Turkey – Employer of Record

Turkey is situated relatively close to many European countries, being only a two to three-hour journey away, creating a direct connection between the nation and the European Union. To further encourage firms from outside of the country to set up their businesses in Turkey, the government has implemented a variety of tax cuts and other incentives.

Hiring in Turkey

Turkish Labor Law controls all aspects of employment, such as job contracts, working hours, holidays, military service and dismissal. It is a legal necessity to have a documented employment contract in the local language for contracts without a specified end date. This contract should provide information on the employee’s remuneration, entitlements, and conditions of termination. It should also indicate the amount of salary the employee will receive in Turkish Lira.

Working Hours in Turkey

In Turkey, there is no fixed ‘standard’ work week and the maximum number of work hours per week is 45. If the number of hours worked exceeds 45, employees are eligible for overtime pay. Or can opt to receive 1.5 hours of ‘free time’ for every overtime hour instead. Overtime payment goes at a rate of 50% more than the regular hourly rate. The total overtime hours worked per year cannot exceed 270.

Holidays in Turkey

Local holidays include:

• 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
• Republic Day
• Democracy and National Unit Day

Vacation Days in Turkey

Employees who have been working for at least a year, are eligible to receive paid vacation leave. The amount of time off goes by the length of employment.

• For the first five years, there are 14 days.
• For more than five, but less than 15 years, there are 20 days.
• Over 15 years, there are 26 days.

Sick Leave in Turkey

Employers are not compelled to give their staff sick pay. However, they can receive it through government incapacity schemes.

Normally, most employers continue to give their workers their full wages when they are sick. Thus, deduct the money given by the Social Security Institution from the person’s salary.

Parental Leave in Turkey

Expectant mothers have legal right to:

• 8 weeks of leave before and after giving birth.
• Also, receiving a lump-sum payment for pregnancy, delivery, and nursing costs.

The lawful time period for maternity leave is 16 weeks with 5 days of paternity leave.

Health Insurance in Turkey

In Turkey, the health care system is a mixture of required health insurance and private medical insurance. The Ministry of Health directs all health and social welfare efforts and, according to the Turkish Constitution, everyone receives the right to social security. The public health system is funded through public health insurance which is taken out of workers’ wages.

Supplementary Benefits in Turkey

Some employers give meal tickets or money in lieu of meals, cars, and/or healthcare. Bonuses are not mandatory in Turkey. But, numerous firms give out bonuses at regular intervals such as every three months, twice a year, and/or yearly.

Termination in Turkey

When hiring an employee, it is important to keep in mind the possibility of termination. The Turkish Labor Law allows employers to end a contract without penalty within two months of the employee’s start date. And failure to do so may result in costly severance payments that should be factored into the budget.

Employers do not have to provide notification before terminating a contract, except when there is a valid cause. If no justification is present, the employer must adhere to the termination notice periods which depend on the length of the employee’s employment.

Employers have to provide a severance payment when terminating an employment contract, regardless of any cause. To be eligible for severance, the employee must have been working for at least one year.

Taxes in Turkey

Both employers and employees have to pay social security premiums. Employers must pay for their own contribution as well as the contribution of their staff. This is usually taken out of the employee’s wages.

Social security contributions are 14% for the employee. And 15.5% or 20.5% for the employer (depending on certain circumstances).

The rate of unemployment insurance contributions is 1% for the employee. 2% for the employer, and 1% for the state.

Why choose us?

Connect Resources is an excellent choice as an Employer of Record in Turkey. We have a proper track record of providing comprehensive employment solutions to businesses and organizations of all sizes. Our team of professionals has experience in the intricacies of Turkish labor laws and regulations. Allowing us to provide the highest quality of service to their clients. Additionally, we are committed to finding the best possible employment solution for their clients. Ensuring that their employees are in compliance with all applicable regulations and have the best possible working conditions.