After some political turmoil in the last few years, Turkey’s economic growth has positioned itself as one of the fastest growing economies of the G20. This has made Turkey a very attractive country for many international businesses that are looking to expand globally. Some analysts believe that prudent financial policies and low public debt has helped, and a strong financial sector continues to fuel growth. Because Turkey is a member of NATO and connected with the Middle East, it can be an important bridge between the two regions. If you’re interested in expanding into Turkey, here are four tips to do employment in Turkey successfully.
1. Pick The Type of Turkey Employment Contract That Is Right For You
Turkish labor law doesn’t divide employees into classifications like many other nations do. Instead, they have several classifications for their contracts. Here are some of the legal categories for contracts:
- Employment contracts for “temporary” and “permanent” work
- Employment contracts for a “definite period” or an “indefinite period”
- Employment contracts for “part-time” and “full-time” work
- Employment contracts for “work-upon-call”
- Employment contracts with a trial period
- Employment contracts constituted with a team contract
2. Know Your Employees’ Statutory Rights for Employment in Turkey
Every employee has employment rights in Turkey. Unlike the American system, these rights don’t change depending on your employment category. However, keep in mind that there can be a few exceptions. Nevertheless, employees in Turkey have the right to receive:
- Remuneration for work, not lower than the minimum wage, which is redefined twice a year
- Overtime pay for work over 45 hours a week. However, upper-level executives who can make their own schedule and are paid above market wages may not get overtime, because their salary is considered to include overtime
- Vacation leave: Employees who have worked at a company between one and five years get a minimum of fourteen days. If they have worked for 5 to 15 years they get a minimum of 20 days, and if they have worked for 15 years or more they get a minimum of 26 days
- Insurance, which begins on the first day of employment
- A full weekend break of 24 continuous hours after working 45 hours
- To take breaks during the day to rest, the interval of which depends on working hours
- Severance pay, which is calculated by multiplying the number of years worked times the monthly salary at termination of employment
- Leaving notice period of between two weeks and eight weeks depending on the amount of time worked
- Reinstatement of work if the employee is terminated early without a fair cause
3. Know What Your Contributions to Social Security Will Need To Be
Both employees and employers share the cost of health insurance payments and unemployment insurance. The employer deducts the employee’s portion from his/her salary. The contribution rates are generally the following:
- The short-term insurance rate, paid completely by the employee, varies from 1% to 6.5% depending on how dangerous the person’s work is
- The long-term insurance rate is split between employee and employer with the employee paying 9% and the employer 11%
- The unemployment insurance rate is split with 1% paid by the employee, 2% paid by the employer, and 1% paid by the state
4. Protect Your Intellectual Property
The Turkish law states that any work done by an employee during the normal course of their work belongs to the employer. The only instance when an employee owns the work is if there is a stipulation in the contract or the work is not related to the employee’s normal job.
In December 2016, Turkey’s parliament passed a comprehensive intellectual property rights law that modernized their IP rights law. The new law increases the capacity of the patent office and it improves the framework for commercialization and property transfer.
Turkey provides ample opportunity for a business to expand. With recent revisions in the law, the business environment continues to improve. Use these five tips to successfully hire workers in Turkey.
Hiring in Turkey doesn’t have to be a challenge, especially if you partner with an International PEO (Professional Employer Organization) provider. This service uses its existing infrastructure in Turkey to hire your employees and manage compliance while you handle day-to-day operations. Get in touch with us to learn more!