Employ Candidates Compliantly in Turkey

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  1. Overview: Turkey
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Turkey

If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Turkey Guide below will help you understand the nuances of labor legislation in the country.

When the company is planning to enter a new foreign market of Turkey and has a need to employ a local national there, the first question to answer is how it is going to make local hires.

We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.

This solution helps you employ your global sales force in Turkey as well as in other countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.

Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.

So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Turkey instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.

Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.

Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Turkey .

We are experts in global workforce employment in Turkey, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Turkey.

Hiring and Firing Workforce in Turkey Guide

Over the last five years, Turkish economy has gained popularity for its steady economic boom and by 2030, it is projected to be one of the fastest growing economy in the world. Technology-wise, Turkey is verse developed in telecoms, transportation and energy and has low taxation policy with a lot of incentives to encourage both domestic and foreign investment. Its central location and readily accessible dynamic and well-educated workforce is another factor that makes it very attractive for direct investment.

To know more about the dynamics of the business environment in Turkey, you need to understand, among other things, the country’s employment law and labor relations.

The following are an overview report of what you should know about doing business in Turkey.

# Employment contracts

There are no laws as to whether an employment contracts should be in writing or not, though it is a common practice to have a definite contract drawn up in writing. In the absence of any written contract, the employer is obligated to give the employee a written statement of the basic terms of the contract – hours of work, compensation, benefits and matters relating to the contract termination, within the first 2 months of his employment. This however, is with the exception of employees contracted to work for one month or less.

There are follow types of contracts:

  • Definite/fixed-term employment: This is for a fixed term with a set date for the end of employment. A fixed-term contract can be renewed once only (except in specific circumstances) and thereafter converts to an indefinite contract.
  • Indefinite/open-ended employment: This is used when the job has no specified duration or set end date.
  • Temporary employment: A temporary contract is for work lasting a maximum period of six months; it can be renewed twice only giving a maximum employment duration of 18 months.

Employment contract is usually concluded in Turkish language. After a contract has been concluded, the employer does not have the right to make changes on the principal terms of the contract (hours of work, place of work, compensation) without notifying and getting a go-ahead from the employee within 6 days of the notification, otherwise the change(s) will be considered invalid. If the employee refuses any of the change(s) initiated by the employer, the employer has the right to try to reach a consensus with the employee or just terminate the contract, provided the change(s) is justifiable by law. An employee has the right to file a claim if he is dismissed for refusing an employer’s proposal for change in the contract. It is important to note that not all terms of a contract can be changed. Conditions such as weekly/daily working hours, overtime, paid leaves and holidays, termination of contract, and any other laid down in the Labor Code cannot be amended.

# Minimum (Statutory) Employment Rights:

# Hours of work:
The maximum approved hours a worker can work per week is 45 hours. These hours can be shared among the working days, but with the maximum of 11 days per day. During the working hours, the employee has the right to unpaid break time, of which the duration depends on their working shifts. Employees that work a 7.5-hour or more shift are entitled to 60 mins break, those that do 4 to 7.5 shift have the right to 30 mins break and those on a 4-hour shift are entitled to 15 mins break.

# Probationary period:
Employees trial period can last until 2 months. However, this may be extended up to 4 months by agreement of both parties. During the probation period, either the employer or the employee have the right to end the contract without giving any notice or being required to pay any compensation.

# Annual leave
Employees are entitled to paid leave during the major holidays specified in the country’s labor code – New Year’s Day, National Sovereignty and Children’s Day, Labor Day, Commemoration of Ataturk, Youth and Sports Day, Ramadan, Victory Day, Eid al-Adha and Republic Day. Apart from these holidays, all employees, starting from one year of their employment, are eligible for paid leave which range from 14 days to 26 days, depending on their length of service to the company. Employees between one and five years of employment are eligible for 14 days, while those between their five and fifteen years of employment have right to 20 days paid leave. The highest paid leave (26 days) is reserved for employees who have worked for 15+ years in the company.

# Parental leave
Maternity benefits are paid by the Social Security. For single birth, female employees are eligible to get 16 weeks paid leave, equally shared during childbearing. Additional 2 weeks are added to employee(s) expecting more than one baby. Also, employers are obligated to give their pregnant employees a periodic paid leave for antenatal checks.

# Sick leave
Sick benefits are offered by the social security and all sick employees have the right to these benefits. But to be able to claim the benefits, the employee would have to submit a sick note first. The employees are entitled to maximum one week paid sick leave. Extended sick leave is granted on unpaid basis. In the case of sick leave that exceeds six weeks, employment contract may be terminated without notice.

# Overtime
Overtime is considered as any time spent working in addition to the normal working hours, including those worked during holidays. For such extra hours, employees are entitled to 150% of their wage or 200% if they work on holidays. Notwithstanding, the total overtime worked by any employee cannot exceed 270 hours. Employees have the right to request for time off instead of overtime pay. In such case, he will be entitled to 90 mins for every extra hour he worked.

# Minimum salary
In 2018 Turkey’s monthly net minimum wage is increased to 1.603,12 TRY ($423).The new gross minimum wage, before deductions such as social security premiums and income taxes, is 2,029 liras ($535.9).

# Employee dismissal:
Either of the employment parties can end the employment relationship provided a prior notification varying in length is given. At the termination of the contract, the employer is required to give the employee a certificate of service specifying the total length of employment with the nature of work performed. In addition to that, employers are obligated to give a severance pay to the employee if he unilaterally dismissed the employee with no rhyme or reason, or on the other hand, the employee resigns with good reason.

Acumen International can help you kick-start your penetration or expansion in Turkish market. Our solutions are created solely for the purpose of assisting any individuals or companies that want to enter or expand into any global market to do so in a timely, cost-effective and compliant way.

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