Employment contracts in Turkey are governed by the Turkish Labor Law No. 4857. This law outlines two main categories of employment agreements, which are differentiated by their duration: indefinite-term and definite-term contracts.

Indefinite-Term Employment Contracts

Indefinite-term employment contracts are those that have no pre-defined end date. These contracts are the default form of employment agreement in Turkey and are presumed to be in effect unless otherwise specified in a written document. While not mandatory for validity, indefinite-term contracts exceeding one year in duration must be established in writing.

Definite-Term Employment Contracts

Definite-term employment contracts specify a fixed end date for the employment relationship. However, Turkish Labor Law imposes limitations on the use of definite-term contracts. Employers can only utilize definite-term contracts under specific circumstances, such as the completion of a particular project or under exceptional conditions. The justification for a definite-term contract must be clearly outlined in the written agreement. There's no set maximum duration for definite-term contracts. However, excessively long contracts may be challenged and potentially converted into indefinite-term contracts by courts.

Part-Time Work

Employment contracts can also be established for part-time work. Part-time working hours cannot exceed two-thirds of the standard full-time working week, which is capped at 45 hours.

Foreign Workers

Employment contracts with foreign employees must be established in writing for legal validity.

Remote Work (Teleworking)

The Labor Law also recognizes teleworking arrangements, though specific regulations for these contracts may be evolving.

In Turkish Labor Law, certain mandatory clauses in employment contracts ensure clarity and protection for both employers and employees.

Identification of Parties

The employer and employee should be clearly identified, including their full legal names and addresses.

Job Title and Duties

The employee's job title should be clearly defined along with a detailed description of their duties and responsibilities.

Remuneration and Benefits

The employee's base salary should be outlined, including currency and payment frequency. Any additional benefits offered, such as social security contributions, health insurance, overtime pay, and bonuses should also be specified.

Working Hours and Schedule

The standard working hours per week and daily working schedule should be defined. Details on breaks and rest periods should be included if applicable.

Leave Policies

The employee's entitlement to annual leave, sick leave, and other forms of paid or unpaid leave should be outlined.

Termination Clauses

The grounds for termination by either party should be described, including notice periods and required severance payments as mandated by the Labor Law.

Dispute Resolution

The process for resolving any disputes arising from the employment contract, such as mediation or arbitration, should be outlined.

This is not an exhaustive list, and additional clauses may be necessary depending on the specific circumstances of the employment relationship.

The Turkish Labor Law No. 4857 recognizes a probationary period as a tool for both employers and employees to evaluate compatibility during the initial phase of employment. This period allows for the assessment of skills, work ethic, and overall fit within the company culture.

Key Characteristics of the Probationary Period

• Maximum Duration: The maximum duration for a probationary period in Turkey is two months. This period can be extended to four months through collective bargaining agreements.
• Written Requirement: While not mandatory for the validity of the employment contract, the probationary period, if included, should be clearly outlined in the written agreement.
• Mutual Termination Right: During the probationary period, both the employer and the employee have the right to terminate the employment contract without notice or severance pay. However, this right to terminate should be exercised in good faith, and not for discriminatory reasons.

Purposes of the Probationary Period

The probationary period serves a dual purpose:

• Employer Evaluation: Employers can use this time to assess the employee's skills, knowledge, and work performance to determine if they meet the requirements of the position.
• Employee Evaluation: Employees also have the opportunity to evaluate the work environment, company culture, and suitability of the role for their career goals.

Considerations During the Probationary Period

• Performance Evaluation: Even though there's no obligation for formal performance reviews during the probationary period, employers are encouraged to provide constructive feedback to help employees adjust and improve their performance.
• Termination During Probation: If an employer decides to terminate the employee's contract during the probationary period, it's advisable to document the reasons for termination to avoid potential legal disputes.
• Probationary Period Not a Substitute for Notice Period: It's important to remember that the probationary period does not eliminate the requirement for notice periods or severance pay once the probationary period has ended.

In Turkish employment agreements, confidentiality and non-compete clauses are often incorporated to safeguard an employer's legitimate business interests. However, Turkish law sets specific restrictions on these clauses to maintain a balance between the protection of employer interests and employee rights.

Confidentiality Clauses

The Turkish Code of Obligations (TCO) stipulates an employee's duty of loyalty to their employer, which encompasses maintaining the confidentiality of any business information they acquire during their employment. This duty of loyalty is applicable throughout the duration of the employment contract.

Employers can further emphasize the protection of sensitive information by including specific confidentiality clauses within employment contracts. These clauses should explicitly define the type of confidential information the employee is obligated to protect, such as trade secrets, customer lists, or technical know-how.

Non-Compete Clauses

Non-compete clauses are governed under Article 444 of the TCO, which permits employees to undertake a written commitment not to compete with their employer after the employment relationship concludes.

However, Turkish law imposes limitations on the enforceability of non-compete clauses:

• Justification: The employer must have a legitimate interest to protect, such as trade secrets or customer relationships.
• Reasonable Scope: The clause's limitations on geographical area, duration, and type of work cannot unfairly restrict the employee's future career prospects. The maximum duration for a non-compete clause is two years, with exceptions only under special circumstances.
• Financial Compensation: In some cases, Turkish courts may require employers to compensate employees financially for the limitations imposed by a non-compete clause.

Drafting Effective Clauses

To ensure enforceability, confidentiality and non-compete clauses should be:

• Written: Both clauses must be clearly drafted and included in a written employment contract.
• Specific: Confidentiality clauses should define the specific confidential information protected. Non-compete clauses should clearly outline the geographical area, duration, and type of work restrictions imposed.

It's crucial for employers to consult with legal counsel when drafting confidentiality and non-compete clauses to ensure compliance with Turkish Labor Law and maximize the likelihood of enforceability.