Employing staff in Türkiye means hiring under the Labour Act No. 4857, a protective statutory floor that cannot be contracted away: the working week is capped at 45 hours, work above it is overtime paid at a 50% uplift and limited to 270 hours a year, and an employee with at least six months’ service in a workplace of 30 or more employees can be dismissed only for a valid reason. Termination is what drives the cost. Severance pay (kıdem tazminatı) is 30 days’ gross wage per full year of service, subject to a statutory ceiling of 73.729,87 TRY per full year of service for the second half of 2026 (1 July – 31 December 2026), up from 64.948,77 TRY for the first half (1 January – 30 June 2026). Since 1 January 2018, almost every monetary employment claim must pass through mandatory mediation before a labour court will hear it.
For a foreign company, employing staff in Türkiye is where an otherwise smooth market entry most often meets friction. The rules are codified, protective and unforgiving of improvisation: minimum standards cannot be bargained away, a termination within the job-security regime must rest on a valid reason that the employer has to prove, and almost every dispute now begins with a compulsory mediation stage before a court will even open the file. This guide is the master tour a foreign employer can start from — the legal framework, the contract you choose, working time and leave, the full termination picture, the job-security regime, mediation, social security and workplace safety — with links out to the specialist pieces that go deeper on each.
The Legal Framework
Employment in Türkiye is governed primarily by the Labour Act No. 4857 (İş Kanunu). It sets a floor of rights that cannot be lowered by contract; a clause purporting to waive severance, cap overtime below the legal rate, or strip job-security protection is simply void, and the employee keeps the protection regardless of what they signed. Where an employee falls outside the Labour Act’s scope — certain senior executives and liberal professions among them — the Turkish Code of Obligations No. 6098 (TBK) governs the relationship instead.
Several statutes sit alongside the Labour Act and apply in parallel: the Unions and Collective Bargaining Act No. 6356, the Occupational Health and Safety Act No. 6331, the Social Insurance and General Health Insurance Act No. 5510 (the SGK framework), and the Labour Courts Act No. 7036, which since 2018 has made mediation a precondition to most employment litigation. For a foreign investor, the gap between a Western at-will mindset and this framework is where the costliest mistakes happen, which is why our labour and employment practice treats compliance as a stack of registrations and records that must be in place from day one, not a single signed document.
The same framework decides when workers supplied by a contractor count as the principal employer’s own, a question examined in subcontracting and when contractor workers become yours.
Choosing a Contract Type
The indefinite-term contract (belirsiz süreli iş sözleşmesi) is the default and the safest starting point. A fixed-term contract (belirli süreli iş sözleşmesi) is valid only where there is a genuine objective reason (esaslı neden) for a fixed duration — a defined project, seasonal demand, or a specific temporary need. The trap is renewal: chaining fixed terms without a fresh objective reason converts the relationship into an indefinite-term one by operation of law, and the employee acquires full termination protection. Written form is required for fixed-term contracts of one year or more and for certain clauses.
Beyond these, the law recognises part-time, on-call and remote arrangements, the last regulated in detail by the 2021 Remote Working Regulation. A probation period (deneme süresi) may run up to two months — extendable to four by a collective bargaining agreement — during which either side may terminate without notice or severance. Getting the contract type and its clauses right at the outset is precisely the groundwork covered by our dedicated employment contracts practice, and it is explored in depth in our guide to employment contracts in Türkiye. Foreign groups with no Turkish entity often ask whether an employer-of-record arrangement avoids this choice altogether; the answer turns on Article 7 of the Labour Act, examined in is an employer of record lawful in Türkiye. The wider set of options — direct employment, a temporary employment relationship, subcontracting or an independent supplier — and the statutory limits on each are compared on our workforce structuring and flexible employment page.
A signed release does not close the file on its own. Under Article 420(2) of the Turkish Code of Obligations a release must be in writing, signed at least one month after the contract ended, state the type and amount of the claim expressly, and be backed by a payment made in full relative to the entitlement and through a bank; otherwise it is absolutely null and void, and under Article 420(3) a document that does not reflect the true amount is only a receipt for the sum it records, leaving the employer exposed to the rest of the claim years later.
Working Time, Overtime and Leave
The statutory working week is capped at 45 hours for full-time employees. Work above 45 hours is overtime (fazla çalışma), paid at 1.5 times the hourly wage, or offset by 1.5 hours of free time per overtime hour where the employee prefers. Overtime requires the worker’s consent and is capped at 270 hours per year; it cannot be worked at all on night work under Art. 69, or in the health-based limited-duration works under the final paragraph of Art. 63. Where the contract fixes a week shorter than 45 hours, hours worked above the agreed average but still within 45 are a different category — fazla sürelerle çalışma, work at extra hours — and carry a 25% uplift rather than 50% (Art. 41; in force as at July 2026). Underground mining work has its own limits of 7.5 hours a day and 37.5 hours a week.
Wages must at least meet the national minimum wage (asgari ücret), which is set by a commission and revised at least annually — we deliberately do not quote a figure, because it changes. Annual paid leave (yıllık ücretli izin) accrues after one full year of service and scales with seniority; accrued-but-unused leave is paid out in cash on termination, a line item employers routinely underestimate.
The statutory minimum bands under Art. 53, in force as at July 2026, are:
| Length of service | Minimum annual paid leave |
|---|---|
| 1 to 5 years (5 included) | 14 working days |
| More than 5 and less than 15 years | 20 working days |
| 15 years and more (15 included) | 26 working days |
| Workers aged 18 or younger, or 50 or older | at least 20 working days |
These are minimums and may be increased by individual or collective agreement. Employees in underground works receive four extra days in each band — 18, 24 and 30 days respectively.
The mechanics of the working week, overtime consent and leave accrual are set out more fully in our article on working time, overtime and annual leave in Türkiye.
The Full Termination Picture
Termination is the most litigated area of Turkish employment law, and the outcome turns almost entirely on how the relationship ends. Four concepts interlock.
Notice (bildirim/ihbar süresi) is graduated by seniority under Art. 17 and, as at July 2026, runs: two weeks for under six months’ service, four weeks for six months to a year and a half, six weeks for one and a half to three years, and eight weeks beyond three years. These are statutory minimums and may be increased by contract. A party who ends the contract without giving that notice owes notice indemnity (ihbar tazminatı) equal to the wage for the notice period; an employer may also terminate immediately by paying that wage in advance.
Severance pay (kıdem tazminatı) is owed where the employee has at least one full year of service and the termination qualifies — an employer termination other than for just cause under Art. 25/II, or an employee resignation for a justified reason such as the employer’s material breach or non-payment, compulsory military service, retirement entitlement, a woman resigning within a year of marriage, or death. It is 30 days’ gross wage per full year of service, pro-rated for part years, on the all-in (giydirilmiş) wage, and capped at a statutory ceiling (kıdem tazminatı tavanı) that the Ministry of Treasury and Finance resets every six months by circular. For the second half of 2026 — 1 July to 31 December 2026 — the ceiling is 73.729,87 TRY per full year of service, a 13.52% increase on the 64.948,77 TRY that applied in the first half (1 January to 30 June 2026). The figure for the first half of 2027 had not been announced as at July 2026, so any severance projection beyond 31 December 2026 rests on an assumption rather than a published amount.
Just-cause termination (haklı nedenle fesih) — Art. 24 for the employee, Art. 25 for the employer — is immediate and needs no notice. Where the employer terminates for the employee’s misconduct under Art. 25/II, no severance is owed, but the right must be exercised within six working days of learning the facts and within one year of the event.
| How the employment ends | Notice / indemnity | Severance | Reinstatement risk |
|---|---|---|---|
| Employee resigns without justified cause | Employee gives notice | No | No |
| Employee resigns for justified cause | No | Yes | No |
| Employer dismisses with a valid reason | Yes | Yes | Low, if documented |
| Employer dismisses for just cause (Art. 25/II) | No | No | No, if cause holds up |
| Dismissal without a valid reason (30+ staff) | Yes | Yes | Yes, plus compensation |
The interaction between these categories — and how a single missed deadline can flip an employer’s exposure from nothing to reinstatement plus months of wages — is the subject of our detailed pieces on terminating an employee in Türkiye and on severance and notice pay, and it is the core of our termination and severance practice. Where the exits are driven by the business and reach the statutory headcount thresholds, a separate collective procedure runs alongside the individual rules, with its own thirty-day notification: see collective dismissal in Türkiye.
Job Security and Reinstatement
The job-security regime (iş güvencesi) under Arts. 18–21 applies to an employee with at least six months’ seniority in a workplace of 30 or more employees on an indefinite-term contract. For such staff the employer cannot simply dismiss at will: it must have a valid reason (geçerli sebep) — capacity, conduct, or operational and business needs — and follow procedure, including written notice and, for conduct dismissals, a chance for the employee to defend. A dismissal that fails either test is invalid.
To challenge an invalid dismissal, the employee must first apply to mandatory mediation within one month of the notice; if mediation fails, they file at the labour court within two weeks. If the court finds the dismissal invalid, the remedy is reinstatement, or — where the employee is not re-employed — job-security compensation of four to eight months’ wages plus up to four months’ wages for the idle period. Because performance and conduct concerns must be documented over time, and warnings issued and acknowledged before dismissal, a file assembled after the decision rarely convinces a labour court that termination was truly the last resort.
Why Almost Every Dispute Starts with Mediation
Since 1 January 2018, under the Labour Courts Act No. 7036, mediation is a precondition for most employee and employer monetary claims — severance, notice, overtime, leave and bonus — and for reinstatement claims. File suit without first mediating and the case is dismissed on procedural grounds. The principal exception is a claim arising from a work accident or occupational disease, which goes straight to court. The process is deliberately short: as at July 2026, the mediator must conclude the file within three weeks of appointment, extendable by one further week. A party that skips the first meeting without a valid excuse bears half the litigation costs even if it ultimately wins, and half the attorney’s fee under the Minimum Attorney Fee Tariff is awarded against it — which is why non-attendance is rarely a sound tactic. The mechanics of the process are set out in our overview of mandatory mediation in Turkish law, and its specific role in workplace disputes — alongside the litigation that follows a failed mediation — is covered in our article on workplace mediation and labour litigation and handled by our workplace disputes and litigation practice.
Mediation is not a formality to be rushed through. It is a real opportunity to settle on controlled terms — once the reinstatement clock and litigation costs start running, both sides lose leverage.
Social Security, Safety and Data
Three background obligations bind every employer from the first day. Under the SGK framework (Law No. 5510), the employer must register the workplace and each employee, file the monthly premium service declaration, and pay both the employer and employee premium shares; undeclared (“kayıt dışı”) employment carries heavy administrative fines and back-premium liability. The deadlines are precise and, as at July 2026, run as follows: the workplace declaration (işyeri bildirgesi) is due at the latest on the date the employer starts employing insured persons (Art. 11), while each employee’s entry declaration (sigortalı işe giriş bildirgesi) must be filed before the insurance start date — that is, before the person begins work (Art. 8). The statutory exceptions are narrow: construction, fishery and agriculture workplaces may file on the day work commences, and a workplace filing its first işyeri bildirgesi has one month for employees starting within that period. The employee’s own duty to notify SGK within one month of starting work does not relieve the employer of any of this. Under the Occupational Health and Safety Act No. 6331, every employer must carry out a risk assessment and provide OHS training and — depending on hazard class and headcount — engage an OHS expert and a workplace physician. And because employment generates extensive personal data, processing it lawfully is a duty under Türkiye’s data-protection regime, addressed in our personal data protection practice; an employer building its Turkish presence usually sequences all of this alongside company formation.
Two further points round out the picture. Overbroad restrictive covenants are risky: a non-compete (rekabet yasağı) under the Turkish Code of Obligations is valid only where the employment gave the employee access to the customer base, production secrets or the employer’s business and use of that information could cause the employer significant harm (Article 444/2); Article 445 bars restrictions of place, time and type of work that unfairly endanger the employee’s economic future, limits duration to two years save in special circumstances, and lets the judge limit an excessive covenant in scope or duration, so the permitted duration should be confirmed against the current statutory text before a clause is drafted. And a collective dismissal (toplu işçi çıkarma) under Art. 29, triggered when at least ten workers are let go for operational reasons (with thresholds scaling by workplace size), requires notice to İŞKUR, the workplace union and the regional directorate at least 30 days in advance.
A Note on Foreign Nationals
Employing a foreign national is a separate matter. It additionally requires a work permit from the Ministry of Labour and Social Security, issued together with the right of residence. This is a distinct, specialist process with its own quotas and conditions, and it sits outside the general employment framework this guide describes. We flag it here only so the distinction is clear: the rules above apply to your workforce whatever their nationality, while the permit is an extra, separate step for foreign hires.
Where such an employee’s contract designates a foreign law, the limits on that choice are set out in choice of law in a Turkish employment contract.
Putting It Together
For a foreign employer, the through-line is simple even where the detail is not: choose the right contract, register and insure the worker before day one, run working time and leave correctly, and — above all — plan any termination before you act rather than after. The difference between a resignation, a just-cause dismissal and an invalid dismissal can swing exposure from nothing to reinstatement plus several months’ wages, and the compulsory mediation stage now decides much of that outcome before a judge is ever involved. Getting the structure right at the outset, with advice that reflects how Turkish labour courts read a file, generally costs less than defending a claim built on paperwork assembled too late.
