This article provides a comprehensive overview of the updated administrative fines under Labor Law in Turkey for 2025, their legal basis, the most common violations, and strategies employers can use to ensure compliance.
Turkey’s labor legislation imposes a wide range of obligations on employers, covering employee rights, health and safety, registration, wage payments, and more. Failure to comply with these regulations can result in significant administrative fines. In 2025, these fines have been updated to reflect inflation and ensure greater enforcement of labor protections.
1. Legal Basis for Administrative Fines in Turkey
Administrative fines in labor law are primarily governed by:
- Labor Law No. 4857
- Occupational Health and Safety Law No. 6331
- Press Labor Law No. 5953
- Maritime Labor Law
- Additional decrees, communiqués, and official announcements by the Ministry of Labor and Social Security and SGK (Social Security Institution)
These laws authorize inspectors and relevant authorities to impose financial penalties on employers who violate specific provisions related to employee rights and employer obligations.
2. Why Are the Administrative Fines Updated in Turkey?
Administrative fines are adjusted annually based on the Revaluation Rate determined by the Ministry of Treasury and Finance. This adjustment aligns penalties with inflation and strengthens enforcement mechanisms.
For 2025, the revaluation rate was set at approximately 58.46%, resulting in significant increases in fine amounts.
3. Key Updated Administrative Fines in 2025 in Turkey
Below is a summary of some of the most significant administrative fines under the Turkish Labor Law as of January 1, 2025:
| Violation | Fine Amount (TRY) |
|---|---|
| Failure to register employment (per employee) | 22,688 |
| Employing unregistered workers (per employee) | 22,688 |
| Violation of working hours regulations (per employee) | 2,322 |
| Not issuing wage slips or failing to pay wages on time | 2,322 |
| Breach of annual leave obligations (per employee) | 2,322 |
| Preventing labor inspectors from performing their duties | 46,655 |
| Failure to ensure occupational health and safety (per violation) | 11,446 – 46,655 (varies) |
| Non-compliance with minimum wage regulations (per employee) | 2,322 |
| Violation of child labor prohibitions (per child) | 46,655 |
| Shadow employment (illegal subcontracting arrangements, per worker) | 241,043 |
🛑 Note: These figures represent per violation per employee where applicable. Fines can be multiplied significantly depending on the size of the company and number of infractions.
4. Focus Area: Unregistered Employment
Unregistered employment remains one of the biggest labor law violations in Turkey.
What It Means:
- Hiring employees without notifying SGK
- Paying wages off the books
- Not reporting working hours or social insurance premiums
Fine in 2025:
- TRY 22,688 per unregistered worker
Consequences:
- Retroactive social security premiums
- Interest and delay penalties
- Loss of public incentives
- Legal action for tax evasion
Employers must ensure that every worker is registered on or before the first day of work via the SGK system.
5. Wage Payment Violations
Employers are obligated to:
- Pay wages on time (usually monthly)
- Issue written wage slips
- Pay at least the statutory minimum wage
- Use bank transfer for companies with 3 or more employees (new rule in July 2025)
Fine in 2025:
- TRY 2,322 per employee for each violation
A common mistake is delaying wages without agreement or failing to document payment, which can result in fines and court claims.
6. Occupational Health and Safety (OHS) Violations
Under Law No. 6331, all employers must implement health and safety protocols appropriate to their sector and risk category.
Examples of Violations:
- Not conducting risk assessments
- Failing to provide mandatory safety training
- Not supplying personal protective equipment (PPE)
- Not employing or contracting a certified OHS specialist or physician
Fines in 2025:
- Range from TRY 11,446 to TRY 46,655 depending on the nature of the breach
Fines may be issued per incident and increase with each repeated violation.
7. Child and Young Worker Protection
Employing children under the age of 15 (except in rare legal exceptions) is strictly prohibited. Any employer found guilty of such practice faces severe penalties.
Fine in 2025:
- TRY 46,655 per child
Hiring minors between ages 15–18 is allowed only under controlled conditions (e.g., reduced hours, no night shifts, specific sectors).
8. Shadow Employment and Illegal Subcontracting
This refers to using subcontractors or independent workers in arrangements that mimic employment but are designed to avoid taxes, benefits, or employer obligations.
Fine in 2025:
- TRY 241,043 per worker
In 2025, authorities have increased inspection efforts in construction, logistics, and platform-based work to combat such practices.
9. Other Notable Fines in 2025
- Failure to post mandatory labor law notices: TRY 2,322
- Not keeping personnel records (payroll, timesheets, contracts): TRY 2,322 per record
- Preventing or delaying labor inspections: TRY 46,655
- Retaliation against whistleblowers or union members: TRY 23,327
10. How Are Fines Imposed and Collected?
Labor inspectors from the Labor Inspection Board or SGK auditors visit businesses either randomly or based on complaints. After an inspection:
- A report is issued
- If violations are found, administrative sanctions are imposed
- Employers have the right to object or appeal through the Ministry or administrative courts
Unpaid fines are collected through the tax enforcement system and may lead to bank account seizures or legal prosecution.
11. Tips for Employers to Avoid Penalties
To stay compliant in 2025, employers should adopt the following practices:
a. Conduct Internal Audits
Regularly review all payroll, contracts, and social security registration processes.
b. Train HR and Management Staff
Make sure those responsible for hiring, contracts, and safety understand the latest laws.
c. Use Compliance Software
Digital HR and payroll tools can help flag errors and ensure proper documentation.
d. Partner with Legal Experts
Consult a labor law attorney to review practices and documents, especially during layoffs or organizational changes.
e. Encourage Transparency and Employee Feedback
Let workers voice concerns without retaliation. This can prevent complaints from reaching authorities.
12. What to Do If You Receive an Administrative Fine in Turkey
- Review the inspection report carefully
- Submit an objection within the legal time frame (typically 15 days)
- Provide evidence or explanation to justify compliance
- Pay early if necessary to avoid additional interest or enforcement action
For large fines or complex issues, engage a specialized labor law lawyer.
The 2025 increase in administrative fines under Turkish labor law signals the government’s intent to ensure strict compliance and better protections for workers. For employers, particularly SMEs and startups, the financial burden of non-compliance can be steep — but entirely avoidable.
By staying informed, investing in training and digital tools, and fostering a transparent work culture, businesses can minimize risks and create a compliant, productive workplace.
As Turkey’s labor laws continue to evolve with economic, social, and digital trends, maintaining compliance must be viewed not as a burden, but as a foundation for sustainable business growth.
Please contact us if you need more information about this topic.
