Foreign investors and business owners operating in Turkey must understand the legal landscape governing employment contracts in Turkey. The Turkish Labor Code imposes strict rules on employment terms, mandatory provisions, probation periods, termination procedures, and employee protections. Failing to comply may expose foreign employers to litigation, administrative penalties, or criminal liability.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers guide foreign corporations, startups, and individuals through every stage of hiring, contract drafting, and employment compliance. As a full-service Turkish Law Firm, we provide bilingual legal support, prepare customized contracts, and advise on employer obligations across sectors. Our firm is frequently recognized as a best lawyer firm in Turkey for employment law matters involving international clients.
Whether you are setting up a Turkish subsidiary, hiring remote employees from abroad, or localizing global HR policies, we offer strategic solutions that reduce risk and enhance workforce stability. Our Turkish Law Firm works with HR directors and foreign legal departments to ensure contracts meet both local legal standards and global compliance needs.
Are Employment Contracts Mandatory in Turkey?
Yes. Under Article 8 of the Turkish Labor Law (Law No. 4857), every employee-employer relationship must be governed by a written employment contract if it exceeds 30 days. Verbal agreements are legally insufficient and can expose employers to misclassification penalties or default labor law protections.
Our English speaking Turkish lawyers ensure all contracts include the required elements, such as:
- Job title and description
- Starting date and duration
- Salary and payment terms
- Working hours and overtime
- Probation and termination clauses
- Social security registration and withholding tax compliance
To draft a compliant agreement, contact a Turkish Law Firm experienced in cross-border labor regulations. Our team prepares contracts in dual-language format and aligns terms with both Turkish and home-country employer policies.
Related reading: employee data protection under KVKK in Turkey
Fixed-Term vs. Open-Ended Employment Contracts
There are two primary types of employment contracts in Turkey: fixed-term (belirli süreli) and open-ended (belirsiz süreli). Choosing the correct structure depends on the business model, project timeline, and risk exposure. A best lawyer firm in Turkey will assess your organization’s needs and recommend the most appropriate contract type.
Foreign companies often prefer fixed-term contracts for flexibility, but under Turkish law, such contracts can only be used when justified by objective reasons (project-based work, seasonal demand, etc.). Otherwise, the law may reclassify the relationship as indefinite, granting full termination protections to the employee. Our English speaking Turkish lawyers regularly defend foreign clients in reclassification disputes before labor courts.
To prevent exposure, all HR documentation should be reviewed by a qualified real employment lawyer in Turkey. As a recognized Turkish Law Firm, we assist with risk mapping, model contract drafting, and pre-litigation advisory services.
Termination of Employment Contracts in Turkey
Under Turkish law, terminating an employment contract requires strict adherence to legal procedures. Employers must provide valid grounds, written notice, and severance where applicable. Unjustified or procedurally defective termination may result in reinstatement orders, compensation claims, or punitive damages.
Common termination types include:
- Termination with notice (ihbarlı fesih)
- Termination for cause (haklı nedenle fesih)
- Mutual termination agreement (ikale)
Our English speaking Turkish lawyers assist foreign employers in preparing compliant termination documents, conducting disciplinary investigations, and managing court defense when claims are filed. We provide HR training and workflows to reduce exposure to employment litigation in Turkey.
Also see: severance pay rules under Turkish labor law
Social Security and Tax Compliance Obligations
Every employment contract in Turkey must be backed by registration with the Social Security Institution (SGK). Employers are responsible for monthly premium declarations, payroll tax withholding, and accurate wage reporting. Foreign entities employing Turkish residents or expats under local contracts must meet these obligations or face administrative fines and tax audits.
Our Turkish Law Firm collaborates with payroll consultants and tax advisors to deliver fully integrated legal-employment services. From SGK registration to compliance checks, we provide end-to-end legal supervision. A best lawyer firm in Turkey will not only draft your contracts, but also help implement internal compliance systems.
For tax-related employer responsibilities, see: corporate tax for foreign companies in Turkey
Employment of Foreigners and Cross-Border Hiring
Foreign employers must obtain a work permit for foreign employees in Turkey before execution of the employment contract. Hiring a foreigner without a valid permit may result in administrative fines for both the employer and the employee. Additional obligations apply for payroll reporting, language of contract, and notarization requirements.
Our English speaking Turkish lawyers advise multinational companies on how to structure legally sound contracts for foreign nationals working in Turkey, including remote or hybrid arrangements. As a fully equipped Turkish Law Firm, we assist in Ministry of Labor filings, cross-border payroll structuring, and dispute prevention planning.
We are consistently chosen as a best lawyer firm in Turkey for international labor matters, particularly involving global employers entering the Turkish market.
Related: legal protections for foreign residents under Turkish law
Judicial Precedents on Employment Contract Disputes
The Turkish Court of Cassation (Yargıtay) has consistently emphasized that employment contracts must reflect the true nature of the relationship between the parties. In many cases, contracts labeled as "consultancy" or "freelance" were reclassified as full-time employment, resulting in backdated social security premiums and severance awards.
Foreign employers must ensure that their contracts are not only well-drafted, but also compliant in daily execution. Our litigation team at ER&GUN&ER Law Firm closely tracks Yargıtay labor law decisions to develop employer-side defense strategies and risk-mitigating contract templates.
We are widely regarded as a best lawyer firm in Turkey for employment dispute resolution and represent global employers in both settlement negotiations and full litigation across Turkish labor courts.
Frequently Asked Questions (FAQs)
- Are employment contracts mandatory in Turkey? Yes. For jobs lasting more than 30 days, a written contract is required by law.
- Can contracts be in English? Bilingual contracts are allowed, but Turkish must be included for enforceability in court.
- What types of employment contracts exist? Fixed-term, open-ended, part-time, and project-based agreements are all recognized.
- Can foreign employers use foreign law in Turkish contracts? Not for local employees. Turkish labor law is mandatory and overrides foreign choice of law.
- Do I need to register my employees? Yes. All employees must be registered with SGK and reported for tax purposes.
- Can I terminate an employee at will? No. Valid legal grounds and proper procedures must be followed. Otherwise, you may face reinstatement lawsuits.
- How can I protect myself from labor lawsuits? Work with a Turkish Law Firm and an English speaking Turkish lawyer to draft compliant contracts and HR policies.
Hire Legally and Confidently with Employment Law Expertise
Employment contracts are the backbone of legally compliant business operations in Turkey. Whether you are a foreign entrepreneur, multinational executive, or global HR team, working with a Turkish Law Firm ensures legal clarity, employee stability, and risk control.
At ER&GUN&ER Law Firm, our experienced team of English speaking Turkish lawyers and employment litigation specialists draft, review, and manage the full employment contract lifecycle. As a best lawyer firm in Turkey, we protect foreign employers from hidden liabilities and help you grow your workforce with confidence.