As workforce structures rapidly evolve with digital transformation and globalization, the concept of transferring employment contracts between employers has become increasingly relevant. But is it legally possible to transfer an employment contract in Turkey? If so, under what conditions—and what are the obligations of both the transferring and receiving employers?
In this blog post, we examine the legal framework governing the transfer of employment contracts in Turkey, with a focus on a recent precedent set by the Court of Cassation (Yargıtay). We also discuss the payroll and accounting implications for employers, highlighting how Metropol CPA can support businesses through these complex transitions.
Legal Definition of an Employment Contract in Turkey
According to Turkish Labor Law No. 4857, an employment contract is a mutual agreement where one party (the employee) agrees to perform work under the authority of the other party (the employer), who in turn agrees to pay remuneration. Employers and employees are generally free to structure their agreements as they see fit, provided that the contract complies with mandatory labor provisions and principles of good faith.
There are different types of employment contracts recognized in Turkey, such as fixed-term, indefinite-term, part-time, and full-time agreements. For a detailed breakdown of these types, you can visit our blog on Types of Employment Contracts in Turkey.
Despite the comprehensive nature of the Turkish Labor Code, there is no explicit provision regarding the transfer of employment contracts. Instead, this issue is governed by Article 429 of the Turkish Code of Obligations (TCO No. 6098).
Legal Basis: Article 429 of the Turkish Code of Obligations
The relevant article clearly states:
“A service contract may only be transferred permanently to another employer with the written consent of the employee. The transferee becomes the new party to the contract, assuming all rights and obligations. The original employment start date is preserved for the purposes of employee entitlements.”
This means that written consent from the employee is a mandatory condition for a valid transfer. Without this consent, any contractual transfer is legally invalid.
Court Ruling on Employment Contract Transfer in Turkey
A landmark 2024 decision from the 9th Civil Chamber of the Turkish Court of Cassation (Decision No. 2024/7129 E., 2024/12435 K.) confirmed that:
- The employee’s written consent is an essential requirement for a valid contract transfer.
- The new employer becomes liable for all rights accumulated during the former employer’s period, not just severance entitlements.
- Any reduction in salary after the transfer without consent violates Turkish contract and labor law.
This ruling sets an important precedent for employment contract transfers in Turkey and serves as a strong warning to employers attempting to sidestep consent or reduce compensation.
You can explore similar rulings at the
👉 Official Turkish Court of Cassation Decision Portal
Employer Responsibilities in Turkey After Employment Contract Transfer
Once a transfer is validly completed in Turkey, the new employer is fully responsible for:
- Seniority-based entitlements (e.g., severance, notice pay)
- Accrued annual leave rights
- All previously agreed benefits and compensation
- Social security continuity and legal filings
The former employer is relieved of all liabilities only if the transfer is lawful and consent is documented.
Payroll and Tax Implications in Turkey
Transferring employment contracts in Turkey involves complex payroll and accounting considerations. Businesses must:
- Reflect the transfer in payroll records with historical employment data intact
- Ensure wages, bonuses, and benefits are calculated based on the employee’s full tenure
- Continue social security contributions without interruption
- Avoid retroactive wage reductions that may violate labor laws
At Metropol CPA, we specialize in helping local and international companies manage employment transitions with full payroll and tax compliance in Turkey.
How Metropol CPA Supports Employment Contract Transfers in Turkey
Metropol CPA provides comprehensive services to ensure a smooth and compliant employment contract transfer in Turkey:
- Payroll processing aligned with Turkish labor and tax law
- Employment contract audits to assess risks before transfer
- Legal advisory for HR and finance teams
- Accounting and reporting services tailored for foreign-invested companies
Whether your company is acquiring another business, restructuring, or assigning employees to a new entity, we help you stay compliant while minimizing administrative burdens.
Best Practices for Employers in Turkey
To ensure lawful employment contract transfers in Turkey:
- Always obtain written consent from the employee before initiating the transfer.
- Draft a detailed and enforceable transfer agreement.
- Clearly communicate wage and benefit continuity to employees.
- Work with payroll and legal experts like Metropol CPA for proper execution and risk mitigation.
Employment Contract Transfer in Turkey Must Be Handled with Legal Care
In Turkey, employment contract transfers are possible but highly regulated. Companies must comply with Article 429 of the Turkish Code of Obligations, ensuring the employee’s written consent and preserving all contractual rights.
Do you need help managing employment transitions or legal payroll in Turkey?
Contact Metropol CPA to speak with our experts.