Companies extending their operations into Türkiye need a complete grasp of Turkish employment contracts. A successful business largely depends on its employees. By creating work contracts that include the right terms and benefits there will be no misconception and the perfect work-life balance can be created for your workforce.
Thanks to our Professional Employment Organisation (PEO) and Employer Of Record (EOR) services, we can provide compliant labour contracts for your employees in Türkiye, including local benefits. Our team keeps track of Turkish laws and regulations daily to be duly aware of updates that can be implemented in working contracts and to ensure a smooth entry for your business into the Turkish economy.
Under the Labour Code and Code of Obligations, a written contract is not mandatory except in specific instances. In the absence of a written contract, the employer must provide a written agreement within two months stipulating a description of the role, daily and weekly working hours, salary and payment schedule, and termination conditions.
Open-ended employment contracts: The Labour Code imposes no restrictions on the duration of indefinite-period contracts.
Written contracts must be provided in these instances:
Probation period employment contracts: Maximum two months but can be doubled by a Collective Bargaining Agreement (CBA).
Collective Bargaining Agreements: These must be complied with by employers and can be negotiated between trade unions, employers’ unions or individual employers and can improve the terms of statutory minimums. CBAs can apply to specific sectors, such as mining, steel production and agriculture. Where an individual contract exceeds the terms of a CBA, the contract’s terms take precedence.
When foreign companies plan to expand into the Turkish economy and employment market, the top of the ‘to-do’ list is deciding which business structure best suits their plans. The typical choice is to open a subsidiary as a limited liability company (Ltd. Stí.), which operates under the new Turkish Commercial Code (TCC). This company form generally offers protection against liability both for the parent company and its shareholders.
It is essential to open a subsidiary in Türkiye if companies intend to hire staff and operate their payroll. In addition to strict registration procedures via the Central Registration System (Merkezi Sicil Kayit Sistemi, MERSIS), employers face other considerations when hiring, including:
There is a more straightforward option. Once Bradford Jacobs’ PEO recruitment networks have located the best talent for your company, we step in to steer you through Turkish employment contracts.
For more information, download our free guide or get in touch with our consultants here