Turkey - Employer OF Record SERVICES

If you are embarking on expanding abroad where you have not incorporated a legal entity yet, you will need our in-country Employer of Record (EOR) services to be able to hire employees fast and in a compliant manner. We make hiring an easy, effective and highly cost efficient experience and take on the burden of all administration. 

In Turkey, your candidates get hired by CoberonChronos’ PEO legal entity in accordance with local Labor Code and can be onboarded in days by signing an employment contract we can provide in Turkish. The employed is eligible and assigned to work with and on your company’s behalf exactly as if he or she were your employee in-country. We prepare the monthly salary / benefits and allowances payroll based any timesheet provided and we calculate all expense reimbursement costs too.

 

Employment At a Glance

Hiring and Employment Contract in Turkey
A Turkish employer must offer a written employment contract (İş Sözleşmesi) and especially if the contract has a fixed term.
Turkey has four types of job contract:
  • contracts for temporary and permanent work;
  • contracts for definite and indefinite period;
  • contracts for part-time and full-time work;
  • contracts for work-on-call.
 
  • Definite/fixed-term (Belirli süreli) employment: This is for a fixed term with a set date for the end of employment. A fixed-term contract can be renewed once only (except in specific circumstances) and thereafter converts to an indefinite contract.
  • Indefinite/open-ended (Belirsiz süreli) employment: This is used when the job has no specified duration or set end date.
  • Part-time (Kısmî süreli) employment: Contract for a worker whose normal weekly working time is significantly less than an employee working full-time.
  • On-call work (Çağrı üzerine çalışma) and project-based employment (Proje bazlı Çalışma): Normally working hours are agreed in advance. Where the hours for a project have not been decided, the weekly working time is limited to 20 hours. An employer must give decent notice when the worker is to be on duty/available.

 

Probationary period
The Turkish Labor Code gives an employer a 2 months probation period and during this period the contract can be terminated without any advance notice, severance. Likewise, the employee is free to leave the employer without penalty or advance notice during the probationary period.
 
Health Insurance in Turkey
Turkey provides a full medical coverage to all citizens and also foreign citizen employees with work permits being on a full payroll based on the employment contract and based on the specific payroll contributions as one source of such coverage funding. Employees and residents with a social security number can get medical care free of charge from state contracted hospitals. In the following cases, medical treatment is granted without conditions:
  • Emergencies
  • Work accidents and vocational illnesses
  • Infectious diseases
  • Preventive health services (drug and alcohol abuse)
  • Birth
  • Extraordinary events (war, fire, earthquake)

The following treatments are not covered by social security in Turkey:

  • Fertility treatment for women older than 39
  • Cosmetic surgery unless medically necessary
  • Cosmetic dental work
  • Dental treatments and medical services

Supplementary healthcare and/or pension insurance with private health / pension insurers is not obligatory, but many banks and insurance companies offer such policies. Although, many employers of expatriates provide supplementary private health insurance cover for their employees. The maximum age at which a person can enter the private health sector in Turkey is 65.

Supplementary Health insurance/Benefits in Turkey

Employers may provide supplementary benefits such as life, medical and dental insurance for their employees even it is not a statutory requirement. In case of the employee travels abroad it is advised to get the employee covered by travel insurance policy because Turkey insurance plan does not cover foreign medical emergency treatments.

Public Holidays and Vacation in Turkey
Turkey celebrates several public holidays for which employees are given the day off, including
  • New Years's Day - January 1
  • National Sovereign and Children's Day - April 23
  • Labour and Solidarity Day- May 1
  • Commemorate of Atatürk, YOuth and Sports Day - May 19
  • Democracy and National Unity Day - July 15
  • Victory Day - August 30
  • Republic Day - October 29
  • Ramadan Feast - Religious holiday for 3 days, after the end of the Islamic month
  • Sacrifice Feast - Religious holiday for 4 days in hajj period.

All employees who have worked for at least one year including the probation period are entitled to paid annual leave; and leave periods, which is determined according to employee's length of service, may not be shorter than the durations herein below:

Length of Service is 1 to 5 years:   min. 14 working days pad leave.
Length of Service is 5 to 15 years: min. 20 working days pad leave.
Length of Service is 15 years or longer: min. 14 working days pad leave.

Paid annual leave may not be less than 20 days for employees under the age of 18 or over the age of 50.

Employees’ paid leave entitlements and the leaves taken should be recorded and the documents in respect to leaves must be signed with both employee and employer. If an employees starts or ends work part way through a holiday year he is entitled to paid holiday on a pro rata basis. 

13th month salary in Turkey
In Turkey there is no mandatory requirement for a 13th month salary by law.
 
Bonus payments in Turkey
It is entirely up to the employer what bonus to pay or whether to pay at all. Any employee may receive for example individual bonuses based on performance or based on corporate structure bonus plan linked to individual/department/corporate performances.

entirely up to the employer to set the day to day wirking hours according to business need. However, there is a maximum of 48 hours per week limit which can not be extended by neither of the employees, averaged over 17 weeks. 

Sick Leave in Turkey
Employees are entitled to a statutory sick pay for up to 15 days from work but must be documented with doctors' note to fullfil sick pay obligations.
 
Maternity/Shared Parental Leave in Turkey
Currently, all pregnant employees are entitled to maternity leave.
 
Termination/Severance in Turkey
The termination period affecting both employer and employee varies depending on the period of employment. Most companies have 2 to 8 weeks notice periods. Employers must give notice of termination of employment in writing, and state clearly the reason for termination. In some cases an employee may have the right to appeal.
 
Notice periods are determined as: 
  • 2 week's notice if the employee has been employed by the employer continuously for less than 6 months. 
  • 4 week's notice if the employee has been employed by the employer continuously for more than 6 months but less than 18 months.
  • 6 week's notice if the employee has been employed by the employer continuously for more than 18 months but less than 36 months.
  • 8 week's notice if the employee has been employed by the employer continuously for more than 3 years
Severance in Turkey
Eligibility for the severance pay mostly depends on the reason for the termination of employment. Also, an employee, who ends his/her own employment through resignation is not entitled to severance pay. On the other hand, in the case of termination of employment contract executed by the employer, the employee is entitled to severance pay.

Regarding to the severance, an employee who has been continuously employed by his employer for one year is entitled to severance payment. Severance pay is calculated on the employee's last full month’s gross salary and exempted from income tax, however subjected to a stamp tax. When considering other benefits or premiums in addition to gross salary, a summary of daily gross income (gross salary + any other benefits, etc.) is taken into account for the calculation of severance pay.

Basic formula for the calculation of severance pay is as below: 
(Gross Salary) / 365 x Lenght of Service (days) – Stamp Tax (0.00759 * Gross Salary)

According to Labor Law, in case the employment contract is terminated by the employer, it is required that the underlying reason of this termination be notified to the employee in writing, and the reason of termination be valid. The employee has the right to file a lawsuit in Labor Court within one month from the date of notification of termination. In the lawsuit to be filed, liability of proving that termination is based on a valid reason belongs to the employer, and if the employee claims that termination is due to another reason, he/she is obligated to prove this claim.

Employment Taxes in Turkey
In Turkey employers must contribute the amounts deducted from each employee's salary, including the Personal Income Tax and a national insurance contributions.

 

 

Why Coberon Chronos

Hiring any number of staff in Turkey can be time consuming, expensive and complex without the extensive knowledge of the local Labor Code but mostly to apply it to the best practices.

Coberon Chronos can help your business to hire your candidates, handle all the hiring administration and payroll and ensure that you’re in compliance with local labour laws, without the burden of setting up a large office or subsidiary abroad in a rush.
Our Global Employer of Record and PEO services lets you focus on running your key business in a new country.
If you have an immediate EOR needs to just would like to discuss how Coberon Chronos can provide a seamless EOR and/or PEO solution for hiring employees in Turkey, please contact us at sales@coberonchronos.com.

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