EmploymEnt law ovErviEw 2017 - L&E...

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EmploymEnt law ovErviEw 2017

Turkey

i. GEnEral 01ii. hirinG practicEs 03iii. EmploymEnt contracts 04iv. workinG conditions 06V. Anti-DiscriminAtion LAws 10vi. social mEdia and data privacy 12vii. authorizations for forEiGn EmployEEs 13 viii. tErmination of EmploymEnt contracts 15iX. rEstrictivE covEnants 19X. riGhts of EmployEEs in casE of a transfEr of undErtakinG 21Xi. tradE unions and EmployErs associations 22

Xii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits 25

Table of contEnts

an alliance of employers’ counsel worldwide www.leglobal.org

• TurkishCodeofObligationsLawNo.6098• TurkishCodeofCivilLawNo.4721

3. NewDevelopments

a)LaborJurisdictiondoesnotprotectthemanagingdirectorand/ormanagingpartneranymore.Accordingtoarticle4oftheTurkishcommercialcode,alldisputesarecommerciallitigations,regardlessofthetwopartiesbeingmerchantsornot.Forthosedisputes,pursuanttoarticle5oftheTurkishcommercialcode,thetradechamberoftheregionalcourtisfactuallyresponsible.Sincetherelationbetweenthejoint-stockcompanyandtheboardofdirectors/managingdirectorisregulatedinarticle365etseqqoftheTurkishcommercialcode,theselawsuitsarealsonegotiatedinfrontofthetradechamberoftheregionalcourt.

InoneofthemostrecentdecisionsoftheTurkishcourtofcassation(11.civildivisionfrom05/10/2015,2015/8681E.,2015/9883K.)ithasbeendecidedthatlawsuitsbetweenajoint-stockcompanyandtheboardofdirectors/managingdirectorhavetobenegotiatedinfrontofthetradechamberoftheregionalcourtandnotinfrontofthelaborcourt,eventhoughtherelationshiphasbeendefinedasanemploymentrelationship.Thisisalsothecaseiftheboardofdirectors/managingdirectorhasagreedonajointsigningauthorityandtheirsigningauthorityisrestrictedorlimited.Thecompetenceofthetradechamberdoesalsoapplyforlawsuitsbetweenalimitedcompanyanditsmanagingdirector.

b)Flexibleworkingmodel:SinceMay2016,asubstituteemployment-workingmodel(Geçiciİşİlişkisi)hasbeenintroduced.Itnamed“temporaryemploymentrelationship”bylaw.Accordingtothenewregulation,indifferentspecificcases,atemporaryworkingemploymentrelationshipmaybearranged.Atemporaryrelationshipmayonlybearrangedeitherbyanemploymentagencyorwithinabusinessgroup.Theemployermaytransferemployeeswithinthebusinessgroupifthereisawrittenconsentoftheemployee.Inthiscasethetemporaryemploymentrelationshipmayonlyexistforsixmonthsandmaybeextendedtwotimesatmost.

Incasetheemployeehasbeenemployedonlytemporarilybyanemploymentagency,oneofthefollowingconditionshastoapply:


i. GEnEral

1. IntroductoryParagraph

Labor law regulates the legal relations that arisefrom the work that is done. The work can be doneeitherbydependingon someone,orbeingpartof anorganization.Asaprinciple,laborlawdoesnotincludeevery dependent employee. It regulates the relationsbetween the employers and the employees regardingtheemploymentcontract.

Employeesthatworkforthesea,airandpressindustriesareexcludedfromtheCodeofLaborno.4857.Thereasonisthat,itisrequiredtosubsumethespecificregulationsunderthespeciallaw.Thatbeingsaid,provisionsinthecodeofobligationscanbeappliedtothesubjectsthatdonotappearinthecodeoflabororotherspeciallaborcodes. Thus the problems that can occur because ofthedeficiencyinthespeciallaborcodesarepreventedthroughthecodeofobligations.

ApplicationoftheTurkishlaborlawstandsoutforbeingopentothejudicialdecisionsamongtheotherbranchesof law. The accepted perspective of the judiciary is asignificantpartofthesolutionstotheproblems.

Laborlawhasadynamicstructurethatallowsaconstantdevelopment and evolution regarding its legal scope.Therewith, labor law is mainly divided into 3 parts:Generalprinciplesoflaborlaw,individuallaborlawandcollectivelaborlaw.

2. LegalFramework

The Turkish professional life is generally divided intofourmainlaws:

• LaborLawNr.4857• TradeUnionLawandLawonCollectiveAgreements Nr.6356• LawforOccupationalSafetyandHealthNr.6331• SocialSecurityLawnr.5510

Besidesthese,therearenumerousregulationsregardingthefourmainlaws.Otherregulationsonlaborlawarealsoincludedin:

www.leglobal.org

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• Duringtheparentalleave,maternityleave,nursing periodandduringunpaidvacationuntilthethird yearofthechild(onlyaslongastheseconditions apply)• Duringthemilitaryservice(onlyaslongthese conditionsapply)• Housekeepingservice(possibleforanindefinite period)• Workwhichhasonlytobedoneirregularlyandis notconsideredasusualworkofthecompany• Inurgentcasesduetoworkhealthandsafety• Inurgentcaseswhichwouldaffectproduction immensely• Incaseofanunexpectedandunforeseeable raiseofthegoodsandservicecapacityrequiringa temporaryworkrelationship• Duringaperiodicworkingincrease(Atmostfor fourmonths)• Theemployerofthetemporarilyworking employeeistheemploymentagency.


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Qualifiedpersonnelcanbefoundinnewspaperadvertisements.Companieslookingforemployeesannouncevacantpositionsinthenewspapersupplementsofvariouspapers,whichmostlyarepublishedonSunday.Basedonthereceivedapplication,thecandidatesaregenerallyinterviewedbythecompanyitselfandnotbythirdparties.Internetportalsforjobseekersarealsofrequentlyusedbyboththeapplicantsandthecompanies.Furthermorequalifiedstaffcanalsobefoundvianationalemploymentagenciesorheadhunters.ThecommissioningofrecruitmentagencieshasgainedmoreandmorepopularityinTurkeyduringthelastyears.

TheTurkishemploymentofficeisalsoactiveinplacingalltypesofjobpersonnel.


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ii. hirinG practicEs


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iii. EmploymEnt contracts

1. MinimumRequirements

According to the Turkish Labor Law, employmentcontracts formore than one year, group employmentcontractsandemploymentcontractson request,havetobedrawnupinwrittenform.Besidesthattemporaryemploymentcontractshavetobedrawnup inwrittenformaswell.Incaseofanon-compliancewiththeform,the contract is invalid. The invalidity does not have aretroactiveeffect.Probationtimeisgenerally2monthsbut can be extended through a collective agreementupto4months. Inprincipleall regulationshavetobeinterpretedinfavoroftheemployee.

Work tasks which due to their nature usually lastmaximum 30 days, are considered as non-permanentwork. Work tasks lasting more than 30 days areconsidered as permanent work. For non-permanentwork the regulations of the law of obligations isapplicableinsteadofthelaborlawregulations.

2. Fixed-term/Open-endedContracts

Fixedtermandopen-endedcontractsarebothregulatedin the new Turkish Labor Law from 10.06.2003.Within this law, employment contracts are for thefirst timedetailed defined and regulated. Accordingly,employment contracts formore than one year, groupemployment contracts and employment contracts ondemand, have to be drawn up in writing. Fixed-termcontractsgenerallyhavetobedrawnupinwrittenform.Incaseofnon-compliancewiththerequiredform,theemploymentcontractisinvalid.Theinvaliditydoesnothavearetroactiveeffect.

Worktaskswhicharelastingformaximum30daysdueto their nature, are considered non-permanent.Worklastinglongerthan30daysisconsideredaspermanentwork. In case of non-permanentwork, instead of theLaborLaw,theLawofObligationsisapplicable.

Fixed-term and open-ended contracts are regulatedwithin the Labor Law, whereas not only contractsdetermined by the parties as fixed-term contracts,but also those that are objectively considered fixed-term contracts. Besides that and according to the

jurisdiction of the Turkish Court of Cassation, fixed-termemploymentcontractsaretransformedintoopen-endedcontractsfromthestart,incasetheyhavebeenextended repeatedly without valid reason. The onlyexceptionisifthecontractwasrenewedduetoavalidreason.

3. TrialPeriod

Themaximumtrialperiodagreeduponbybothpartiesis2months.Howeverthetrialperiodcanbeextendedupto4monthsthroughacollectiveagreement.

During the trialperiodbothpartiescan terminate thecontractwithoutpreviousnoticeandwithoutseverancepayment. The employee’s wage claim for the daysactuallyworkedremainsunaffected.

4. NoticePeriod

Incaseofopen-endedemploymentcontracts,thelegalandcontractualdeadlinesmustbeadheredtoandthenoticehastobedeliveredontime.

Havinganexistingemploymentrelationshipof

• Lessthan6months,thenoticewillbeeffectiveafter 2weeks,startingwiththeweekafterthenotification oftermination,• Between6monthsand1,5years,thenoticewillbe effectiveafter4weeks,startingwiththeweekafter thenotificationoftermination,• Between1,5yearsand3years,thenoticewillbe effectiveafter6weeks,startingwiththeweekafter thenotificationoftermination,• Morethan3years,thenoticewillbeeffectiveafter 8weeks,startingwiththeweekafterthenotification oftermination.

Those deadlines are minimum times and may beextendedbycontract.

If one of the parties does notmeet the agreed upondeadline,compensationintheamountofthesalaryforthedurationof thedeadlinehas tobepaid. Providedthat the immediate payment for the duration of the


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deadline is done by the employer, the contract maybe terminated effective immediately. In case of aterminationofcontractbytheemployerwithoutvalidgroundandwithoutcompliancetotheperiodofnotice,the employer will be bear liability to the contractualeffectsduetotheterminationofcontract.

In case of a resignation of the employee beforetermination of contract or non-compliance with thenoticeperiodinordertoworkforadifferentemployer,besidestheemployee,thenewemployermayalsobeheldresponsibleif:

• Thenewemployerwasthereasonforthebehavior oftheemployee,• Theemployeehadbeenemployedbythe newemployerwhohadfullknowledgeaboutthe circumstances• Thenewemployerismadeawareoftheemployee’s behaviorandcontinuestoemployhim/her.


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iv. workinG conditions

1. MinimumWorkingConditions

Theminimumworkingconditionssuchasworkinghours,working place and salary are regulated in the TurkishLabor Law and the Turkish Code of Obligation andsupervisedbythegovernment.Aftertheagreementonthemainworkingconditionsbetweentheemployeeandtheemployeranychangeoftherulesofwork,whichareannexedtothecontract,orregardstandardworkplacepractices,maybemadeonlyaftertheemployerservesawrittennoticetotheemployee.Changesthatarenotinconformitywiththisprocedureandnotacceptedbytheemployeeinwrittenformwithinsixworkingdaysshallnotbindtheemployee.Iftheemployeedoesnotacceptthe offer for changewithin this period, the employermayterminatetheemploymentcontractbyrespectingthetermofnotice,providedthatheindicatesinwrittenform that the proposed change is based on a validreasonorthereisanothervalidreasonfortermination.

2. Salary

A) structure of the sALAriesInTurkeythereisastatutoryminimumwagetoregulatethefinancialandsocialsituationofanykindofemployee,includedorexcludedfromthescopeofapplicationofthelaw.TheminimumwageisnewlydeclaredatleasteverytwoyearsbythecommissionofobservationofminimumwageoftheMinistryofLaborandSocialSecurity.Thetotalsalarycontainsthefollowingcomponents:

SSKBrutto:Deductiblesalaryforthesocialsecuritypremiums.TheminimumleveloftheSGKBruttois1.647,00TLfor01.01.2016until31.12.2016

SGKPremium:Theemployer’sshareofthesocialsecuritycontributionsis19,5%andtheemployee’sshareis14%.

Incometaxandstampdutyare6%ofthesalary,15,30TLforthebalancesheet,33,90TLforthecorporatetaxdeclarationform,ineachcase16,90TLforthetaxatsourcedeclarationandthevalueaddedtaxdeclaration.

Thedeclarationofsocialdataanddeclarationofvalueaddedtaxcanbesubmittedonamonthlyorquarterlybasis.

b) sALAry pAymentRegardingsalarypaymentitisimportanttopayattentiontothefollowing:

Time of payment

Thesalaryisgenerallypaidonceamonthandatthelatestattheendofthemonth.Aweeklyorbiweeklysalarypaymentispermittedaswell.

Currency

ThesalaryisgenerallypaidinTurkishLira.Ifthereisanagreementregardingthesalarypaymentinaforeigncurrencybetweentheemployeeandtheemployer,thesalarycanstillbepaidinTurkishLira.

Note:Itisnotpossibletomakethepaymentbyinstrumentspayabletoorderorbycoupons.

Place of payment

Accordingtoarticle32oftheTurkishLaborLaw,theplaceofpaymentisgenerallythebankaccount.

Salariesforjournalists,employeeswithinthemaritimeemploymentlawandthesalariesofbusinessesinTurkeywithmorethan10peopleandallfurtherpaymentssuchasbonus,paymentsformeals,salaryhavetobepaidtoabankaccountwiththecorrespondingdescription.

Limitation of actions

Salarytitlefallsunderthestatuteoflimitations5yearsafterthearisingoftheclaim.

c) non-wAge LAbor costsSocialsecuritycontributionsareregulatedinArt.73oftheTurkishSocialSecurityAct.Accordingtothattherearedifferentcontributionratesdependingonthecategoryofdangerforwhichtheworkingplaceisclassified.

TherearefivedifferentsocialsecuritycontributionsinTurkey:

Contribution for accidents at work

Thiscontributionispaidbytheemployerandisbetween1%and6,5%,dependingonthecategoryofdangeroftheworkingplace.

Health insurance premium

Thegeneralhealthinsurancepremiumis12,5%.5%ispaidbytheemployeeand7,5%bytheemployer.

Motherhood premium

Themotherhoodbenefitis1%andpaidbytheemployer.

Seniority, death and disability premiums

Theseniority,deathanddisabilitypremiumsareoverall20%.9%arepaidbytheemployeeand11%bytheemployer.Inthefieldsoftheminingindustryandthepress,thecontributionratesare22%(9%bytheemployeeand13%bytheemployer).

Unemployment contribution

Theunemploymentcontributionis3%,1%paidbytheemployeeand2%paidbytheemployer.Additionallytheunemploymentcontributionisprovidedwithanother1%bytheTurkishstate.

D) income tAx

3.MaximumWorkingWeek

Themaximumworkingtimeis45hoursperworkingweek.Ifnothingcontraryisagreedon,theworkingtimeisevenlydistributedthroughouttheworkingdaysofthecompany.Throughagreementtheeventimedistributioncandifferbutthemaximumdailyworkingtimeof11hourscannotbeexceeded.

Thedailystartofworkandendofworkhoursaswellasthebreaktimeshastobeannouncedbytheemployerattheworkplace.Thestartingandendingtimesofthedaycanberegulatedindividually.

Thebreaktimescanbeadaptedaccordingtothepracticeandrequirementsoftheworkplaceandarenotpartoftheworkinghours.Onaveragetheyareregulatedasfollows:

• 15minutesduringaworkingtimeof4hoursorless• 30minutesduringaworkingtimeofmorethan4 hoursuptoincluding7,5hours• 1hourduringaworkingtimeofmorethan7,5 hours

Thesestatedbreaktimesareminimumbreaktimesandhavetobegrantedunexceptionally.

Thebreakscanbetakenwithregardtotheclimate,season,localpracticeandspecialcharacteristicsofthework.

4. Overtime

Working hours, which exceed the weekly workinghoursof45hours,aregenerallyovertime.Accordingtothe so calledprinciplesof balance in article63of theEmploymentLaw,workinghoursexceedingtheweekly45 hours are not considered overtime, if the averageweeklyworkingtimeisnotmorethan45hours.

Eachhourofovertimehastobepaidwithanincreasedhourlyrateof50%.

If the agreed weekly working time is less than 45hours, the hours exceeding the working time agreedbycontractareconsideredadditionalworktimeiftheydonotexceed45weeklyworkinghours.Everyhourofadditionalworktimehastobepaidwithan increasedhourlyrateof25%.

Up to 12.600 TL 15% 1.890 TL for the first 12.600 TL and 20% for the remaining amount up to 30.000 TL 5.370 TL for the first 30.000 TL and 27% for the remaining amount up to 69.000 TL (but 5.370 TL for the first 30.000 TL for salaries and wages over 110.000 TL)

15.900 TL for the first 69.000 TL and 35% for the remaining amount of 69.000 TL (but 26.970 TL for wages and salaries over 110.000 TL)


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Insteadofanincreasedpayment,theemployeecanalsocompensatetheovertimeoradditionalworktimewithtimeoff.Foreveryhourofovertimehewillreceiveonehour and thirty minutes, for each hour of additionalworktimehewillreceiveonehourandfifteenminutes.

The maximum permitted hours of overtime are 270hoursperyear.

5. Holidays

Theso-calledweeklyholidaylegislationNr.394hasbeenimplementedinTurkey.AccordingtothislawworkplacesareclosedonSunday,sothereforeemployeeshavetherighttooneweeklyrecreationday.

SomeofthecompaniesareallowedtoopenonSundaysduetotheirworkingcharacteristics.Recently,thefieldofcompaniesallowedtoworkonSundayshasincreasedsignificantly.Evenindustrialsitesarealreadyincluded.

Employeeswhohavebeenemployedforatleastforoneyear(includingprobationperiod)havetherighttoapaidannualleave.Therighttopaidannualleavecannotberenounced.Theregulationsofpaidannualleavearenotapplicableforemployeeswhoareemployedlessthanoneyearduetoseasonalorchampagnework.

Thedurationoftheannualvacationtimehastobeatleast

• 14dayswhentheemploymentexistsfromoneto fiveyears(includingthefifthyear)• 20dayswhentheemploymentexistsformore thanfiveyearsbutlessthan15years• 26dayswhentheemploymentexistsformore than15years

Foremployees18yearsoryounger,or50yearsorolder,theannuallypaidvacationtimecannotbelessthan20days.Thedurationoftheannuallypaidvacationtimecanbeextendedbycontract.

Whenanemployeetakesannualpaidvacation,theemployerisobligatedtopaythesalaryinadvanceforthetimeperiodofvacationortomakeadownpayment.Ifitbecomesknownthattheemployeehasbeenworkingatadifferentworkplaceduringthepaid

vacationtime,thepaidsalaryforthevacationtimecanbeclaimedbackbytheemployer.

Theannualvacationcannotbesplittolessthan10days.Duetothefactthatthevacationtimeofemployeesworkingupto5yearsisonly14days,theannualvacationhastobegrantedinablock.Vacationentitlementscanonlybefinanciallycompensatedaftertheterminationoftheworkingrelationship,iftheemployeestillhasoutstandingvacation.

TheofficialholidaysinTurkeyaredividedintonationalandreligiousholidays.Publicofficesandinstitutionsareclosedduringtheseholidays.PrivatecompaniesonlyhavetobeclosedonOctober29th(nationalholiday)butusuallyareclosedduringtheotherholidaysaswell.

puBlic holidays: 01.01.:NewYear’sDay23.04.:NationalSovereignty,Children’sday19.05.:CommemorationofAtatürk,YouthandSports Day30.08.:VictoryDay28.10. Startingfrom13:00:RepublicDayEve29.10: RepublicDay(Foundingoftherepublic)

rEliGious holidays:RamadanFeast:3,5daysSacrificeFeast:4,5days

Therehastobeanagreementintheemploymentcontractorcollectiveagreement,ifthecompanyrequiresworktobedoneduringtheholidays.

6. Employer’sObligationtoProvideaHealthyandSafeWorkplace

Thereareseveralobligationstheemployerhastoprovideforahealthyandsafeworkplace.Theroomtemperaturehastobeatleastfoundtolerablebytheemployees.Lightingconditionshavetobeprovidedinawaythatminimizesanyhealthrisks.Theworkplacehastobesufficientlyventilatedespeciallywithoutanyhealthriskduetodustortoxicfumes.Theworkplacehastobeclean.

Asufficientamountofsanitaryfacilitieshavetobeatdisposal.InTurkeycompanieswithlessthan100employeeshavetoprovideper30maleemployeesonetoiletteandoneurinalandper25femaleemployees


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onetoilette.Companieswithmorethan100employeeshavetoprovideonetoiletteper50employees,whichhastobeseparatedformenandwomen.Thesanitaryfacilitieshavetohaveasufficientamountofwindowsinordertobeproperlyventilated.Thetoiletteshavetobecleanedatleastonceadayandbeequippedwithawaterflushingsystem.Toilettedoorshavetobelockable.Toilettescannotbeincloseproximitytoadrinkingwatertank.

Thesewagesystemshallbeopenandnotcloserthan30meterstothenextstorageroom.Forallemployees,drinkingwaterhastobeopenlyavailable.Theexistenceofakitchenisnotregulatedbylaw.

Asstipulatedbylaw,theemployershallprovideakitchenifthebreaktimeistooshortfortheemployeestogohome,theworkingplaceislocatedfarawayfromthecityordifficulttoreachbypublictransport.Thediningroomhastobeclosetoawashroom.Oneachfloortherehastobeatleastonefunctioningfirstaidkit.Theaccidentandemergencystatisticshallbecheckedinordertoproofifsafetyhazardshavetobedetectedandeliminated.

Regardingtheinfirmarythefollowingregulationsapply:

• Companieswith50andmoreemployees:provision ofaninfirmaryandatleastonecompanydoctor.• Companieswith50-200employeeshaveto additionallyemployonenurse• Companieswith200-1000employeeshaveto additionallyemploytwonurses.• Companieswithmorethan1000employeeshave toemployoneadditionalnurseper1000 employees.

Theinfirmaryshallpreferablebelocatedatthegroundfloorofabuildingwhichiswithineasyreach,ventilated,heatedandlightedwellandequippedwithrunningwater.Incaseofanumberofemployeeslowerthan50,severalcompaniesmayoperateajointinfirmary.

Acompanywithmorethan500employeeshastohaveatleast2emergencyexits.Theyhavetobemarkedwell,openlyaccessible,notblockedorlockedandnotflammable.Theemergencyexistsfurthermoreshallopenoutwards.Narrowstairwaysandladdersarenotallowed.For“verydangerous”companies,thedistancebetweentheemployees’workingplaceandtheemergencyexitshallnotbemorethan30meters.In

companieswithupto100employees,thewidthoftheemergencyescaperouteshallbeatleast120cm.Thewidthincreasesperadditional100employeesby60cmeachtime.Per50m2one6kgfireextinguishershallbeprovided.


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V. Anti-DiscriminAtion LAws

1. BriefDescriptionofAnti-DiscriminationLaws

Article 5 of the Turkish Labor Code regulates thefollowinganti-discriminationlaws:

• Principleofequality• Prohibitionofgenderinequality• Prohibitionofunequaltreatmentduetogenderor pregnancy• Prohibitionofalowerincomeduetothegender• Prohibitionofunequaltreatmentoffull-time employeesandpart-timeemployeeswithoutgood reason

Article5doesnotdefinetheterm“withoutgoodreason”orprovideanyfurtherclarification.

The principle of equality is also fixed in article 10 ofthe Turkish constitution. Besides that, Turkeyhas alsoconcludedtheagreementNo.100withtheInternationalLabor Organization regarding the “Gender equalitywithregardstosalaries”.DuetomanydecisionsoftheEuropeanCourtofJusticeandinordertoadapttotheEuropean right, this regulation had to be included. Itisnow inorderwith theEuropeanAnti-DiscriminationDirectiveNr.75/117,76/207,79/7,86/613and86/387.

2. ExtentofProtection

Thefollowingregulationsprotecttheemployeeagainstdiscrimination:

• Article332oftheCodeofObligations(818),which regulatesingeneralthedutytoprotectemployees;• Article2oftheCivilCode,ontheprincipleof honesty;• Article5oftheLaborLaw(4857),ontheprincipleof equality;and• Article77oftheLaborLaw,onthedutytoensure occupationalhealthandsafety.

3. ProtectionsAgainstHarassment

The protection against psychological harassment(‘mobbing’)isrelativelynewintheTurkishLawSystem.Intheofficialgazette,datedon19.03.2011andnumbered27879theprimeminister issuedacircular ‘prohibitingthe Psychological Harassment in the Working places(İşyerinde Psikolojik Tacizin (Mobbing) önlenmesi’neilişkin Başbakanlık genelgesi). The circular definesmobbing as’’… psychological harassment appears likehumiliating, underrating, externalizing, injuring thehonor and personality, maltreating, frustrating anemployee systematically on purpose for a significantperiod…’’.

4. Employer’sObligationtoProvideReasonableAccommodations

Article 30 of the 4857 Labor Code has been madecompulsory to employ disabled staff. The employerswhodonotfulfillthisobligationaresubjecttopunitivesanction.

Theemployerswhoemploy50ormoreemployeesinthesameprovincebordersareobligatedtoemploydisabledstaffup to3%of currentemployees.This rateappliesto theprivate sector; it is up to4%of thenumberofemployersavailableforpublicestablishments.

Thecalculation ismadebasedon the totalnumberofemployersofemployeesindifferentofficesinthesamecity. This calculation gives the number of requiredemployeeswith disabilities. Regardless of the type ofemploymentcontract,inthiscalculationareincludedallemployees.

There isnospecial regulationregardingrespectof theemployee’s religion in Turkish Employment Law. Theprotection of personality rights and responsibilities ofemployersincludestheprotectionofreligiousfreedom.Anemployermaypermitreligiousritualsduringworkinghours.There isnosanctionfornotpermittingworshipduringworkinghours.

5. Remedies

Thepecuniaryandnon-pecuniarydamages,invalidityoftheemployment contract, terminationof the contractbyemployeescanbeappliedassanctionsforemployerbreachregardlessofpersonalsanctions.

In case of violation of personal rights of employees,prevention of attacks, the determination of illegality,reprehensible, reporting or publication of any thirdparty decisions in this direction (Art. 25/1-2 of thecivil code,Art.58 /2of theCodeofObligations), themoral and material compensation, the invalidity ofthe employment contract (Art. 27 of the Code ofObligations), termination and compensation of thecontract by the employee (Labor Code 24/2, 26/2) asmanylegalpossibilitiesavailableandsanctionsappliedinlaborlegislationandgeneralprovisions.


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1. Cantheemployerrestricttheemployee’suseofInternetandsocialmediaduringworkinghours?

Under Turkish law, it is accepted that the employeehas a duty of loyalty towards the employer. In turn,employers have the duty of supervision in order toprotectemployees’personalrights.Employersarefreetoorganize theworkplaceandensure thatemployeesarenotdistracted.So,itisgenerallyacceptedthatitispossibletomonitorandsuperviseemployees’personaluseoftheInternetattheworkplace,includingcheckingsites visited or recording voice and video, if suchpracticesdonotviolateemployees’personalrights.

ECHR,initsrulingBarbulescuv.Romania,hasstipulatedthatmonitoringandreadingofmessagesfromaninstantmessaging application that is used at the workplacedoes not constitute a violation of fundamental rights,even if saidapplication isofmixeduse (containsbothbusinessandpersonalcorrespondence).

2.Employee’suseofsocialmediatodisparagetheemployerordivulgeconfidentialinformation

UndertheTurkishCodeofObligationsArt.396governinglabor contracts, the employee has a duty of loyaltytowardstheemployer;thusisrequiredtorefrainfromanyactthatwoulddamagetheemployereconomically,commercially or vocationally. In other words theemployee shall refrain from any behavior that wouldbelittle the employer or theworkplace, interferewithworkordamageanylegitimateinterestoftheemployer.Eveniftheemployee’sstatementsreflectthetruth,aslongastheyaredamagingtotheemployer,suchanactshallbeconsideredaviolationofthedutyofloyalty.

However,testifyingbeforecourtsorhandingofnoticesthatarerequiredbylawdoesnotconstituteaviolationofthedutyofloyalty.

Theviolationofdutyof loyaltyextends toanykindofdisparagementordivulgationof information, including

butnotlimitedtothosemadethroughtheuseofsocialmedia. Such violation does constitute grounds forrightfulterminationbytheemployer;andtheemployeemayberequiredtopaydamagesaswell.

Disparagement is also one of the types of unfaircompetition enumerated in Turkish Commercial Codeunder article 55/I(a)-1. Dissemination of classifiedinformation constitutes unfair competition, underarticle 55/1(d) of the said code. In such cases, theemployermaybringasuitagainsttheformeremployeefordamages, to ensure restitutionof the statebeforesaidactandceasingofunfaircompetition.

vi. social mEdia and data privacy


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Foreignerswhowant towork inTurkey shouldhaveaworkpermitbeforetheybeginwork(Art.4oftheCodeno.4817).ThispermitisissuedbytheMinistryofLaborandSocialSecurity.Exceptionally;MinistryofEconomymayissueworkpermitstotheforeignerswhowanttowork in free trade zones, and the Counsel of HigherEducation may issue work permits to foreigners whowanttoworkintheUniversities.

The applications to the Ministry are made via workofficesorbusinesses.Apermissionsystemthatallowsforeigners to choose their workplace freely does notexist.Aforeignercannotapplyforaworkpermitwithoutanemployer.

Generally the permit application starts with theforeigners’ visaapplication toTurkishRepublic foreignmissions.However,iftheforeignerhasavalidminimum6-monthtermedresidencepermit,theapplicationcanbemadedomestically.

A) foreign AppLicAtionForeigners shall make the applications for their workpermittoTurkishforeignmissionseitherinthecountry,whichtheyarecitizenof,orinthecountry,whichtheyreside constantly. During the application; the laborcontract,invitationletterandotherrequireddocumentswillbepresented.Incaseofacceptation,thereferencenumberthatisgivenbyTRmissionwillbesubmittedtotheemployer.Theemployerwillapplyforaworkpermitusingthisreferencenumber.

Within 10 days after the application, the employershallapplyonlineforthepermit.Afterthecompletionof the online application, the printout will be signedbytheemployerandtheforeigner. (If it is impossiblefor the foreigner to sign it, the presentation of thelaborcontract,whichcontainsbothparties’ signature,shallbeenough.)Iftheaforementionedtimelimitsareexceeded,thelegalproceduresshallberepeated.

Hence,foreignapplicationshave3fundamentalstages:applyingfortheemploymentvisafromtheTRmissions,online application by the employer and with the

presentationoftherequireddocumentstotheMinistry,completingtheprocedure.

Foreigners that obtain an approvedwork permit shallenterthecountrywiththeemploymentvisa.

It is mandatory to obtain an employment visa andto register the foreigner’s insurance subsequent toentrance to Turkey. For this procedure, the employershouldapply to the related InstituteofSocial Securityinordertogettheworkplaceregisteredandcommencetheforeigner’sinsurance.

b) Domestic AppLicAtionTheemployersthatreachanagreementwithforeignersthatresideinTurkeyorhaveavalidminimum6-monthtermedresidencepermitexceptforeducationpurposes,applytotheMinistryofLaborandSocialSecurity,onlinefor thework permit or for the extension of theworkpermit.

Inordertoputtheforeignertowork,theemployershallmakeanonlineapplicationfortheworkpermitwithinthe residencepermit period. After the completionoftheonlineapplication,theprintoutwillbesignedbytheemployerandtheforeigner.(Incaseitisimpossibleforthe foreigner to sign it, the presentation of the laborcontract,whichcontainsbothparties’signature,shallbeenough.)TheapplicationformandtheothernecessarydocumentsshouldbesubmittedtotheMinistry,within6 workdays. If the aforementioned time limits areexceeded,thelegalproceduresshallberepeated.

It is mandatory to obtain an employment visa andto register the foreigner’s insurance subsequent toentrance to Turkey. For this procedure, the employershouldapplytotherelatedInstituteofSocialSecurityinordertogettheworkplaceregisteredandtocommenceinsuranceoftheforeigner.

c) onLine AppLicAtionTheemployeror thenaturalpersonson thebehalfofthe representative may apply online at www.turkiye.gov.tr:

vii. authorizations for forEiGn EmployEEs

• Gettingane-statepasswordfromthePostOffice Department,• Signinginwiththemobilesignatureregisteredto thephoneline,• Signinginviaelectronicsignaturecardordigital signature,

In caseof theacceptanceof theonlineapplicationbythesystem,afterclickingthe“CompletetheApplication”button,theprintoutwillbesignedbytheemployerandtheforeigner.(Ifitisimpossiblefortheforeignertosignit,thepresentationofthelaborcontract,whichcontainsbothparties’signature,shallbeenough.)

The application form and the other necessarydocuments should be submitted to the Ministry, inforeign applications, within 10 workdays; in domesticapplicationswithin6days. If theaforementionedtimelimits are exceeded, the legal procedures shall berepeated.

The application for thework permitwill be evaluatedin accordance with the Code on work permits offoreigners, applicable regulations and the opinions oftherelatedinstitutes.Theresultoftheapplicationwillbeannouncedonlineandwritten.


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viii. tErmination of EmploymEnt contracts1. GroundsforTermination

According to the Turkish Labor Law the terminatingofanemploymentcontracthastobebasedonavalidground for termination, substantiated because of theabilityorbehaviorof theemployeeor company/workrelatedneeds.

Validgroundsfortermination:

A) terminAtion grounDs Due to the EmployEE

- Performance-based termination:

• Lessproductivitycomparedtootheremployees;• Lessperformancethanexpected• Lackofconcentration• Lackoftalent• Frequentabsentratesduetoillness• Particularlyprotractedillness• Lackofsuitabilityfortheposition• Workplaceorprofession

- Termination on grounds of conduct:

• Violationofcontract• Entirelyorpartlyrefusalofperformance• Incitingofotheremployeesagainsttheemployer• Frequenttardiness• Excessivewalkingaroundortelephoningatthe workplace• Quarrelsoftheemployeewithsupervisorsor colleagues• Lackofaffability• Consumptionofalcoholicbeveragesandintoxicants attheworkplaceaswellasinfluenceonthebehavior oftheemployeeduetoalcoholanddrugs• Refusaloflicensepurchasebytheemployeeifthe licenseisnecessaryfortheworkperformance

b) terminAtion grounDs Due to the company or work

- Economical grounds: • Decreaseofofferandsalesopportunities• Decreaseofdemandandorders• Energyshortage;economiccrisisofthecountry• Stagnationofthemarket• Lossesfromforeigntrade• Shortageofnaturalresources

- Grounds due to operating or organizational conditions:

• Implementationofanewtechnologyinthecompany• Introductionofnewworkingmethods• Outsourcingofdepartmentsandreorganization measures• Shutdownofworkingareasinthecompany

2. CollectiveDismissals

Tobedefinedasacollectivedismissal, thenumberofemployeesgivennoticehavetobe:

• Between20and100atleast10employees• Between101and300atleast10%oftheemployees• Morethan301atleast30employees

Withinonemonthatthesameordifferentdates.

Withthistypeofcollectivedismissal,theemployerhastheobligationtostatethereasonsforterminationandthe amount of employees in written form 30 days inadvance.Furthermoretheemployerhasto informthecompany’s union representative or the representativeofemployeesoftheregionaldirectorateandtheTurkishwork association, inwhich time period the dismissalswilltakeplace.

After the notification of the employer, meeting withemployee representatives and employers have tobe held in order to prevent the collective dismissals,reducethenumberofemployeesaffectedorreducethenegativeeffectsofthedismissalsasmuchaspossible.Attheendofthemeeting,areporthastogiveinformationregardingtheresultsofthemeeting.


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30daysafterthenotificationoftheregionaldirectorateregardingthedismissals,thecollectivedismissalsunfoldlegalaffects.

In case of the irrevocable and permanent closing oftheentirecompany,theemployershallonlynotifytheregional directorate and the Turkish work associationandnotifytheclosingwithinthecompany.

The regulations about collective dismissal are notapplicableregardingdismissalsofseasonalorcampaignemployeesifthedismissalisrelatedtotheparticularityofthecampaignorseasonalwork.

Thelawsonprotectionagainstdismissalareapplicable.

3. IndividualDismissals

In Turkish labor law there are two types of theterminationofalaborcontract:

• Terminationwithnotice• Terminationwithoutnotice/rightfultermination

Termination with notice

In termination with notice, the main purpose is toprotectthelibertyofcontract.Inemploymentcontractsofindefiniteduration,regardingthelibertyofcontract,inorder to terminate the contract, thenoticeperiodsshallbefollowed.

There are certain restrictions in order to execute thetermination with notice. The termination with noticeof the labor contract differs by being subject to theprovisions of the job security. If the employees thatwork on the lines of work that arementioned in the6356numberedcode,art.4,areminimum30andtheseemployeescomplete6monthsinthisworkplace,theycanbenefitfromthejobsecurity.

Employee and employer can terminate the contractinaccordancewith thenoticeperiods in caseofworkrelations that are not subject to the job security.Howeverincasesofworkrelationsthataresubjectstojobsecurity,theemployermayterminatethecontractifthecausesthatarementionedinthecodeexist.Thesecan be identified as incompetency (physical and jobrelatedincompetence).

IntheCodeofLaborart.17,theterminationwithnoticeandthenoticeperiodsareregulated.Accordingtothearticle,thelaborcontractisterminated:

• Aftertwoweeksofthearrivalofthenotice,forthe employeewhosejoblastedlessthan6months,• Afterfourweeksofthearrivalofthenotice,forthe employeewhosejoblastedbetween6monthsto 1,5years,• Aftersixweeksofthearrivalofthenotice,forthe employeewhosejoblastedbetween1,5yearsto3 years,• Aftereightweeksofthearrivalofthenotice,forthe employeewhosejoblastedmorethanthreeyears,

In case, the notice period is not followed, the partiesareobliged topaynoticecompensation. Because thenoticeperiodscannotbedivided,thecompensationiscalculatedfromthetotalperiod.

Termination without notice/rightful termination

In termination without notice, because the trustrelationship collapsed, the parties terminate thecontract. Incasesmentioned inCodeofLaborart.25,occur,theworkrelationshipcanbeterminatedwithoutfollowingthenoticeperiod.

a. is sEvErancE pay rEquirEd?

In accordance with Code of Obligation article 438, ifthe employer terminates the contract of employmentimmediatelywithoutavalidcause,employeemayclaimcompensationintheamountofincome,asifthenoticeorthecontractperiodwasfollowed.

Severance pay is a form of compensation that theemployer is obliged to pay according to the Code ofLabor,whentheemployeeresignsfromthejobduetovarious reasons. Employees that resign voluntarily donothavetherighttoaseverancepay. Theemployee shouldworkat the sameworkplacebythesameemployerforatleast1yearinordertohavearighttoaseverancepay.Inadditionto1yearofwork,the reasons that are listed in the code are the maincausesfortherighttoaseverancepay.

Itispossibletocategorizethecausesinthreeforms:


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• Firstly,theemployeecanhavearighttoseverance pay,ifheterminatesthecontractbasedonavalid cause.• Secondly,iftheemployerterminatesthecontract unjustly,theemployeewillhavearighttoseverance pay.• Thirdly,iftheemployeeresignsbasedoncauses thatarereferredtointheCode,hewillhavearight toaseverancepay.

Iftheemployeejoinsthemilitary,inordertohavearightto severance pay, he should apply to his employer inwritingafterthemilitaryapplication.Femaleemployeesmay terminate their labor contracts andhave right toaseverancepay,followingthefirstyearofmarriagebyapplyinginwriting. AnemployeethatcarriestheretirementqualificationsthatarelistedintheCodemaybenefitfromtheseverancepaybyapplyingtotheemployer. If theemployeediesduring the job, it is legally considered as resignation;theinheritorscanapplytotheemployerandinitiatethelegalactionsfortheseverancepay.

In principle employees who resign voluntarily do nothavearighttoseverancepay.Howeveriftheemployeeresigns based on the following grounds and workedforatleastayear,hecanlayclaimtoaseverancepay.The causes are: military duty, pension entitlement,documented health problems that are a constantrestraint on the job being done, behaviors of theemployerthatareunethicalandagainstthegoodwill.

4.SeparationAgreements

a. is a sEparation aGrEEmEnt rEquirEd or considErEd BEst practicE?

Separation agreements may be individually andconsensuallyadjustedbythepartiesoftheemploymentcontract. The mandatory regulations of the TurkishLaborLawmaynotbechangedtothedisadvantageofthe employee. Someprinciples havebeen establishedregardingseparationagreementsbythejurisdiction.

Generallyitisassumedthatblue-collaremployeeswouldnotmakeaseparationagreementunlesstheconditionsintheagreementarepreferabletothestatutoryrights.InTurkeyseparationagreementsaremoreintendedforwhitecollaroradministrativeemployees.

B. what arE thE standard provisions of a sEparation aGrEEmEnt?

A separation agreement concluded right before orduring the dismissal is considered to be questionablebecause assumingly the employeehas been forced toapprove.

As a general rule, the separation agreement shall benegotiatedandfinalizedafterthedismissal.Ifapreviousnegotiation about a separation agreement has takenplace, has to be determined whether a there was awrittenofferoraninvitationfornegotiationinadvance.

Compensation, overtime, severance claims etc.afterwards,arenotpreventedbygenerallyformulatedseveranceswithintheseparation.Insteadofthewording“All claims are thereby settled”, a detailed listing ofpossibleclaimshastobeconsidered.

c. doEs thE aGE of thE EmployEE makE a diffErEncE?

Age compensation is one of the important issuesof the Turkish professional life. It is paid dependingon the duration of the employment period, in caseof retirement by the employee or dismissal withoutvalid groundby theemployer. In order to receive agecompensation,theemployeehastobeemployedforatleastoneyearcontinuously. For thecalculationof theyearlongworkingtime,part-timeworkandworktasksin different businesses of the same employer will beincluded.Foreverycompletedyear,onemonthlysalarywillbereceivedbytheemployee.Iftheemployeehasnotworked continuously in themost recent year, theagesalaryfortheworkedmonthswillbeproportionallytakenintoaccount.

d. arE thErE additional provisions to considEr?

Themaximum limit fordismissalwage is regulatedbytheState.Thismeansthateveniftheemployeehasasalaryabove themaximum limit,hisdismissalwage isstill calculated according to themaximum limit. Sincethepenaltyforexceedingthemaximumlimithasbeenabolished,thepartiesmaynowagreeonahigherlimitfortheseverancepayment.

The minimum limit however is the salary of the lastmonth,whichmaynotbechangedtothedisadvantageoftheemployee.


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5.Remediesforemployeesseekingtochallengewrongfultermination

If theemploymentcontractwas terminatedwithoutastatementofgroundsfordismissalorduetoaninvalidgroundofdismissal,theemployeemayfileasuitwithinonemonthinfrontofthelaborcourt.Iftheemployeeclaims that thegroundsofdismissalarenotvalid, theemployerhastheburdenofproof.Thecourtwillgiveadecisionwithin2monthswithanacceleratedprocedure.In case of an appeal, the Court of Cassation passes alegallybindingsentencewithinonemonth.

If the court came to the decision to reintegrate theemployee,theemployeeshalleitherbenewlyemployedorcompensatedasdeterminedbycourt(atleastintheamountof fourmonthly salariesbutnotmore than8monthlysalaries).


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iX. rEstrictivE covEnants

1. DefinitionofRestrictiveCovenants

Arestrictivecovenantistypicallyaclauseinacontractwhichprohibitsanemployeefromcompetingwithhisex-employer for a certain period after the employeehasleftthebusiness,orpreventstheex-employeefromsolicitingordealingwithcustomersofthebusinessbyusingknowledgeofthosecustomersgainedduringhisprioremployment.

2. TypesofRestrictiveCovenants

A. non-compete cLAuses

Restrictive covenants under the formof non-competeclausesarepossibleunderTurkishlaw.Itisanobligationfor the employee not to compete with the employerduring the validity of the labor contract. Article 444of theCodeofObligations states: “Theemployee canaccept refraining from competing with the employer;specificallystartingacompetingundertakingofhisown,workingatacompetingundertakingorsharinginterestswithacompetitorinanywaywithawrittenstatement.”Thisalsocontainsthenon-solicitationofemployeesandcustomers,aswellastheprotectionoftheknow-howoftheemployer.

Non-compete clauses cannot be imposed on theemployee through workplace directives or any otherworkplacecommunications.

Inorderforthenon-competeclausetobevalid,someconditionsmustbefulfilled:

1. The employer must have a legitimate interest worth being protected:

• Productionsecrets• Possibilitytolearninformationaboutclientele:This cannotconstitutealegitimateinterestinworks wheretheclienteleisgainedbecauseofthe competencyoftheemployee,suchasattorneys, doctors,orhairdressers.• Riskofseriousdamagetotheemployer:Ifitis possiblefortheemployeetolearnproduction secrets or learn information about employer’s

clientele,thispossibilitymustentailseriousdamage;ifnot,thenon-competeclauseshallbevoid.

2. Economic future of the employee must not be endangered because of the covenant: The non-complete clause must be limited ratione materiae, loci and temporis.

• Theclauseislimitedto3years.• Thelocationofthenon-competeshallnotbewider thantheoperationareaoftheemployer.• TurkishCassationCourtstatesthatthefieldsof workforwhichcompetitionislimitedshallbe defined.Anon-competeclauseforallfieldsofwork isvoid.

3. EnforcementofRestrictiveCovenants—processandremedies

Pursuant to Art. 446 of the Code of Obligations, theformeremployeeinbreachofanon-competeagreementshall indemnify the former employer. The employeecarriestheburdenofprovingthelackoffault.

Thedamagesareconsideredasthedifferencebetweenthe current assets and the potential assets of theemployer if the non-compete clause were not to bebreached.A penalty for breach can also be set with the non-competeclause.Insuchcase,thedamagesneednotbediscoveredandcalculated.

If not stated otherwise, the former employee canliberatehimselfoutofthenon-competeclausebypayingthepenalty.However, if the competition causesmoredamagethanthedecidedpenalty,theformeremployeeshallpaytheremainderofthedamagescaused.

Ifthedecidedpenaltyisconsideredextreme,thejudgecanlowerthepenaltypaymenttoareasonablelevel.

Underthearticlestatedabove, ifexpresslyauthorizedby the non-compete clause, the former employer candemand the ceasing of the competing activity of theformeremployer.However,inordertodemandthehaltofactivities;thedamagecausedmustbeimportantand


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thebreachof thenon-competeclausemustbegrave.Also, it must be impossible to indemnify the formeremployerwithanykindofpayment.Anexampleforthatisthesolicitationofemployees.

4. UseandLimitationsofGardenLeave

Gardenleaveisaninstrument,throughtheuseofwhichduringthefinaldaysofthevalidityofthelaborcontract,theemployeecontinuestogetpaidbutisrequiredtostayawayfromtheworkplace.Thus,theemployerensuresthattheemployeedoesnotgetinholdofinformationabouttheworkplaceanditssecrets,soasnottosupplythemtoanewemployer.

UnderTurkishlaw,duringnoticeterm,employeesarerequiredtowork,incontrastwiththeconceptofgardenleave.However,asagardenleaveimpliesnoworkbutfullpayment;itisbeneficialtotheemployee;therefore,itispossibletoprescribeagardenleavethroughawrittenlaborcontract,withtheassentoftheemployee.


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X. riGhts of EmployEEs in casE of a transfEr of undErtakinGTheconsequencesofa transferofundertaking,unlikeprevious legal framework; isdefined intheLaborLaw.PursuanttoArt.6ofthesaidlaw,“incaseofthetransferofaworkplaceinpartorinitsentiretywithatransaction;allexistinglaborcontractsatthetimeoftransfershallbedevolvedtothenewowneroftheworkplace,includingallrightsandobligationsthereto.”Thus,atransferoftheworkplacecannotdeterioratetheconditionsandrightsoftheemployees,andalllaborcontractsconservetheirvalidityafterthetransfer.

1. Employees’Rights

As stated earlier, in case of a transfer of undertaking,the new employer is entitled to the same rights andobligations as its predecessor, therefore; employeescontinue to hold the same rights against the newemployer.

Concerning rights that are correlated to time (e.g.severance payments); a transfer of the undertakingdoesnotchangethestartingpointofthetimespan.Suchrightsarecalculatedstartingfromtheconclusionofthelaborcontractwiththeoriginalowneroftheworkplace.

The transferor and the transferee of the workplaceare joint debtors of any debts towards employees fortwo years after the conclusion of the transfer of theworkplace.However,thetransferorandthetransfereecannot be held jointly liable for debts incurring fromcontractsterminatedbeforethetransfer;insuchcases,only the transferor shall be held liable. This rule isincludedbothinLaborLaw,andLawofObligations.Thejointdebtrule is limitedtothedebtsthathavearisenbefore and are due and payable at the time of thetransferoftheundertaking.

PursuanttoArt.6/5oftheLaborLaw,atransfercannotconstitutegroundsforrightfulterminationforboththeemployer and the employee. However, terminationmight be justified under economical or technologicalreasonsorachangeinworkorganization,andtherightto immediate termination of the employer and theemployeearereserved.Inothercases,terminationafter

a transfermight result in unjust terminationwrongfultermination,theresultsofwhicharesummarizedabove.

Turkish Commercial Code contains special provisionson Art. 178; however, those provisions are limited tomergers, split-offs and conversions of companies. Intransfers that do not constitute mergers, split-offs orconversions; the Labor Law shall be applied. In caseswhere the Commercial Code applies, the employee isentitledtoarighttoobjecttotransfer,andinthatcasethelaborcontractisterminatedinthelegalduration.

2. RequirementsforPredecessorandSuccessorParties

Turkish Labor Law Nr. 4857 does not define anyspecificrequirementsperse.However,duetoTurkey’sadhesionprocess to theEU, European lawhas largelyinfluenced Turkish jurisprudence. Under this climate,Turkish Cassation Court has ruled that the assetstransferred must constitute an economical integrityandtheiridentityassuchmustbeprotectedduringthetransaction. If theassets transferreddonotconstitutean economical integrity, then the transfer cannot beconsideredasatransferofanundertakinginthesenseofLaborLaw.

Preservingtheidentityoftheeconomicalintegritydoesnothaveasinglemeaning;theassetsthatcharacterizean undertaking may vary. Although this is the case,preservingtheeconomicalunitymeanstheprotectionofthefunctionalbindingbetweentransferredfactorsofprotection.Ifthecharacteristicelementoftheworkplaceistheworkforce,thesoletransferoftheworkforcecanconstituteatransferoftheworkplace.

In case the transferred undertaking is a commercialenterpriseinthesenseofTurkishCommercialCode,theundertaking canbe transferred as awhole, through acontractunderwrittenformprecedingtheregistrationtotheCommercialRegisterandannouncementthroughtheTurkishCommercialRegistryGazette.


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Xi. tradE unions and EmployErs associationsThe new law for labor unions and labor agreementsregulates foundation, membership and institutions ofa laborunion.Therearealso improvementsandmorefreedominthefieldofmembership.

Thereisnopermissionrequirementforlaborunionsoremployers’associations.Atleast7peopleareneededinordertoestablishalaborunion.

Labor unions or employers’ associations can bemembersofinternationalornationallaborinstitutionsoremployers’institutions.

Labor unions as well as employers’ associations mayalsoopenrepresentativesabroad.

Laborunionsandemployers’associationsoftheTurkishRepublicofNorthernCypressmayalsobemembersoftheumbrellaorganizationsinTurkey.

The right to be amember of a free and independentlabor union is granted to employees in Turkey. Everyemployee15yearsandolder, is allowed to freely joina labor union. For minors parental approval is notnecessary.Membershipandresigningfromlaborunionscanbemadebynotification,alsoviae-mail.Accordingtothenewlaw,foreignersarealsoallowedtobemembers.

No employeewho is amemberof a labor unionmaybe placed in disadvantage. Only labor unions havingagreed to a collective agreement may have companyrepresentatives.Incaseofanunequaltreatmentbytheemployerofemployeeswithorwithouta laborunionmembership, employees of different labor unions,employeesbeing forced to joinor leavea laborunionor unequal treatment due to activity in a labor unionduringoroutside theworkingtime, theemployerhasto pay a compensation at least in the amount of oneannualsalaryoftheemployee.

Ontheotherhand,regulationsofferingsecurityagainstagivennoticewithoutacceptedgrounds fordismissalandwithoutapreciseandexplicitexplanation,aswellas court decisions regarding a claimmade by a laborunion representative or the labor union itself being

legallybindingandthesecurityforareturntotheworkplace,havebeenrepealed.Insteaddismissalprotectionapplies.

In case the dismissal from the job has taken placebecause the employee is a union representative anda reemployment has been decided by court, theunion representative receives his salary and othersupplementary work fully for the time period ofdismissaluntilhisreemployment.Regardlessofwhetherthe employee is reemployed or not, the employerhaving announced the notice of dismissal for reasonsrelevanttothelaborunion,mustpayatleastoneyearofcompensation.

Specialattentionshouldbepaidtothefactthatincaseofalawsuitbecauseofajobdismissalduetoactivitiesatalaborunion,theemployerhastheburdentoproofthatthenoticeofdismissalwasgivenbyhimnotbecauseofreasonsregardingtheemployee’slaborunionactivities.In case the employer cannot prove the dismissal wasnot based on reasons regarding the labor union, theemployeehastherighttocompensationofatleastoneyear’ssalary.

To protect the employee’s union membership, thetransfer into a new job position may only take placeafter with a written consent of the employee and itis forbidden to make substantial changes to workingpractices. In caseofaviolation thechange isdeemednottohavebeencarriedout.

1. BriefDescriptionofEmployeesandEmployersOrganizations

The main types of employees’ and employers’organizations in Turkey are trade unions (“sendika”),theprovisionsofwhichareoutlinedintheTradeUnionsandCollectiveLaborAgreementsLawnr.6356.Article2(ğ)ofthesaidlawdefinestradeunionsasinstitutionsvestedwith legalpersonalitycreatedbyat leastsevenemployeesoremployers inordertocarryonactivitiesinagivenlineofworkandtoprotectandenhancetheircommon social and economic interests. Trade unions

canalsoformconfederationsforensuringcooperationbetweenvarioustradeorganizations.

Trade unions can be freely formed without priorauthorization.Atradeunionshalloperatewithinagivenlineofwork.

2.RightsandImportanceofTradeUnions

Trade unions are characterized primarily with aneconomical importance, as they are entitled to helpdefinewagesandnumberofemployees,aswellas tonegotiate and conclude collective labor agreements;thus normatively define working conditions. It isacceptedthatthroughthiseconomicimportance,tradeunionscanandwillinfluenceotherareasofpolitics.

Employers’ trade unions traditionally have the powerovergovernmentstoinfluencethemintochangingthelegalframeworkfortheirbestinterests.

Trade unions and confederations can representemployeesandemployersonlawsuitsbasedondisputesthatstemfromworklife,lawandcustoms.Atradeunioncanalsobringorpursuelawsuitsasrepresentativesofitsmembersandtheirsuccessors;incasesconcerningworkagreementsandworkrelationsaswellassocialsecuritydisputes. In this case, employees or their successorsmustpresentawrittenapplicationtothetradeunion.

3.NumberofRepresentatives

The number of the employees’ trade unionrepresentativesshallbeinaccordancewiththenumberof the employeesworking at a workplace, and variesbetweenoneandsix.

PursuanttoLawnr.6356,thetradeunionwithauthoritytoconcludeacollectivelaboragreementshallhavethefollowingnumberofrepresentatives:

• oneforworkplacesthathaveupto50employees• twoforworkplacesthathavebetween51and100 employees• threeforworkplacesthathavebetween101and 500employees• fourforworkplacesthathavebetween501and 1000employees

• sixforworkplacesthathavebetween1001and 2000employees• eightforworkplacesthathave2001ormore employees.

4.AppointmentofRepresentatives

The representatives are appointed by the competenttrade union, which can conclude a collective laboragreement at the workplace. If the said union has aprovisiononitscharter,therepresentativescanalsobeappointed through an election. The union shall notifythe employer about the appointed representative’sidentityinthe15daysfollowingtheappointment.

In cases where the union has more than onerepresentative at the workplace, it is possible tonominateoneofthemastheheadrepresentative.

5.TasksandObligationsofRepresentatives

Representativesshalllistentorequestsoftheemployeesconcerning the workplace, find remedies to theircomplaints, ensure the cooperation, workplace peaceandconcordancebetweentheemployerandemployees,andprotecttherightsandtheinterestsoftheemployeesandhelpimplementtheworkstandardsasdictatedbythelawandthecollectivelaboragreement.

Thus, the representatives have the right to free time,notonly for their tradeuniondutiesbutalso for theiractualwork.Eventhoughthelawissilentontheextentof this,mostcollective laboragreementscontainsuchprovisions.Theyshallalsobeauthorizedtoroamfreelyaround the workplace to ensure possibility of talkingto all of the employees, inform them or collectinginformationfromthem.

Therepresentativeshavetherighttoarrangemeetingsin order to disseminate information to employeesconcerning certain topics. They also have the right toa tradeunion representation room, inwhich they cankeeprecordsandbooks.

Most collective labor agreements include a right to awallboard,whichmustbeencasedwithinaglassbox.Onthisboard,therepresentativesmayputupcommuniquésconcerningthestateofthelaboragreementaswellas


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news and updates from similar workplaces home orabroad.

Employees’ representatives shall not endanger workdisciplineandnot fallbehind theirexpectedworks, inturn;theymightdemandfacilitiesfromtheemployertorenderfulfillingtheirdutieseasierandmoreefficient.

Employees’ representatives represent the employeesduring collective labor agreement talks, and signcollectivelaboragreements.

6.Employees’RepresentationinWorkplace

Asanoutline,employees’representationinmanagementisconsideredastherightoftheemployeetoaccesstoinformation and present his opinions concerning theworkdirectlydonebythesaidemployee;oraboutanyissuesthatdirectlyorindirectlyinfluencetheemployee.

Onanationallevel,employeesarerepresentedthroughEconomical and Social Council, Tripartite ConsultationBoardandMinimumWageCommission.TheEconomicandSocialCouncilworks for thecreationofeconomicandsocialpoliciesandensuressocialcooperationandreconciliation in a permanent manner. The Councilissuesnon-bindingresolutionsandhousesGovernmentrepresentativesandrepresentativesfromtradeunions.The Tripartite Consultation Board works for an activeconsultation between government, employers, publicservants and trade unions; and includes Governmentrepresentatives, temporary representatives and tradeunionconfederations’representatives.MinimumWageCommissiontriestoreconciledifferentinterestswhilsttakingintoaccountthesocialandeconomicstateofthecountry,incomeandcostoflivingindexes,thegeneralstate ofwages and living conditions. This commissionhouses 5 employee representatives, 5 employerrepresentativesand5Staterepresentatives.Employeerepresentatives in thisCommissionarenotnominatedby trade unions; but by all employees regardless ofadhesiontotradeunions.

UnderTurkishLaborLaw,threeboardsmustbeformedineligibleworkplaces:

• AnnualLeavesBoard:Thisboardshallbeformed inworkplaceswithmorethan100employees. Threemembersformtheboard,onerepresenting theemployer,tworepresentingemployees.


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• OccupationalHealthandSafetyBoard:Inworkplaces thatareconsideredindustrial,andhouseatleast50 employeesandoperatesatleast6monthsayear, theemployermustformanoccupationalhealthand safetyboard,whichshallholdmeetingsevery month.• OccupationalSafetyCommission:Whenasituation thatendangersthelifeofemployeesarises,the OccupationalSafetyCommissionisformedand hastheauthoritytosuspendworkuntilthesituation iscleared.

Therearealsovoluntaryboards:

• Performance/DisciplineMonitoringandEvaluation Board• DisputeResolutionBoards:Thisboardhouses anequalnumberofrepresentativesfromboththe employerandemployeesidesandstrivestoresolve problemsthatcannotbesortedoutthroughregular complaintmechanismsconcerningcollectivelabor contractsandtheirinterpretation.• IndustrialRelationsBoards:Thisboardmeetsevery 3monthsandisformedbytheemployerand employees’tradeunionandissuesadviceandforms discussions.• DamagesEvaluationBoard


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Xii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits1.LegalFramework

Turkish Social Security System has 2 branches, Socialinsurances and Social Aids. Social insurances arebasedontheprincipleofmandatoryparticipation.Itisregulatedbythegovernmentandsustainedwithloadedcontributions.

The main legislation on the topic can be consideredas Social Security and General Health Insurance Lawnr. 5510. Turkish Labor Law also complements therelevantsocialsecuritysystem.Otheroccupationallegalframeworkcancontainprovisionsaboutsocialsecurityaswell.Beingadefactoemployeeisconsideredenoughtobeaninsurant.AninsurantshouldnotifytheSocialSecurityInstitution regarding states of insurance. According totheCodeofSocialSecurityart.4para.B,theinsurancedocument should be given to the Institute of SocialSecuritybytheregistered institution.AccordingtotheCodeofSocialSecurityart.4para.C,employersshouldnotify the Institute of Social Security regarding theirinsurances.

2.RequiredContributions

Theinsurant,employerandthestatepaycontributions.In short term insurance contributions, the insurant isnot obliged to pay any share. On the other hand theemployershave1%-6,5paymentintheirshares.

Indisability,oldageanddeathinsurancecontributions,the share of the insurant is 9% and the share of theemployeris11%.

Ingeneralhealthinsurancecontributions,theshareofthe employee is 5%and the shareof the employer is7,5%.

Inunemploymentinsurancecontributions,theinsurantemployeeisobligedtopay1%andtheemployer’sshareis3%.

Insocialsecuritysupportcontribution,employee’sshareis7,5%andtheemployer’sshareis22,5%.Thistypeof

contributionislimitedtoretiredpeoplethatcontinuetoworkinjobsthatrequiresocialinsurance.

3.Insurances

Social insurances in Turkey are divided as short-termandlong-terminsurances.Short-terminsurancesareasfollows:

• Insuranceforoccupationalaccidentandillness• SicknessInsurance• MaternityInsurance

These insurances can confer the following monetarybenefits:

• Benefitforthetemporaryincapacity• Benefitforthepermanentincapacity• Grantstothebeneficiaries• Nursingbenefit• Marriageandfuneralbenefit

Long-terminsurancetypesareasfollowing:

• DisabilityInsurance• OldageInsurance(Pension)• Insuranceagainstdeath

Theseinsurancescangrantthefollowingbenefits:

• DisabilitySalary• Pension• Retirementgrant• DeathSalary• DeathGrant• MarriageBenefit• FuneralBenefit

4.RequiredMaternity/Sickness/Disability/AnnualLeaves

UnderLawnr.4857,femaleemployeesaregrantedleaveforatotalof16weeks,8weeksofwhichwill

beusedbeforebirth,andtheremaindertobeusedafterbirth.Incaseadoctor’shealthreportisprovided,theycanworkupto3weeksbeforeexpectedbirthandleavefor13weeksafterbirth.Formultiplepregnancies,theleavecanbeincreasedupto10weeksbeforebirth.Ifaprematurebirthoccurs,theunusedleaveweeksshallbeaddedtotheleaveafterbirth.UnderLawnr.5510,paidleavemustbeaccordedtothepregnantemployeefordoctorvisitsconcerningpregnancyhealthchecks.Thedurationofthesaidleavescanbelengthenedforhealthreasonsandunderconsiderationofworkload.Afterbirth,untiltheoffspringoftheemployeereachesoneyearofage;adailyleaveofoneandahalfhoursmustbeprovidedforlactation,andsaidhoursshallbecountedastimeworked.

Incaseofsickness,anemployeewhoprovideshealthreportsprovingthecaseshallbegrantedasickleave.Ifasickemployeecontinuesintheabsenceofahealthreportstatingthatheisunabletoworkwhileill,therecoverygrantprovidedbytheSocialSecurityInstitutionshallbecut.Thisisalsothecaseiftheemployeedoesnotfollowthetreatmentregimen,ormakeshimselfillonpurpose.

Leavesduetoworkplaceaccidentscountasworkingdays.

Incaseofdisability,theSocialSecurityInstitutionprovidesamonthlypaymenttothedisabledemployee.Inordertobedeclareddisabled,healthcareprovidersauthorizedbytheinstitutionmustdocument60%vocationalincapacity.Ifthedisabilityisfoundtoarisebeforethecommencementofsocialinsurance,nomonthlygrantshallbeawardedtothesaidemployee.

Includingtrialperiod,employeesthathaveworkedforatleastayearcanuseanannualpaidleave.Therighttoanannualleaveisanindispensablerightoftheemployee.Toemployeeswith1to5yearofservice,atleast14days;toemployeeswithmorethan5andlessthan15yearsofservice,atleast20days,toemployeeswithmorethan15yearsofservice,26daysofpaidleavemustbeaccorded.Thereisnoprovisionconcerningyearlyleavefortemporaryemployeesoremployeeswhoworkforlessthanayear.Restperiodsorsickleavesthatareusedthroughtheyeardonotdepletetherighttoyearlyleave.

Unpaidleavescanalsobegiven.Ifaemployeeprefersandprovesthathewillbeonadifferentprovincefor


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theyearlypaidleave,fourdaysofunpaidleaveshallbeprovidedondemand.Beforebirth,after16weeksofpregnancyor18weeksofmultiplepregnancies,upto6monthsofunpaidleaveistobeprovidedifrequested.Aftermaternityleave,unpaidleavemustbeaccordedondemand:60daysforthefirstbirth,120daysforthesecondbirth,180dayswiththethirdandlaterbirths.Anextraof30dayswillbeaddedforanyextrachildbornwiththesamepregnancy.Ifthechildisborndisabled;theunpaidleaveshallnotbelessthan360days.Theseunpaidleavesshallbeaccordedtooneofthespousesortotheadoptiveparentincaseoftheadoptionofaninfantnoolderthan3years.

5.MandatoryandTypicallyProvidedPensions

Employeeswhohavebeeninsuredforaperiodoftimeand whose premiums have been paid correspondingto aminimum number ofworking days have the rightto retirement.However, themere stateof fulfilling thelegalcriteriaforretirementdoesnotautomaticallygrantpensionoranyotherretirementrights.TheinsuredshallapplytotheSocialSecurityInstitutioninordertoreceivethe retirement grant and monthly pension. Like theinsured,retiredpeopleenjoytherighttohealthservicesatstate-runhospitals.

Retirementagehas constantly changeddue topoliticalpromises in Turkey. At the lowest, the insured whoappliedforretirementbefore1999wererequiredtobe38yearsoldforwomenand43yearsoldformen.AftertheintroductionofSocialSecurityLawNr.5510,peoplewhoareinsuredforthefirsttimeafter2008arerequiredto be 58 years old (for women) and 60 years old (formen)inordertoapplyforretirement,andalsohavethepremiumspaidforatleast9000workdays(7200daysfortheinsuredasemployees).Theseagelimitswillgraduallyrisebetween2036and2048;attainingtherequirementof65yearsofageforbothmenandwomenwhowillbeinsuredforthefirsttimeafterJanuary1st2048.

Individualretirementplansarealsoprevalent inTurkey,withtheinsuredagreeingtomonthlycutsaccumulatinginanaccount,andtonottowithdrawthebalanceforatleast10years.Usersofthesystemcanchoosehowtheirmoneywillbeinvested.StartingfromJanuary1st2017,peoplewhobeginworkwillautomaticallybeincludedinthesystem;andat leastonecut fromthewagewillbemade.


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