Understanding labor law in Turkey is essential for any foreign company hiring employees locally. A well-drafted employment contract in Turkey can be the difference between long-term compliance and unexpected legal risks. Yet, many foreign firms make avoidable mistakes when onboarding staff, often due to unfamiliarity with local legal norms. If you’re operating in Turkey or planning to expand, this guide is for you.
Let’s explore what makes employment contracts in Turkey unique, which legal obligations cannot be overlooked, and how foreign businesses can structure compliant, secure, and practical agreements without getting lost in translation.
Why Employment Contracts in Turkey important
Employment contracts are not just administrative formalities in Turkey – they form the backbone of legal protection for both parties. Under Turkish labor law, employee rights are tightly safeguarded. Terms that fall below legal minimums are considered invalid. On the other hand, companies are free to offer additional benefits and clarifications to create a more predictable working relationship.
The problem? Many foreign companies assume their standard global contracts apply, only to face disputes with employees or sanctions from authorities. The good news is that these risks are preventable.
Let’s dive into the five key areas every foreign company must understand.
1. Always Use a Written Employment Contract in Turkey – No Exceptions
Under Turkish labor law, having a written employment contract in Turkey is not just good practice — it’s essential. Whether the employment is fixed-term, indefinite, part-time, full-time, or remote, clearly documented agreements protect both the employer and employee.
Relying on verbal agreements can create serious legal and financial risks, especially when it comes to:
- Disputes regarding job descriptions and responsibilities
- Termination justifications and severance pay
- Social security obligations and social security office audits
A properly drafted contract ensures compliance with Labor Law No. 4857 and should clearly define key aspects such as probation period, working hours, notice periods, and compensation terms.
Tip: Localize your contracts to reflect Turkish regulations and workplace practices. Standardized global templates may not be sufficient to meet compliance requirements in Turkey.
2. Minimum Standards Are Non-Negotiable
Labor law in Turkey sets strict minimum entitlements:
- Maximum working hours: 45 per week
- Paid annual leave: from 14 to 26 days based on seniority
- Social security registration: mandatory before work begins
Even if an employment contract says otherwise, employees retain their statutory rights. Trying to contract around these is illegal and can lead to penalties.
Example: An international company limited annual leave to 10 days due to global policy. The employee sued and won full leave entitlement retroactively, plus damages.
Every employment contract in Turkey must clearly define employee rights such as salary, working hours, and annual leave entitlements.
3. Termination Rules and Severance Obligations
Termination in Turkey must comply with:
- Minimum notice periods (from 2 to 8 weeks)
- Valid grounds for dismissal (especially for contracts exceeding 6 months)
- Severance pay (1 month’s gross salary per year of service)
Failure to follow these rules can result in labor lawsuits, reinstatement orders, or financial penalties.
Tip: For foreign companies, documenting performance issues and using well-drafted mutual termination agreements (ikale) can help reduce risk.
4. Data Privacy Clauses Are No Longer Optional
Since the Personal Data Protection Law (KVKK) mirrors the EU’s GDPR principles, employment contracts should now include:
- Explicit consent for processing sensitive data
- Clarification of how employee data is stored and used
- Termination of data rights upon end of employment
Insight: Payroll services in Turkey often handle data compliance as part of onboarding, helping foreign clients avoid technical violations.
5. Remote Work and Other Flex Models Must Be Written
Remote work has become mainstream, but in Turkey, it requires a special contract. Turkish law expects remote/hybrid work arrangements to define:
- Work location and duration
- Communication methods
- Expense coverage (internet, electricity, etc.)
- Occupational health and safety responsibilities
Strategy: If your company uses remote staff or hybrid models, consider working with HR services in Turkey to draft compliant, customized remote work agreements.
Conclusion: A Good Employment Contract in Turkey Means Good Business
Foreign companies entering the Turkish labor market cannot afford to overlook local compliance. Employment contracts must be more than translations of HQ templates. They should reflect the legal, cultural, and operational realities of Turkey.
That’s where working with experienced local providers becomes essential. At Metropol CPA, we offer payroll services in Turkey and end-to-end HR support tailored to foreign investors.
If you’d like to discuss your plans or have any questions about starting a business in Turkey, feel free to contact us at info@metropolcpa.com or visit www.metropolcpa.com for more insights.