TURKISH EMPLOYMENT CONTRACTS

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.

The different types of Turkish Employment Contracts

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:

  • Fixed-term contracts of at least one year, which can be renewed only once
  • Contracts with a non-compete clause
  • Contracts with foreigners
  • Contracts for on-call work, teleworking with the team leader of a team working group.
  • Temporary employment contract

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.

Turkish Employment Contracts Requirements

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:

  • Written employment contracts are legally required in the case of employing foreigners; fixed-term contracts of at least one year’s duration; probation periods; those with a non-competition clause; on-call, teleworking and temporary workers
  • Where written contracts are not mandatory, employers must provide a written agreement within two months of starting work. The agreement must detail working conditions and hours, salary and payment schedule, and termination conditions.
  • Probation periods are generally for two months but can be extended to four months by CBAs.
  • Written contracts must be in Turkish if both sides are Turkish. Otherwise, they can be drafted in dual languages according to the nationality of either party. The Turkish version holds in case of disputes.

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.

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