Labor Law no. 4857 and Trade Union Law are the two main regulations applied by both the foreign and local entrepreneurs who open a company in Turkey and hire personnel. The former Labor Law no. 1475 was abolished, but some of its articles have been maintained, such as the article related to severance payments.
The law stipulates that no one can make any act of discrimination among employees related to their race, gender, religion, political or philosophical belief etc.
Types of contracts
Foreign investors must choose one of these types of employment contracts for their personnel:
1. Temporary or permanent work
2. Definite or indefinite period
3. Part-time or full-time
5. Starting with a trial period
6. Team contract
For these types of employment contracts, an entrepreneur has to pay no duties or fees.
Working hours and holidays
For a full-time contract, the maximum period of working during a week is 45 hours. An employee who works more then 45 hours per week will be paid for supplementary hours. These hours have another payment regime that is 50% higher then the regular working hours. The entrepreneurs who don’t want to pay for the supplementary hours have the possibility to give free time to their employees. For every hour worked as a supplement, a worker can get 1.5 hours of free time. The total number of supplementary hours worked per year can’t exceed 270.
According to the Labor Law, there are six public holidays per year and all of these are paid (January 1, April 23, May 1, May 19, August 30, October 29). Every employee can get an extra two periods (maximum eight days) of religious holiday per year. Besides these days, every worker will have a holiday between minimum 14 and 26 working days, according to his years of work.
The wages will be paid in Turkish Lira (TRY) in the bank account of every employee and if the employer doesn’t respect this procedure will get an administrative penalty. There is no restriction related to the duration of an employment contract. The contracts for a definite period of time can be renewed more then once only in certain situations.
The foreign citizens who want to work at a Turkish firm must obtain firstly the work permit and work visa and the procedure can last nearly one month.
If you have questions or you need assistance with the formalities related to Labor Law, you can call our local lawyers in Turkey.