Turkish Labor Law No. 4857: A Comprehensive Guide for Employers

Turkey’s labor market is regulated primarily by Labor Law No. 4857. This legislation ensures a balanced relationship between employers and employees, providing a framework for working conditions, contracts, and termination procedures.

At Atlas Global Audit & Accounting, we provide specialized consultancy to ensure your business remains fully compliant with these statutory requirements.

1. General Definitions and Scope

The law applies to almost all establishments and employees in Turkey, with few exceptions (such as sea/air transport or very small agricultural activities).

• The Establishment:Includes all annexed facilities (restrooms, nurseries, dining rooms) and company vehicles.
• Employer’s Representative:Managers acting on behalf of the employer. The employer is directly liable for the representative’s conduct toward employees.
• Subcontracting:A principal employer can hire a subcontractor for auxiliary tasks. However, the principal employer remains jointly liable for the subcontractor’s employees’ wages and social security rights.

2. The Principle of Equal Treatment

Discrimination based on language, race, sex, political opinion, or religion is strictly prohibited.

• Non-Discrimination:Employers cannot treat part-time or fixed-term employees differently than full-time or indefinite-term peers unless there is a justifiable reason.
• Equal Pay:Differential remuneration for work of equal value based on gender is illegal.

3. Types of Employment Contracts

• Indefinite Term (Open-ended):The standard contract where no end date is specified.
• Definite Term (Fixed-term):Must be in writing and based on objective conditions (e.g., a specific project). Successive renewals (chain contracts) without essential reason convert the contract to an indefinite term.
• Probation Period:Parties can agree on a trial period of maximum two months (can be extended to four months via collective agreement). During this time, either party can terminate without notice or compensation.

4. Termination of Employment and Notice Periods

Terminating an indefinite contract requires a prior notice period based on the employee’s seniority:

• Less than 6 months:2 weeks notice.
• 6 months to 1.5 years:4 weeks notice.
• 5 years to 3 years:6 weeks notice.
• More than 3 years:8 weeks notice.
• Pay in Lieu of Notice:Employers may terminate immediately by paying the wages corresponding to the notice period in advance.

Job Security and Valid Reasons

In workplaces with 30 or more employees, an employer must have a valid reason (related to the employee’s conduct or operational requirements) to terminate an employee with at least 6 months of seniority. Failure to provide a valid reason may lead to a re-employment lawsuit.

5. Wages and Remuneration

• Currency:Wages must be paid in Turkish Lira (TL) or deposited into a bank account.
• Protection:Only up to 1/4 of an employee’s monthly wage can be seized or assigned to third parties.
• Wages Guarantee Fund:Established to protect employees if an employer becomes insolvent.

6. Working Hours and Overtime

• Standard Hours:Maximum 45 hours per week, distributed equally among working days.
• Daily Limit:Working time cannot exceed 11 hours in a single day.
• Overtime Pay:Work exceeding 45 hours/week must be paid at 5 times the normal hourly rate. Alternatively, employees can request 1.5 hours of free time for every hour of overtime.
• Annual Overtime Cap:Cannot exceed 270 hours per year.

7. Protection of Health, Safety, and Families

• Rest Breaks:Mandatory breaks (15 to 60 mins depending on shift length) are not counted as working time.
• Maternity Leave:16 weeks total (8 before, 8 after confinement).
• Nursing Leave:5 hours daily for children under the age of one. This time counts as part of the daily working hours.
• OHS Obligations:Employers are strictly required to take all measures for occupational health and safety, provide training, and report accidents within two working days.

Compliance Matters: Administrative Fines

Non-compliance with Law No. 4857 results in administrative fines, which are updated annually by the Ministry of Labor. Common violations include:

• Failure to pay the minimum wage.
• Violation of overtime limits.
• Failure to keep personnel files or provide wage slips.
• Illegal termination of disabled or ex-convict quotas (applicable to firms with 50+ employees).

Protect your business from legal risks. Atlas Global Audit & Accounting provides end-to-end payroll, legal compliance, and labor law advisory services in Turkey.