Employer of Record in Turkey
Skuad’s Turkey EOR solution manages your human resource (HR) tasks and payroll, local tax and compliance, administration, visa, and mobility needs. Our tech-enriched, integrated HR platform and network of experts in more than 150 countries make us the industry leaders in EOR services. The able assistance of our global EOR services can streamline and expedite the difficult, time-consuming process of employee hiring and onboarding for companies looking to expand their business in Turkey. To avail yourself of our services, get in touch with Skuad experts today.
Turkey at a Glance
Area: 785,350 square kilometers
Population: 84,339,067 people (2020)
Currency: Turkish lira (TRY)
Capital City: Ankara
Official language: Turkish
Literacy rate: 96.2 %
Gross Domestic Product (GDP): USD 7.99 billion (2020)
The Turkish Republic is one of the powers where the government is very loyal to foreign investments in the economy. The business policy of the country has been designed to attract the interest of experienced and novice business people from abroad. The government has created the most favorable conditions for business development, where each investor can not only try to introduce new business ideas but also develop their existing businesses.
The most popular types of business in the country that bring in stable profits are,
- Hotel and restaurant businesses
- Investments in the oil refining and gold mining industries
If you are planning to work in Turkey, it is important to understand Turkish labor laws. The labor law manages the working conditions and obligations of people who work under an employment contract.
Employee Entitlements in Turkey
To learn more about employment laws in Turkey, and employment agreements in Turkey, talk to the experts at Skuad.
The second part of the 4857 Labor Law provides details on the types of contracts, definitions, and conditions to be complied with concerning employment contracts. The employment contract is not subject to a particular form. The employer and the employee can sign an agreement suitable for them without ignoring the limitations in the provisions of the law.
According to Turkish Employment Law, employers can have four types of employment agreements with the employee.
- Temporary and permanent employment contracts,
- Definite and indefinite contracts,
- Part-time employment contracts, and
- On-call labor contracts.
Temporary Work Contract
The minimum work duration for a temporary contract ranges for work of up to six months; an employer can renew this contract twice for a maximum period of employment of 18 months.
Full-time Employment Contract/Indefinite Contract
Generally, a full-time employee is hired to work 45 hours in a workweek. The work hours can be unevenly distributed over a week but can never exceed 11 hours in a day.
Part-time Employment Contract
A contract for a part-time employee means that the standard weekly working time is significantly less than that of an employee who works full-time.
On-call Job and Project-based Employment
Typically, work schedules are agreed upon in advance. When a project schedule has not been agreed upon, the weekly working time is limited to 20 hours. An employer needs to give notice to the worker when the work is available.
Drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Turkey can be a tedious task for international companies that have no local liaison offices. Skuad’s comprehensive EOR solution for Turkey also includes templates of employment contracts, so that hiring and onboarding of the employees can be accomplished compliantly. Learn more from Skuad experts about hiring the best Turkish talent on both a contractual and full-time basis.
Hiring in Turkey
Employment Agreement in Turkey
It is a contract signed between the employee and the employer, in which the employee consents to work, and the employer agrees to pay wages for the completion of such work. Employment contracts are made for a definite or indefinite term. These contracts can be formed for full-time or part-time, probationary, or other types in terms of working styles. Contracts for more than one year must be in writing.
According to the Labor Law, the maximum working hours in an ordinary working day are 11 hours and 45 hours per week, which should be divided equally between the working days.
Total overtime hours of work may not be more than two hundred and seventy hours per year.
Hours that exceed the 45-hour limit per week will be considered as overtime, and the salary for each hour of overtime will be equivalent to one and a half times the normal hourly rate.
The Ministry of Social Security and Labor determines the minimum salary. The current minimum salary amount in Turkey is TRY 2850.50.
Job Portals in Turkey
Most employers in Turkey advertise their job openings on websites and portals, such as,
Skuad’s extensive, hyper-localized EOR solutions for Turkey make the hiring process easy and hassle-free. We handle all the complicated tasks related to payroll management and taxes in compliance with the local laws so that you can focus on other aspects of global expansion. Talk to Skuad experts now to learn more about hiring in Turkey.
Probation & Termination
An employee's probationary period can be up to two months. However, the probation time can be extended to a maximum of four months with the consent of the employee and the employer. During the probation period, either party may cancel the contract without prior notice.
Termination of Service
If one of the parties (the employer or the employee) wishes to terminate the employment contract, both the parties are obliged to inform the other party before the termination is made under Labor Law No. 4857.
The minimum period of notification before terminating the work contract between the employer and the employee is listed below.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Turkey, talk to Skuad experts and book a demo today.
EOR Solution in Turkey
While expanding business in a new country needs advice from experts, it is not possible to know all the labor laws and taxation and payroll policies of a country. An EOR solution provided by a team of professionals will help your business to grow internationally. Skuad’s deep research of Turkey’s laws and HR policies will expedite the expansion of your business. Managing the life cycle of an employee and handling HR-related matters plays an essential role in the operation and expansion of a business. Other tasks, such as providing work permits and applying for employees’ visas, also require significant time and resources.
Payroll Outsourcing through an Employer of Record
Skuad’s EOR solution’s main aim is to find the best talent throughout Turkey. Skuad offers a highly customized HR service. Our working methods have proven to be successful to many companies, both domestic and foreign. To briefly cover the services we offer, our experts can assist you with,
- Hiring and onboarding
- Employment contracts and related compliance such as leaves and remuneration
- Work permits
To avail of our bespoke EOR solution for Turkey, book a demo with Skuad experts.
Types of Visas in Turkey
There are many types of Turkey visas available; the purpose of travel determines what kind of visa you need to obtain.
Talk to us and get more information and guidance related to types of visas and work visa requirements in Turkey. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
Employment in Turkey is subject to work permits that are applicable for immigrants coming to Turkey.
The Ministry of Labor grants work permits for workers. The work permit is granted to all foreign employees and companies that wish to employ foreigners.
This government body is formed to determine, inspect, and approve work permits granted to foreign employees who want to work in Turkey.
As your EOR service, Skuad sponsors the Turkey work permits required by your employees in Turkey. By taking over this responsibility on your behalf, you are free to focus on your business expansion plans while we take care of processing work permits and visas for your employees.
Contact us here to learn more.
Payroll & Taxes in Turkey
Payroll in Turkey
Turkey’s comparatively straightforward tax system and pay structure indicate there are no major problems in payroll systems.
To recruit employees in Turkey and manage their compensation and other benefits following the local labor legislation, foreign companies must set up a payroll. This can be done in one of the following four ways.
- Incorporating a separate legal entity and handling the payroll management with an in-house HR department.
- Setting up a remote payroll by adding your Turkish employees to your parent company’s payroll.
- Payroll outsourcing in Turkey in collaboration with a local company that handles HR tasks but leaves you in charge of liabilities.
- Payroll outsourcing in Turkey with a global EOR service such as Skuad, which can handle your payroll while ensuring total compliance with the local laws.
Taxes in Turkey
Setting up an entity and creating your legal presence can be a complicated process in a foreign country. Book a demo to know more.
Three main types of companies can be created in Turkey, from among several options. These are given below.
Turkish Limited Liability Company
This type of company is ideal for owners of medium and small businesses and projects, due to the low cost required to establish a company in Turkey of this type, as the minimum for its establishment is TRY 10,000. The number of shareholders in this company can be at least one and a maximum of 50 people.
Joint Venture Companies
These companies are established to operate a commercial project bearing a specific commercial name. All shareholders have limited liability, and the capital in this type of company is not limited to a minimum amount of money.
Joint Stock Companies
It is a type of company in which the capital is divided into shares distributed among the shareholders, and their responsibility is limited according to the percentage of their shares from the capital of the company registered in it as a shareholder. The shareholders in this company must be five and the minimum capital is TRY 50,000, where a quarter of this amount is paid before the company is registered with the Turkish government.
You can use Skuad’s Turkey EOR solutions along with our existing infrastructure and leverage all the lucrative business opportunities in Turkey immediately. To learn more, book a demo with Skuad experts!
Professional Employer Organization (PEO)
A professional employer organization (PEO) provides compliance, HR consultancy, filing taxes, health insurance, workforce management, and training. A PEO becomes a co-employer but companies will still be liable.
Although an EOR service provides similar services to companies, there are certain differences between the two.
- EOR companies become the legal employers of employees instead of the co-employers. An EOR firm has all the liabilities and responsibilities of the employees. A PEO retains your organization as the legal employer.
- With EOR solutions, the employees are covered with the insurance plan of the EOR firm. With a PEO, you will have to opt for a plan by yourself.
- With an EOR firm, you need not register your company in the country. You can have employees in the country without setting up an entity. The same is not true for a PEO.
Hire Skuad’s EOR solution for Turkey to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to Skuad experts to learn more.
Conclusion: What Gives Skuad’s Turkey Solutions an Edge?
Skuad has an extensive network in 150+ countries across the globe and provides a single interface to onboard and manage employees and contractors. It offers consistent prices irrespective of the location and manages the payment of your team through a single invoice. It also ensures that your IP, invention rights, and sensitive employee details are fully protected wherever you operate. For more details, contact Skuad experts and kickstart your expansion in Turkey!