EMPLOYMENT CONTRACTS IN TURKEY

Introduction

Employment contracts are a critical component of labor relations in Turkey, defining the rights and obligations of both employers and employees. For foreign companies and individuals looking to hire or be employed in Turkey, understanding the legal requirements and implications of employment contracts is essential. This guide provides an in-depth look at the types of employment contracts in Turkey, key legal considerations, and the importance of seeking expert legal advice from an English-speaking lawyer in Istanbul.

Types of Employment Contracts in Turkey

In Turkey, employment contracts can take various forms, each with specific legal implications. The most common types include:

1. Indefinite Term Contracts

Indefinite term contracts are the most common type of employment agreement in Turkey. These contracts have no predetermined end date and continue until either party decides to terminate the employment relationship. Termination of indefinite term contracts requires compliance with notice periods and, in some cases, the payment of severance.

2. Definite Term Contracts

Definite term contracts are used for employment relationships with a fixed duration. These contracts must specify the start and end dates or be linked to the completion of a specific task. Renewal of definite term contracts is restricted; continuous renewal may lead to the contract being deemed indefinite.

3. Part-Time Contracts

Part-time contracts are agreements where the employee works fewer hours than a full-time employee. Part-time employees are entitled to the same rights as full-time employees on a pro-rata basis, including leave and social security benefits.

4. Temporary Employment Contracts

Temporary employment contracts are used for short-term work arrangements, such as covering for an employee on leave or handling temporary increases in workload. These contracts have specific limitations on duration and must comply with Turkish labor laws.

5. Remote Work Contracts

With the rise of remote work, Turkey has introduced regulations for remote work contracts. These contracts must outline the terms of remote work, including working hours, communication methods, and responsibilities. Employers must also ensure compliance with occupational health and safety regulations for remote workers.

Key Legal Considerations in Employment Contracts

When drafting or entering into an employment contract in Turkey, several key legal considerations must be taken into account:

1. Mandatory Clauses

Turkish labor law requires certain clauses to be included in all employment contracts. These include:

  • Job Description: A clear outline of the employee's duties and responsibilities.
  • Working Hours: Specification of regular working hours, including overtime provisions.
  • Wages and Compensation: Details of salary, bonuses, and other benefits.
  • Leave Entitlements: Information on annual leave, sick leave, and other types of leave.
  • Social Security Contributions: Obligations regarding social security registration and contributions.

2. Notice Periods

Notice periods are mandatory for the termination of indefinite term contracts. The length of the notice period depends on the employee's length of service:

  • 0-6 months: 2 weeks
  • 6 months - 1.5 years: 4 weeks
  • 1.5 years - 3 years: 6 weeks
  • Over 3 years: 8 weeks

Employers can opt to pay compensation in lieu of notice if they wish to terminate the contract immediately.

3. Severance Pay

Employees with at least one year of service are entitled to severance pay upon termination of their employment. The amount is typically one month's salary for each year of service. Specific conditions apply to the calculation and payment of severance.

4. Probationary Period

Employment contracts may include a probationary period of up to two months (extendable to four months in collective agreements). During this period, both the employer and employee can terminate the contract without notice.

5. Non-Compete Clauses

Non-compete clauses are enforceable in Turkey, provided they are reasonable in scope, duration, and geography. These clauses must protect a legitimate business interest and should not unduly restrict the employee's ability to work.

6. Confidentiality Agreements

Confidentiality agreements are common in employment contracts, particularly for employees with access to sensitive information. These clauses prevent employees from disclosing confidential information during and after their employment.

7. Termination for Just Cause

Under Turkish labor law, both employers and employees can terminate the employment contract for just cause without a notice period. Just causes include gross misconduct, violation of contractual obligations, or circumstances that make continued employment untenable.

Dispute Resolution in Employment Contracts

Disputes arising from employment contracts are common, and understanding the dispute resolution mechanisms is crucial for both employers and employees.

1. Labor Courts

In Turkey, labor courts have jurisdiction over employment-related disputes. These courts handle cases such as wrongful termination, unpaid wages, and disputes over severance pay. Labor courts aim to resolve disputes quickly, with an emphasis on protecting employee rights.

2. Mediation

As of 2018, mediation is a mandatory step before filing a lawsuit in labor disputes. The mediator facilitates discussions between the parties to reach a mutually agreeable settlement. If mediation fails, the dispute can proceed to court.

3. Arbitration

While less common in employment disputes, arbitration can be an option if both parties agree. Arbitration provides a private and potentially faster resolution process compared to court proceedings.

The Role of an English-Speaking Lawyer in Istanbul

For foreigners navigating employment contracts in Turkey, the assistance of an English-speaking lawyer in Istanbul is invaluable. A qualified lawyer can help with:

  • Drafting and Reviewing Contracts: Ensuring that employment contracts comply with Turkish labor laws and protect your interests.
  • Negotiation: Assisting in negotiations to secure favorable terms in the contract.
  • Dispute Resolution: Representing you in mediation, arbitration, or court proceedings if a dispute arises.
  • Legal Advice: Providing expert legal advice on issues such as severance pay, non-compete clauses, and termination rights.

Conclusion

Employment contracts in Turkey are governed by a robust legal framework designed to protect both employers and employees. Whether you are an employer hiring in Turkey or a foreign employee entering into an employment relationship, it is essential to understand the legal requirements and obligations.

At Altun Legal, our English-speaking lawyers in Istanbul specialize in Turkish labor law and are here to assist you with all aspects of employment contracts. From drafting and reviewing agreements to resolving disputes, we provide comprehensive legal support tailored to your needs.

Contact Us

If you need assistance with employment contracts in Turkey, contact Altun Legal today. Our experienced team is ready to provide expert legal guidance.

This article is intended for general informational purposes only and not intended as a substitute for the advice and counsel of an attorney. If you want to contact an English-speaking lawyer in Istanbul for more information, you can contact our office.