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Turkish Employment Law and Work Permits for Foreign Nationals

Employment law and work permits

By Av. Serkan Kara, Istanbul Bar No. 53770
Last updated: June 2026

Serka Law Firm advises multinational employers, foreign-owned companies, and individual foreign professionals on Turkish employment and labour law, work permits for foreign nationals, and cross-border workforce structuring. We act for clients on both sides of the relationship: employers managing termination risk and compliance, and employees enforcing severance, reinstatement, and work-authorization rights. Our work combines Turkish Labour Law with the international mobility needs of investors, founders, and expatriate executives.

What law governs employment in Turkey?

Employment in Turkey is governed primarily by Labour Law No. 4857, which regulates individual employment contracts, termination procedure, severance and notice pay, working hours, overtime, and occupational health and safety. Work authorization for foreign nationals sits under the International Labour Force Law No. 6735, administered by the Ministry of Labour and Social Security.

Several other statutes complete the framework. The Turkish Code of Obligations No. 6098 governs the employment contract as a private-law relationship and sets the rules for non-compete covenants. The Trade Unions and Collective Bargaining Law No. 6356 covers union rights and collective agreements. The Social Insurance and General Health Insurance Law No. 5510 governs Social Security Institution (SGK) registration and contributions. Every employer operating in Turkey, including foreign-owned entities, must comply with SGK registration, the statutory minimum wage, and occupational-safety obligations regardless of the nationality of its workforce.

How do foreign nationals obtain a work permit in Turkey?

A foreign national needs a work permit before lawfully working in Turkey. Under International Labour Force Law No. 6735, the Turkish employer files the application electronically through the Ministry of Labour and Social Security. The work permit, once granted, also serves as the holder’s residence authorization for its validity period, which removes the need for a separate residence permit while the foreigner is employed.

The core application documents are:

Work permits are issued first for a defined initial term and are renewable for successively longer periods. After a sustained period of lawful employment, a foreign worker may qualify for a long-term or indefinite work permit. The precise initial and renewal durations are set by regulation and are revised periodically, so an employer should confirm the current terms before relying on a fixed renewal schedule.

What is the 5-to-1 ratio rule and how is it waived?

The 5-to-1 ratio rule requires a Turkish employer to keep five Turkish citizens on its SGK payroll for each foreign national it employs. A company seeking to hire two foreign staff therefore needs ten registered Turkish employees, and the company must also satisfy a minimum paid-in capital threshold. The rule protects domestic employment and is the single most common obstacle for newly established foreign ventures.

Companies that cannot meet the ratio at the outset can often qualify for exemptions. Entities structured under the Foreign Direct Investment Law No. 4875 may apply for relief where they meet defined foreign-capital, turnover, or export thresholds. A foreign national classified as “key personnel,” such as a shareholder holding a qualifying stake or a senior executive with decision-making authority, may also fall outside the standard quota. We assess a company’s structure against these exemption routes before filing, because applying without a viable exemption strategy wastes the processing cycle and invites refusal.

What does it cost to terminate an employee in Turkey?

Terminating an employee in Turkey can be expensive because Turkish law builds in several mandatory payments. The principal cost components are severance pay, notice pay, unused-leave compensation, and potential reinstatement liability if the dismissal is later found unjust. For a long-tenured senior employee, total exposure can exceed one year of salary, which is why procedure and documentation matter as much as the underlying reason for dismissal.

What is just cause for immediate dismissal?

Just cause under Article 25 of Labour Law No. 4857 lets an employer dismiss an employee immediately and without severance pay in defined situations. The recognized grounds fall into three groups: extended health-related incapacity beyond statutory limits; immoral, dishonourable, or malicious conduct such as theft, fraud, workplace violence, harassment, disclosure of trade secrets, or unjustified absence; and force majeure preventing work for more than one week.

The procedural trap is timing and proof. The employer must act within six business days of learning of the just-cause event, after which the right to dismiss without severance is extinguished. Just-cause dismissals also demand documentary evidence, typically an incident report signed by witnesses and a formal termination notice served through a notary. Labour courts routinely overturn undocumented just-cause dismissals, converting them into costly unfair-dismissal claims, so the evidentiary file must be built before the notice is served.

What is a reinstatement (job-security) lawsuit and how is it avoided?

A reinstatement lawsuit is the claim a dismissed employee files to challenge a termination as unjust and recover their job or a financial award instead. Job security applies where the workplace employs at least 30 workers and the employee has at least six months of service. The employee must initiate mandatory mediation and then sue within strict deadlines after dismissal.

If the court finds the termination procedurally or substantively flawed, for example a “poor performance” dismissal with no written warnings on file, it orders reinstatement. An employer that declines to take the employee back pays a job-security award, commonly set at four to eight months of gross salary, plus up to four months of idle-period pay, on top of the severance already owed. For a mid-level manager this combined exposure is significant.

The reliable way to close this risk is a mutual termination agreement (ikale), negotiated rather than imposed. The employer pays the severance and notice due plus a modest ex-gratia amount, and in exchange the employee signs a settlement that ends the relationship and releases future claims. A properly drafted mutual termination agreement removes the reinstatement exposure that a unilateral dismissal creates.

Are non-compete clauses enforceable in Turkey?

Non-compete clauses are enforceable in Turkey but only within narrow limits set by the Turkish Code of Obligations No. 6098. A valid post-employment non-compete covenant must be in writing, must apply only to an employee who had access to the employer’s customer base or trade secrets, and must be reasonable in its duration, geographic scope, and subject matter so that it does not improperly restrict the employee’s economic freedom.

Courts will reduce an over-broad covenant rather than enforce it as written, and will strike a covenant that operates as a blanket bar on working. Effective drafting keeps each restriction tight: a defined maximum duration, a specific region tied to where the employee actually held influence, and a precisely described business niche rather than an entire industry. A liquidated-damages clause (cezai şart) gives the covenant teeth, and a breach can support both a damages claim and a preliminary injunction against the departing employee and their new venture. We draft these covenants to survive judicial scrutiny, because an unreasonable clause is worth nothing in court.

What happens to employees when a business is sold?

When a Turkish business or workplace changes hands, the employment contracts transfer automatically to the new owner on the same terms, wages, and accrued seniority. A workplace transfer does not give employees a right to resign and demand severance simply because ownership changed; their relationship continues unbroken with the acquirer.

The exposure for an acquirer is shared liability. The transferring and acquiring owners are jointly liable for accrued employee entitlements that predate the transfer for a defined statutory period after the sale. Buyers manage this in the transaction itself: a labour due-diligence review quantifies the accrued severance and pending claims, and an indemnity with an escrow holdback in the share or asset purchase agreement shifts hidden labour debt back to the seller.

How long is the working week and how is overtime paid?

The standard working week in Turkey is 45 hours under Labour Law No. 4857, commonly arranged as nine hours across five days. The parties may agree a flexible distribution provided the daily limit is not exceeded and the weekly average stays within 45 hours across a statutory equalization period.

Overtime is work beyond 45 hours per week. It requires the employee’s consent, is capped at 270 hours per year, and is paid at 1.5 times the normal hourly rate, or compensated with paid time off at the rate of 90 minutes per overtime hour where the employee elects time off. The most dangerous overtime exposure for employers is undocumented cash overtime. Turkish labour courts will accept witness testimony to establish unrecorded overtime, and a court-appointed expert can then assess years of accrued overtime against the employer, so accurate time records and clear contractual treatment of senior staff are essential defences.

What severance pay is an employee entitled to?

An employee with at least one year of continuous service is entitled to severance pay on a qualifying termination, calculated at 30 days of gross wages for each full year of service, with partial years counted proportionally. A government-set ceiling caps the per-year amount and is revised periodically. Severance pay is exempt from income tax.

Qualifying terminations include employer-initiated dismissal other than for just cause, the employee’s resignation for a statutory just cause, military service, retirement, and death. Late payment of severance carries the highest statutory interest rate, which makes prompt and correctly calculated payment a practical priority on every exit.

What counts as mobbing (workplace harassment)?

Mobbing is systematic, prolonged psychological harassment directed at an employee that degrades their working conditions and causes real harm. Turkish courts set a high threshold: ordinary stress, demanding deadlines, or pointed professional criticism do not qualify. The conduct must be a sustained and intentional campaign to isolate or break down the employee.

There is no standalone “mobbing statute.” Protection is drawn from the employer’s duty of care under the Turkish Code of Obligations No. 6098, the employee’s right to resign for just cause under Labour Law No. 4857, and constitutional protection of personal integrity. An employee who proves mobbing may resign with full severance entitlement and claim non-pecuniary (moral) damages. Because the burden of proof rests on the claimant, an employer defends these claims with performance records, correspondence, and witness evidence showing that the contested decisions were a legitimate exercise of management authority.

How are labour disputes resolved?

Most labour disputes in Turkey must go through mandatory mediation before any lawsuit can be filed; mediation has been a precondition for the main employment claims since 2018. The parties attempt settlement before a certified mediator within a short statutory window, and a mediation settlement carries the force of a court judgment and is directly enforceable.

If mediation fails, the employee files in the Labour Court. The process runs through an initial hearing, evidence collection, and frequently an expert report on severance and overtime calculations before judgment. Appeals proceed to the Regional Court of Appeal and, on points of law, to the Court of Cassation (Yargıtay). First-instance proceedings commonly take from twelve to twenty-four months, which is itself a strong reason to resolve high-value exits by negotiated settlement.

What are an employer’s social security obligations?

Every Turkish employer must register with the Social Security Institution (SGK) and pay monthly contributions for each employee, covering short-term insurance against work accidents and occupational disease, long-term disability and old-age insurance, general health insurance, and unemployment insurance. Combined employer and employee contributions amount to roughly one-third of gross wages, with the exact rates depending on risk class.

Foreign employees holding valid work permits carry the same SGK obligations as Turkish staff, unless a bilateral social security treaty between Turkey and the employee’s home country relieves part of the burden. Late or incomplete SGK filings trigger penalties and interest, and SGK status codes used on termination also affect a departing employee’s access to state unemployment benefits, so the exit filing must be handled with care.

Can a work permit lead to Turkish citizenship?

A work permit can lead to Turkish citizenship through ordinary naturalization. Under the Turkish Citizenship Law No. 5901, a foreign national who has lawfully resided in Turkey for at least five continuous years, including time held on a work permit, may apply for citizenship if they also meet the further conditions, which include financial self-sufficiency, an intention to settle, good character, and a basic command of Turkish.

A separate, discretionary route exists for exceptional citizenship granted by Presidential decision, generally reserved for senior executives, significant investors, or individuals with rare expertise. Foreign nationals weighing the investment route in parallel should review our guidance on citizenship by investment, which sets out the qualifying thresholds and the documentation an applicant must prepare.

Frequently asked questions

Can an employer dismiss a foreign employee the same way as a Turkish employee?

Yes. A foreign national lawfully employed under a work permit has the same protection under Labour Law No. 4857 as a Turkish employee, including severance, notice, and job-security rights where the thresholds are met. Dismissal also affects the work permit and residence status, so the immigration consequences must be managed alongside the labour-law termination, particularly where the employee’s right to remain in Turkey depends on continued employment.

Is cash overtime paid “off the books” a real risk for employers?

Yes, and it is one of the largest hidden liabilities for employers in Turkey. Overtime paid in cash without records is treated by the courts as never having been paid, and witness testimony can establish years of unrecorded overtime. The defences are documentary: accurate time records, correct contractual classification of genuinely senior staff, and a properly drafted release on exit. Building these controls before a claim arises is far cheaper than litigating one.

How long does a work permit application take?

Processing time depends on the role, the employer’s standing, and the completeness of the file. A clean application with all supporting documents and a viable position on the 5-to-1 ratio moves faster, while a missing document or an unresolved ratio problem causes delay or refusal. Employers should plan the start date around the application rather than assume the foreign hire can begin work immediately.

Do we still owe severance if we caught an employee committing theft?

No, provided the just-cause procedure is followed exactly. Theft is immoral and dishonourable conduct under Article 25 of Labour Law No. 4857, which permits dismissal without severance or notice pay. The dismissal must rest on a documented incident report and a formal notice served within six business days of discovery. Where evidence exists, the employer can also pursue a criminal complaint and a civil claim to recover the value of the stolen property.

Does Serka Law Firm act for employees as well as employers?

Yes. We represent foreign workers and executives enforcing severance, notice, reinstatement, and work-permit rights, as well as employers managing termination risk and compliance. For individuals, this often connects with broader cross-border matters such as immigration and residence permits or deportation and entry-ban defence when employment status is at stake.

Do I need a lawyer for a Turkish employment or work-permit matter?

An employer facing a termination, a work-permit filing, or a labour claim benefits from counsel because Turkish labour procedure is unforgiving of error and the financial exposure of a single procedural mistake is high. A missing signature on a leave form, a late just-cause notice, or an undocumented dismissal can convert a routine exit into multi-year litigation. We act before disputes arise by structuring bilingual employment contracts, auditing payroll and time records, running work-permit applications, and executing terminations through notary notice and mandatory mediation. We also defend filed claims through the Labour Court and on appeal.

Our employment work connects closely with related practice areas. Employers establishing a Turkish presence frequently combine work-permit planning with establishing companies and corporate and commercial law, while acquirers managing workforce liability on a deal draw on our business disputes practice.

Request a confidential case assessment

Serka Law Firm advises employers, foreign professionals, and investors on Turkish employment law, work permits, and cross-border workforce matters. To discuss a termination, a work-permit application, a labour claim, or a compliance review, request a confidential case assessment through our contact page and a member of our employment team will respond with the next steps.

Legal disclaimer

This page provides general information about Turkish employment and labour law and is not legal advice. It does not create an attorney-client relationship, which is formed only by a signed engagement. Statutory thresholds, contribution rates, processing times, and monetary ceilings referenced here are revised periodically; confirm the current position for your specific situation before acting.