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Hiring in Türkiye: Key Labor Laws and Employer Risks in 2026

In 2026, Türkiye stands at the crossroad of rapid transformation, attracting the attention of employers worldwide. I have watched this country’s employment climate evolve, shaped by legislative shifts, economic ambitions, cross-border investments, and the practical realities on the ground. Hiring employees in Türkiye can become a tremendous opportunity—but also one filled with questions and risks.

Today, I want to offer a clear, up-to-date overview for those setting out to grow their international business footprint. This article is dedicated to businesses, HR leaders, C-level executives, and anyone tasked with building teams in the Turkish market. With experience guiding companies through exactly these issues at EWS Limited, I have seen just how critical a strong understanding of Turkish labor law and employer obligations can be for long-term success.

Understanding Turkey’s labor legal landscape in 2026

The foundation of employment arrangements in Türkiye has not changed: the guiding reference is the Turkish Labor Act (Law No. 4857), complemented by the Code of Obligations and various regulations and communiqués. But since 2023, new amendments have been phased in, all with one goal in mind—bringing Turkish labor conditions in line with those of the most dynamic economies in Europe.

As I research for 2026, I find that a few themes dominate:

  • Protection for workers, including mandatory benefits and contractual clarity
  • Promotion of flexible working, remote models, and digital documentation
  • Closer scrutiny of compliance for both local and foreign employers
  • More rigorous enforcement with penalties for violations on the rise

Let’s look at these legal principles more closely, so you can understand exactly what is expected when you hire in Türkiye.

Law office desk with Turkish flag and legal documents The employment contract: Terms, written form and digitalization

Every legal hire in Türkiye begins with a solid employment contract. I’ve seen confusion arise when informal arrangements are made, but under Turkish law, clarity is not just preferred—it is demanded.

  • Under Law No. 4857, all employees working 30 days or more must receive a written contract or, at minimum, a written statement of essential terms
  • Digital contracts are legal and widely used by 2026, especially for remote hires
  • Key contract elements: salary, job description, working time, paid leave and termination terms

Foreign language contracts are allowed if both parties agree, but Turkish must prevail in disputes. For cross-border teams, it’s wise to prepare bilingual agreements for clarity and enforceability.

Failure to provide a written contract can lead to penalties, back payment of wages and benefits, or even legal action. So, I always recommend prioritizing documentation at the very start.

Working hours, holidays, and overtime rules

Working time in Türkiye has a structure familiar to most European HR professionals, but with its own nuances:

  • Normal weekly working hours are limited to 45
  • Daily working time cannot exceed 11 hours
  • Overtime is permitted only with written agreement and has capped limits (up to 4 hours a day, 270 hours annually)
  • Overtime pay must be at least 1.5x the regular hourly rate
  • All employees are entitled to at least 24 continuous hours of rest per week

National holidays in Türkiye include public and religious observances. Employers must compensate employees who work on these days with either substitute rest or increased pay, as covered by the most recent labor regulations.

Leave entitlements have also been strengthened. In my experience, companies with international staff are sometimes surprised by the specific holiday and sick leave rules. Annual paid vacation increases with seniority, starting at 14 days for employees with up to five years of service, and ranging to 26 days for those with more than 15 years.

Social security, tax and payroll obligations for employers

Payroll management in Türkiye can feel complex because it bridges local compliance requirements and international employment standards, which is what we handle at EWS Limited. When you want to hire talent not just from Türkiye, but around the world, these issues become even more pronounced.

  • All employers must register their employees with the Social Security Institution (SGK) and withhold the correct premiums
  • Monthly contributions are made for old-age, disability, health insurance, and unemployment
  • Income tax is withheld at source; in 2026, progressive rates remain with periodic indexation
  • Both employers and employees contribute, increasing the overall cost of hiring

The payroll process in Türkiye involves strict deadlines and documentation. Delays or omission can trigger fines—or worse, jeopardize work permits for foreigners.

At EWS Limited, my team consistently helps international businesses set up compliant payroll, integrating multi-currency and remote worker models. This support prevents small administrative mistakes from turning into major compliance headaches.

Payroll processing workspace with Turkish currency and digital tools Social security, insurance, and workplace safety

The Turkish labor market has seen much work in 2025–2026 to address worker safety risks and compliance. Occupational health and safety regulations require both local and foreign companies to invest in assessments, employee medical checks, and certified training, as required by law.

“Workplace accidents and fatalities remain a top concern for anyone hiring in Türkiye.”

According to Equal Times referencing Health and Safety Labor Watch data, over 1,371 workers lost their lives in workplace incidents in Türkiye in the first nine months of 2024 alone—a number that is uncomfortably high compared to EU averages. These statistics are not only a somber reminder of the duty of care, but also of the strict enforcement regime employers now face.

  • Mandatory risk assessments and health checks for specified sectors
  • Provision of personal protective equipment and safety training
  • Obligation to keep detailed incident records and report serious injuries/deaths

Failure to maintain high safety standards will now lead to both labor and criminal sanctions.

Employers must also offer mandatory private insurance in certain sectors and document all compliance actions.

Protecting employee rights and unions in 2026

Türkiye maintains a mixed record for union rights and collective bargaining. Rapid economic changes since 2024 have led to new protections for union activities and employee representation, especially in technology, finance, and logistics.

  • Employees have the right to join unions and engage in collective bargaining without discrimination
  • Dismissal solely for union activity is strictly banned
  • Employers must consult with unions or workplace representatives for redundancies and some policy changes

But enforcement is not always straightforward. The ITUC Global Rights Index continues to list Türkiye among countries with weak labor inspection and challenges for union organizing, despite the reforms. As an employer, maintaining open communication channels and recording all union-related decisions is the best way to reduce risk.

I have seen tech companies and startups face quick labor actions when gaps in union communication emerged—a reminder that local HR policies should always align contract terms and workplace practices with Turkish law.

Termination, severance, and redundancy: rules and risks

Employee terminations in Türkiye remain an area where I see frequent misjudgments from international companies. I always tell clients: “Assume your legal exposure will be greater than you think.”

Individuals employed continuously for at least six months in workplaces with 30 or more staff are protected by ‘job security’ clauses. In these cases:

  • Termination must have valid ‘cause’, e.g., performance or disciplinary grounds, economic reasons, or redundancy
  • Advance written notice periods apply, depending on length of service
  • Severance pay is mandatory for employees with at least one year’s service, except in cases of serious misconduct

Severance is calculated as 30 days’ gross salary per year of service, limited by an annual ceiling. Dismissals not meeting cause requirements may lead to reinstatement orders or compensation payments.

In my experience, many foreign founders overlook the redundancy consultation requirements. Employers must notify trade unions or elected workplace representatives prior to mass layoffs and inform both SGK and the provincial government office. Skipping a step can entangle a business in long disputes.

Special considerations: Foreigners, remote workers, and freelancers

Türkiye’s laws set a clear path for local hires, but many international firms also want to bring in foreign staff or engage remote/freelance talent for flexibility. What should you know before you proceed?

  • Work permits are required for nearly all non-Turkish nationals, with special quotas for certain roles and sectors
  • Permits must be secured before commencing work; illegal employment can lead to business closure or fines
  • Remote work agreements must clarify the applicable law and social security contributions
  • Freelancer relationships are scrutinized for ‘disguised employment’—misclassification risks are significant and growing

The Turkish Ministry of Labor and Social Security increased its audits in 2025–2026, especially for technology and services companies. Employers should ensure clear contracts, document work arrangements, and check actual working conditions, not just titles.

For practical tips on managing these nuances and the risks of misclassification, I recommend reading the legal risks of misclassifying international workers guide at EWS Limited.

Diverse international team meeting in modern Istanbul office Remote and hybrid work: New laws and compliance points

Hybrid and remote arrangements continue to reshape labor practices in Türkiye. Updates rolled out since 2025 require formal remote working agreements and policies—a trend I have seen spreading in IT, finance and startups.

  • Remote/hybrid workers retain all standard rights: minimum wage, paid leave, rest breaks, and termination protections
  • Employers must document health and safety measures for remote roles
  • Data privacy rules apply fully, given the rise of digital HR tools

Missteps in classifying remote employees, especially when hiring across borders, create risks for tax residency, double social security payments, and more. Companies seeking a scalable HR model for Türkiye and beyond use frameworks like those in the international HR strategy guide from EWS Limited.

Pay, benefits, and compensation structure

Local salary benchmarks in Türkiye shift year to year, especially due to currency fluctuations or economic shocks. The government updates the net minimum wage twice yearly. In 2026, new rules also affect supplemental benefits:

  • Minimum wage reviews are now based on official inflation data and sector-specific needs
  • Statutory benefits now cover meal/lunch allowances, transport subsidies, and employer contributions to private pensions
  • Common perks: bonuses, health insurance top-ups, flexible benefits, and professional development budgets

All compensation must be paid through traceable channels; cash payments are banned except in rare, regulated cases.

Employers are also required to report pay data periodically to the Ministry as part of anti-discrimination and pay equity audits.

Key employer risks: What keeps HR and C-levels awake at night?

As I talk to clients entering the Turkish market, their biggest concerns usually fall into the following groups:

  • Risk of payroll miscalculations, late reporting, or missing documentation
  • Work permit or misclassification violations, especially for non-standard work or foreigners
  • Failure to apply updated leave, overtime, and termination rules amid changing laws
  • Disputes over language of contract, especially when hiring cross-border or remote staff
  • Occupational health and safety incidents, which can bring legal and reputational consequences

“It’s the gaps in compliance, not the obvious crimes, that often bring the biggest problems in Türkiye.”

These risks demand a proactive approach. Regular compliance audits, up-to-date documentation, and local HR expertise are all steps that help avoid unwanted surprises.

To help you refine your compliance checklist, look at the step-by-step hiring compliance checklist provided by EWS Limited.

Engaging outside experts: Employer of record and company formations

Many international companies reduce their risk by partnering with local Employer of Record (EOR) or professional HR solution providers. In Türkiye, this external partnership model allows startups and growth-stage firms to hire teams almost immediately, while meeting every legal requirement for contracts, payroll, and benefits.

If speed, scale, or peace of mind are your goal, this model can be highly effective. For those considering direct legal entity formation in Türkiye, the process is formalized but accessible. You will need to:

  • Choose the company type (Ltd., joint-stock, branch, etc.)
  • File formal articles with the Central Registration System (MERSIS)
  • Secure tax, SSI and trade registry numbers
  • Set up payroll reporting, social security, and mandatory insurance for all employees

Each step above is strictly regulated, with digital processes for almost all filings as of 2026.

You can learn more about these options or get tailored support for hiring on the Türkiye Employer of Record services page at EWS Limited.

Practical tips for successful hiring in Türkiye

Drawing on daily work with employers and local partners, I suggest the following practical guidelines for 2026:

  • Use written, bilingual employment contracts—even for temporary or remote workers
  • Monitor labor legislation changes every six months to stay ahead
  • Centralize HR documentation, payroll, and reporting using digital platforms
  • Consider third-party EOR or local expert partners to simplify setup and compliance, especially for non-Turkish speakers
  • Engage with unions, occupational health and local authorities proactively in higher-risk sectors
  • Always document terminations and disciplinary actions in detail

And most importantly,

“Hiring in Türkiye is a gateway to growth—but it demands real investment in compliance, safety, and local knowledge.”

Embracing growth: Türkiye’s future as a business hub

Türkiye’s growing appeal for international employers is no accident. With world-class tech talent, fast adoption of flexible work models, and a regulatory environment now closely aligned with Europe, the potential for new business in Türkiye is increasing year after year.

Those employers who invest in understanding the labor landscape—and can show a real commitment to their teams’ legal rights and well-being—will always find the best talent and avoid regulatory traps.

EWS Limited stands ready to guide companies through every stage of expansion, helping turn legal requirements into strategic strengths for growth. If you are ready to expand in Türkiye, or want a reliable partner for hiring, onboarding, payroll, and compliance strategy, contact EWS Limited to start building your presence with confidence and clarity.

Frequently asked questions

What are the main labor laws in Türkiye?

The most critical legislation for employment in Türkiye is the Labor Law No. 4857, which defines terms for contracts, working time, basic rights, and termination. Other major laws are the Social Insurance and General Health Insurance Law No. 5510, and sector-specific regulations for occupational health and trade union rights. These laws are supported by regular government communiqués and enforcement actions, which are updated every few years.

How to legally hire employees in Turkey?

To legally hire in Türkiye, you should:

  • Arrange a written contract with all critical terms, in Turkish or bilingual if preferred
  • Register the employee with the Social Security Institution (SGK)
  • Set up payroll records to manage tax and premium withholding
  • Offer the minimum statutory benefits and document every stage
  • If hiring foreigners, secure work permits before starting employment

Careful due diligence prevents liabilities and penalties.What are common employer risks in Turkey?

Common risks for employers in Turkey in 2026 include payroll reporting errors, misclassification of freelance or remote staff, incomplete employment contracts, non-compliance with leave and overtime rules, and occupational health and safety failures. Penalties in Türkiye can be both financial and criminal for repeated or severe breaches, and may also include business suspensions or immigration restrictions.

How much does hiring in Türkiye cost?

Costs of hiring in Türkiye include gross salary, employer’s social security contributions (around 20.5% of salary, subject to periodic changes), unemployment insurance, bonuses, statutory allowances, and any agreed supplemental benefits such as health or lunch allowances. You should also budget for professional HR or payroll support, as compliance failures can become expensive. The minimum wage and costs are updated biannually, so always double-check the latest rates.

Is it easy to hire foreigners in Turkey?

Hiring foreigners in Türkiye is perfectly allowed but not simple. It requires obtaining work permits and meeting quota rules (like a minimum ratio of Turkish citizens to expatriates in a company). Noncompliance can trigger heavy fines and deportations. With the right planning, paperwork, and guidance—especially from a partner such as EWS Limited who specializes in international mobility—it becomes much easier and safer to employ global talent in Türkiye. For more, review practical tips in this guide to international mobility.

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