G-P’s Employer of Record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. 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 180+ countries around the world, quickly and easily.
Hiring in Türkiye
When negotiating terms of an employment contract and offer letter with an employee in Türkiye, it may be useful to keep the following standards in mind.
The process for obtaining work permits and visas for international workers requires coordination between the employer, Ministry of Labor, and the worker’s embassy. The process can take up to 3 months, but 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 (CBAs) and working with Trade Unions is a matter of course in Türkiye, so you 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, 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 workweek 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 CBA or employment contract. The total number of overtime hours may not exceed 270 hours per year.
Holidays in Türkiye
Türkiye mandates the following 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 1 year, including the probationary period. Paid time off is dependent on the number of years of service:
- 1 to 5 years: 14 working days
- 5+ years but less than 15: 20 working days
- 15+ years: 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 and paternity leave in Türkiye
Pregnant employees 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 allows a maximum 2-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 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 6 months of employment: 2 weeks’ notice
- Between 6 months and 18 months of employment: 4 weeks’ notice
- Between 18 months and 3 years of employment: 6 weeks’ notice
- 3+ years of employment: 8 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 professional must have been employed for more than 1 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 worker’s salary.
- Employees pay a 14% social security contribution, while employers contribute between 15.5% and 20.5%, depending on specific conditions
- Unemployment insurance contribution rates are 1% for employees, 2% for employers, and 1% for the state
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading global employment platform. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.