Turkey PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Turkey to companies willing to enter the Turkish market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Turkey.  However our solution allows you to start the operations in Turkey within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. .

Turkey fast facts

Population, million: 83,1
Land area: 783,356  km² 
Capital: Ankara
Local currency: Turkish lira

Hiring, Negotiating and Doing Business in Turkey

Necessity of written employment contract

In principle, a written employment contract is not mandatory. However, if the contract is not concluded in writing, the employee must be provided with a written document within two months of commencing employment, showing the:

• General and special conditions of work.
• Daily or weekly working time.
• Basic salary and any salary supplements.
• Times/dates when remuneration will be paid.
• Conditions concerning the termination of the contract.

Different forms of engagement: employment, contracting, work with private entrepreneur

• Employee/worker. 
• Independent contractor/self-employed. 

Shift workers

Special provisions regarding shift worker employees are regulated under regulations on shift workers issued by the Ministry of Labour and Social Security. Shift worker employees cannot be forced to work without 11 hours of rest between shift changes and at least 24 hours rest time must be given in a week.

Turkey Employment Contract

Types of employment agreements

In Turkey, fixed-term contracts are limited to very specific sectors. It is recommended to edit permanent contract.

Turkey working hours

The full-time working hours are 45 hours per week.

The hours above are not overarching and are subject to change as long as the maximum of 10 hours per day and 200 overtime hours per year are not exceeded as per the Labor Law of Turkey. 

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 rest time in a week. Also, overtime work cannot exceed 270 hours per year.

Vacation leave in Turkey

Minimum paid holiday for each year is regulated as follows:

• Employees are granted paid holiday provided that they have worked for at least one year.
• If the term of the employee’s service is one to five years, the holiday period must be at least 14 days.
• If the term of the employee’s service is five to 15 years, the holiday period must be at least 20 days.
• If the term of the employee’s service is 15 years and over, the holiday period must be at least 26 days.
• For employees aged 18 years or less, and for the employees aged 50 years or older, paid holiday cannot be less than 20 days.

Turkey Maternity Leave

Pregnant women are given report before and after birth. In principle female employees must not be engaged in work for a total period of sixteen weeks, eight weeks before confinement and eight weeks after confinement.  Prenatal report starts at the 32nd week of pregnancy for singleton pregnancy. 

However, a female employee whose health condition is suitable as approved by a physician’s certificate may work until the three weeks before delivery, she starts her leave at the 37th week of pregnancy. In this case the time during which she has worked shall be added to the time period allowed to her after confinement.

The father is entitled to take five days of paid paternity leave.

Parental rights

If both parents work, one of the parents has the right to request to work part-time until the child reaches the age to attend primary school.

Turkish Severance Laws

Notice periods

The Labour Act regulates minimum notice periods as follows according to the length of the employee’s service:

• Less than six months’ service: at least two weeks’ notice.
• Six to 18 months’ service: at least four weeks’ notice.
• 18 months’ to three years’ service: at least: six weeks’ notice.
• More than three years’ service: at least eight weeks’ notice.

The parties can agree on longer notice periods through employment contracts.

Severance payments

If the employee has worked for the employer for at least one year, the employer must pay a severance payment at the rate of 30 days’ gross salary for each full year as of the date on which the employment relationship between the parties commenced. Payment must be made pro rata to the service period of the employee within a year. Calculation of severance payments must be made based on the latest gross salary. However, in any case, the maximum amount which can currently be paid to an employee as a severance payment is TRY6,730.15 for each year worked.

If the employment is terminated based on just cause for cases which are incompatible with morals and goodwill, the employer is not required to make a severance payment for example termination due to particular reasons of health, immoral, dishonourable or malicious conduct or other similar behaviour of employee or force majeure.

Turkey Tax

Social Security Premium Payments

Social security premiums (as a percentage of employee’s gross earnings) are payable by both employers and employees. To give an outline, the below table shows the rates regarding the issue. 

Foreigners making social security contributions in their home countries do not have to pay the Turkish social security premiums if there is a reciprocal agreement between the home country and Turkey.

 Individual income tax rates applicable for 2020 are as follows: 

The total rate for mandatory social contributions is 36.55% (as of 1 January 2020), levied on both the employer and the employee.

Health Insurance Benefits in Turkey

Entitlement to time off

The Employee is entitled to the sick leave as defined by the Labor Law of Turkey. The Employee shall notify the Employer in case of his absence from work through illness.

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.

Additional Benefits in Turkey

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

Turkey Holidays

Public holidays are not included in the minimum paid holiday entitlements and employees are entitled to their regular daily salaries for these public holidays. These holidays are as follows:

• New Year (1 January).
• National Sovereignty and Children’s Day (23 April).
• Labour Day (1 May).
• Youth and Sports Day (19 May).
• Democracy and Freedom Day (15 July).
• Victory Day (30 August).
• Republic Day (29 October).
• Ramadan and Eid Holidays (for 2020, the dates of Ramadan are 24 to 26 May, and the dates of Eid are 31 July to 3 August).

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.