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Employer of Record (EOR) in TrTürkiye

Population

85,279,553

Languages

1.

Turkish

Country Capital

Ankara

Currency

Turkish lira (₺) (TRY)

G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Türkiye. Your candidate is hired via G-P’ Türkiye PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our comprehensive solution and Global PEO service enable customers to run payroll in Türkiye while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Türkiye.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.

At two to three hours from most European destinations, Türkiye acts as a bridge between Asia and the EU. The government offers many tax and non-tax incentives to foreign investors including free land, energy and R&D support, flexible exchange rate policies, VAT relief and unrestricted market entry.

When negotiating terms of an employment contract and offer letter with an employee in Türkiye, it may be useful to keep the following standard benefits in Türkiye in mind:

Hiring in Türkiye

The process for obtaining work permits and visas for foreign workers requires coordination between the employer, Ministry of Labor and the foreign worker’s embassy and can take up to three months to work through. Professional services like architecture and engineering are more carefully regulated in Türkiye and the approval process can take up to a year.

Employment in Türkiye is governed primarily by Turkish Labor Law No. 4857. This set of laws covers all aspects of employment including employment contracts, working hours, paid time off, military service and termination. Negotiating Collective Bargaining Agreements and working with Trade Unions is a matter of course in Türkiye and prospective employers should factor this into the hiring timeline.

Employment Contracts in Türkiye

For indefinite period contracts, it is legally required to have a written employment contract in place in the local language. The contract should state the terms of the employee’s compensation, all benefits, and termination requirements. The contract should show the employee’s salary in Turkish Lira.

Working Hours in Türkiye

Work hours cannot exceed 45 per week and should be equally divided between the number of days worked.  There is no ‘standard’ work week in Türkiye.

If working hours exceed 45 in a week, employees are entitled to overtime pay. This includes increasing the employee’s regular hourly rate by 50%.  In lieu of payment, employees may be granted 1.5 hours of ‘free time’ for every overtime hour worked. Overtime rates may be increased on the basis of a collective bargaining agreement or employment contract.  The total number of overtime hours may not exceed 270 hours per year.

Holidays in Türkiye

Türkiye mandates 8 paid holidays:

  • New Year’s Day
  • National Sovereignty and Children’s Day
  • Labor Day and Solidarity Day
  • Commemoration of Ataturk, Youth and Sports Day
  • Ramadan (Religious Holiday for 3.5 days)
  • Victory Day
  • Sacrifice Feast (Religious Holiday for 4.5 days)
  • Republic Day
  • Democracy and National Unit Day

Vacation Days in Türkiye

Employees are entitled to paid annual leave, provided that they have worked for at least one year, including the probationary period. Paid time off is dependent on the number of years of service:

  • Years 1-5:  14 working days
  • More than 5 years but less than 15: 20 working days
  • 15 years or longer: 26 working days

Türkiye Sick Leave

Employers are not obligated to provide sick pay to employees, but employees are entitled to sick pay through government disability programs.  In practice, most employers continue to pay employees their full salary while they are sick and deduct the amount paid by the Social Security Institution from the employee’s salary.

Maternity/Paternity Leave in Türkiye

Pregnant women are eligible to receive 8 weeks of maternity leave preceding and the following childbirth. In addition, they are eligible for lump-sum pregnancy, childbirth, and nursing benefits.

Maternity leave is 16 weeks and paternity leave is 5 days by law.

Health Insurance in Türkiye

The healthcare system in Türkiye comprises a combination of compulsory health insurance and private medical insurance. The Ministry of Health is responsible for coordinating all health and social welfare activities, and according to the Turkish Constitution, all individuals are entitled to social security. The public healthcare system is paid for through public health insurance which is automatically deducted from employees’ salaries.

Türkiye Supplementary Benefits

Some employers provide meal vouchers or cash allowances, company cars, and/or private healthcare.

Bonuses

Bonuses are not compulsory in Türkiye, but some companies give quarterly, bi-annual and/or annual bonuses.

Termination/Severance in Türkiye

The Turkish Labor Law gives an employer a maximum two-month probation period during which employment may be terminated without penalty.

Consider termination when making an offer to an employee. Termination severance payments can be steep, particularly if they haven’t been factored into the overall budget.

Written advance notice of termination is required to terminate an employment contract. However, there are certain cases where employers are entitled to terminate employment for cause.  In the event there is no cause justification, employers are obliged to comply with mandatory termination notice periods which vary depending on the length of the employment.  The minimum legal periods are as follows:

  • Less than six months of employment: two weeks’ notice
  • Between six months and 18 months of employment: four weeks’ notice
  • Between 18 months and three years of employment: six weeks’ notice
  • More than three years of employment: eight weeks’ notice

Employers have the right to make a severance payment in lieu of notice.

Severance payments are required for termination of an employment contract whether or not there is a cause justification. The employee must have been employed for more than one year in order to receive severance.

The severance payment is calculated by multiplying the employee’s last 30 days’ gross wage by the number of years employed. The total severance cannot exceed the limit mandated by local employment authorities.  Employers are also obligated to pay the equivalent amount of the employee’s unused annual leave, any unpaid overtime, and any other bonuses.

Employees who believe they have been terminated unfairly may contest their termination in a labor tribunal. Employment contracts may always be terminated, with no penalty, by mutual consent between the employer and employee.

Paying Taxes in Türkiye

Employers and employees are required to contribute social security premiums. Employers must pay for both their portion of the contribution as well as that of the employee’s, which is typically deducted from the employee’s salary.

  • Social security contributions rates are 14% paid by the employee and between 15.5% or 20.5% paid by the employer (dependent on certain conditions)
  • Unemployment insurance contribution rates are 1% paid by the employee, 2% paid by the employer, and 1% paid by the state

This information is provided as generally accepted information and is not intended as advisory services.

Why G-P

Establishing a branch office or subsidiary in Türkiye to engage a small team is time-consuming, expensive and complex. Turkish labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Türkiye. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Türkiye PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.

If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Türkiye, please contact us.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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