Employment Law in Turkey
Employment Law in TurkeyUpdated on Monday 13th January 2020
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The 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. Our law firm in Turkey can offer more information on the Employment Law applicable in this country.
Other laws applicable to local and foreign employees in Turkey
Apart from the Labor Code, there are a few other laws which employers and employees must respect in Turkey. These are:
- - the Code of Obligations which was enacted in 2012;
- - the Social Insurance and General Health Insurance Law from 2006;
- - the Workplace Health and Safety Law from 2012.
Foreign employees also fall under the provisions of the Law of Work Permits for Foreigners of 2003. Turkish employers must also comply with the International Private and Procedural Law with respect to work contracts signed with foreign employees or partnerships with foreign companies.
Types of employment contracts in Turkey
Foreign investors must choose one of these types of employment contracts for their personnel:
- Temporary or permanent work.
- Definite or indefinite period.
- Part-time or full-time.
- Starting with a trial period.
- Team contract.
For these types of employment contracts, an entrepreneur has to pay no duties or fees. Information about work contracts and legal aspects can be offered by one of our Turkish lawyers.
Content of the employment contract in Turkey
According to the Turkish Employment Law, a work contract, no matter its type, must contain specific elements. Among these are:
- - information about the employee and employer;
- - the conditions of employment;
- - the salary and other benefits;
- - the working hours.
Also, the employment contract must be granted to the employee in a written form. Collective agreements are allowed under the Turkish Labor Code. Our Turkish lawyers can offer more information on these types of contracts and can also explain the Family Law and the Labor Code.
The probation period for employees in Turkey
Are there any special clauses in a work contract in Turkey?
The payment of employees in Turkey
How is a contract terminated in Turkey?
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 than 45 hours per week will be paid for supplementary hours. These hours have another payment regime that is 50% higher than 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. A foreign citizen who wants to work at a Turkish firm must first obtain the work permit and work visa and the procedure can last nearly one month.
Companies and investments in Turkey
- The total FDI inward flow in Turkey for 2018 was around USD 12,9 million.
- The total FDI stock for 2018 in Turkey stood at approximately USD 134,5 million.
- Approximately 24.2% of the foreign investments in 2019 were directed to the energy industry in Turkey.
- There are about 3,700 foreign companies established in Turkey.
- There are more than 2,900 subsidiaries registered in Turkey.
- 10% of the total companies in Turkey (18,000) is held by international companies.