Understanding how to structure and manage Turkish employment contracts is essential for any business looking to hire locally—especially for international companies expanding into the Turkish market. Whether you’re opening a branch, working with freelancers, or using an Employer of Record (EOR), compliance with Turkish Labor Law is critical.
In this guide, we’ll walk you through the key types of employment contracts in Turkey, legal requirements, employer obligations, and best practices for ensuring compliance and avoiding disputes.
1. Legal Framework: Turkish Labor Law Overview
Employment relationships in Turkey are governed primarily by the Labor Law No. 4857. This law regulates:
- Types of employment contracts
- Working conditions and hours
- Wages and benefits
- Termination procedures
- Employee rights and employer obligations
Additional regulations apply to certain sectors (e.g., maritime, press) or collective labor agreements for unionized workplaces. For most private sector employment, Labor Law No. 4857 provides the foundation.
2. Turkish Types of Employment Contracts
a. Indefinite-Term Contract (Süreksiz İş Sözleşmesi)
This is the most common form of employment in Turkey. It does not specify an end date and continues until terminated by either party.
Key features:
- Subject to full protections under labor law
- Termination requires valid cause and notice
- Employees gain rights like severance pay and annual leave
b. Fixed-Term Contract (Belirli Süreli İş Sözleşmesi)
These contracts include a specific duration or are tied to the completion of a particular task.
Use cases:
- Project-based roles
- Temporary positions
- Maternity/paternity coverage
⚠️ Important: Repeated use of fixed-term contracts without valid justification may lead to them being reclassified as indefinite-term by Turkish courts.
c. Part-Time or On-Call Contracts (Kısmi Süreli veya Çağrı Üzerine İş)
Part-time workers have reduced working hours but retain proportional rights under Turkish labor law.
On-call contracts require written agreement specifying the number of hours expected per week/month.
d. Freelance or Service Contracts (Serbest Meslek Sözleşmesi)
These are civil law contracts used for independent contractors. They are not considered employment contracts, meaning labor protections like severance pay, paid leave, or social security obligations do not apply.
However, if the relationship resembles an employer–employee relationship (e.g., full-time hours, reporting obligations), courts may reclassify it as employment.
3. Mandatory Elements of a Turkish Employment Contracts
According to Turkish law, employment contracts must be in writing if the employment lasts more than one month. While verbal agreements are technically valid, written contracts are strongly recommended to avoid legal disputes.
Standard clauses include:
- Full name and address of employer and employee
- Job title and description
- Work location (including remote work if applicable)
- Start date and duration (if fixed-term)
- Working hours and weekly schedule
- Base salary and payment terms
- Social security and tax obligations
- Annual leave and benefits
- Notice periods and termination conditions
- Confidentiality, non-compete, or IP clauses (if applicable)
🔤 Language: Contracts should be in Turkish. Bilingual contracts (Turkish + English) are common, especially with foreign employers.
4. Working Hours and Overtime in Turkish Contracts
The maximum working time under Turkish law is 45 hours per week (typically 9 hours/day over 5 days). Anything above this qualifies as overtime.
Overtime must be compensated:
- At 150% of the regular hourly rate
- Or replaced by 1.5 hours of time off for each overtime hour
Employers should define working hours, overtime approval processes, and compensation mechanisms clearly in the employment contract.
5. Probation Periods in Turkish employment contracts
Turkish law allows for a maximum probationary period of 2 months (extendable to 4 months through collective agreements).
During probation:
- Both parties can terminate the contract without notice or severance
- Social security registration is still required
Contracts should explicitly state the start and end date of the probation period.
6. Minimum Wage and Salary Payments
As of 2025, the gross monthly minimum wage in Turkey is ₺17,002. Employers must pay at least this amount for full-time employment.
Salary obligations:
- Paid monthly via bank transfer
- Includes net pay + employer-paid contributions
- Deductions include income tax, social security, and unemployment insurance
Failure to pay wages on time or issue payslips is a legal violation subject to penalties.
7. Social Security and Tax Registration
Every employee must be registered with the Social Security Institution (SGK) before their first working day.
Employer obligations:
- Pay social security premiums (~22.5% of gross salary)
- Deduct employee contributions (~15%)
- Handle income tax withholding based on a progressive scale (15%–40%)
These requirements must be met even for remote workers in Turkey or those hired through local HR partners.
8. Termination and Severance Pay
Ending an employment contract in Turkey is highly regulated. The process depends on the contract type, duration, and reason for termination.
a. Termination by Notice (İhbar Süresi)
Both parties must provide advance notice:
- 2 weeks (<6 months employment)
- 4 weeks (6–18 months)
- 6 weeks (18–36 months)
- 8 weeks (>3 years)
Instead of notice, payment in lieu may be offered.
b. Severance Pay (Kıdem Tazminatı)
Applicable when:
- The employee has worked at least 1 year
- The termination is without just cause, or employee resigns due to force majeure
Formula: 1 month’s gross salary for each year of service
Failure to follow termination rules can result in labor court cases and compensation claims.
9. Non-Compete and Confidentiality Clauses
Turkish labor law allows for restrictive clauses, but they must be reasonable in duration, scope, and geography.
Guidelines:
- Non-compete clauses should not exceed 2 years
- Must offer compensation if the clause significantly limits future employment
- Confidentiality clauses can be enforced beyond termination, but must be clearly defined
These clauses should be tailored to each role and industry and reviewed by legal counsel.
10. Best Practices for Employers : Turkish employment contracts
To ensure full compliance and reduce legal risks, follow these best practices:
✅ Draft bilingual contracts (Turkish + English)
Ensure that the Turkish version prevails in case of disputes.
✅ Customize contracts by role and contract type
Use clear job descriptions and tailor compensation structures.
✅ Keep digital and hard copies
Signed copies must be stored for at least 10 years per Turkish commercial law.
✅ Update contracts regularly
Reflect changes in salary, job scope, working location (e.g., remote work), and applicable laws.
✅ Seek legal guidance or use an EOR
For foreign companies, partnering with an Employer of Record (EOR) or local legal advisor ensures contracts are compliant with evolving regulations.
Conclusion: Employment Contracts in Turkey Require Attention to Detail
Navigating employment contracts in Turkey may seem complex, but with the right preparation and local guidance, it becomes manageable. Turkish labor law provides strong protections for workers, so employers must approach contract drafting and termination with care.
Whether you’re a multinational expanding into Turkey or a startup hiring your first Turkish employee, ensure you understand the legal, cultural, and operational nuances of employment contracts.
Need help drafting or managing compliant employment contracts in Turkey?
Contact us today to learn how our HR, payroll, and Employer of Record services can simplify your hiring process and ensure 100% compliance with Turkish labor laws.
