An Employer of Record (EOR) in Turkey allows you to hire employees in Turkey without having to set up a local company there. By teaming up with an EOR, you can quickly tap into the talent pool in this European country. The EOR acts as the official employer, taking on all the legal responsibilities, while you focus on managing the employee's daily work.

Using an EOR/PEO in Turkey offers significant advantages for companies looking to hire local talent without the complexities of opening a legal entity. Setting up a company in Turkey can be time-consuming, taking several months, and requiring a considerable amount of capital investment.

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Turkey's labor laws also present challenges with specific regulations on minimum wages, maternity laws, and the influence of labor unions. Staying compliant with these laws can be daunting for foreign companies. For example, Turkey’s minimum wages are sometimes revised biannually. Turkey’s laws are also protective of its employees when it comes to severance pay. Employees with at least a year of service are entitled to severance pay if terminated without cause. 

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By using an EOR/PEO in Turkey, companies can focus on recruiting and retaining valuable talent without getting bogged down by legal complexities, enabling them to compete more effectively in the local market and seize opportunities quickly.

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In Turkey, EORs/PEOs typically offer similar pricing options to those in Portugal. Companies can choose between a fixed monthly fee per employee or a percentage of the employee's payroll along with applicable taxes. Additional charges may apply for onboarding, administrative tasks, or any extra features that the company may require.

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This pricing flexibility and the ability to avoid the complexities and time-consuming process of setting up a legal entity in Turkey makes partnering with an EOR/PEO an attractive option for companies looking to expand their workforce in the country quickly and efficiently.

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Key Metrics For Foreign Employers

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Turkey, a diverse and dynamic country bridging Europe and Asia, offers numerous advantages for businesses and professionals alike.

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The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Turkey.

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Source: The Global Talent Competitiveness Index 2023

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Through the Gloroots’ Recrew platform, you can discover amazing talent in Turkey

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In Turkey, the risk of "employee misclassification" is also a concern for employers. This occurs when workers are improperly classified as independent contractors or freelancers, but they perform duties similar to those of regular employees. Misclassification can lead to legal and financial consequences for businesses, as it may result in the denial of employment rights and benefits that should be provided to permanent employees.

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To mitigate the risks of misclassification, partnering with a Professional Employer Organization (PEO) or Employer of Record (EOR) in Turkey is a wise choice. These experienced professionals understand the intricacies of Turkish labor laws and can ensure accurate worker classification and proper preparation of employment agreements.

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Employment contract

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•  Fixed-term employment contracts lasting more than 1 year must be in writing.
• Indefinite employment contracts can be concluded verbally, but it's advisable to have a written agreement.
• The agreement should identify both the employer and the employee.
• For temporary contracts, the start date and duration of employment should be specified.
• The workplace where the employee will carry out their duties must be mentioned.
• The job description, duties, and responsibilities of the employee should be clearly outlined.
• The basic salary and any additional compensation or benefits the employee will receive must be stated.
• Working hours, including any overtime arrangements, should be detailed in the agreement.
• Payment procedures for wages, such as frequency and method, need to be specified.
• Notice periods and conditions for terminating the employment contract should be clearly defined.
• Any other relevant general working conditions should be included in the agreement.

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It’s important for employers to understand the intricacies of these programs before making a hire. 

This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.

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Get an overview of what you need to know when hiring in Turkey.

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Working Hour 

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In Turkey, the regular workweek comprises 45 working hours. Employers have the flexibility to schedule these hours throughout the week, ensuring that no employee works for more than 11 hours in a single day. This means that the average daily working hours can be either 7.5 hours over 6 days a week or 9 hours over 5 days a week.

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Overtime

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If employees exceed the regular work time limits, they are entitled to receive overtime compensation. The maximum allowable overtime hours per working week are 48 hours.

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Overtime pay is mandatory once an employee has reached the maximum 45 hours of work in a week. On weekdays, overtime is compensated at a rate of 150% of the employee's regular pay, while on weekends, it is paid at 200% of the standard pay rate. Alternatively, overtime can be given as compensatory time off.

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There is a yearly overtime limit of up to 270 hours, and employers must obtain their employees' consent for any overtime work beyond the regular working hours.

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Public holidays

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If public holidays occur on weekends, they will not be compensated or carried over to another day.

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Religious holidays are subject to the lunar cycle and may appear as 'tentative' until they are officially confirmed closer to the holiday date.

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To request that employees work on public holidays, written consent from the employee is necessary. On public holidays, employees are entitled to receive their full day's wage without any work obligations. However, if they choose to work instead of taking the holiday off, regardless of the number of hours worked, they will receive an additional full day's wage for each day worked.

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Payroll

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In Turkey, payroll is processed on a monthly basis. Any work done within the month, from the first day to the last day, is usually paid to employees on the last day of the same month.

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Minimum Wage

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As of now, the gross minimum monthly wage in Turkey stands at 13,414.50 TRY, with a net minimum wage of 11,402.32 TRY.

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Annual leave

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Paid time off (PTO) for both full-time and part-time employees is determined by the duration of their employment. PTO is earned on a monthly basis, proportionally adjusted according to the length of time the employee is eligible for leave. After completing 12 months of work, employees become eligible for annual leave.

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The amount of annual leave an employee is entitled to based on years of employment is as follows:

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Employees who are below 18 years old or above 50 years old are entitled to 20 days of annual leave.

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Sick Pay

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There is no legal requirement for employers to pay employees during sick leave in Turkey. However, in practice, many employers choose to provide compensation for the initial two days of sick leave, which are not covered by Social Security. After three days of sickness and upon submission of medical reports, employees are generally paid by Social Security.

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If sick leave extends beyond six weeks beyond the notice periods specified in labor law, an employment contract may be terminated without notice, in accordance with Article 46(c) of the Turkish Labor Code.

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Maternity leave 

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Working mothers in Turkey are eligible for 16 weeks of maternity leave, which can be extended to 18 weeks in the case of multiple or complicated pregnancies. The maternity leave is granted at full pay and is usually taken as eight weeks before the due date and eight weeks after the birth. However, employees can choose to work until three weeks before the due date, with the remaining leave taken after the delivery.

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During maternity leave, payment is provided by social security based on the regular contributions of the employee.

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Additionally, after the birth of the child, employees may have the option to work part-time, and the duration of leave granted depends on the number of children the employee has:

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•  One child: 60 days of leave
•  Two children: 120 days of leave
• More than two children: 180 days of leave

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In the case of disability or adoption, the leave period can be extended to up to 360 days.

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Tax and Social Security contribution:

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Income Tax

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Social security and other tax

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Employment Termination

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The process of termination differs depending on the specific terms of the employment agreement and any existing collective agreements. It also takes into account the type of contract and the reason for the termination.

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Notice Period

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In Turkey, the length of the notice period is determined by the employee's duration of service as follows:

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Severance pay

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In Turkey, employees who have worked for more than one year and were unfairly dismissed or resigned for just cause are eligible for severance pay. According to Turkish Labor Law, employees become entitled to severance pay after completing one year of service with the same employer.

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The calculation of severance pay is based on the monthly gross wage multiplied by the number of completed years of employment. Any remaining months and days of service are also included in the calculation. There is a ceiling amount set for the gross wage, which includes the seniority basis wages.

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This severance pay ceiling is regularly updated and is currently determined as the retirement bonus of the highest civil servant. It is adjusted twice a year in line with the salary hike of civil servants.

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As of 01.01.2023 – 30.06.2023, the seniority ceiling for severance pay is set at a gross amount of 19,982.83 TRY. Employees who have been terminated and are entitled to severance pay should have their calculation based on this seniority ceiling.

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Probation period

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In Turkey, probation or trial periods are typically specified in the employee's employment contract, with the standard practice being two months. During this probationary period, no notice period is required for termination.

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When expanding your hiring efforts globally, ensuring compliance can be a significant challenge. There are various aspects to consider, such as employment laws, payroll procedures, diversity, equity, and inclusion (DE&I) compliance, GDPR, and data protection regulations. Establishing infrastructure and initiating the hiring process can be time-consuming, and staying updated on the constantly evolving compliance landscape adds another layer of complexity.

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At Gloroots, we are dedicated to simplifying these challenges for you. Our comprehensive solutions offer a single platform to efficiently manage all your hiring tasks. With our in-house experts, you can have peace of mind as they protect you from cross-border employment and payroll compliance risks. They will assist you in generating employment contracts, ensuring timely payments, and providing compliant benefits, while you can focus on talent screening and selection.

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Our commitment is to provide you and your employees with a stress-free global employment experience.

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Contact our experts today to kickstart your global hiring campaign in Turkey and tap into the abundant talent this dynamic country has to offer.

Growing your team in Turkey involves hiring the right employees for your business at the right time and for the right roles. However, setting up a local legal entity in Turkey and managing compliance, payroll, tax, and benefits can be complex and time-consuming.

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With Gloroots's global Employer of Record (EoR) service, you can entrust the heavy lifting of payroll, tax, benefits, and compliance to Gloroots, allowing you to focus on what truly matters: your employees and the growth of your company. Gloroots will take care of all the administrative tasks and ensure that your employment practices align with Turkey's regulations and laws.

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By leveraging Gloroots's EoR service, you can streamline the hiring and onboarding process in Turkey, access a pool of talented professionals, and expand your team with ease. This way, you can concentrate on building a successful team and thriving business without getting bogged down by the complexities of local employment regulations.

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