Turkey offers an exciting landscape for international hiring. With its young, educated workforce and strategic location between Europe and Asia, it’s no surprise that more global companies are turning to the Turkish labor market. However, navigating employment laws and regulations can be challenging. There are several legal risks when recruiting in Turkey—and failing to understand them can lead to costly penalties, lawsuits, and compliance issues.
In this article, we highlight the most common risks recruiting Turkey involves for foreign employers and outline practical steps to avoid them, ensuring smooth and compliant hiring operations.
1. Misclassification of Employees as Freelancers or Contractors
One of the most common legal risks when recruiting in Turkey is misclassifying employees as independent contractors. Many international companies attempt to bypass local regulations by hiring freelancers instead of full-time employees. However, if the working relationship resembles that of an employee—e.g., set working hours, exclusivity, and direct control—the Turkish government may reclassify the worker as an employee.
Risks:
- Heavy fines from the Ministry of Labor and Social Security
- Back payment of social security contributions, taxes, and benefits
- Legal disputes and reputational damage
How to Avoid:
- Ensure the nature of the engagement fits true freelance criteria
- If the relationship is employment-like, hire the person as a full employee
- Use a compliant Employer of Record (EOR) to legally employ remote Turkish staff without a local entity
2. Non-Compliant Employment Contracts
Under Turkish Labor Law No. 4857, employment contracts must be properly drafted to define the working relationship. This includes job title, responsibilities, salary, working hours, and termination clauses. Failure to provide a legally compliant contract can expose employers to serious risks, including disputes over job conditions, wages, or wrongful termination.
Risks:
- Labor court cases due to missing or vague contract terms
- Financial penalties for failing to document employee agreements
- Challenges in enforcing termination clauses
How to Avoid:
- Use bilingual (Turkish-English) employment contracts
- Include all legally required details such as:
- Job title and description
- Gross salary and benefits
- Work location and hours
- Severance and notice periods
- Work with local HR advisors or legal experts to ensure full compliance
3. Violating Equal Opportunity and Anti-Discrimination Laws
Turkey’s Constitution and Labor Law prohibit discrimination based on gender, religion, language, race, disability, and other protected characteristics during recruitment and employment.
Risks:
- Lawsuits filed by rejected candidates or current employees
- Investigations by Turkish labor authorities
- Fines, loss of reputation, and even criminal charges in extreme cases
How to Avoid:
- Ensure job postings and interview questions are neutral and non-discriminatory
- Establish standardized, merit-based recruitment processes
- Train your hiring team on fair recruitment practices in line with Turkish law
4. Failing to Register Employees with Social Security (SGK)
Employers in Turkey are legally required to register all employees with the Social Security Institution (SGK) from the first day of employment. Neglecting this duty—intentionally or due to administrative errors—can lead to major liabilities.
Risks:
- Back payment of social security premiums with interest
- Fines and inspections from SGK
- Suspension of business licenses or legal actions
How to Avoid:
- Register new hires with SGK before the first working day
- Ensure payroll systems are compliant with local tax and social insurance laws
- Partner with an EOR or payroll provider in Turkey to manage compliance efficiently
5. Incorrect Calculation of Salaries, Taxes, and Benefits
Payroll errors are among the most frequent compliance pitfalls for companies hiring in Turkey. Turkish law requires that salaries be paid monthly via bank transfer and that income tax, social contributions, and unemployment insurance be deducted and remitted accurately.
Risks:
- Tax audits and administrative penalties
- Delays in employee payments leading to dissatisfaction
- Legal claims for unpaid benefits or underpaid wages
How to Avoid:
- Understand gross vs. net salary structures in Turkey
- Stay updated on monthly minimum wage changes (TRY 26,005.50 gross in 2025)
- Use professional payroll providers or an EOR that guarantees accuracy
6. Unlawful Termination Practices
Termination laws in Turkey are complex. Employers must provide notice, just cause, and severance pay (if applicable) when ending an employment relationship. Terminating an employee without proper documentation or legal justification can lead to serious consequences.
Risks:
- Labor court litigation for wrongful dismissal
- Compensation orders (including up to 8 months’ salary in reinstatement cases)
- Payment of severance and notice beyond legal minimums
How to Avoid:
- Document performance issues, misconduct, or redundancies clearly
- Follow legal notice periods (2–8 weeks based on tenure)
- Pay statutory severance (30 days’ gross salary per full year worked)
- Seek advice from Turkish labor lawyers before terminating employees
7. Failure to Comply with Leave Entitlements
Turkey grants employees paid leave rights including:
- Annual leave: 14–26 days based on seniority
- Public holidays: 15 days/year
- Maternity leave: 16 weeks
- Paternity leave: 5 days
- Sick leave: as determined by medical report
Employers must respect these leave entitlements and maintain accurate leave records.
Risks:
- Employee complaints and labor inspections
- Penalties for denying mandatory time off
- Compensation claims in court
How to Avoid:
- Include leave policies in employment contracts and handbooks
- Use HR systems to track leave accurately
- Apply leave entitlements consistently to all employees
8. Hiring Foreign Employees Without a Work Permit
Foreign nationals working in Turkey require a valid work permit, issued by the Ministry of Labor and Social Security. Hiring without a permit is illegal—even if the employee works remotely or part-time.
Risks:
- Fines for the company and deportation for the employee
- Ban on employing foreigners for repeat violations
- Damage to employer reputation and trust with authorities
How to Avoid:
- Verify nationality and work permit status before hiring
- Apply for permits at least 4–6 weeks before the intended start date
- If you want to avoid permit processes, hire via an EOR that employs locals directly
9. Ignoring Remote Work and Data Privacy Regulations
With the rise of remote work, many companies are unaware that Turkish law also governs remote employment arrangements and data protection obligations.
Risks:
- Non-compliance with remote work documentation rules
- Breaches of employee privacy rights (e.g., monitoring without consent)
- Penalties under Turkey’s KVKK (the national data protection law)
How to Avoid:
- Create compliant remote work agreements (per 2021 Remote Work Regulation)
- Avoid invasive monitoring tools without explicit employee consent
- Store personal employee data securely and for legitimate HR purposes only
10. No Local HR Expertise or Support
Finally, many foreign companies underestimate the importance of having local HR knowledge. Trying to manage Turkish labor law from abroad, without proper support, increases your risk of non-compliance.
Risks:
- Unintended legal violations
- Miscommunication with employees
- Failure to stay updated with labor law changes
How to Avoid:
- Hire a local HR consultant, lawyer, or Employer of Record (EOR)
- Invest in HR compliance training for your international team
- Stay informed on regulatory updates and market trends
Conclusion: Navigating Risks Recruiting in Turkey Successfully
While Turkey offers many advantages—such as a skilled workforce, lower labor costs, and strategic location—its legal framework can be challenging for foreign employers. Understanding the risks recruiting Turkey presents and proactively mitigating them is essential for sustainable business growth.
Compliance Checklist for Recruiting in Turkey:
✅ Use written, legally compliant contracts
✅ Register employees with SGK on time
✅ Deduct and report payroll taxes correctly
✅ Respect all labor rights and leave entitlements
✅ Avoid freelancer misclassification
✅ Obtain work permits for foreign nationals
✅ Ensure terminations follow legal procedure
✅ Work with local experts or a trusted EOR
Need help recruiting in Turkey without legal risk?
We provide compliant hiring solutions through our Employer of Record (EOR) service—helping international companies recruit, pay, and manage talent in Turkey safely and efficiently.
Contact us today to discuss your hiring goals in Turkey and ensure your recruitment is fully compliant with local labor laws.
