Turkey Employer of Record

Turkey – Employer of Record

Turkey Employer of Record- In PEO Middle East we provide our partners with the best PEO and EoR services for when they want to employ workers and manage payroll without having to start a branch office or subsidiary in the country. In addition, we hire your potential candidate through our innovative PEO processes ensuring you comply with the employment and labor laws.

Turkey Employer of Record, Compensation and Benefits

Turkey Employer of Record- An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.


Table of Contents

  1. Overview
  2. Basic Information About Hiring in the country
  3. Holidays
  4. Bonuses in the country
  5. Turkey Working Hours
  6. Vacations in Turkey
  7. Sick Leaves
  8. Maternity/Paternity Leave
  9. Termination and severance
  10. Health Insurance in Turkey
  11. Additional benefits
  12. Turkey Taxes
  13. Employment Contracts
  14. Why PEO Middle East is the Employer of Record and PEO option in Turkey
Turkey Employer of Record

Overview

Therefore, working with us you ensure your candidate starts working in just a few days, skipping the usual month it takes. Likewise, we employ the employees and assign them to your staff, working for your business as if they were inner workers, fulfilling the position requirements.

Our PEO services and thorough Employer of Record solutions allow businesses in Turkey to run payroll while we take care of tasks such as taxes, compliance management, and HR and payroll processing. Therefore, in PEO Middle East we like to work with the best practices employment contract, mandatory and market benefits, and termination and severance if you require it.

Certainly, we also keep you informed and notified of all changes to employment and labor laws in Turkey.

Working side-by-side with us you ensure your new hire has a better onboarding experience, is fully dedicated to your business, and is productive sooner. Similarly, with our different services, we allow you to access the best manpower in more than 180 countries, effortlessly and rapidly.

Moreover, Turkey is at 2 or 3 from most European countries, making it the bridge between the EU and Asia. The government of the country offers non-tax and tax incentives to foreign investors including energy and R&D support, free land, VAT relief, flexible exchange rate policies, and unrestricted market entry.

However, when you find yourself in the process of negotiating an offer letter and employment contract in Turkey, make sure to keep the next key factors in mind:

Basic Information About Hiring in the country

Certainly, the process of acquiring visas and work permits for ex-pat workers requires coordination between the company, the Ministry of Labor, and the worker’s embassy and can take 3 months. However, services like engineering and architecture are more regulated and the approval can take up to 1 year.

However, employment in the country is shaped by Turkish Labor Law4857. In the same vein, these different laws cover all aspects of employment including paid time off, working hours, military service, termination, and employment contracts. Negotiating Collective Agreements and dealing with the Trade Unions is an important matter in the country and potential employers must keep an eye on this.

Holidays

Certainly, this country has 8 official public and paid holidays:

  • New Year’s Day
  • Children’s Day and National Sovereignty.
  • Solidarity Day and Labor Day.
  • Ramadan (Religious Holiday)
  • Sacrifice Feast (Religious Holiday)
  • Victory Day.
  • Commemoration of Ataturk, Sports and Youth Day.
  • Republic Day

Bonuses in the country

There are no mandatory bonuses in the country; however, some businesses grant their employees quarterly, bi-annual, or yearly bonuses.

Turkey Working Hours

The sum of the work hours cannot exceed 45 weekly, and workers must divide them into the days worked. Likewise, there is no standard workweek.

Similarly, if the working hours are more than 45 weekly, workers have the right to overtime pay. Companies must increase the worker’s hourly rate by half. In addition, workers are granted 1.5 of free time for each overtime hour worked. However, overtime rate sums can increase due to employment contracts or collective bargaining agreements.

Similarly, the sum of all overtime hours cannot exceed 270 per year.

Vacations in Turkey

All workers have the right to paid annual leave if they worked 1 continuous year for the same company, including the probation period. However, time off depends on the years of service of the worker:

  • 1 to 5 years: 14 working days.
  • +5 to 15 years: 20 working days.
  • 15 years or more: 26 working days.

Sick Leaves

Companies are not mandated to provide sick paid leave for their workers, but all workers have this right through the different disability programs the government offers. Further, most companies keep paying their full salary to employees while they are sick and deduct the same amount paid by the Social Security Institution from the worker’s salary.

Maternity/Paternity Leave

Female workers have the right to receive 8 weeks of maternity leave before and after the birth of the child. However, they have the right to childbirth, nursing, and lump-sum benefits.

Similarly, the labor law of this country does not specify provisions for paternity leave. Further, most companies grant paternity leave for up to 3 days after the birth of the child.

Termination and severance

Certainly, Turkish employment law gives the company a maximum of 2 months probation period where they can terminate the employee without penalty. However, the company must present the employee with an employment contract before the probation period expires. Likewise, both employee and employer can agree to extend this period to 4 months.

However, we recommend you consider termination terms when making an offer to a worker. Severance and termination payments are steep if they have not been taken into consideration with the overall budget.

Companies require advanced notice of termination to terminate an employment contract. Further, the organizations can terminate the contract if they have a cause. However, if there is no justification, they must comply with the termination notice periods that may vary depending on the length of the service of the worker. The minimum legal are stated next:

  • -6 months of employment service: 2 weeks of notice.
  • 6 months to 18 months of employment service: 4 weeks of notice.
  • 18 months and 3 years of employment service: 6 weeks of notice.
  • +3 years of employment service: 8 weeks of notice.

However, severance and termination payments are required to terminate a contract where or not there is no cause. Similarly, the worker must have been working for more than 1 year to obtain severance payment.

Further, this payment is calculated by multiplying the worker’s last 30 days’ gross income by the total years worked. However, the total severance sum cannot exceed the limit set by local labor authorities. Therefore, companies must pay the equivalent of the worker’s unused annual leave, unpaid overtime, and any other bonuses.

Health Insurance in Turkey

The healthcare system of this country contains a combination of mandatory public and private medical insurance. The Ministry of Health is responsible for coordinating social welfare tasks, and according to the constitution, all citizens have the right to social security. However, the public healthcare system is paid through public health insurance which is deducted from all the workers’ salaries.

Additional Benefits

Certainly, some companies provide cash allowances or meal vouchers, private healthcare, and/or company cars.

Turkey Taxes

Companies and workers must contribute to social security premiums. Similarly, companies must pay for both their part and the part of the worker. However, this is deducted from the worker’s salary.

In the same vein, all social security contributions are 14% paid by the worker, and 15% to 20% is paid by the company.

In other words, unemployment contributions rates are 1% and are paid by the worker, 2% paid by the organization, and 1% paid by the state.

Turkey Employer of Record- Employment Contracts

Companies must write employment contracts for indefinite period terms in the local language. Likewise, this contract must state the terms of:

  • Employee compensation.
  • Termination requirements.

However, the contract currency must be in Turkish Lira.

Why PEO Middle East is the Employer of Record and PEO option in Turkey

Registering a branch office or setting up a subsidiary in the country even to engage a small team of workers is an expensive and time-consuming process. Likewise, the Turkish employment laws have massive employee protection policies, this makes you pay great attention to details and understand the best local practices.

In PEO Middle East we allow you to easily expand into Turkey. In addition, we can assist you in onboarding the candidate you want, running payroll, managing HR processes, and ensuring you comply with the different local laws. All of this without having to establish a subsidiary or a branch office.

However, our different PEO and Employer of Record solutions will allow you to focus on important tasks like running your company instead of wasting time with tedious processes.

If you would like to discuss how PEO Middle East will provide you with the best Turkey Employer of Record and PEO services; you can email us via [email protected]. Or you can call us if you want at +971 433 1 688.

Turkey Employer of Record, Payroll and Managing HR processes

Turkey Employer of Record- In PEO Middle East we allow you to easily expand into Turkey. In addition, we can assist you in onboarding the candidate you want, running payroll, managing HR processes, and ensuring you comply with the different local laws. All of this without having to establish a subsidiary or a branch office.