By Av. Serkan Kara, Istanbul Bar No. 53770. Last updated: 14 June 2026.
Turkish employment relationships are primarily governed by Labour Law No. 4857, which applies to every workplace employing one or more workers across private and public sectors. It sets the core rules for contracts, working time, leave, termination, and the severance and notice entitlements that drive most disputes between employers and staff. Social security obligations sit under Social Insurance and General Health Insurance Law No. 5510, and collective labour rights under Trade Unions and Collective Bargaining Law No. 6356. For foreign investors and cross-border employers, these three statutes define the compliance baseline before any hire is made.
What law governs employment in Turkey?
The principal instrument is Labour Law No. 4857, enacted in 2003, which replaced the earlier 1936 framework and applies wherever one or more employees work. It governs hiring, working conditions, wages, working time, leave, and termination. Social security contributions fall under Law No. 5510, and union and collective bargaining rights under Law No. 6356. Certain categories such as senior maritime crew, aircraft staff, and some agricultural workers fall outside Law No. 4857 and are covered by separate regimes, which matters when structuring foreign-owned operations.
The statute is protective in design: it secures fair working conditions for employees while preserving the employer’s legitimate management interests, provided those interests are exercised within the documented limits the law imposes. Because mandatory provisions cannot be waived by contract, a clause that gives an employee less than the statutory floor is simply unenforceable, and the statutory entitlement applies instead.
What types of employment contracts exist, and why does it matter?
Under Labour Law No. 4857, employment contracts are either indefinite-term or definite (fixed) term, and the distinction controls termination exposure. Indefinite-term contracts are the default and carry the strongest protections, including job-security provisions and severance rights. Fixed-term contracts are permitted only where an objective reason justifies a time limit; successive renewals without such a reason convert the relationship into an indefinite-term contract by operation of law, restoring the employee’s full protection. Choosing the wrong contract form is one of the most common and costly mistakes foreign employers make.
The contract may be written or, in some cases, oral, but a written contract is strongly advisable and is required for fixed-term arrangements of one year or more. Probationary periods are permitted within statutory limits and allow either side to terminate without notice during that window. Misclassifying a continuous role as a series of fixed terms is a frequent source of reinstatement and severance claims.
How does termination work, and what severance applies?
Termination under Labour Law No. 4857 falls into distinct categories, each with different notice and severance consequences. Severance pay, preserved under the still-applicable Art. 14 of the former Labour Law No. 1475, is generally one month’s gross salary for each full year of service for employees with at least one year of tenure. Notice periods under Art. 17 run from two to eight weeks depending on length of service, and an employer may pay in lieu of notice. Termination for just cause under Art. 25, such as gross misconduct or fraud, allows immediate dismissal without notice or severance, but the burden of proving the cause rests on the employer.
| Route | Notice required | Severance payable | Typical grounds | Main legal risk |
|---|---|---|---|---|
| Termination with notice (Art. 17) | Yes, 2 to 8 weeks | Yes, if 1+ year tenure | Performance, economic or organisational reasons | Reinstatement claim if valid reason not proven |
| Just-cause termination (Art. 25) | No | No | Gross misconduct, fraud, prolonged unauthorised absence | Employee may contest the cause in labour court |
| Mutual termination (ikale) | No | Negotiable | Written settlement agreed by both parties | Court may void the agreement if consent was coerced |
| Fixed-term expiry | No | No | Agreed contract period ends | Repeated renewals convert to indefinite term |
For workplaces meeting the job-security threshold, an employee who believes a dismissal was unjustified may pursue reinstatement under Art. 18 to 21. The claim must move quickly: the law sets a short statutory window after dismissal, mandatory mediation must be attempted before suit, and a court that finds the dismissal invalid may order reinstatement or compensation in the range the statute provides. Because these deadlines are strict and the amounts are tied to salary and tenure, confirm the current limitation period and any mediation requirement in force at the time of dismissal rather than relying on a fixed figure.
What are the working-time, wage, and leave rules?
Labour Law No. 4857 sets the standard working week at 45 hours, normally distributed across the working days with daily limits and mandatory rest breaks. Overtime under Art. 41 is paid at 1.5 times the normal hourly rate, requires the employee’s written consent, and is capped at 270 hours per year. Annual paid leave under Art. 53 ranges from 14 to 26 days depending on seniority, and the entitlement cannot be contracted away. The minimum wage is set and periodically revised by the authorities; treat any stated wage, contribution rate, or tax figure as subject to change and confirm the amount in force at the time of payroll.
| Entitlement | Standard | Legal basis |
|---|---|---|
| Notice period | 2 to 8 weeks by tenure, or pay in lieu | Law No. 4857, Art. 17 |
| Severance pay | One month gross salary per year of service (1+ year tenure) | Law No. 1475, Art. 14 |
| Annual paid leave | 14 to 26 days by seniority | Law No. 4857, Art. 53 |
| Overtime | 1.5x hourly rate, max 270 hours per year, written consent | Law No. 4857, Art. 41 |
| Social security | Shared employer and employee contributions | Law No. 5510 |
| Reinstatement | File within the statutory window; mediation first | Law No. 4857, Art. 18 to 21 |
Social security registration under Law No. 5510 is mandatory from the first day of work, and contributions are shared between employer and employee, with the employer carrying the larger share and remitting both. Health, retirement, and unemployment cover all flow from this registration. Failing to register an employee, or under-declaring wages to reduce contributions, exposes the employer to retroactive assessments and penalties, and is a common audit finding for newly established foreign companies.
How are labour disputes resolved?
Most individual employment claims under Labour Law No. 4857, including severance, notice, overtime, and reinstatement, must pass through mandatory mediation before a lawsuit can be filed in the specialised labour courts. Mediation is intended to settle the matter quickly and at lower cost; if it fails, the dispute proceeds to the labour court, whose judgment can be appealed. Collective disputes follow the separate machinery in Trade Unions and Collective Bargaining Law No. 6356, which also governs union recognition, collective agreements, and the regulated right to strike.
For employers, the practical lesson is documentary: warning letters, performance records, written consents for overtime, and a clear termination file are what win or lose a labour case. Turkish labour courts weigh the employer’s evidence heavily, and a dismissal that is correct in substance but undocumented often fails on proof. Building the file before the dispute, not after, is the single most effective risk-control step.
What should foreign employers know before hiring in Turkey?
Foreign-owned companies hiring in Turkey are bound by the same Labour Law No. 4857, Law No. 5510, and Law No. 6356 as domestic employers, with no lighter regime for international groups. Employing a foreign national additionally requires a valid work permit, and the employment contract should align with the permit’s scope and duration. Group-wide template contracts drafted for another jurisdiction routinely conflict with Turkish mandatory provisions on severance, notice, and leave, and those conflicting clauses are unenforceable here.
The recurring failure mode is importing a foreign employment playbook unchanged: at-will termination has no equivalent in Turkish law, severance is statutory rather than discretionary, and waivers signed at hire do not defeat mandatory entitlements. A short compliance review of contracts, payroll set-up, and the work-permit position before the first hire prevents the bulk of the disputes we see.
Frequently asked questions
Does Turkish labour law apply to a foreign company’s local branch?
Yes. Labour Law No. 4857 applies to any workplace in Turkey employing one or more workers, regardless of whether the employer is a Turkish company, a branch, or a representative office of a foreign group. The employer’s nationality does not change the statutory floor on severance, notice, leave, and social security under Law No. 5510. Contracts governed by foreign law cannot override these mandatory Turkish provisions for work performed in Turkey.
How is severance pay calculated in Turkey?
Severance is governed by Art. 14 of the former Labour Law No. 1475, which remains in force for this purpose. For employees with at least one year of service who qualify on termination, it is generally one month’s gross salary for each full year worked, with proportional treatment of partial years. A statutory ceiling applies to the salary base used in the calculation. Because that ceiling and the qualifying conditions are adjusted over time, confirm the figure in force at the date of termination.
What is the difference between termination with notice and just cause?
Termination with notice under Art. 17 requires advance notice of two to eight weeks (or pay in lieu) and, for qualifying employees, severance. Just-cause termination under Art. 25 allows immediate dismissal without notice or severance, but only for serious grounds such as gross misconduct or fraud, and the employer must be able to prove the cause. A just-cause dismissal that fails on evidence is treated as an invalid termination and can trigger reinstatement or compensation.
Is mediation mandatory before a labour lawsuit?
For most individual claims under Labour Law No. 4857, such as severance, notice, overtime, and reinstatement, mediation is a mandatory first step and a lawsuit filed without it is procedurally rejected. The process is designed to be fast and to reduce litigation cost. Collective disputes instead follow the dispute-resolution framework of Trade Unions and Collective Bargaining Law No. 6356.
Do foreign employees need a work permit to be employed in Turkey?
Yes. A foreign national generally requires a valid work permit to be lawfully employed, and the employment contract should match the permit’s role and term. Labour Law No. 4857 still governs the employment relationship itself, so the foreign employee enjoys the same statutory rights on leave, notice, and severance. Working without the required permit exposes both employer and employee to administrative penalties.
Related reading and next steps
Employment compliance rarely sits alone. Cross-border employers often pair it with Turkish data protection compliance under KVKK Law No. 6698 for handling employee personal data, with the legal framework for foreign investment in Turkey when establishing the local entity, and, for technical and design staff, with intellectual property and assignment-of-rights protection. Reviewing these together at set-up avoids gaps between the employment contract and the wider corporate structure.
If you are hiring in Turkey, terminating an employee, or facing a labour claim, our cross-border employment team can review your contracts, payroll, and work-permit position and represent you through mediation and the labour courts. Speak with us through our employment and work permit practice before the next hire or dismissal.
General information, not legal advice. Turkish law; verify your specific situation with qualified counsel.
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