This guide explains the key aspects of Turkey labor law for foreign employers. Turkey is an attractive market for foreign companies looking to hire employees, build remote teams, or expand their business operations. With its skilled workforce, strategic location, and competitive employment costs, Turkey offers many opportunities for international employers.
However, hiring in Turkey requires a clear understanding of Turkish labor law. Employment regulations cover contracts, working hours, payroll, social security, annual leave, termination, severance pay, and employee rights. Foreign companies that fail to comply with local rules may face penalties, disputes, and unexpected costs.
Understanding Turkish Labor Law
Turkish employment relationships are mainly regulated by the Turkish Labor Law. The law applies to most private-sector employees and establishes minimum rights that employers must respect.
Foreign employers should understand that employment rules in Turkey are generally employee-protective. Employment contracts cannot remove statutory rights granted by law. Any clause that provides less protection than Turkish labor law may be considered invalid.
For international companies, this means that local compliance must be considered before hiring, managing, or terminating employees in Turkey.
Employment Contracts in Turkey
Employment contracts form the legal basis of the employment relationship.
Although some employment contracts may be oral, written employment contracts are strongly recommended and required in certain cases, especially for fixed-term contracts of one year or more.
A Turkish employment contract should generally include:
- Job title
- Job description
- Salary
- Working hours
- Benefits
- Start date
- Probation period
- Confidentiality obligations
- Termination conditions
- Place of work
Foreign employers should ensure that employment contracts are consistent with payroll records and social security declarations.
Types of Employment Contracts
The most common employment contract in Turkey is the indefinite-term contract. This type of contract does not have a specific end date and is used for permanent employment relationships.
Fixed-term contracts are also possible, but they must usually be based on an objective reason such as a temporary project, seasonal work, or replacement of an absent employee.
Repeated fixed-term contracts without valid justification may be treated as indefinite-term employment.
Part-time and remote work contracts are also permitted, provided that employee rights are respected.
Probation Period
Employment contracts in Turkey may include a probation period.
The standard maximum probation period is two months. It may be extended up to four months only through collective bargaining agreements.
During the probation period, either party may terminate the employment relationship without notice. However, the employee must still be paid for the work performed.
Foreign employers should use probation periods carefully and ensure they are clearly stated in the employment contract.
Working Hours and Overtime
Standard working time in Turkey is generally 45 hours per week.
Working hours may be distributed across the week, depending on the employment arrangement and company policy. However, employers must respect rest periods, weekly rest rights, and overtime rules.
Overtime must generally be compensated at an increased rate. Employees may also need to provide consent for overtime work.
For foreign companies managing remote employees in Turkey, working hours should be clearly defined. This is especially important when employees collaborate with teams in different time zones.
Minimum Wage
Turkey has a statutory minimum wage that employers must respect.
No employee can be paid below the minimum wage. The minimum wage also affects several payroll calculations, including social security contribution bases and certain statutory thresholds.
Because the minimum wage may be updated periodically, foreign employers should verify the applicable rate before making salary offers.
Payroll and Salary Payments
Payroll compliance is a central obligation under Turkish labor law.
Employers must calculate salaries correctly and deduct applicable employee contributions, income tax, and other statutory amounts.
Payroll usually includes:
- Gross salary
- Employee social security contributions
- Employee unemployment insurance
- Income tax withholding
- Stamp tax where applicable
- Employer social security contributions
- Net salary payment
Employees should receive payslips showing payroll calculations and deductions.
For foreign companies, payroll should be handled by experienced local professionals or through an Employer of Record.
Social Security Contributions
Employees in Turkey must be registered with the Social Security Institution, known as SGK.
Employers are responsible for social security registration, monthly declarations, and premium payments.
Social security contributions fund healthcare, pension, disability, maternity, occupational accident, and unemployment benefits.
Both employer and employee contributions apply. The employee share is deducted from gross salary, while the employer share is an additional cost for the company.
Failure to register employees properly can lead to penalties and serious compliance risks.
Employee Benefits
Employee benefits are common in Turkey and may include:
- Meal allowance
- Transportation allowance
- Private health insurance
- Bonuses
- Company car
- Mobile phone
- Laptop
- Remote work support
Some benefits may be subject to tax and social security contributions, while others may benefit from partial exemptions. Employers should review each benefit carefully before implementation.
Annual Leave
Employees in Turkey become entitled to paid annual leave after completing one year of service.
Minimum annual leave entitlement generally depends on length of service:
- 14 days for employees with 1 to 5 years of service
- 20 days for employees with 5 to 15 years of service
- 26 days for employees with more than 15 years of service
Unused annual leave must generally be paid upon termination.
Foreign employers should track leave balances accurately to avoid disputes.
Public Holidays
Turkey has national and religious public holidays.
Employees who work on public holidays may be entitled to additional pay. Companies operating customer support, logistics, retail, or production activities should plan holiday staffing and payroll costs carefully.
Termination of Employment
Termination is one of the most sensitive areas of Turkish labor law.
Employers must consider:
- Notice periods
- Severance pay
- Valid reason requirements
- Documentation
- Final payroll calculations
- Unused annual leave
- Employee rights
Notice periods depend on the employee’s length of service:
- 2 weeks for less than 6 months
- 4 weeks for 6 months to 1.5 years
- 6 weeks for 1.5 years to 3 years
- 8 weeks for more than 3 years
Employers may either allow the employee to work during the notice period or pay notice compensation.
Severance Pay
Employees who complete at least one year of service may be entitled to severance pay depending on the reason for termination.
Severance is generally calculated based on the employee’s last gross salary and length of service, subject to a statutory ceiling.
Foreign employers should always calculate severance carefully before ending employment.
Job Security Rules
Some employees benefit from job security protections.
These rules may apply when:
- The employer has at least 30 employees
- The employee has at least six months of service
- The employee works under an indefinite-term contract
In such cases, termination must generally be based on a valid reason. Employees may challenge dismissals and seek reinstatement.
Remote Work in Turkey
Remote work is increasingly common in Turkey, especially in technology, finance, marketing, customer support, and international business services.
Remote work arrangements should be documented in the employment contract or a separate remote work agreement.
The agreement should define:
- Work location
- Working hours
- Equipment
- Data security
- Confidentiality
- Health and safety responsibilities
- Communication procedures
Foreign companies hiring remote employees in Turkey should not ignore local labor law simply because the employee works from home.
Hiring Without a Legal Entity
A foreign company usually needs a local structure to hire employees directly in Turkey.
Companies without a Turkish legal entity often use an Employer of Record.
An Employer of Record in Turkey legally employs workers on behalf of the foreign company and manages:
- Employment contracts
- Payroll
- SGK registration
- Tax withholding
- Benefits
- HR administration
- Termination compliance
This allows foreign companies to hire in Turkey without opening a local company.
Turkey offers strong opportunities for foreign employers, but compliance with Turkish labor law is essential. Employment contracts, payroll, social security, working hours, leave rights, termination rules, and severance obligations must all be handled correctly.
For international companies, local employment rules should be reviewed before hiring any employee in Turkey.
Whether hiring through a Turkish subsidiary or using an Employer of Record, understanding Turkey labor law helps businesses reduce risk, manage employment costs, and build compliant teams in the Turkish market.