company Engages an EOR
The foreign company contracts a Turkish EOR provider to act as the legal employer of the freelancer.
Step 2: Contract Conversion
The freelancer signs a Turkish-compliant employment contract with the EOR, defining:
- Gross salary
- Job title and responsibilities
- Working hours
- Leave entitlements
- Benefits
- Termination procedures
The EOR ensures the contract aligns with Labor Law No. 4857.
Step 3: Social Security Registration
The EOR registers the individual with SGK (Social Security Institution), ensuring:
- Health insurance
- Pension contributions
- Access to other social benefits
Step 4: Payroll and Tax Handling
The EOR:
- Calculates income tax and SGK deductions
- Issues monthly payslips
- Pays the employee’s net salary
- Reports taxes to Turkish authorities
What Freelancers Need to Know Before Transitioning
If you’re a freelancer in Turkey thinking about full-time employment through an EOR, consider the following:
1. You’ll Be Officially Employed
You’ll no longer be self-employed or issuing invoices. Instead, you’ll receive:
- A monthly salary with payslips
- Regular deductions for taxes and insurance
- Employment protection under Turkish law
2. Net Income May Change
Freelancers often pay flat taxes or operate without formal registration. As an employee:
- Your gross salary will be subject to progressive income tax (15%–40%)
- Employer will pay SGK contributions on your behalf
- You’ll have access to healthcare, retirement, and paid leave
While net income may be slightly lower, long-term benefits and legal protection improve significantly.
3. No More VAT or Invoice Filing
You will not need to issue monthly invoices, collect VAT, or file as an independent contractor—the EOR manages all filings.
What Companies Need to Know About the Conversion
If you’re an international business planning to transition a Turkish freelancer to a full-time employee, you should:
✅ Review Role Scope
If the freelancer’s work already resembles that of a full-time employee, it’s safer (and often legally required) to convert their status.
✅ Align Salary Expectations
Freelancers may charge higher rates to cover:
- Their own tax payments
- Healthcare
- Downtime between projects
Transitioning to employment may involve adjusting compensation to reflect:
- Paid time off
- Social benefits
- Job security
✅ Understand Total Cost of Employment
In addition to the agreed salary, your monthly EOR invoice will include:
- Employer’s SGK (~20.5% of gross salary)
- Unemployment insurance
- Stamp tax and income tax withholding
- EOR service fee (usually 10–15%)
The EOR will provide transparent invoicing so you can account for total employee cost.
Benefits of Using an EOR for Freelancer-to-Employee Conversion
Benefit | Description |
---|---|
Legal Protection | Avoid misclassification and ensure full labor law compliance |
Fast Onboarding | Hire and convert within 7–10 business days |
Local Tax Management | EOR handles all taxes, insurance, and payroll |
Retention and Engagement | Give top talent long-term career paths |
No Entity Required | No need to open a Turkish company or branch office |
Common Industries Using EORs for Freelancer Conversion in Turkey
- Technology: Developers, designers, QA engineers
- Marketing: SEO experts, copywriters, digital strategists
- Consulting: Business analysts, market researchers
- Finance: Remote accountants and analysts
- Customer Support: Call center and service agents
As demand for remote Turkish talent grows, EORs are becoming the go-to solution for safely and quickly transitioning freelancers to employees.
What If the Freelancer Is a Foreign National?
If the freelancer is a non-Turkish citizen, the EOR can:
- Apply for a work permit on their behalf
- Handle residence permit coordination
- Ensure the employment contract is valid under immigration and labor law
EORs streamline the entire onboarding process for expatriates working in Turkey.
Converting a freelancer into a full-time employee through an EOR in Turkey is a legally sound, practical, and beneficial step for both employers and workers. It reduces risk, increases job security, and opens access to social benefits and labor protections.
For foreign companies, EORs remove the complexity of setting up a legal entity, while ensuring full compliance with Turkish labor and tax law. For freelancers, the move to full-time employment provides stability, healthcare, and long-term career opportunities.
We specialize in helping companies transition Turkish freelancers into full-time employees through our reliable EOR platform. Whether you need help structuring the conversion, calculating costs, or managing ongoing payroll, we’ve got you covered.
Looking to convert a Turkish freelancer into a full-time employee?
📞 Contact us today to learn how our EOR services can help you onboard quickly and compliantly—without opening a local entity in Turkey.