Indefinite Term Employment Contract in Turkey

A contract template is a starting point, not a document to sign as it stands. The version circulating most widely in Turkey contains at least four clauses that do not hold up: a wage clause stating that overtime, holidays and weekends are included, a non-compete with no limits, a clause purporting to exclude the right to dispute, and an unlimited indemnity. Each gives the employer comfort it does not actually have.

This page sets out those clauses and why they fail, then gives a corrected template with a note under each provision explaining what governs it. The blanks are marked and the whole thing still needs tailoring to the role.

Probation
2 months
Weekly hours
45
Daily ceiling
11 hours
Overtime included clause
Capped at 270 hours
Non-compete
Max 2 years
Just cause termination
6 working days
Copies
One to the employee

Clauses That Do Not Work as Commonly Drafted

Clause as usually writtenWhat actually applies
“The wage includes overtime, public holidays and weekends”Accepted for overtime only, and only up to 270 hours a year. It does not cover weekly rest day or public holiday pay, which remain separately payable
“The employee shall not compete with the employer after termination”Void as drafted. A non-compete must be written, limited by place, time and type of work, and requires access to customers or trade secrets. Exceptional cases aside, two years is the ceiling
“The assessment is at the employer’s sole discretion and cannot be disputed”A waiver of the right to bring a claim is not effective. The clause adds nothing and signals that the document was not reviewed
“The employee shall indemnify the employer for any damage”Employee liability is reduced according to fault, the risk inherent in the work and the employee’s qualifications. An unlimited indemnity is not enforced as written
“The employee shall not take part in collective action without consent”Trade union rights and the right to collective action are constitutionally protected; a consent requirement does not override them
Termination clause listing just-cause groundsCorrect as far as it goes, but the right must be exercised within six working days of the authorised body learning of the conduct. Omitting that is how the right is lost
The wage clause is the one that costs money

A clause stating that the wage includes overtime is recognised, but only for overtime and only up to the annual limit of 270 hours. Beyond that limit overtime is payable separately. More importantly, the clause has never covered weekly rest day pay or national and public holiday pay — those are separate entitlements under separate articles and are calculated separately.

Employers relying on this clause typically discover the position years later, when the claim covers five years of weekly rest days and public holidays for every employee on the template. The five-year limitation period runs from when each payment fell due, so the exposure accumulates rather than expiring.

The Template

Blanks are shown as ………. Each clause carries a note explaining what governs it. Provisions that depend on the role — job description, wage, benefits, restrictive covenants — must be completed rather than left as drafted.

Parties

This employment contract is made on …/…/… between ………, having its registered office at ……… (the “Employer”), and ………, identity number ………, residing at ……… (the “Employee”).

The Employee shall begin work on …/…/…. This contract is of indefinite term.

Why it matters: the start date determines service length for notice and severance. Where nothing is agreed on duration, the contract is indefinite by default, so stating it removes any argument that a fixed term was intended.

Article 1 — Probation period

1.1 The probation period is two months from the date the Employee begins work.

1.2 Either party may terminate the contract during the probation period without observing a notice period and without compensation.

1.3 Wages and all other rights accrued for days worked remain payable.

Why it matters: probation may be extended to four months only by collective agreement. It displaces notice and severance, nothing else: social security registration, working time limits, occupational health and safety and the rest of the Labour Law apply from the first day. A clause making the assessment non-disputable is ineffective and should not be included.

Article 2 — Position and duties

2.1 The Employee is engaged as ………. The duties of the position are ……….

2.2 The Employer may assign the Employee duties outside those listed where the work requires it, provided that the Employee’s working conditions are not made substantially worse.

Why it matters: a substantial change to working conditions requires the employee’s written consent within six working days of written notification; a change made without it does not bind the employee. Drafting the job description broadly at the outset is more effective than relying on a general variation clause later.

Article 3 — Wage and working hours

3.1 The Employee’s gross monthly wage is TRY ………, paid by bank transfer no later than the … day of the following month.

3.2 Weekly working time is 45 hours. The Employer may distribute weekly hours unevenly across the days, provided daily working time does not exceed eleven hours and the weekly average does not exceed 45 hours over a two-month adjustment period.

3.3 Overtime up to 270 hours a year is included in the wage stated in 3.1. Overtime beyond that limit, work on the weekly rest day and work on national and public holidays are paid separately in accordance with the Labour Law.

3.4 The Employee’s written consent to overtime is obtained separately and kept in the personnel file. The Employee may withdraw that consent on thirty days’ written notice.

Why it matters: 3.3 is the corrected version of the clause that most often fails. Stating the limit and carving out rest day and holiday pay is what makes the inclusion clause work for the part it can cover. On 3.4, the annual renewal requirement was repealed — consent is taken once and is withdrawable.

Article 4 — Annual leave

4.1 The Employee is entitled to annual paid leave in accordance with the Labour Law, calculated by length of service.

4.2 Leave dates are agreed with the Employer taking into account the requirements of the business. Leave requests and approvals are recorded in writing.

Why it matters: entitlement arises after one year of service and is at least fourteen days for one to five years, twenty days for five to fifteen, and twenty-six days above fifteen. It cannot be reduced by contract. Weekly rest days falling within a leave period are not counted against the leave.

Article 5 — Confidentiality

5.1 The Employee shall keep confidential all trade secrets, customer information, pricing, technical data and other non-public information of the Employer.

5.2 This obligation continues after the contract ends.

5.3 The Employee shall not take documents, equipment or data belonging to the Employer outside the workplace except for the purposes of the work.

Why it matters: confidentiality during employment is part of the duty of loyalty and applies whether or not it is written down; extending it beyond termination requires the clause. Unlike a non-compete it does not prevent the employee from earning a living and is therefore not subject to the same limits, which makes it the more useful of the two provisions.

Article 6 — Restrictive covenant optional

6.1 Where the Employee has access to the Employer’s customer circle or production secrets, the Employee shall not, for … months from termination, within ………, engage in work competing with the Employer in the field of ……….

6.2 This clause does not apply where the Employer terminates the contract without a justified reason attributable to the Employee, or where the Employee terminates for a justified reason attributable to the Employer.

Why it matters: include this only where it is genuinely needed. It requires access to customers or trade secrets, must be limited by place, time and type of work, and — exceptional circumstances aside — may not exceed two years. A court may reduce an excessive covenant rather than enforce it as written, so an unlimited clause is worth less than a properly bounded one.

Article 7 — Intellectual property

7.1 The rights to works, inventions, software and designs created by the Employee in the course of performing the work belong to and may be exercised by the Employer.

7.2 The Employee shall provide the assistance reasonably required to register and protect those rights.

Why it matters: the position is largely covered by the legislation, but employee inventions have their own regime under which the employee may be entitled to compensation in defined circumstances. Where output is the main purpose of the role — software, design, engineering — the clause should be expanded rather than left in this short form.

Article 8 — Personal data

8.1 The Employer processes the Employee’s personal data for purposes arising from the employment relationship and in accordance with the personal data legislation.

8.2 The Employee has been provided with the information notice and is aware of the purposes of processing, transfers and retention periods.

8.3 The Employee shall comply with the Employer’s rules on protecting the personal data of others obtained in the course of the work.

Why it matters: this clause is missing from most templates in circulation. The information notice is a separate document and the contract clause does not replace it. Where the employer intends to monitor corporate email or systems, prior notification is a condition of being able to rely on what monitoring produces.

Article 9 — Occupational health and safety

9.1 The Employer provides the training, examinations and protective equipment required by the occupational health and safety legislation.

9.2 The Employee shall comply with the safety rules, use the equipment provided and report hazards.

Why it matters: these obligations exist independently of the contract and cannot be excluded by it. Compensation clauses purporting to limit the employer’s liability for workplace accidents are ineffective; what reduces exposure is documented training and equipment, not drafting.

Article 10 — Employee’s obligations

10.1 The Employee shall perform the work with due care, comply with the Employer’s lawful instructions and observe the workplace rules.

10.2 During the contract the Employee shall not carry out competing work for another employer or on their own account.

10.3 The Employee shall notify the Employer of any change of address or contact details.

Why it matters: 10.2 reflects the duty of loyalty during employment, which applies in any event. A blanket ban on all outside activity, competing or not, goes further than the duty requires and is likely to be read down. Constitutional rights, including union membership and collective action, cannot be made subject to the employer’s consent.

Article 11 — Termination

11.1 Either party may terminate this contract by observing the notice periods in the Labour Law: two weeks for service under six months, four weeks from six months to eighteen months, six weeks from eighteen months to three years, and eight weeks above three years.

11.2 Where the workplace employs thirty or more employees and the Employee has at least six months’ service, termination by the Employer must rest on a valid reason.

11.3 Either party may terminate without notice on the grounds set out in Articles 24 and 25 of the Labour Law.

11.4 Where termination rests on conduct contrary to rules of morality and good faith, the right must be exercised within six working days of the body authorised to terminate learning of the conduct, and in any event within one year of the act. Where the Employee gained a material benefit, the one-year limit does not apply.

11.5 On termination the Employee returns all property, documents and data belonging to the Employer.

Why it matters: 11.4 is absent from almost every template and is the provision that decides whether a just-cause termination stands. Employers who investigate for several weeks and then terminate have usually lost the right. Recording when the investigation concluded and when the authorised body was informed is part of the process, not an afterthought.

Article 12 — Notices

12.1 The addresses stated above are the parties’ addresses for notice. A change of address is notified to the other party within five days; otherwise notices sent to the stated address are valid.

Article 13 — Disputes and governing law

13.1 This contract is governed by Turkish law.

13.2 Matters not addressed here are governed by the Labour Law and other applicable legislation.

13.3 Disputes are subject to mandatory mediation before proceedings are brought, in accordance with the legislation.

13.4 ……… Courts and Enforcement Offices have jurisdiction.

Why it matters: mediation is a condition of bringing most employment claims, so referring to it reflects what actually happens. A jurisdiction clause does not displace the employee’s statutory options on where to sue, and no clause can exclude the right to bring a claim at all.

Article 14 — Final provisions

14.1 If any provision is found invalid, the remaining provisions continue in effect.

14.2 Amendments are made in writing and signed by both parties. A substantial change to working conditions requires the Employee’s written consent.

14.3 This contract consists of fourteen articles and is executed in two counterparts, one of which is given to the Employee.

Why it matters: giving the employee a signed copy is routinely skipped and is the first thing asked for in a dispute. Confirm the article count matches what is actually in the document; templates in circulation often state a number that does not.

What Else the File Needs

  • The written consent to overtime, taken once and kept in the personnel file
  • The personal data information notice, as a separate document
  • Where monitoring is intended, an acceptable use and monitoring policy communicated in advance
  • Occupational health and safety training records and the pre-employment medical examination
  • Where the arrangement is remote: a written remote work contract covering equipment, costs and data protection
  • Where the employee is a foreign national: the work permit, which takes the place of a residence permit
  • Social security entry notification, made before work begins
  • A signed copy of the contract given to the employee

Common Mistakes

  • Relying on “the wage includes overtime” for rest days and holidays. The clause covers overtime only, up to 270 hours a year.
  • Writing a non-compete with no time, place or scope limit. An unbounded covenant is worth less than a properly limited one.
  • Including a clause excluding the right to dispute. It is ineffective and signals an unreviewed document.
  • Drafting an unlimited employee indemnity. Liability is reduced according to fault and the risk inherent in the work.
  • Omitting the six working day rule from the termination clause. It is the provision that decides whether a just-cause termination stands.
  • Leaving out the personal data clause and information notice. Both are expected and the contract clause does not replace the notice.
  • Treating probation as a period outside the Labour Law. Only notice and severance are displaced.
  • Not giving the employee a signed copy. It is the first document requested in any dispute.

Frequently Asked Questions

Can a contract state that the wage includes overtime?
For overtime, yes, but only up to the annual limit of 270 hours; beyond that it is payable separately. The clause does not cover weekly rest day pay or national and public holiday pay, which arise under separate provisions and remain separately payable however the wage clause is drafted.
Is a non-compete clause enforceable?
Within limits. It must be in writing, may be agreed only where the employee has access to the customer circle or production secrets, and must be limited by place, time and type of work. Exceptional circumstances aside, the duration may not exceed two years. A court may reduce an excessive covenant, and it falls away where the employer terminates without a justified reason attributable to the employee.
How long can the probation period be?
Two months, extendable to four months by collective agreement. During probation either party may terminate without notice or compensation, but wages and other accrued rights for days worked remain payable and the rest of the Labour Law applies from the first day.
What are the notice periods?
Two weeks for service under six months, four weeks from six months to eighteen months, six weeks from eighteen months to three years, and eight weeks above three years. These may be increased by contract but not reduced.
How long does an employer have to terminate for just cause?
Six working days from the point at which the body authorised to terminate learns of the conduct, and in any event one year from the act — although where the employee gained a material benefit, the one-year limit does not apply. Missing the six days means the right to terminate for just cause is lost.
Does the employment contract have to be in writing?
A contract of one year or more must be written, as must fixed-term, part-time, on-call, remote work and team contracts whatever their length. Where there is no written contract the employer must provide written terms within two months. An indefinite-term contract under a year is valid without writing, but nothing departing from the statutory default can then be proved.
Can this template be used as it is?
It is a starting point. The job description, wage, working arrangements and any restrictive covenant have to be completed for the specific role, and arrangements such as remote work, shift patterns or foreign national employment need their own provisions. A template signed without tailoring usually fails at the clause that mattered most.
What documents accompany the contract?
The written consent to overtime, the personal data information notice, occupational health and safety training records and the pre-employment medical examination, a monitoring policy where monitoring is intended, the social security entry notification made before work begins, and a signed copy of the contract given to the employee.

As the Ozbek CPA team, we prepare and review employment contracts in Turkey — tailoring the contract to the role, reviewing existing templates against current legislation, correcting clauses that do not hold up, and assembling the accompanying documents from the overtime consent to the personal data notice. See also our pages on employment contracts, working hours, weekend pay and Turkish labour law. Contact us.

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