Labour law in Turkiye

1.1. The Employment Contract

Determination of employment

According to the Turkish Labour Law, the employment relationship is created by an employment agreement between the employer and the employee.

Issues to be specified in the agreement

An employment agreement is an agreement whereby one party (the employee) undertakes to perform work under instructions from the other party (the employer) who undertakes to pay the initial party remuneration for his/her work.

In cases where no written agreement has been made, the employer is under the obligation to provide the employee with a written document, within two months at the latest, showing:

• the general and special conditions of work;
• the daily or weekly working time;
• the basic wage and any wage supplements;
• the time intervals for remuneration;
• the duration if it is a fixed term agreement; and
• and conditions concerning the termination of the agreement.

Written form required

An employment agreement for an indefinite term is not required to be in written form. However, an employment agreement for a definite term, provided that the term is one year or longer, must be in writing.

Term of the employment

Employment agreements must be made for a definite (fixed term) or indefinite (open-ended) period.

A probationary period may last up to two (2) months. It may, as an exception, be extended for a further four (4) months with collective labour agreements.

Choice of law

Parties to an employment agreement are free to choose a governing law to the extent such law provides the employee at least the level of protection and benefits available under Turkish law. 

In cases where the parties have not designated a law, the law of the habitual workplace of the employee governs the employment agreement. 

Governing law in case of the Absence of Choice

In cases where the parties have not designated a law, the law of the habitual workplace of the employee governs the employment agreement. 

EU-Directives

N/A

Jurisdiction clause

Disputes between an employee and employer arising out of an employment contract as described in the Turkish Labour Law will be settled by the labour courts. Labour courts are at the level of the civil courts of first instance (with a single judge) and are established to settle the said legal disputes. The civil courts of first instance are authoriszed to settle labour cases in locations where no labour court exists.  

The competent labour court is the labour court established at the residence of the defendant (natural or legal person) or a court located where disputed events occurred.

For information about remote work in Turkiye check out our chapter in the CMS Expert Guide to remote work.

1.2. Other contractual types

Contract for work that is not part of the employer-employee relationship

It is also possible for self-employed individuals to provide services under a freelance agreement or similar agreement which does not constitute an employment relationship.

Part-time work agreements

A part-time employment agreement is a form of employment that carries at least thirty three percent (33%) less hours per week than a full- time job.  

Employees who are employed with a part-time employment agreement cannot be treated differently than a full-time peer due solely to holding a part-time agreement. Accordingly, the part-time employee’s wage and monetary benefits must be paid in proportion with those of the full-time employee.  

1.3. Employment of foreigners

Corporate and residence permit, green cards

A work permit will also grant its holder the right to reside in Turkey. Foreigners wishing to reside solely in Turkey would be obligated to apply for and obtain a separate residence permit. 

Exceptionally, a foreigner could also obtain a Turquoise Card (subject to a different procedure compared to an ordinary work permit) if they are considered highly qualified in the matters of education, contribution to science and technology, cultural, artistic and sport activities. This would also allow the foreign individual to duly work in Turkey.  

No exemptions for foreign personnel 

Foreign citizens have the same rights and obligations in the employer-employee relationship as citizens of the Turkish Republic. 

Remote work 

For information about remote work in Turkey check out our chapter in the CMS Expert Guide to remote work.   

2.1. Minimum wage

Statutory minimum wage

The mandatory minimum wage is regulated under the Regulation on Minimum Wage. The mandatory minimum wage is determined by the Minimum Wage Determination Commission at least once every two years. The mandatory minimum wage applicable in Turkey for 2023 is TRY 13.414,50 gross (approximately EUR 463) for employees employed full time.  

Guaranteed wage

N/A

Collective agreement

The minimum wages determined in collective agreements may not be reduced in individual employment agreements.

2.2. Pay increases

Collective agreement

Turkish law, in principle, does not mandate a specific and automatic pay increase of wages. However, parties may negotiate a specific increase under collective agreements.

Employment Agreement

The increase rate in the employment agreement may be envisaged freely as long as the raised pay does not fall beneath the mandatory minimum wage or collectively agreed raised pay.

Mutual agreement

Parties always may always decide mutually on a pay increase.

2.3. Reduction of salary

Pursuant to Turkish Labour Law, reducing a wage is a substantial alteration to the employment agreement. As such, this alteration may only enter into force if the employee gives his/her written consent. 

3.1. Standard working hours and breaks

Daily and weekly standard working hours

A standard working week consists of forty-five (45) hours at most. 

However, the working hours of employees whose daily work is performed underground on coal, ore, and other non-metallic raw material extraction, or relates to mine-works construction, as well as employees working in geological exploration sites may not exceed thirty-seven and a half (37.5) hours per week. 

An employee’s night work cannot exceed seven and a half (7.5) hours. However, in the case of tourism, private security and health services, night work may be carried out for more than seven and a half (7.5) hours with the written approval of the employee. 

Lunch break

The minimum rest periods designated by law (lunch and rest breaks) are not included in the working hours and thus are not paid. The granted rest period varies based on working hours, as below: 

1. Fifteen (15) minutes for four (4) hours of work or less;
2. Thirty (30) minutes for four (4) to seven and a half (7.5) hours (including 7.5 hours) of work; and
3. One (1) hour for more than seven and half (7.5) hours of work.

3.2. Minimum rest periods

Minimum daily rest period

In principle, the employees shall be granted a break for; 

1. Fifteen (15) minutes for work lasting four (4) hours or less; 
2. Thirty (30) minutes for work lasting longer than four (4) hours but shorter than seven and a half hours (included); and
3. One (1) hour for work lasting longer than seven and a half hours.

These are the minimum rest periods as prescribed by the Labour Law and may be increased (but not decreased) by the employer. Further, the employer must allow the employees to use these breaks without interruption.

The working hours for employees working in shifts shall be distributed in such a way that employees shall have at least eleven (11) hours of rest time between the end of one shift and the beginning of the other shift within the course of twenty-four (24) hours.

Minimum weekly rest period

Employees are entitled to an uninterrupted weekly rest period of at least twenty-four (24) hours. 

3.3. Maximum allowed working hours

Weekly maximum

According to the Labour Code, the maximum working hours allowed (excluding overtime) per week amount to forty-five (45) hours (see Section 3.1 for exceptions). 

Daily maximum

The daily working hours, excluding the breaks, may not exceed eleven (11) hours.

3.4. Overtime work

Limitation on overtime work

Employers may require employees to work overtime if agreed under the employment agreement or in certain cases, such increased industrial demand or where public interest is concerned. The employer may order overtime work of up to two hundred and seventy (270) hours per year. 

Exceptions

Mining employees may not work overtime except when compulsory overtime work is necessary or in a state of emergency.

Compensation for overtime work

Where the weekly working hours are determined as forty-five (45) hours, an employee is entitled to his/her regular wage and a premium at the rate of fifty percent (50%) of the employee’s average hourly wage for any “overwork” hour. 

In the cases where the weekly working time is determined by the agreement for less than the said forty-five (45) hours, the work that exceeds the average weekly working time up to forty-five (45) hours is considered “overtime work”. For overtime work, the wage for each hour of overtime is paid by raising the normal working wage per hour by twenty-five (25) percent (25%).

On the other hand, for underground mining employees, the wages for each hour of overtime work in excess of thirty seven and a half (37.5) hours, when there is force majeure or an emergency, are calculated by increasing the normal working wage by at least one hundred percent (100%). If the Employer does not pay the overwork compensation, it will be subject to an administrative fine. 

Penalties

Certain monetary penalties will apply to failure to comply with the said rules (in addition to the obligation to pay for over-time work, as necessary).

3.5. Working during the weekend and on public holidays

Weekly rest period

Employees are entitled to a weekly rest period of at least twenty-four (24) continuous hours. As per the relevant law, the weekly legal holiday is Sunday. However, it is accepted by court precedents that a choice between an employer and an employee to designate another day as the weekly holiday should be upheld.

3.6. Premiums for work during public holidays and night work

Work during holidays

For his/her work during weekly holidays, the employee is granted with additional one time and a half (1.5) daily wage (two and a half (2.5) times the daily wage in total). 
If the employee works on national or general holidays, the employee will receive an additional one (1) day’s wage (two (2) in total). 

Night work, work during weekends, work in aggravated and health damaging environment

Please see above in Section 3.5.

4.1. Holiday entitlement

Minimum holiday entitlement

Turkish law sets provisions on minimum holiday entitlement for the employees whose term of service has lasted at least one year.

Accordingly, the minimum holiday entitlement must not be any shorter than:

• Fourteen (14) days for employees with one (1) - five (5) years (including the fifth (5th) year) of service;
• Twenty (20) days for employees with a term of service between five (5) - fifteen (15) (including the fifteenth (15th year) years; and
• Twenty-six (26) days for employees with fifteen (15) or more years’ service.

Such entitled holidays are extended by four (4) days if the employee performs underground work.

However, under no circumstances may such a period be shorter than twenty (20) days if the employee is younger than eighteen (18) or older than fifty (50).

Business owners

No special provisions.

Teachers and professors

No special provisions.

Additional vacations

No special provisions.

4.2. Forfeiture of holiday entitlement

Holiday consumption 

An employee may not waive his/her holiday entitlement in exchange for payment (except for cases of termination where the outstanding paid leave days will have to be paid to the employee in question).

Transfer to the next year

While Turkish Labour Law states that an employee must use his/her paid leave during the year which follows the date on which the employee became entitlement to such leave, established court precedent prescribes that any unused leave must be transferred to the next year.

Money compensation

An employee is entitled to his/her full wage in the course of his/her paid annual leave. Except for cases of termination, an employee may not receive monetary compensation in place of paid leave.

Sick pay

An employee who is ordered to rest by a doctor due to sickness is deemed excused from work until the rest period is over. Hence, employees on sick leave continue to receive their wages.

Health examination

Employers are obligated to have health examinations performed on all employees prior to beginning work or when they change their specific occupation. 

Further obligations are applicable for employees who perform heavy and dangerous work. 

When terminating an employment agreement, the following conditions must be observed in particular circumstances:

Mutual consent

Termination of an employment agreement based on the agreement between an employer and an employee is possible if the following conditions are met: 

• The employee must receive all legal amounts as well as an incentive payment; and
• The employee must be informed that he/she will lose his/her right to a re-instatement and unemployment pay.

Probation period

Termination without any reason is possible during the probation period, both by the employer and the employee. 

Termination by the employer

Termination by the employer must be based on at least one of the reasons outlined under the law. If termination is based on valid reasons (e.g. underperformance), the employer will need to give notice to the employee (as explained below in Section 6.2) during which time employment will continue as usual. However, the employer is also free to make a payment corresponding to the notice period and end employment immediately. If employment is terminated for cause (e.g. cases of abuse of trust), then, it will end immediately without any notice period.

Termination by the employee

Termination by the employee must be based on at least one of the reasons outlined under the law. Termination by the employee may be for cause (e.g. physical abuse or harassment in the workplace) or be based on valid reasons in which case the employee will need to give notice to the employer (as explained below in Section 6.2) during which time employment will continue as usual. However, in this case, the employer is also free to make a payment corresponding to the notice period and end employment immediately.

If employment is terminated for cause (e.g. cases of physical abuse or harassment), it will end immediately without any notice period.

Termination with immediate effect

Please see above.

Fixed-term Employment Agreements

A fixed-term employment agreement terminates when the specified timeframe agreed in relation to that agreement has elapsed. Such agreements may also be terminated prior to their original end date; however, in this case, different outcomes will occur depending on which party terminated the agreement.
If a fixed term employment agreement has been terminated by the employer, the amounts that would have been due until the end of the original term would need to be paid by the employer to the employee. 
If the employee terminated the agreement before the specified time, he/she would be obligated to pay an amount corresponding to twenty-five percent (25%) of his/her monthly wage to the employer. If the employer claims it has suffered further losses, it would be obligated to provide proof of such loss. If a penalty amount was agreed upon in the agreement for early termination, the employer might be able to claim this amount as well.

Exceptionally, a fixed term agreement may also be terminated for cause on an immediate basis and without any pay. 

6.1. Formal requirements to be observed by the employer

Written form required

Termination of employment by the employer must be done in writing and should state the reasons for the termination. A copy of the termination must be delivered to the employee. Non-compliance with these requirements may result in the termination being invalid or unjust. Additional requirements (e.g. an obligation to obtain a statement of defence) may apply depending on the grounds for termination. 

In some exceptions required approval 

No further approval mechanism with respect to terminations is in place in Turkey (unless such a right is granted under a collective labour agreement, which would be rare). 

Representatives of the trade union

The employer is not obligated to consult or obtain the approval of the representatives of the labour union with respect to a termination unless such a right is explicitly granted under a collective labour agreement (which would be rare under Turkish legal practice).

6.2. Notice Period

Duration

Where an indefinite term employment agreement is to be terminated based on valid reasons, the terminating party must give prior notification of termination.  
The statutory notice periods are the same for both the employer and the employee and are as follows:

•    if the employee has worked for less than six (6) months, the notice period is two (2) weeks;
•    if the employee has worked for six (6) months to one and a half (15) years the notice period is four (4) weeks;
•    if the employee has worked for 1 and a half (1.5) to three (3) years, the notice period is six (6) weeks; and
•    if the work time is more than three (3) years, the notice period is eight (8) weeks. 

These are the minimum periods which may be increased by agreement.

Beginning and ending

The notice period starts on the first day following the delivery of the notice to the other party and ends on the last day of the notice period; calculated on weekdays. 

6.3. Limited reasons to terminate the employment

Probation period

Dismissal without any reason is possible during the probation period, both by the employer and the employee. 

Termination by the employee

Where an employment agreement with an indefinite term is in question, an employee can terminate his/her agreement by providing prior notice to the employee or on an immediate basis based on cause as explained above in Section 6.2. 

Employer has to provide a “valid reason” for the termination of employment

In principle, a valid reason must be in place for a due termination of employment. Such valid reasons include, without limitation, underperformance, workplace or business necessities. However, relying on such reason would not be necessary for terminating employees who do not benefit from employment security provisions and therefore are not entitled to seek re-instatement (as further explained in Section 6.4 below).

Redundancy payment

Even when there is a valid reason for termination, the following amounts will need to be paid out to the employee:

-    Severance pay;
-    Notice pay;
-    Pay for unused vacation time;
-    Pay for any overtime work performed;
-    Other outstanding amounts such as bonuses.

6.4. General protection against termination of employment

Explicitly determined reasons

An employee will be entitled to ask for a re-instatement based on the claim that the alleged reason (i.e. valid reason or cause, as the case may be) for termination does not exist. If the courts accepts this claim, the employer would be obligated to either re-instate the employee and pay the employee four (4) month’s salary for the period not worked or pay the employee eight (8) - twelve (12) months’ salary in addition to the mandatory payables outlined above in Section 6.3.

Consultation with the trade union

N/A. 

Opinion of the employee

In certain cases (e.g. underperformance), the employee must be called in to provide a statement of defence. Failure to follow this procedure may result in the termination being invalid. 

Protection period

The employment security provisions (which allow the employee to ask for a re-instatement, as explained above in Section 6.4) will apply to all employees on an indefinite term employment agreement and who have worked for at least six (6) months and where the employer in question employs at least thirty (30) employees. As such, where the employee has worked for a shorter period, he/she would not benefit from the employment security provisions. Once the employee has finished the said six-month (6) term of employment, he/she will continue to benefit from employment security provisions indefinitely, provided that the remaining conditions for the said provisions exist at the time of termination.  

6.5. Employees with special protection against termination of employment

Prohibition of Redundancy

N/A.

Exceptions from prohibition

N/A.

Approval required

N/A.

6.6. Involvement of staff representatives

Consultation with the trade union

A consultation with a union would usually occur only in collective dismissal proceedings which concerns employees employed under collective labour agreements. 

When the employer contemplates such collective terminations, he must provide the union representative with written notice at least thirty (30) days prior to the intended date of such a dismissal. Consultations with union representatives to take place after the said notification must deal with measures to be taken to avert or to reduce the extent of terminations as well as measures to mitigate or minimize their adverse effects on the employees concerned. 
It is to be noted that while the law foresees such a consultation, the results of such consultation will not be binding on the employer and may not partially or fully reverse the intended termination.

Notification of the employees’ council

N/A.

6.7. Termination in connection with reduction of salary

Mutual agreement

Reduction of an employee’s wage is possible only through the consent of the employee in question.

Social Obligation to offer another job

While the employer is not obligated by the wording of the law to offer a terminated employee another job, termination of employment must be a “last remedy” and the courts will review whether an employee could be employed in other capacity instead of being terminated.  
Furthermore, in case of a termination of employment, the employer is obligated, during the term of notice, to grant the employee the permission to seek new employment within the working hours without any deduction from his/her wage.  

The time devoted to this purpose should not be less than two (2) hours per day and if the employee so requests, these hours may be added together and taken together. However, in this case, he/she must do so on the days immediately preceding the day on which his/her employment ceases and must inform the employer in advance. 

In addition, following a collective dismissal, where the employer intends to employ employees for work with the same qualifications within six (6) months as of the finalisation of collective redundancy, he/she must employ the employees who were previously dismissed as part of the collective dismissal process. 

Legal basis

Transfer of businesses and its implications on employment relation is regulated under Article 6 of the Turkish Labour Law. Further, the employment law implications of mergers and de-mergers, which may also be used as a means of business transfer, are regulated under Article 178 of the Turkish Commercial Code. 

Automatic transfer of agreements of employment

As per Article of 6 of the Turkish Labour Law, employment agreements between the current employer and employee will automatically be transferred in case of a business transfer.

On the other hand, Article 178 gives the employees the right to object to the transfer of employment due to the merger/demerger in question as a result of which the employees may terminate their employment (with the new employer that assumed the employment agreements) at the end of their legal notice period. If no objection is made, the employment agreements will continue with the new employer as part of the merger/demerger. 

Specific rights of the employees

Where a transfer of business in the scope of Article 6 of the Turkish Labour Law is in question, the transferee and the transferor will be jointly liable for the payment of receivables arising from the employment agreements in question for two (2) years beginning from the day of the transfer.

For a merger or de-merger, besides the right to object to the transfer, an employee may also demand a guarantee for their current and future receivables arising from the employment relationship. 

Last, in case of a merger or de-merger, the previous and current employer will be jointly liable for the receivables of the relevant employees. The duration of joint liability for employment law related receivables (e.g. severance pay) will continue for five (5) years. For other receivables (e.g. claims for immaterial damages), the joint liability will continue for ten (10) years.

8.1. Labour unions and management

Right of co-determination

N/A

Right of consultation

N/A

Obligation to inform

N/A

8.2. Influence of Labour unions

Industrial firms

Labour unions mostly have influence on large industrial corporations, especially during the preparation of collective labour agreements.

Smaller companies

Unions have more influence on large industrial companies than smaller companies.

8.3. Creation of a works council or staff representatives mandatory

Existence of an active union organisation

There are many active union organisations in Turkey. They are separated by sectors and are active mostly in sectors of heavy production, such as metals and mines.  

Works councils are not recognised under Turkish law in the framework of collective labour relations while the labour union would appoint representatives once it received collective labour agreement authority in a specific workplace. 

Employees council

N/A. A similar council exists only with respect to health and safety matters. 

Staff representative

Trade unions may assign a workplace union representative from among the employees who will have certain exclusive rights in the workplace (e.g. benefiting from a special regime of employment security, participating in discipline boards). Nevertheless, such representatives do not hold binding power over the employers. 

Elections

A union must elect its representatives if it obtains a majority in the workplace and receives collective agreement authority. 

European works council

N/A

8.4. Rights of staff representatives

No right of approval

Please see above in Section 8.2.

Works Council

N/A

Right of information

N/A

Right of consultation

N/A

Staff representative

Please see above in Section 8.2.

Right of consultation

N/A

Right for information

N/A

Collective contracts

Trade union representatives’ authorities in the workplace are regulated by collective contracts.  

Prohibition of discrimination

The employer may not discriminate between employees who are members of a labour union and those who are not or those who are members of different unions. 

8.5. Staff representatives and the right of paid release

N/A

8.6. Staff representatives and material expenses

Rooms and technical support

Staff representatives must be provided with amenities (such as a room) to carry out their work.

Limits of support

The extent of the support to be provided to the representative is limited to the 'necessities to perform his/her duties effectively'.

8.7. Collective Contracts

One union organization

Only a single union organization is competent to execute a collective labour agreement at a workplace.

Several union organizations

While there may be employees belonging to multiple labour unions in a single workplace, only a single union has the right to conclude a collective labour agreement with the employer. From a practical perspective, belonging to other labour unions (which do not have collective labour agreement authority) would not provide any significant advantage to the relevant employees.

Courts

Disputes between employees and employers arising from employment relations and social security matters are subject to the jurisdiction of the labour courts. In principle, however, an employee and employer must first appear before a mediator to resolve the current dispute (except for claims arising from workplace accidents) and may only apply to court if the dispute is not resolved before such a mediator.  

Arbitration and mediation

As indicated above, mediation must be exhausted for employment law disputes before applying to courts.

General background

Turkish social security provides various benefits such as unemployment pay, disability insurance and general health insurance. The employee will benefit from all of these benefits upon registration with the social security.

10.1. Contributions for social insurance

Social Security and Health Insurance contributions

All social security related premiums are covered by the employer under Turkish law. 

10.2. Retirement age

Men

Men who were first registered with the social security institution after 8 September 1999 must have continued registration with the social security for at least twenty-five (25) years, become sixty (60) years old and must have paid at least seven thousand (7,000) - seven thousand and two hundred (7,200) days of premium to be eligible for retirement. Men who registered with the social security before the said date must fulfill various age and premium related obligations (which are more advantageous compared to those who registered with the social security after 8 September 1999) to be entitled to retirement.

Women

Women who were first registered with the social security institution after 8 September 1999 must have continued registration with the social security for at least twenty-five (25) years, have reached the age of fifty-eight (58) and have paid at least seven thousand (7,000) - seven thousand and two hundred (7,200) days of premium to become eligible for retirement. Those who registered with the social security before the said date must fulfill various age and premium related obligations (which are more advantageous compared to those who registered with the social security after 8 September 1999) to be entitled to retirement. 

10.3. Calculation of the pension

Maximum pension

The amount of the pension depends on various criteria such as the date of first employment and the amount of contributions paid. As such, the maximum pension would need to be specifically calculated based on the said criteria on an individual basis.  

10.4. Private Pension Systems

Pension funds

Private pension systems were implemented in Turkey in 2003. Since 2013, government has also started contributing an amount not exceeding the thirty percent (30%) of the annual gross minimum wage to the private pension of each individual participating in the pension fund.  

10.5. Unemployment benefits

Entitlement to unemployment benefits

Employees who have become unemployed will be entitled to unemployment benefits for a certain period if they:

• Became unemployed against their will and not due to their own negligence;
• Worked subject to a labour agreement for the last one hundred and twenty (120) days prior to termination of the same; 
• Have paid at least six hundred (600) days of unemployment benefit contribution in the past three (3) years prior to becoming unemployed; and
• Have applied to İŞKUR (Turkish Employment Agency) within thirty (30) days of becoming unemployed.

Amount of the unemployment benefit

The daily unemployment benefit is calculated as forty percent (40%) of the daily average gross earnings over the last four (4) months; not exceeding eighty percent (80%) of the minimum gross wage in effect.

Funding of the unemployment scheme

Both the employer and the employee contribute to unemployment benefits. 

Employer

Employers pay a contribution amounting to three percent (3%) of the monthly wage of his/her employees.

Employee

N/A.