Global HR Compliance in Turkey

Considering hiring staff in Turkey or already managing a team there? This guide offers a practical overview of local employment rules and what it takes to stay compliant.

When expanding into Turkey, companies often face a familiar question: how to legally hire and pay people on the ground without unnecessary overhead. We onboarding talent, manage salaries, benefits, contracts, and taxes in line with Turkish labour law.

That’s where Acumen International’s Global Employer of Record service comes in. We employ your team on your behalf, ensuring everything is set up and managed legally — from employment agreements to payroll and statutory contributions. You maintain day-to-day control of your workforce; we take care of the legal and administrative side.

This approach gives you the structure and compliance of local employment, without the delays or costs of setting up your own legal entity. It also helps you retain skilled employees who are committed to your business without the risks of misclassification or regulatory breaches.

Use this guide to understand the core employment requirements in Turkey and how we support you at each step.

Global Employment Burdens Acumen Global EOR Helps Reduce in Turkey

1. Compliance

  • Compliant hiring and payroll in 190+ countries
  • Ongoing monitoring of legal, firing & firing regulations
  • Tax & benefits guidance
  • Continuous labour, tax, payroll, and immigration compliance monitoring & updates.

2. Risk Control

  • Permanent establishment risk
  • Worker misclassification risk
  • Under-taxation risk
  • HR & immigration compliance risk
  • Intellectual property right risk.

3. Need for Local Incorporation

  1. Outsourced HR support upon new market testing
  2. HR arm upon global expansion
  3. Business in transition – M&As, close-downs.

4. Employee Transfer

  • From PEO to PEO
  • From EOR to EOR
  • From legal entity to legal entity
  • Convert Independent Contractors to full-time employees.

5. All-in-one Solution

Acumen Global Employer of Record offers integrated global employment solutions under one roof and can replace multiple vendors, including:

  1. Payroll Company
  2. Employee Benefits Broker
  3. HR Consultants
  4. Background Checks Vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR Compliance Advisor.

6. Global Knowledge. Local Expertise and Support

  • Faster time-to-hire with streamlined paperwork and communication
  • One platform to onboard and manage all team members
  • Streamlined global payroll
  • Single source of truth for contracts and documents
  • Dedicated customer service
  • 24/7 local support
  • Simplified hiring for Full-time employees and contractors
  • Expertise with hiring and firing local and foreign workforce.

Hiring and Firing Guide for Your Workforce in Turkey 

Over the last five years, the Turkish economy has gained popularity for its steady economic boom. By 2030, it is projected to be one of the fastest-growing economies in the world. Technology-wise, Turkey is verse developed in telecoms, transportation, and energy and has a low taxation policy with many incentives to encourage domestic and foreign investment. Its central location and readily accessible dynamic, and well-educated workforce are other factors that make it very attractive for direct investment.

To know more about the dynamics of the business environment in Turkey, you need to understand, among other things, the country’s employment law and labor relations.

The following is an overview report of what you should know about doing business in Turkey.

Employment Agreements in Turkey

The Turkish Labor Code and labor law principles do not define specific categories of workers. However, employment contracts are classified.   The main categories of employment contracts are:

  • Continuous and non-continuous
  • Fixed-term and indefinite term 
  • Full-time and part-time 
  • Seasonal 
  • Temporary 
  • Team employment contracts 
  • Employment contracts with or without trial periods 
  • Provisional employment contracts. 

Although no specific provision is made under the Turkish Labor Code regarding worker categories, such as white-collar and blue-collar workers, such a distinction has developed due to long-lasting practice by some companies to be used for workplace regulation. 

Further, there is also a distinction developed in practice concerning regular employees and executive managers (deemed to be the employer’s representatives). This distinction originates from court precedents that hold that executive managers responsible for the administration of the workplace are not entitled to sue for reinstatement to work if the employment contract is terminated for just cause. Another distinction regarding these employees is that, contrary to the general rule under the Turkish Labor Code, the fixed-term employment contract of an executive manager will not be considered an indefinite employment contract even if it is renewed more than once. 

Permanent Employment Contracts 

Indefinite/open-ended (Belirsiz süreli) employment: This is used when the job has no specified duration or set end date.  Both employer and employee should sign a written contract; it should include the following information: 

  • Employing company’s business name, employer’s name , and address of the workplace 
  • Worker’s name, social security number, and residential address 
  • Work start date and duration of the trial period 
  • Term of the contract (indefinite or termination date) 
  • Work hours and the period (daily, monthly) 
  • Description of the job and employee’s responsibilities 
  • Employer’s responsibilities 
  • Details of salary, overtime, payment terms, and annual leave 
  • Termination rules 
  • Other special conditions. 

Fixed-term Contracts  in Turkey

Fixed-term contracts are made for a specified period or a specific event, the duration of which can be objectively determinable even though not expressly set out in the contract. An employment contract between a contractor company and a building foreman made for the duration of the completion of a certain construction project can be given as an example of a fixed-term contract. It is important to note that fixed-term contracts should be made in writing as required by law. 

Temporary Workers 

Employers can temporarily assign an employee—if the employee agrees—to another company within the same group or to a similar business. The original employment relationship stays in place.

During the temporary assignment, the employee works for the other company but remains on the original employer’s payroll. These arrangements must be in writing, can last up to six months, and may be renewed no more than twice.

Collective Agreements

Collective bargaining agreements are allowed under Turkish law. These agreements have the purpose of protecting the rights of those employees who are in weaker positions vis-à-vis their employers. Trade unions or employee representatives, given the authority, have the right to negotiate collective agreement terms in the name of the employees. Once the collective agreement is executed, the employer will be bound by the terms and conditions of that agreement. Collective bargaining agreements are subject to specific regulations under the Turkish Labor Code concerning certain matters, such as trial periods, salary payment terms, etc. 

Fixed-Term vs. Open-Ended Employment Contracts

A fixed-term contract can’t be extended or renewed repeatedly unless there’s a valid reason. If not, it’s treated as an open-ended contract from the start. Also, if work continues after the contract ends without a new agreement, it becomes open-ended by default. Open-ended contracts give employees more rights than fixed-term ones.

The below table shows the significant differences between the two:

Open-ended Fixed-term  
No automatic expiration  Automatically expires at the end of term.  
A termination notice should be sent by terminating party  No need for termination notice
Employee may be entitled to “notice pay” upon termination  No notice pay upon expiry  
Employee may be entitled to “severance pay” upon terminationNo severance pay upon expiry  

Turkish Labour Code embraces the principle that all employees should be treated equally. Accordingly, employers cannot treat temporary and agency workers or part-time workers differently from the permanent employees unless justifiable grounds exist for the different treatment

Employment Termination and Severance Pay (Dismissal)

Employees and employers can terminate an open-ended employment contract, provided that the required notice period is given to another party. If a fixed-term employment contract is concluded only for a defined period (with a specified end date), there will not be a notice of termination/notice of payment obligation.

Termination by the Employee Initiative

The employees are entitled to terminate their employment contracts, whether the contract is for a definite or indefinite period, before its expiry or without having to observe specified notice periods in case of serious and important reasons. The conditions are not sufficient for the employee to terminate the contract, and the employee should also notify the employer regarding such termination.  Although there is no statutory provision for the form of termination notification, the precedent of Appellate Court decisions on the subject indicates that the notice of termination should be written and served through a notary public. The employee should indicate the reasons for his/her termination clearly and in a reasonable manner. 

Termination by Employer 

Employers can end a contract either with or without just cause. If there’s no just cause, the employer must pay compensation. One key payment is notification compensation, which covers the notice period the employee would have received.

If the employer ends the contract immediately without notice, they must pay:

  • 2 weeks’ salary for under 6 months of service
  • 4 weeks’ salary for 6 to 18 months of service
  • 6 weeks’ salary for 18 to 36 months of service
  • 8 weeks’ salary for over 36 months of service

Termination by Mutual Agreement 

Employment contracts may be terminated by mutual agreement of the parties. The legal basis of mutual termination agreements is rooted in “freedom of contract” as a constitutional right. An employer and employee terminate an existing employment contract through a “mutual termination agreement.”  Alternate ways to terminate employment contracts include where notification is exchanged between an employer and employee according to statutorily defined periods, and immediate termination on just grounds, on the death of an employee, and at the end of the agreed period of employment contracts with a definite term of duration.

It is Prohibited to Dismiss

There is no official or legal definition of a protected employee; employees who fall under the scope of job security provisions can be deemed protected employees. In addition, dismissals based on language, race, religion, sex, political or philosophical views, or pregnancy are prohibited. So employees who are discriminated against in these ways can be considered  protected employees. 

Notice Period in Turkey

The termination of an employment contract is not valid unless written notice is served to the employee and legal notice periods are respected. However, there are certain cases where employers are entitled to terminate the employment relationship based on a just cause which can be briefly summarised as health reasons, lack of good faith and moral character, and the employee’s absence), in which case the employer is not obliged to comply with the legal notice periods and can effect immediate termination. In the case of termination based on just cause, the employee is not entitled to a notice period payment. If there is no just cause, employers are obliged to comply with the notice periods, which vary depending on the length of the employment: 

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

These notice periods are the minimum legal periods, which can be prolonged through mutual agreement of the parties or collective bargaining agreements. The notice periods can be prolonged for both parties, but court precedents state that the notice periods cannot be prolonged to the employee’s detriment. 

Employers need not continue to employ terminated employees for the duration of these notice periods, as employers can terminate an employee’s employment effective immediately by making a payment in lieu of the notice period (that payment will correspond to the gross salary of the employee for the notice period).

Severance Payments in Turkey

An employer’s termination of the employment contract based on just cause or without cause imposes a severance payment duty on the employer. The employee’s service time must exceed one year before the employee will be entitled to a severance payment. The severance payment is calculated by multiplying the employee’s monthly salary by the years they have been employed by the employer.  The severance payment cannot exceed a certain ceiling amount which is revised every six months by the government.  In addition, employers are obliged to pay the amount that equals the employee’s unused annual leave, unpaid overtime work payments, and other earned benefits and bonuses.  Severance Compensation: For any termination without just cause of the employees who worked for more than one year, the employer should pay this compensation to the employee.

Employee Benefits and Contributions in Turkey

Mandatory Benefits 

Salary, social security contributions, paid annual leave, paid sick leave, general health insurance contributions, weekends, public holidays, official holiday salaries, overtime payments, maternity leave, or paternity leave pay are the main mandatory benefits. The employer may also provide to employees with additional voluntary benefits.

Voluntary Benefits 

Benefits include the value of premiums, private insurance, company cars, bonuses, mobile phones, clothing, etc. Employers can determine to pay premiums (ikramiye) or bonuses (prim) to their employees under certain conditions and based on regular performance intervals.   Turkey recently announced a new scheme for regulating meal cards, a common benefit scheme offered to employees.  Foreign companies operating in Turkey or Turkish companies may design employee stock options and stock purchase plans and award stock options to their employees in Turkey in their employment contracts or supplementary employment documents describing benefits granted to employees.

Probationary Period in Turkey

Employment contract with a trial (probation) clause:  If the parties have agreed to include a trial clause in the employment contract, the duration of the trial term shall not exceed two months. However, the trial period may be extended up to four months by collective agreement.  Within the trial term the parties are free to terminate the employment contract without observing the notice term and without having to pay compensation. The employee’s entitlement to wages and other rights for the days worked is reserved. 

Overtime in Turkey

Overtime work cannot exceed 270 hours per year. Employees cannot opt-out of such restrictions.  In principle, all employees are entitled to receive overtime pay. Employees are entitled to overtime pay for all overtime exceeding 45 hours per week at 1.5 times their hourly rate. However, if the weekly working hours are less than 45 hours, a 1:1.25 ratio will be applied up to the 45 hours.  It is possible to provide in the employment contract that an employee’s salary includes overtime of up to 270 hours per year without additional pay, provided that the employee’s salary is higher than the minimum wage. 

Work Hours in Turkey

The maximum working hours allowed is 45 hours per week. Working hours can be distributed over the working days provided that daily working hours do not exceed 11 hours on any one working day.  The maximum night working hours are 7.5 hours per week. Employees must be given at least 24 hours of rest time weekly.   Employees cannot opt-out of such restrictions individually or collectively. 

Annual Leave in Turkey

Employees who have worked for at least one year are entitled to paid annual leave. The length of the paid annual leave will vary depending on the length of employment. The minimum holiday entitlements for employees are contained in the Turkish Labor Code and are as follows: 

  • One to five years of employment (including the fifth year): 14 days per year
  • More than five years to 15 years of employment: 20 days per year 
  • More than 15 years of employment: 26 days per year.

Employees below the age of 18 or above 50 are entitled to a minimum of 20 days of annual leave.  The employees performing underground work will be entitled to an additional four days of paid annual leave in addition to the holiday entitlement calculated in line with the above criteria.  These holiday entitlements can be extended through employment contracts or collective bargaining agreements. 

Sick Leave in Turkey

Entitlement to Time Off 

Employees are entitled to time off in the case of injury or illness. Employees who can document their injury or illness with a doctor’s report will be entitled to time off during the rest recommended in the report. However, suppose the period of illness or injury exceeds the employee’s valid notice period by six weeks. In that case, the employer will have the right to terminate the employment agreement immediately by paying the employee’s severance payment because the employee’s sickness cannot be cured. 

Paid Time Off 

Employers are not obliged to provide sick pay to employees during sick leave. Employees are entitled to compensation during such time through government disability programs. If the illness or injury can be classified as occupational, then the employee will be entitled to temporary sick pay for every day starting from the first day of their time off. However, where the illness or injury is not occupational, sick pay will be available for every day starting from the third day of illness or injury (additional conditions are applied under the related regulations)

Parental Leaves in Turkey

Maternity Leave 

Pregnant employees can take fully paid leave for: 

  • Eight weeks before childbirth
  • Eight weeks after childbirth.

Pregnant employees or employees whose wives are pregnant will be entitled to nursing benefits if certain premium conditions are fulfilled. 

Paternity Leave 

The employee whose spouse has given birth is entitled to five days’ paid leave.

Acumen International can help you kick-start your penetration or expansion in the Turkish market. Our solutions are created solely for the purpose of assisting any individuals or companies that want to enter or expand into any global market to do so in a timely, cost-effective, and compliant way.

How Acumen International Can Help You Hire in Turkey

Direct Employment Without a Local Entity

We legally employ your chosen talent in Georgia on your behalf, allowing you to bypass the setup of a local entity. You manage day-to-day operations—they report to you—while we handle employment contracts, payroll administration, and local tax reporting.

Local Compliance, Centrally Managed

From ensuring contracts meet Georgian labour law to tracking changes in leave entitlements or termination rules, we handle the local compliance landscape for you. You stay informed without needing to manage multiple advisors or interpret legal texts.

Custom Support for Complex Hiring

Some roles demand a tailored approach—whether that’s senior leadership, sector-specific certifications, or custom compensation structures. We help you design compliant employment arrangements that align with your business goals and local expectations.

Global Mobility Support

If you’re hiring foreign nationals to work in Georgia, we can sponsor work permits and guide you through the local immigration process. We ensure everything from role eligibility to documentation is properly managed—so you avoid unnecessary delays or rejections.

Strategic Payroll Cost Insights

Our Global Payroll Calculator helps you understand the real cost of hiring in Georgia. You can estimate total employer expenses, including statutory benefits, taxes, and required contributions — alongside employee take-home pay. This supports accurate budgeting and informed decision-making.

One Partner Across 190+ Countries

If Georgia is one of several countries on your expansion roadmap, we serve as your central partner. You benefit from a single point of contact, consistent processes, and unified service delivery, reducing administrative overhead and accelerating cross-border hiring.