Employment Law in Türkiye: Complete Guide to Hiring Employees for Foreign Investors
After successfully establishing your company in Türkiye, the next crucial step is building your team. Understanding Turkish employment law is essential for foreign investors to ensure compliance, avoid costly disputes, and create a productive workplace. This comprehensive guide covers everything you need to know about hiring employees, employment contracts, employee rights, and HR compliance in Türkiye.
Overview: Turkish Employment Law Framework
Turkish employment law is primarily governed by the Labor Law No. 4857 (İş Kanunu), which applies to all employers and employees in Türkiye regardless of nationality. The law provides strong protections for employees and establishes clear obligations for employers.
Key Characteristics of Turkish Labor Law
| Aspect | Description |
|---|---|
| Employee Protection | Strong focus on job security and employee rights |
| Minimum Standards | Employers cannot offer less than legal minimums |
| Written Contracts | Required for employment exceeding 1 year |
| Termination Rules | Strict procedures and severance requirements |
| Working Hours | Maximum 45 hours per week |
| Minimum Wage | Nationally set, updated twice yearly |
Important: Turkish labor law is considered employee-friendly. Foreign investors should carefully understand their obligations to avoid disputes and penalties.
Types of Employment in Türkiye
1. Indefinite Term Employment (Belirsiz Süreli)
This is the standard form of employment in Türkiye:
- No predetermined end date
- Continues until terminated by either party
- Subject to full termination protections
- Most common for regular positions
2. Fixed-Term Employment (Belirli Süreli)
Used for temporary or project-based work:
- Has a specific end date or tied to completion of a task
- Maximum duration not specified, but must have objective reason
- Cannot be renewed more than once without becoming indefinite
- Warning: Courts often reclassify improperly used fixed-term contracts as indefinite
3. Part-Time Employment (Kısmi Süreli)
For positions requiring less than full-time hours:
- Working hours must be significantly less than comparable full-time employees
- Pro-rata benefits and rights apply
- Same protections as full-time employees (proportionally)
4. On-Call Employment (Çağrı Üzerine Çalışma)
Flexible arrangement where employee works when called:
- Minimum 4 consecutive hours per call
- If weekly hours not specified, minimum 20 hours assumed
- Must be paid even if not called to work the minimum hours
The Hiring Process: Step by Step
Step 1: Prepare the Job Description
Before advertising a position, clearly define:
- Job responsibilities and requirements
- Required qualifications and experience
- Working hours and location
- Salary range and benefits
Note: Job advertisements must comply with anti-discrimination laws. Avoid specifying gender, age, or other protected characteristics unless genuinely required for the role.
Step 2: Recruitment and Selection
You can recruit through:
- İŞKUR (Turkish Employment Agency) - Mandatory for some positions
- Private recruitment agencies
- Online job portals (Kariyer.net, LinkedIn, etc.)
- Direct applications
İŞKUR Requirement: Companies with 50+ employees must fill certain positions through İŞKUR or report vacancies to them.
Step 3: Pre-Employment Checks
Standard pre-employment procedures include:
- Verify identity documents (Turkish ID or passport/work permit)
- Check educational certificates
- Request criminal record (Adli Sicil Kaydı) if relevant
- Conduct reference checks
- Health examination (mandatory for certain industries)
Step 4: Employment Contract
Once you’ve selected a candidate, prepare the employment contract:
Mandatory Elements:
- Parties’ identities (employer and employee details)
- Start date
- Job description and duties
- Workplace location
- Duration (if fixed-term) and conditions
- Working hours
- Basic wage and payment period
- Notice periods
- Leave entitlements
Recommended Additions:
- Probationary period clause
- Confidentiality provisions
- Non-compete clause (if applicable)
- Intellectual property ownership
- Dispute resolution procedures
Step 5: Registration and Notifications
After signing the contract, complete these registrations:
| Registration | Deadline | Authority |
|---|---|---|
| SGK (Social Security) | Before employee starts work | SGK (Sosyal Güvenlik Kurumu) |
| İŞKUR Notification | Within 15 days of hire | İŞKUR |
| Personnel File | Immediately | Internal requirement |
Penalties: Late SGK registration can result in significant fines and back-payment of premiums with interest.
Employment Contracts in Detail
Language Requirements
- Contracts can be in any language
- However, Turkish courts will interpret disputes based on Turkish text
- Best Practice: Use bilingual contracts (Turkish and English) with Turkish text prevailing in case of conflict
Probationary Period (Deneme Süresi)
- Maximum 2 months (can be extended to 4 months via collective agreement)
- Either party can terminate without notice or severance during this period
- No justification required for termination
- Employee still entitled to wages for days worked
Salary and Payment
Minimum Wage (2025):
| Period | Gross Monthly | Net Monthly (approx.) |
|---|---|---|
| January-June 2025 | TRY 22,104 | TRY 17,002 |
| July-December 2025 | To be announced | - |
Payment Rules:
- Must be paid at least monthly
- Must be paid in Turkish Lira (unless otherwise agreed)
- Payment must be to employee’s bank account (cash payments restricted)
- Payslips (bordro) must be provided
Working Hours
| Standard | Details |
|---|---|
| Maximum Weekly | 45 hours |
| Daily Limit | 11 hours (including overtime) |
| Rest Breaks | Minimum 30 min (for 4-7.5 hr shifts), 1 hour (for 7.5+ hr shifts) |
| Weekly Rest | Minimum 24 consecutive hours |
Flexible Working: The 45 weekly hours can be distributed unevenly across days, provided no day exceeds 11 hours and the employee agrees in writing.
Overtime (Fazla Çalışma)
- Requires employee’s written consent (renewed annually)
- Maximum 270 hours per year
- Pay Rate: 1.5x normal hourly wage
- Alternative: Time off in lieu (1.5 hours for each overtime hour)
- Weekend/holiday work: 2x normal wage (unless part of normal schedule)
Employee Benefits and Entitlements
Annual Leave (Yıllık İzin)
Minimum paid annual leave based on tenure:
| Years of Service | Minimum Annual Leave |
|---|---|
| 1-5 years | 14 working days |
| 5-15 years | 20 working days |
| 15+ years | 26 working days |
Special Rules:
- For employees under 18 or over 50: minimum 20 days regardless of tenure
- Cannot be waived or compensated in lieu (except at termination)
- Must be taken within the year (limited carryover)
- Employer decides timing but must consider employee preferences
Public Holidays
Türkiye has 14.5 official public holidays per year:
| Holiday | Duration |
|---|---|
| New Year’s Day | 1 day |
| National Sovereignty Day (April 23) | 1 day |
| Labor Day (May 1) | 1 day |
| Youth Day (May 19) | 1 day |
| Democracy Day (July 15) | 1 day |
| Victory Day (August 30) | 1 day |
| Republic Day (October 28-29) | 1.5 days |
| Ramadan Eid | 3.5 days |
| Sacrifice Eid | 4.5 days |
Note: Religious holidays follow the Islamic calendar and dates change annually.
Sick Leave
- No statutory limit on paid sick leave
- First 2 days: typically unpaid (unless company policy states otherwise)
- Day 3 onwards: SGK pays temporary incapacity allowance (approximately 2/3 of daily wage)
- Employer may top up the difference (common practice)
- Medical report required
Maternity and Paternity Leave
Maternity Leave:
- 16 weeks total (8 weeks before, 8 weeks after birth)
- Can shift up to 3 weeks from pre-birth to post-birth
- SGK pays maternity allowance during leave
- Job protection: Cannot be terminated due to pregnancy/maternity
- Additional unpaid leave: Up to 6 months upon request
Paternity Leave:
- 5 days paid leave
Nursing Breaks:
- 1.5 hours daily until child reaches 1 year
- Can be used as shorter workday
Other Leave Types
| Type | Duration |
|---|---|
| Marriage | 3 days |
| Death of spouse/parent/sibling/child | 3 days |
| Military duty | Unpaid (job protected) |
Social Security and Taxes
Employer’s Social Security Obligations
Every employer must register employees with SGK and pay contributions:
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Social Insurance | 15.5% | 14% | 29.5% |
| Unemployment Insurance | 2% | 1% | 3% |
| Total | 17.5% | 15% | 32.5% |
Incentives: Various SGK premium incentives exist for:
- First-time employees
- Female employees
- Young employees (under 29)
- Employees in certain regions
- R&D personnel
Income Tax
Employer must withhold income tax from employee wages:
| Annual Income Band (TRY) | Tax Rate |
|---|---|
| 0 - 110,000 | 15% |
| 110,000 - 230,000 | 20% |
| 230,000 - 580,000 | 27% |
| 580,000 - 3,000,000 | 35% |
| 3,000,000+ | 40% |
Minimum Wage Tax Exemption: Minimum wage portion of all salaries is exempt from income tax.
Termination of Employment
Notice Periods
For indefinite-term contracts, notice periods depend on tenure:
| Length of Employment | Notice Period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months - 1.5 years | 4 weeks |
| 1.5 - 3 years | 6 weeks |
| Over 3 years | 8 weeks |
Payment in Lieu: Employer can pay wages for the notice period instead of requiring the employee to work.
Valid Reasons for Termination
Turkish law requires valid reasons for terminating employees with 6+ months tenure (in workplaces with 30+ employees):
Valid Reasons Related to Employee:
- Insufficient performance
- Misconduct not amounting to just cause
- Frequent absences affecting work
- Inability to perform the job
Valid Reasons Related to Business:
- Economic difficulties
- Technological changes
- Restructuring or downsizing
Just Cause (Haklı Nedenle Fesih): In cases of serious misconduct, employer can terminate immediately without notice or severance:
- Deception during hiring
- Attacks on employer/colleagues
- Serious breach of trust
- Unauthorized absence for 2+ consecutive days
- Refusal to perform duties despite warning
Severance Pay (Kıdem Tazminatı)
Employees with 1+ year of service are entitled to severance pay when:
- Terminated by employer (except for just cause)
- Resigning for valid reason (health, military service, retirement, etc.)
- Death
Calculation:
- 30 days’ gross wage for each year of service
- Prorated for partial years
- Subject to a ceiling (updated semi-annually)
2025 Ceiling: Approximately TRY 30,000 per year of service (check current rate)
Notice Compensation (İhbar Tazminatı)
If either party terminates without proper notice:
- Must pay wages for the notice period
- Applies to both employer and employee
Special Considerations for Foreign Investors
Hiring Foreign Employees
If you want to hire non-Turkish employees:
- Apply for work permit through Ministry of Labor
- Employee must have residence permit (or work permit serves as one)
- Certain ratio requirements may apply
- Process takes 4-6 weeks typically
Ratio Rule: Generally, for every 5 Turkish employees, you can hire 1 foreign employee (exceptions apply for key personnel, specialists, etc.)
Key Personnel Exemptions
Foreign investors can bring key personnel more easily:
- Shareholders with 10%+ ownership
- Board members
- Senior managers
- Specialists with unique expertise
Expatriate Packages
When employing expatriates, consider:
- Tax equalization arrangements
- Housing allowances (taxable)
- International health insurance
- Education allowances for children
- Annual home leave
- Relocation costs
Compliance and Record-Keeping
Mandatory Records
Employers must maintain:
| Record | Retention Period |
|---|---|
| Employment contracts | 10 years after termination |
| Payroll records | 10 years |
| Annual leave records | 5 years |
| Overtime consent forms | Duration of employment |
| Health and safety records | 15 years |
| SGK declarations | 10 years |
Workplace Policies
Recommended (and sometimes required) policies:
- Employee handbook
- Anti-discrimination and harassment policy
- Health and safety policy
- Data protection policy (KVKK compliance)
- Disciplinary procedure
- Grievance procedure
Occupational Health and Safety
Companies must:
- Employ or contract occupational health and safety specialists
- Conduct workplace risk assessments
- Provide safety training
- Report workplace accidents
- Have emergency procedures
Requirements vary by:
- Hazard classification of business
- Number of employees
- Industry sector
Common Mistakes to Avoid
1. Misclassifying Employees as Contractors
Using independent contractors to avoid employment obligations is risky:
- Courts can reclassify as employment
- Back-payment of all benefits, SGK premiums, and penalties
- If the person works regular hours, at your premises, under your direction → likely an employee
2. Improper Fixed-Term Contracts
Don’t use fixed-term contracts to avoid severance:
- Must have genuine objective reason
- Renewals convert to indefinite employment
- Courts scrutinize closely
3. Ignoring Termination Procedures
Even with valid reasons:
- Must follow proper procedure
- Give written notice stating reasons
- Allow employee to defend themselves (for performance issues)
- Failure can result in “bad faith” compensation (4 months’ wages)
4. Unpaid Overtime
All overtime must be compensated:
- Keep accurate records
- Get annual written consent
- Unpaid overtime claims can go back 5 years
5. Withholding Annual Leave
Employees must take their annual leave:
- Cannot be “bought out” during employment
- Accumulated leave claims are common in termination disputes
Cost of Employment: Sample Calculation
For an employee with TRY 30,000 gross monthly salary:
| Item | Amount (TRY) |
|---|---|
| Gross Salary | 30,000 |
| SGK Employee Share (14%) | 4,200 |
| Unemployment Insurance Employee (1%) | 300 |
| Income Tax (approx.) | 2,000 |
| Net Salary to Employee | ~23,500 |
| SGK Employer Share (15.5%) | 4,650 |
| Unemployment Insurance Employer (2%) | 600 |
| Total Employer Cost | ~35,250 |
Rule of Thumb: Budget approximately 18-20% on top of gross salary for employer contributions.
Practical Tips for Foreign Investors
1. Use Professional HR Support
Consider:
- HR consultancy for setup
- Payroll outsourcing
- Legal counsel for contracts and disputes
2. Competitive Compensation
Beyond salary, Turkish employees value:
- Private health insurance
- Meal cards (Ticket, Multinet)
- Transportation support
- Performance bonuses
- Professional development
3. Cultural Considerations
- Turkish workplace culture values relationships
- Hierarchy is respected but approachability matters
- Religious holidays (Ramadan, Eid) are significant
- Work-life balance increasingly important to younger workers
4. Stay Updated
Turkish labor law changes frequently:
- Minimum wage updates twice yearly
- SGK premium changes
- New incentives and regulations
- Court precedents affecting interpretation
Checklist: Hiring Your First Employee in Türkiye
- Register company with SGK as employer
- Define job role and requirements
- Post vacancy (through İŞKUR if required)
- Conduct interviews and selection
- Verify documents and references
- Draft employment contract (Turkish/English)
- Agree on salary, benefits, start date
- Sign contract
- Register employee with SGK before start date
- Notify İŞKUR within 15 days
- Set up payroll processing
- Provide workplace orientation
- Ensure health and safety compliance
- Create personnel file
Conclusion
Building a team in Türkiye requires careful attention to employment law compliance. While Turkish labor law is employee-protective, it provides a stable framework once understood. Foreign investors who invest time in understanding their obligations and creating proper HR processes will benefit from:
- Reduced legal risk
- Better employee relations
- Smoother operations
- Attraction of quality talent
At FDI Consultancy, we help foreign investors navigate Turkish employment law, from drafting compliant contracts to managing complex HR issues. Our team understands both international business practices and local legal requirements, ensuring your Turkish operations are built on solid foundations.
Need Help Hiring in Türkiye?
Contact FDI Consultancy for:
- Employment contract drafting and review
- HR compliance audits
- Payroll setup and management
- Work permit applications for foreign staff
- Employment dispute resolution
Contact Us for a consultation on building your team in Türkiye.
Disclaimer: This article provides general information about Turkish employment law as of January 2025. Labor regulations change frequently. Always consult with qualified legal professionals for specific situations.