Turkish Labor Law 2026: Employment Rules, Severance, and Compliance for Employers

Overview of Turkish Employment Law

Turkey's primary employment legislation is Labor Law No. 4857, supplemented by the Social Insurance and General Health Insurance Law (No. 5510), the Trade Unions and Collective Bargaining Law (No. 6356), and the Occupational Health and Safety Law (No. 6331).

Key characteristics of Turkish labor law:

Employee-protective orientation — the law generally favors employees in disputes
Mandatory provisions — most protections cannot be waived by contract
Broad coverage — applies to all workplaces with one or more employees (with limited exceptions for certain sectors)
Strong enforcement — the Ministry of Labor conducts regular inspections, and labor courts handle disputes

Employment Contracts

Written contracts are mandatory for employment exceeding one year
Indefinite-term contracts are the default; fixed-term contracts are permitted only for objective reasons (project-based work, seasonal demand, temporary replacement)
Probation period: Maximum 2 months (can be extended to 4 months by collective bargaining agreement)
Language: Contracts should be in Turkish; bilingual contracts are common for foreign employees

Working Hours, Leave, and Compensation

Working Hours

Standard work week: 45 hours, typically distributed as 5 days × 9 hours or 6 days × 7.5 hours
Daily maximum: 11 hours (including overtime)
Overtime: Capped at 270 hours per year; overtime rate is 1.5x the normal hourly wage
Weekend overtime: Paid at 2x the normal rate if the employee works on their designated rest day
Night work: Between 20:00 and 06:00; maximum 7.5 hours per shift

Annual Leave

Annual paid leave is mandatory and based on seniority:

1-5 years of service: 14 working days
5-15 years: 20 working days
15+ years: 26 working days
Employees under 18 or over 50 receive a minimum of 20 days regardless of seniority
Leave cannot be waived or compensated with pay during employment (only upon termination)

Minimum Wage (2026)

Turkey's minimum wage is set annually by the Minimum Wage Commission
As of 2026, the gross minimum wage is approximately TRY 26,000-28,000 per month (subject to government announcement)
Employer cost is approximately 20-22% above gross wage due to social security contributions

Mandatory Benefits

Social security (SGK): Employer contributes approximately 20.5% of gross salary; employee contributes approximately 14%
Meal and transportation: Not legally mandatory but extremely common and expected
Bonuses: No legal requirement for a 13th-month salary, but many employers provide performance or year-end bonuses

Termination and Severance Pay

This is the area most critical for employers to understand, as mistakes are costly.

Notice Periods

Notice periods depend on length of service:

0-6 months: 2 weeks
6 months - 1.5 years: 4 weeks
1.5 - 3 years: 6 weeks
3+ years: 8 weeks

The employer can pay wages in lieu of notice (notice pay).

Severance Pay (Kıdem Tazminatı)

Turkey's severance pay system is one of the most generous in the world:

Eligibility: 1+ year of continuous service with the same employer
Amount: 30 days' gross wages for each year of service (pro-rated for partial years)
Cap: Subject to a ceiling updated semi-annually (approximately TRY 35,000-40,000 per year of service in 2026)
Triggers: Severance is owed when employment ends due to:
- Employer termination (without just cause)
- Employee resignation for just cause (health, employer breach, moral reasons)
- Military service
- Retirement
- Death of the employee
- Female employees resigning within one year of marriage

Just Cause Termination

Employers can terminate without notice or severance only for "just cause" under Article 25 of the Labor Law:

Health reasons — employee unable to work due to illness exceeding notice period + 6 weeks
Immoral or bad-faith conduct — theft, harassment, substance abuse at work, breach of trust
Force majeure — circumstances making work impossible for more than one week

Critical warning: The burden of proof for just cause is on the employer. Turkish labor courts interpret just cause narrowly, and employers frequently lose termination disputes.

Reinstatement Protection

For workplaces with 30+ employees, employees with 6+ months of tenure have reinstatement rights:

If a court finds termination invalid, the employer must either reinstate the employee or pay 4-8 months' additional compensation on top of other entitlements
This makes Turkey one of the strictest jurisdictions for termination protection

Compliance Essentials for Foreign Employers

Work Permits for Foreign Employees

Foreign nationals need a work permit from the Ministry of Labor
The employer must demonstrate that the position cannot be filled by a Turkish national (the 1:5 ratio — at least 5 Turkish employees for each foreign employee)
Turquoise Card: A special permit for highly qualified professionals, offering indefinite work authorization
Processing time: 30-60 days for standard permits

Occupational Health and Safety

Employers must appoint an occupational physician and occupational safety specialist based on company size and risk classification
Risk assessments are mandatory for all workplaces
Employee health examinations required at hiring and periodically thereafter
Failure to comply can result in workplace closure and criminal liability in case of accidents

Record-Keeping

Payroll records must be maintained for 10 years
Employee files including contracts, leave records, and disciplinary actions must be preserved
SGK declarations must be filed monthly

FAQ

Q: Can I hire employees on consecutive fixed-term contracts in Turkey? A: Only if each contract has an objective justification. Successive fixed-term contracts without objective reason are automatically deemed indefinite-term, granting the employee full severance and termination protections.

Q: Is remote work regulated in Turkey? A: Yes. The Labor Law was amended to include remote work provisions. Remote work agreements must be in writing and specify work hours, equipment provision, expense reimbursement, and data protection measures.

Q: What happens if I don't pay severance on time? A: Severance pay accrues the highest bank deposit interest rate from the date it becomes due. Courts regularly award this interest, which can significantly increase the total amount owed.

Q: Do I need to provide a reason for termination? A: For workplaces with 30+ employees and employees with 6+ months of tenure, yes — you must provide a valid reason related to the employee's conduct, performance, or the operational needs of the business. Failure to provide a valid reason can result in reinstatement or additional compensation of 4-8 months' wages.

Q: Are non-compete clauses enforceable in Turkey? A: Yes, but with limitations. Non-compete agreements must be in writing, limited to a maximum of 2 years, and restricted in scope (geography, sector). Courts will narrow or void overly broad non-competes. Compensation for the restriction period is not legally required but strengthens enforceability.