Establishing compliant employment relationships in Turkey requires a thorough understanding of local labor law, particularly concerning employment agreements. These contracts serve as the foundational document outlining the rights and obligations of both the employer and the employee, ensuring clarity and legal protection for both parties. Adhering to the specific requirements set forth by the Turkish Labor Law is crucial for businesses operating or employing individuals in the country, mitigating potential disputes and legal challenges.
A well-drafted employment agreement in Turkey must reflect the nuances of the local legal framework, covering essential terms and conditions of employment. This includes defining the type of contract, specifying the scope of work, detailing compensation and benefits, and outlining procedures for modification and termination. Navigating these requirements correctly is key to fostering stable and legally sound employment relationships.
Types of Employment Agreements
Turkish labor law primarily recognizes two main types of employment agreements: indefinite-term and fixed-term. The distinction between these types is significant, particularly regarding termination rights and procedures.
| Contract Type | Description | Conditions for Use |
|---|---|---|
| Indefinite-Term | The standard type of employment contract with no specified end date. | Assumed unless an objective reason exists for a fixed-term contract. |
| Fixed-Term | An agreement with a defined duration or for the completion of a specific job. | Requires an objective reason related to the nature of the work or the specific conditions of its execution. Cannot be used solely to circumvent indefinite-term contract rights. Can be renewed, but repeated renewals without objective reason may convert it to indefinite-term. |
Indefinite-term contracts are the general rule under Turkish law. Fixed-term contracts are the exception and can only be used when there is a valid objective reason, such as performing a specific project, replacing a temporarily absent employee, or undertaking work that is inherently temporary. Using fixed-term contracts without an objective reason or repeatedly renewing them without justification can lead to the contract being deemed an indefinite-term contract by the courts.
Essential Clauses
Turkish labor law mandates the inclusion of certain essential terms in all written employment agreements. While not all contracts are legally required to be in writing (except for fixed-term contracts and those with specific conditions like part-time work), it is highly recommended to have a written agreement for clarity and proof.
Mandatory clauses typically include:
- Parties: Full names and addresses of the employer and employee.
- Job Description: A clear definition of the employee's duties and responsibilities.
- Workplace: The location where the work will be performed.
- Contract Duration: Whether the contract is indefinite or fixed-term (and the end date if fixed-term).
- Start Date: The date the employment commences.
- Wage: The amount of salary, how it is calculated, and payment frequency.
- Working Hours: The standard weekly working hours (maximum 45 hours per week).
- Leave Entitlement: Information regarding annual paid leave and other types of leave.
- Termination Notice Periods: The applicable notice periods for termination (unless the contract is fixed-term ending on its date).
- Other Terms: Any other specific terms agreed upon by the parties, provided they do not violate mandatory legal provisions.
Probationary Period
Employment agreements in Turkey can include a probationary period. This period allows both the employer and the employee to assess the suitability of the employment relationship.
- The maximum duration for a probationary period is two months.
- This period can be extended up to four months through collective bargaining agreements.
- During the probationary period, either party can terminate the contract without notice and without paying severance pay, provided the termination is made within the probationary period.
- However, even during probation, the principle of good faith must be observed, and termination should not be discriminatory or abusive.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are common additions to employment agreements, particularly for employees with access to sensitive information or in key roles.
- Confidentiality Clauses: These are generally enforceable in Turkey. They require the employee to keep company information confidential both during and after employment. The scope of confidential information should be clearly defined.
- Non-Compete Clauses: These clauses restrict an employee from working for a competitor or starting a competing business after leaving the company. For a non-compete clause to be valid and enforceable, it must meet strict criteria of reasonableness. This includes being limited in terms of:
- Scope: The type of work or business activity restricted.
- Geography: The geographical area covered by the restriction.
- Duration: The period for which the restriction applies (typically limited to a maximum of two years after termination).
- The restriction must also not unfairly hinder the employee's future economic activity. Overly broad or lengthy restrictions are likely to be deemed invalid by Turkish courts.
Contract Modification and Termination
Modification of an employment agreement generally requires the mutual written consent of both the employer and the employee. Any significant change to the terms and conditions of employment proposed by the employer must be communicated to the employee in writing, and the employee has six working days to accept the change. If the employee does not accept within this period, the change is not binding. If the employer insists on the change, they may terminate the contract by giving notice, provided they have a valid reason for termination.
Termination of an indefinite-term employment contract in Turkey can occur through various means, including:
- Mutual Agreement: Both parties agree to end the contract.
- Notice of Termination: Either party terminates the contract by providing the legally mandated notice period. The length of the notice period depends on the employee's length of service.
- Termination for Just Cause: Immediate termination without notice is possible in specific situations defined by law, such as serious misconduct by either party.
- Termination for Valid Cause: The employer can terminate the contract by giving notice if there is a valid reason related to the employee's performance, behavior, or the operational requirements of the business.
Fixed-term contracts typically terminate automatically upon the expiry of the agreed term or completion of the specific work, without the need for notice or severance pay (unless otherwise agreed or required by law in specific circumstances). However, fixed-term contracts can also be terminated early for just cause.
