This article explains how an Employer of Record in Turkey works, why it is particularly relevant for oil & gas companies, and how it helps manage legal, payroll, and immigration risks in 2026 and beyond.
Turkey has become an increasingly strategic location for oil & gas exploration, infrastructure development, refining, LNG, pipeline construction, and offshore operations, acting as both an energy corridor and a growing regional hub. As a result, international energy companies frequently need to deploy foreign professionals or hire local talent in Turkey quickly, often for project-based or time-sensitive assignments.
However, Turkey’s labor law, payroll regulations, tax system, and immigration framework are complex and highly regulated. Setting up a local entity solely to hire staff for a project is not always practical. This is where the Employer of Record (EOR) model becomes a powerful solution for oil & gas companies operating in Turkey.
What Is an Employer of Record (EOR)?
An Employer of Record is a locally established organization that legally employs workers on behalf of a foreign company. While the EOR is the official employer in Turkey, the foreign oil & gas company retains full operational control over the employee’s day-to-day activities, project scope, and performance management.
In an EOR arrangement:
- The EOR signs the local employment contract
- The EOR runs payroll and withholds taxes
- The EOR pays social security contributions
- The EOR ensures labor law compliance
- The client company directs the work
This separation between legal employment and operational management is what makes EOR particularly valuable in regulated sectors such as oil & gas.
Why Oil & Gas Companies Use EOR in Turkey
1. No Need to Establish a Local Entity
Setting up a subsidiary or branch in Turkey involves:
- Corporate registration
- Tax office filings
- Social security registrations
- Ongoing accounting and compliance obligations
For oil & gas companies running short-term projects, pilot operations, feasibility studies, or EPC phases, this can be inefficient. An EOR allows companies to hire immediately without entity formation, dramatically reducing time-to-market.
2. Faster Mobilization of Talent
Oil & gas projects often operate on strict timelines:
- Drilling campaigns
- Shutdowns and turnarounds
- Commissioning and start-up phases
- Offshore or pipeline windows
An EOR in Turkey enables companies to:
- Onboard local or foreign professionals quickly
- Issue compliant employment contracts
- Activate payroll within weeks instead of months
This speed is critical when delays can cost millions.
Typical Oil & Gas Roles Covered by EOR in Turkey
EOR solutions are commonly used for both foreign and local professionals, including:
- Drilling engineers and wellsite supervisors
- HSE managers and safety specialists
- QA/QC managers and inspectors
- Project managers and construction supervisors
- Geologists, geophysicists, and reservoir engineers
- Commissioning engineers and OEM specialists
- Pipeline, refinery, and terminal experts
Whether the assignment is rotational, project-based, or fixed-term, EOR provides a compliant hiring structure.
Immigration and Work Permit Support Through EOR
One of the biggest advantages of an EOR model for oil & gas companies is immigration management.
In Turkey, foreign nationals must hold a valid work permit or work permit exemption before performing any work. The EOR typically acts as the sponsoring employer, handling:
- Work permit applications
- Documentation preparation
- Government filings
- Permit renewals and tracking
Because the EOR already has an established presence and payroll infrastructure, work permit processes are often smoother and faster than employer-led applications from scratch.
Payroll, Tax, and Social Security Compliance
Turkey has a highly structured payroll system, including:
- Progressive income tax
- Social security contributions
- Unemployment insurance
- Stamp tax
- Statutory benefits and allowances
Under an EOR model:
- Salaries are processed in full compliance with Turkish law
- All taxes and contributions are calculated and paid correctly
- Payslips and declarations are issued in line with local standards
For oil & gas companies, this eliminates the risk of misclassification, underpayment, or tax exposure, especially for high-income professionals.
Managing Fixed-Term and Project-Based Contracts
Oil & gas work in Turkey is often project-driven, making fixed-term contracts essential. However, Turkish labor law places strict rules on:
- Fixed-term employment justification
- Renewal limits
- Termination rights and severance exposure
An experienced EOR ensures:
- Contracts are structured lawfully
- Project duration is clearly defined
- Risks of contract reclassification are minimized
- Terminations are handled correctly at project end
This is particularly important for EPC contractors and operators managing multiple subcontractors.
Cost Control and Predictability
Using an EOR provides oil & gas companies with:
- Clear monthly employment costs
- No hidden compliance expenses
- Predictable budgeting for payroll, taxes, and benefits
Instead of variable costs tied to entity maintenance, companies receive transparent invoicing, usually broken down into:
- Gross salary
- Employer taxes and social security
- EOR service fee
This clarity is especially valuable for project costing and client billing.
Risk Mitigation in a High-Liability Sector
Oil & gas is inherently high-risk—not only operationally, but also legally. Employment disputes, compliance failures, or immigration violations can quickly escalate.
An EOR helps mitigate risks by:
- Ensuring compliance with Turkish labor inspections
- Managing terminations in line with local law
- Handling audits and authority correspondence
- Reducing exposure to penalties and disputes
For foreign companies unfamiliar with Turkish employment law, this risk buffer is often decisive.
EOR vs. PEO vs. Local Entity: What Works Best for Oil & Gas?
| Model | Best Use Case |
|---|---|
| Local Entity | Long-term operations, large workforce |
| PEO | Co-employment (limited in Turkey) |
| EOR | Projects, market entry, foreign specialists |
For oil & gas companies entering Turkey without a permanent footprint, EOR is usually the most flexible and lowest-risk model.
When EOR Is Not the Right Fit
While powerful, EOR is not ideal for every scenario. Companies may outgrow EOR when:
- Workforce size becomes very large
- Operations become permanent
- Regulatory licensing requires direct employment
In such cases, EOR is often used as a transition model before full localization.
For oil & gas companies operating in Turkey, the Employer of Record (EOR) model offers a practical, compliant, and scalable solution to workforce deployment. It enables rapid hiring, simplifies immigration and payroll compliance, and reduces legal exposure—without the burden of setting up a local entity.
Whether you are launching a drilling campaign, executing an EPC project, or mobilizing specialist engineers, an EOR in Turkey allows you to focus on operations while experts handle employment compliance.
In a sector where timing, expertise, and risk management are critical, EOR is not just an HR solution—it is a strategic enabler for successful oil & gas projects in Turkey.