This article provides a detailed comparison to help oil & gas companies determine which model best fits their Turkey operations in 2026 and beyond.
Turkey plays a strategic role in regional and global energy markets, serving as an important hub for oil & gas exploration, pipeline projects, LNG infrastructure, refineries, offshore operations, and EPC activities. As international energy companies expand or execute projects in Turkey, one recurring question arises early in workforce planning:
Should we sponsor work permits directly, or should we hire through an Employer of Record (EOR)?
Both models are legally viable in Turkey, but they serve very different operational, legal, and risk profiles. For oil & gas companies—where projects are capital-intensive, timelines are tight, and compliance risks are high—the choice between direct work permit sponsorship and an EOR model can significantly affect cost, speed, and exposure.
Understanding Work Permit Sponsorship in Turkey
What Is Direct Work Permit Sponsorship?
Under direct sponsorship, a company employs a foreign professional directly and applies for a Turkish work permit in its own name. This model requires the sponsoring entity to be legally registered in Turkey, with full employer status under Turkish law.
In this structure:
- The Turkish entity signs the employment contract
- The entity sponsors the work permit
- Payroll, tax, and social security obligations rest entirely with the company
- The employee is fully integrated into the local organization
Advantages of Direct Sponsorship for Oil & Gas Companies
Direct work permit sponsorship can be suitable when:
- The company already has a Turkish subsidiary or branch
- Operations are long-term or permanent
- The workforce is large and stable
- The company requires full internal control over HR policies
For major operators with ongoing upstream or midstream assets, direct sponsorship may align with long-term localization strategies.
Limitations and Risks of Direct Sponsorship
Despite its advantages, direct sponsorship comes with notable challenges—especially for project-based oil & gas activities:
- Entity requirement: No Turkish entity means sponsorship is impossible
- Longer setup timelines for new market entrants
- Full compliance responsibility for labor law, payroll, and audits
- Higher termination and severance exposure
- Greater risk during labor inspections and disputes
For short-term drilling campaigns, EPC projects, or commissioning phases, these burdens can outweigh the benefits.
Understanding the Employer of Record (EOR) Model in Turkey
What Is an Employer of Record?
An Employer of Record (EOR) is a locally established company that legally employs workers on behalf of a foreign client. The EOR becomes the official employer under Turkish law, while the oil & gas company retains operational and technical control over the employee’s work.
In an EOR arrangement:
- The EOR signs the Turkish employment contract
- The EOR sponsors the work permit
- Payroll, taxes, and social security are handled by the EOR
- The client company manages day-to-day duties and project delivery
Why EOR Is Popular in the Oil & Gas Sector
Oil & gas projects often involve:
- Fixed timelines
- Rotational staff
- Highly specialized foreign professionals
- Uncertain project extensions
EOR provides the flexibility needed to operate legally without setting up a local entity or assuming long-term employment liabilities.
Key Comparison: Work Permit Sponsorship vs EOR
1. Speed of Deployment
- Direct Sponsorship: Slower, especially if entity setup is required
- EOR: Significantly faster onboarding and permit processing
For urgent mobilizations—rig moves, shutdowns, or commissioning—EOR is usually the faster option.
2. Legal and Compliance Responsibility
- Direct Sponsorship: The company bears full legal responsibility
- EOR: Compliance obligations are contractually transferred to the EOR
Given Turkey’s strict labor and immigration enforcement, many oil & gas companies prefer EOR to reduce compliance exposure.
3. Cost Predictability
- Direct Sponsorship: Variable costs (entity maintenance, HR staff, audits)
- EOR: Fixed, transparent monthly cost structure
EOR simplifies budgeting, especially for EPC contractors working under lump-sum or fixed-price contracts.
4. Workforce Flexibility
- Direct Sponsorship: Less flexible termination and redeployment
- EOR: Easier scaling up or down at project milestones
This flexibility is critical in oil & gas, where project scopes frequently change.
5. Immigration and Work Permit Management
- Direct Sponsorship: Employer manages permits internally
- EOR: EOR acts as sponsor and manages renewals, amendments, and compliance
For companies unfamiliar with Turkish immigration procedures, EOR significantly reduces administrative burden.
Sector-Specific Considerations for Oil & Gas Companies
Project Duration and Uncertainty
Oil & gas projects often evolve due to:
- Regulatory approvals
- Weather conditions
- Reservoir data revisions
- Client-driven scope changes
EOR allows companies to adapt employment structures without restructuring a local entity.
High Salary and Severance Exposure
Oil & gas professionals typically earn salaries well above national averages. Under direct employment, this increases:
- Severance liabilities
- Termination risks
- Dispute costs
An EOR helps structure contracts and exits in a controlled and compliant manner.
Subcontractor and EPC Complexity
In multi-layer EPC environments, unclear employment responsibility can trigger audits and disputes. EOR provides:
- Clear employer identity
- Clean payroll records
- Reduced co-employment risk
When Direct Work Permit Sponsorship Makes Sense
Direct sponsorship is usually the better choice when:
- The company has permanent assets in Turkey
- Workforce localization is a strategic goal
- The project lifecycle exceeds several years
- Headcount is large and stable
In these cases, EOR may still be used temporarily during market entry or transition phases.
When EOR Is the Smarter Option
EOR is typically preferable when:
- Entering Turkey for the first time
- Running short- or medium-term projects
- Mobilizing foreign specialists quickly
- Avoiding entity setup and exit costs
- Managing compliance risk conservatively
For many oil & gas companies, EOR is not just an HR tool—it is a risk management strategy.
Hybrid Models: A Practical Compromise
Some energy companies adopt a hybrid approach:
- Use EOR for foreign experts and early project phases
- Transition to direct sponsorship once operations stabilize
This phased model combines speed, flexibility, and long-term control.
Choosing between direct work permit sponsorship and an Employer of Record in Turkey is a strategic decision for oil & gas companies. While direct sponsorship offers control and long-term integration, it also brings higher compliance responsibility and rigidity. EOR, on the other hand, provides speed, flexibility, and risk mitigation—qualities that align well with the project-based nature of oil & gas operations.
For most short- to mid-term energy projects in Turkey, EOR is often the most efficient and lowest-risk solution. For permanent operations, direct sponsorship may eventually become the right path.
The optimal choice depends on project duration, risk appetite, workforce size, and strategic intent—and getting it right can save time, cost, and regulatory headaches in one of the region’s most important energy markets.