Turkish Labor Law

Turkish Labor Law: Key Regulations for Employers and Employees

Understanding the key provisions of Turkish Labor Law is essential for both employers and employees to ensure a fair and legally compliant work environment. This comprehensive guide covers important aspects of employment contracts, working hours, severance pay, termination procedures, and social security obligations in Turkey.

Employment Contracts in Turkey

Employment contracts can be either definite-term or indefinite-term, with each type of contract serving specific purposes in Turkish Labor Law.

Types of Employment Contracts:

• Indefinite-Term Contract (Belirsiz Süreli Sözleşme): Used for ongoing employment.
• Definite-Term Contract (Belirli Süreli Sözleşme): Used for specific projects or temporary roles.
• Part-Time Contract (Kısmi Süreli Sözleşme): For employees working fewer hours than full-time workers.
• On-Call Contract (Çağrı Üzerine Çalışma): Employees work only when needed.

A written employment contract is mandatory if the duration exceeds one year. If verbal, a written description must be provided within two months.

Working Hours and Overtime Rules

The maximum legal working hours in Turkey are 45 hours per week, generally spread across six days.

Overtime Rules:

• Any work exceeding 45 hours per week qualifies as overtime.
• Overtime pay is at least 1.5 times the regular hourly wage.
• Overtime hours cannot exceed 270 hours annually.

Employees can opt for compensatory leave instead of overtime pay, as long as it is used within six months.

Termination of Employment

Termination procedures in Turkey aim to protect employees from unfair dismissal. Notice periods and severance pay eligibility depend on the duration of service and the contract type.

Notice Periods:

• Less than 6 months of service: 2 weeks
• 6 to 18 months of service: 4 weeks
• 18 to 36 months of service: 6 weeks
• More than 3 years of service: 8 weeks

Severance Pay in Turkey

Severance pay is an essential entitlement for employees terminated without fault, based on their length of service.

Severance Pay Calculation:

The severance pay is calculated as 30 days of gross salary for each year of service.

Paid Leave Entitlements

Employees in Turkey are entitled to paid annual leave based on their service length. The leave periods are as follows:

• 14 days for employees with 1 to 5 years of service
• 20 days for employees with 5 to 15 years of service
• 26 days for employees with over 15 years of service

Public holidays and weekly rest days are not included in the calculation of annual leave.

Social Security Contributions

Both employers and employees in Turkey must make social security contributions, which cover health insurance, unemployment insurance, and pension funds.

Contribution Rates:

• Employer’s contribution: 20.5% to 25.5% of the employee’s gross salary
• Employee’s contribution: 14% of the gross salary

Employee Protections under Turkish Labor Law

Turkish Labor Law offers several provisions to protect employees’ rights:

• Non-Discrimination: Employers cannot discriminate based on gender, race, religion, or political beliefs.
• Equal Pay: Equal pay for equal work is mandatory.
• Protection Against Unfair Dismissal: Employees with 30 or more employees and at least 6 months of service are protected from unfair dismissal.

For further details, click here to view the full law.