As global companies seek to expand into new markets, Turkey has emerged as a highly attractive destination. Its strategic location, young workforce, and rapidly developing economy make it a compelling choice for international business. However, navigating local labor laws, taxation, and administrative complexities can be challenging for foreign companies. That’s why many turn to an Employer of Record (EOR) service in Turkey.
In this article, we explore the top 7 reasons why foreign companies choose EOR services in Turkey, and how this model helps them expand quickly, legally, and efficiently.
What Is an EOR?
An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of a foreign company. While the client company oversees the day-to-day work and operations, the EOR handles all legal, tax, payroll, and HR compliance responsibilities in the host country.
In Turkey, EOR providers help companies:
- Hire Turkish employees without opening a legal entity
- Manage payroll, social security, and tax filings
- Ensure compliance with Turkish labor laws
- Avoid administrative and legal risks
Now, let’s look at the key reasons why this model is gaining popularity in Turkey.
1. No Need to Establish a Legal Entity
Setting up a branch office or subsidiary in Turkey involves:
- Registering with the Trade Registry
- Appointing local directors or representatives
- Opening a bank account
- Complying with local accounting and tax obligations
This process can take several weeks to months and may not be cost-effective if your business only needs a few employees in Turkey. With an EOR, you can hire Turkish talent without incorporating a local business.
This is especially useful for:
- Market entry testing
- Project-based work
- Hiring remote employees or contractors as full-time staff
2. Rapid and Compliant Hiring Process
Turkey’s labor market is attractive, but its employment laws are complex and strictly enforced. An EOR simplifies the process by handling:
- Employment contract drafting (in line with Turkish Labor Code)
- Registration with the Social Security Institution (SGK)
- Work permits for foreign nationals
- Compliance with payroll regulations
With an EOR, companies can typically onboard employees within a few days, as opposed to the weeks or months it might take with a new legal entity.
This speed and legal security are especially important in competitive industries like:
- Technology
- E-commerce
- Engineering
- Consulting
3. Full Compliance with Turkish Labor Laws
Turkey has robust employee protections under the Labor Law No. 4857, covering:
- Minimum wage requirements
- Overtime pay
- Annual paid leave
- Termination and severance rules
- Employee social security and health coverage
Any violation can result in penalties, legal action, or damage to reputation.
EOR providers in Turkey ensure strict compliance with:
- Employment contracts and probation periods
- Employee rights and benefits
- Payroll tax and SGK contributions
- Dismissal and severance procedures
This significantly reduces the risk of non-compliance and shields the foreign company from administrative burdens.
4. Simplified Payroll and Tax Management
Managing payroll in Turkey involves:
- Monthly income tax withholding
- Employer and employee social security contributions
- Unemployment insurance
- Stamp duty and reporting
An EOR service handles all of this on your behalf, ensuring accurate and timely:
- Salary payments
- Payslip issuance
- Tax declarations
- Year-end reporting
This is especially helpful for companies unfamiliar with:
- Turkish accounting standards
- Tax codes
- Local holidays and working hours
With an EOR, your business can focus on growth, not paperwork.
5. Reduced Risk and Legal Liability
When you employ staff directly, you carry full legal responsibility for:
- Employee disputes
- Contract breaches
- Wrongful termination claims
- Payroll tax errors
By working with an EOR in Turkey, the legal employer of record is the EOR, not your company. This means:
- The EOR assumes employment-related liability
- Your exposure to legal risks is minimized
- You’re protected from fines or lawsuits related to labor infractions
For many foreign companies, this risk mitigation is a key reason to choose the EOR model—especially when hiring in a new regulatory environment.
6. Access to Local Expertise and HR Support
An experienced EOR provider in Turkey offers invaluable local knowledge, including:
- Labor market trends
- Employee expectations
- Benefit benchmarking
- Cultural norms
They can help you:
- Create competitive salary and benefits packages
- Navigate visa and work permit processes
- Handle employee relations and conflict resolution
- Advise on hiring and firing best practices
This is particularly useful for companies unfamiliar with Turkish work culture or HR regulations.
7. Scalability and Flexibility
Whether you’re hiring one employee or a full local team, EOR services allow you to scale quickly and easily. You can:
- Test the market with a small presence
- Expand or reduce your workforce as needed
- Operate without fixed costs or long-term commitments
This flexibility is ideal for:
- Startups expanding globally
- Companies managing international projects
- Businesses operating in uncertain or changing markets
And if you later decide to set up a local entity in Turkey, your EOR partner can support the transition process smoothly.
Bonus: Turkey’s Strategic Advantages for Foreign Employers
Beyond the benefits of the EOR model, Turkey itself offers several reasons to invest:
- Geographical location: A bridge between Europe, Asia, and the Middle East
- Young, skilled workforce: Over 30 million people under the age of 35
- Competitive labor costs: Lower than Western Europe but with high education levels
- Modern infrastructure: Internet, logistics, and transport networks
- Government incentives: Especially for technology, R&D, and exports
These factors make Turkey a prime location for remote teams, regional hubs, and global operations.
Using an Employer of Record in Turkey is the smartest way for foreign companies to hire, manage, and retain talent—without the cost and complexity of setting up a local business. From legal compliance and payroll processing to HR support and risk mitigation, an EOR gives you everything you need to operate confidently in the Turkish market.
Whether you’re exploring new growth opportunities or simply want to streamline your international hiring, EOR services in Turkey offer a fast, flexible, and compliant solution.
Need help hiring in Turkey?
We offer full-service EOR solutions tailored to your industry and growth strategy. Contact us today to learn how we can help you expand into Turkey with confidence.