The employment relationship in Turkey is governed by a well-defined legal framework that balances the rights and obligations of both employers and employees. Whether you are a foreign company expanding into the Turkish market or a local employer hiring new staff, understanding how employment relationships are formed, regulated, and terminated is essential for compliance and business success.
1. Legal Framework of Employment Relationships in Turkey
The main source of employment law in Turkey is the Turkish Labor Law No. 4857, which regulates individual employment contracts, working hours, wages, termination procedures, and employee rights. Other relevant laws include the Social Security and General Health Insurance Law No. 5510, the Occupational Health and Safety Law No. 6331, and the Turkish Code of Obligations.
Employment relationships are typically established through written employment contracts, although oral agreements are also valid in certain cases. However, for transparency and legal protection, a written contract is strongly recommended—especially for foreign employers entering the Turkish labor market.
2. Formation of the Employment Relationship
An employment relationship in Turkey is established when an employee agrees to perform work under the direction and control of an employer, in exchange for remuneration.
Key elements include:
- Employer authority: The employer has the right to direct and supervise the employee’s work.
- Personal service: The employee must perform the work personally and cannot delegate it to others.
- Remuneration: Payment for services rendered, usually in the form of a monthly salary.
Employment contracts may be indefinite (most common) or fixed-term. Fixed-term contracts must have a legitimate reason—such as project-based work or temporary replacement—and cannot be renewed repeatedly without justification, as this would automatically convert them into indefinite contracts.
3. Types of Employment Contracts in Turkey
Understanding the different types of contracts is crucial to properly structuring the employment relationship in Turkey.
a. Indefinite-Term Contracts
These are the standard form of employment agreements and offer stronger job security. Termination of such contracts requires a valid reason and adherence to notice and severance obligations.
b. Fixed-Term Contracts
Used for temporary or project-based roles. Employers must ensure a justified reason exists to avoid legal risks of reclassification.
c. Part-Time and Remote Work
Part-time and remote work models have gained popularity, especially after the COVID-19 pandemic. These arrangements are fully recognized under Turkish law, provided working hours, payment, and social security obligations are clearly stated in the contract.
d. Probationary Period
A probation period of up to two months (extendable to four months through collective agreements) can be included. During this time, either party may terminate the contract without notice or severance.
4. Rights and Obligations in the Employment Relationship
The employment relationship in Turkey is based on the principle of mutual trust and good faith. Both parties have specific rights and duties under the law.
a. Employer’s Obligations
- Provide a safe and healthy workplace, in line with occupational safety regulations.
- Pay wages on time, at least once a month, via bank transfer.
- Register employees with the Social Security Institution (SGK).
- Respect employee rights, such as annual leave, working hours, and equal treatment.
b. Employee’s Obligations
- Perform assigned work with diligence and loyalty.
- Follow company rules and lawful instructions.
- Maintain confidentiality of business information.
- Respect workplace discipline and safety protocols.
5. Working Hours, Overtime, and Leave
Under Turkish labor law, the maximum weekly working time is 45 hours, typically spread across six days. Overtime is permitted but should not exceed 270 hours per year, and it must be compensated at a rate of 1.5 times the regular hourly wage or exchanged for time off.
Employees are also entitled to:
- 14 to 26 days of paid annual leave, depending on seniority.
- Public holidays (such as national and religious holidays).
- Paid sick leave, maternity/paternity leave, and marriage or bereavement leave under specific conditions.
6. Termination of the Employment Relationship
Termination procedures are among the most sensitive aspects of the employment relationship in Turkey.
Employers must provide:
- A valid reason for dismissal (such as performance issues or economic necessity).
- Written notice, ranging from 2 to 8 weeks, depending on the employee’s tenure.
- Severance pay, if the employee has worked for at least one year and is dismissed for reasons other than misconduct.
In cases of unjust termination, employees have the right to file a reinstatement lawsuit within 30 days. If the court rules in favor of the employee, the employer may be ordered to pay compensation or rehire the worker.
7. Social Security and Tax Considerations
All employees in Turkey must be registered with the Social Security Institution (SGK), which provides access to health insurance, retirement pensions, and unemployment benefits.
Both employers and employees contribute to the system:
- Employer contribution: approximately 22.5%–23% of gross salary.
- Employee contribution: 14% of gross salary.
Income tax is progressive, ranging from 15% to 40%, and is withheld at source by the employer.
8. Foreign Employers and Cross-Border Employment
For foreign companies without a local entity, managing an employment relationship in Turkey can be challenging due to regulatory and compliance complexities.
In such cases, partnering with an Employer of Record (EOR) in Turkey provides a compliant solution. The EOR handles payroll, taxes, social security, and employment contracts on behalf of the foreign company—allowing it to hire Turkish talent legally without establishing a local subsidiary.
This model ensures compliance with Turkish labor law while offering flexibility for international growth.
9. Dispute Resolution in Employment Relationships
Disputes arising from employment relationships are typically resolved through:
- Mediation: Mandatory before filing a lawsuit.
- Labor courts: Handle cases such as wrongful dismissal, unpaid wages, or discrimination.
Employers are encouraged to document all employment decisions and maintain clear records to prevent or defend against potential claims.
The employment relationship in Turkey is characterized by strong worker protections, transparent legal standards, and an increasing alignment with EU labor norms. For both local and foreign employers, understanding these dynamics is vital for maintaining compliance and building a stable workforce.
By structuring employment contracts correctly, ensuring social security compliance, and respecting employee rights, businesses can foster trust and long-term success in Turkey’s evolving labor market.