Overview of Labour Law

Possible types of Employment Agreement (temporary/fixed term, etc..), possible extensions and possible conversions of fixed term Contracts
1. Indefinite Period Employment Contract
2. Definite Employment Contract
  1. This type of contract has to be prepared in written form and one original copy must be delivered to the employee
  2. The contract must be subject to objective condition such as a specific project of which starting date and finishing date is certain or a specific completion of building or structure.
  3. If there is an essential reason, you can renew the contracts multiple times until the essential reason disappears
  4. When essential reason disappears, the contract becomes Fixed-Term Employment Contract if it is not terminated
3. Part-Time Employment Contract
  1. The working time of the employee signing Part-Time Contract is pretty less than full time-employees’
  2. He/she is allowed to work max. 30 hours weekly
4. On-Call Employment Contract and Remote Employment Contract
  1. This is a kind of Part-Time Employment Contract. The contract is prepared in written. If there is no appointed working time in the contract, it is considered 20 hours weekly legally. Even if the employee is not called in those 20 hours, he/she entitles the salary amount in the contract
  2. The Parties shall agree when scope of his job emerges, the employee will perform the activities that is determined in the contract.
  3. If there are enough devices in house of the employee or another place distinct from the workplace, the employee is allowed to perform his job (remote working or home-office)
5. Team Employment Contract
  1. The contract shall be prepared in written
  2. It is signed by employer and leader of the team
  3. Each member of team gets paid separately.

Duration of trial period, working hours, rest period, number of paid and unpaid leaves?
1. Trial period: 2 months. But this may be extended by 4 months only in Collective Employment Contract
2. Working time: weekly working time: 45 hours. For part time; max 30 hours.
3. Rest Period: Daily working time 7,5 hours, it’s 30 minutes. Daily working time over 7,5 hours, it’s 1 hours.
4. There is no limitation for unpaid leaves. However, Paid leaves depends on age of the employee and seniority. The employee entitles annual leaves if he turns 1-year working in same workplace based on his seniority
  1. 1-5 years seniority 14 days paid leave
  2. 6-15 years seniority 20 days leave
  3. 16 years< 26 days paid leave
  4. If the employee younger than 18 and older than 50 always entitles 20 days paid leave. it is not necessary to have 1-5 years seniority.
Conditions and cost regulating maternity leave:
1. Totally 16 weeks. 8 weeks before birth, 8 weeks after birth. For multiple pregnancy; totally 20 weeks. On the other hand, if she has a medical certificate by doctor which indicates she can be working until 3 weeks left to birth, in this case she has 13 weeks maternity leave after delivering a birth.
2. If the employee likes, she can have 6 month-unpaid leave.
3. The employee is paid by Social Security Institution (SGK)
Conditions and cost regulating sick leave: If the employee does not have any of medical certificate, the employer does not have to pay sick leave. But he/she has 3 days medical certificate by doctor in this case SGK pay him 2/3 of daily gross salary.
Salary cost to the Company: Company/Employer has to pay 20,5% Social Security Contribution and 2% Unemployment Contribution. That means salary cost Gross Salaryx1,225. For example: One of the employee’s annual gross salary 100.000 TL. The cost is 100.000 x 1,225=122.500 TL
Overtime Cost to the Company: 3 Type of Overtime
Weekdays overtime (Monday-Saturday) 50% increased hourly wage
National days overtime 200% increased hourly wage (1-hour normal working+100% increased)
Sunday overtime 250% increased hourly wage (1 hour normal+150%increased)
Mandatory increases by seniority or whatever: Exception with minimum wage, no mandatory increase on salary of the employee by seniority. However, if there is a specific article regarding a pay rise, in this case it is mandatory
Variable expenses cost to the Company (allowance, insurance policy, etc.): Following expenses are subject to Social Security Contribution and Tax and they increase salary cost. Commission, bonus, transport allowance, meal allowance, annual leave payment, private pension and private insurance. However, the allowances paid by employer to the employee in order to performing a specific job outside workplace or a business travel are exempt from tax and social security contribution providing that they don’t exceed following amounts.

01-07-2021 – 31.12.2021
GROSS SALARY	Daily allowance amount exempted from Tax and Contribution
4.522,26 TL and over	73,50 TL
4.489,90 TL – 4.522,25 TL	61,65 TL
4.094,34 TL – 4.489,90 TL	57,55 TL
3.590,91 TL – 4.094,33 TL	54,05 TL
2.978,70 TL -3.590,90 TL	47,65 TL
2.978,69 TL	46,35 TL

Conditions and cost regulating termination by resignation (notice, etc..): If resignation, there is no severance. The Employer may want the Employee to pay the notice if the Employee doesn’t ask to work during notice period. Please note that even if employee resigns and works during notice period, the employee has right to have daily 2 hours permission.
Conditions and cost regulating termination by dismissal (severance, notice, etc..): The employee gets paid with severance, notice by his/her seniority.
1. Severance: The employee entitles severance payment if his/her working time turns 1 year in same work place, if the contract is terminated by the employer. The severance payment is calculated as per 30-days gross salary of the relevant employee as long as the gross salary does not exceed upper limit of severance payment. Upper limit of second half of 2021 is 8.284,51 TL. Besides, there are a few conditions that the employee never entitles severance payments, such as insulting to employer or others, harassment to another staff, being drunk in office, using drugs etc.
2. Notice: If the employer intends to terminate the employment contracts, he has to inform the employee notice period indicated below before termination
  1. Working time; begining-6 months; 2 weeks
  2. Working time; 6 months – 1,5 year: 4 weeks
  3. Working time: 1,5 year – 3 years : 6 weeks
  4. Working time over 3 years : 8 weeks
Conditions and cost regulating termination by mutual agreement. If the employer and the employee consent to a separation in this case the parties implement a termination by mutual agreement. The advantage of termination by mutual in aspect of the employer, the employee cannot file any lawsuit in order to return work place. However, the employer is supposed to make severance, notice and some additional payments to said employee.