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Employer of Record Turkey (EOR Turkey)

Our Employer of Record Turkey service provides you with a solution to hire employees in Turkey without the need for an own local entity there.

Having your own local employees is an important success factor when developing your business in a market. Our clientsare seeing excellent results, particularly in sales, business development, distributor management, service, and maintenance. If your business in Turkey is large enough, you can transfer the employees to a subsidiary. Our clients and their local employees can fully focus on their core business without being distracted by administrative tasks or local requirements.

With our 20+ years of experience in Turkey, we are your local partner. Our free webinar on demandSuccessful Market Entry and Business Development in Turkey” has a lot of additional information.” has a lot of additional information. You can also subscribe to our monthly Business News Turkey newsletter.

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Webinar covering Employer of Record Turkey
Webinar On Demand: Turkey

Employer of Record Turkey – FMC Group’s Approach

  • Optional client-specific personnel search & selection through our FMC HR specialists in Istanbul. Already chosen candidates can be employed as well
  • Negotiation of employment contracts with the employees
  • The employees are employed by the local company of FMC Group in Turkey
  • Social security and tax payments are made in accordance with Turkish law, and payroll accounting is handled professionally following international standards
  • After your approval, control, and settlement of travel and other expenses and allowance claims
  • Leave entitlements after your approval, including special statutory leaves, will be tracked
  • A company car can be provided, negotiation of car leasing & contract Automatic payments for Shell petrol stations & highway toll settlement (automatic system with monthly invoicing)
  • Private health insurance negotiation and provision (optional)
  • Provision of a laptop, landline phone (installation included), mobile phone, and mobile phone subscription that includes internet access
  • Providing a lunch ticket system with monthly loading of tax-free meal allowances, lunch is typically provided to Turkish employees
  • Booking of flights through our travel agency, billing to us
  • Assistance with visa applications and international health insurance applications
  • Mail service
  • Internal training in your headquarters with the selected employees can begin directly, the employees can concentrate fully on the business
  • The employees are integrated into an established company, with guidelines and standardized processes
  • Regular feedback meetings with the employees
  • Regular feedback calls with the client, intercultural consultancy, also regarding employee management in Turkey
  • Office (optional), please see the section below
  • If required, our experts can support you with Market Research or Business Partner Search in Turkey. We can also support you in defining the right Internationalization Strategy

EOR Turkey Management & Reporting Flow

Management and Reporting Flow Chart

EOR Turkey Office (optional)

  • Office in Atasehir (on the Asian side of Istanbul), in the class-A business tower “Brandium”, in an open-plan office on the 27th floor. Alternatively, an office on the European side of Istanbul in our headquarter is possible as well
  • Underground parking in our Asian office for visitors and employees. Good accessibility, 5 minutes from TEM motorway (to the new Istanbul airport), 5 minutes from Bosporus Bridge access road
  • Possibility to use meeting rooms, two are available in each office up to 8 – 10 persons
  • Phone line connected to our switchboard, with separate phone numbers (numbers can be retained for future use, multiple numbers possible)
  • Internet access (fast fiber-optic connection in the Asian office, VDSL in the European office)
  • Tea, coffee, and drinking water are included, and use of the kitchen is possible
  • Air-conditioning and heating separately controlled for all rooms
  • Cleaning service for office
  • The European office is 7 minutes drive from the Haciosman metro station and near to Maslak business district. Nicely located near the Bosporus in a quiet neighborhood.

Our Asian Office

FMC Group Asian office

Our European Office

fmc group european office

Benefits of using an Employer of Record Provider

  • Flexible, fast, and easy way to enter the market in full compliance with Turkish labor laws
  • Full control of market entry and business development with your own local team, according to your own strategy
  • Excellent solution for building/managing a distribution network and to care about key accounts
  • Employer of Record services offer a flexible and powerful alternative to local subsidiaries or distributors, especially in combination with our import and distribution services.
  • Over 20 years of recruitment experience in Turkey for international clients, we can find your successful local team with an excellent cultural fit.
  • Instead of dealing with time-consuming and complex local administrative tasks and local laws, our clients and local employees can concentrate on their core business.
  • Transition of your team to your own subsidiary in the future. FMC Services can handle company registration and financial services
  • If necessary, this model allows for an easy market exit
  • In Turkey, your local employees are not alone. We integrate them into our team and make motivational meetings, and organized team events
  • Providing a professional business setting with a class-A workplace (optional)

Advantages of the Turkish Market

Turkey, with its 83 million inhabitants, its proximity to Western Europe, and a customs union with the European Union, is an attractive market to sell products and services.

  • Turkey has the 13th largest economy in the world in terms of GDP PPP (2019)
  • 58,000 international companies are located in Turkey
  • 4 billion potential clients in56 countries can be reached with less than 4 hours of flight
Geo location of Turkey
  • Istanbul has 2 Airports, it is a great hub in the region:
    • Istanbul Airport (IST) on the European side of Istanbul offers flights to 146 destinations connecting 120+ countries and 60+ capitals, 250+ international and 50 domestic destinations. The number of flight destinations will exceed 350 in the future when the airport works with full capacity
    • Sabiha Gokcen (SAW), on the Asian side, is a fast-growing airport, 54 airlines offer direct flights to 41 domestic and 127 international destinations
İstanbul airports and routes
  • You may discover more about Turkey’s economic performance by visiting Invest in Turkey.
  • Istanbul Investment Agency is an additional reputable organization for analyzing Turkey’s enormous competitive advantage.
  • Turkey’s Skilled and Competitive Labor Force, with its high availability of well-trained personnel who typically speak English, is one of the most compelling arguments for investing in the country.

Hiring an Employee

Employment Contract – indefinite vs. fixed term

In Turkey, both fixed-term (belirli süreli) and indefinite (belirsiz süreli) employment contracts are recognized and can be used based on the requirements and intentions of the employer and employee.

  • Fixed-Term Employment Contracts (Belirli Süreli Sözleşme):
    • These contracts have a specified start and end date.
    • They are generally used for temporary projects (like construction), seasonal work, or to replace employees who are on extended leave.
    • The Turkish Labor Law (4857) states that fixed-term employment contracts can’t be successively renewed with the same job description unless there’s a justifiable reason. If an employer continually renews fixed-term contracts without a valid reason, the contract can be regarded as an indefinite contract, giving the employee the rights of an indefinite-term employee.
    • At the end of the fixed-term contract’s duration, the employment relationship ends without the need for any termination notice or severance pay unless otherwise specified in the contract.
  • Indefinite Employment Contracts (Belirsiz Süreli Sözleşme):
    • These contracts are open-ended and remain in effect until either the employer or employee decides to terminate the contract.
    • Termination of an indefinite-term contract usually requires notice and may entail severance payments, especially if the employee has been working for the company for a certain period.
    • Indefinite-term contracts are the standard form of employment in Turkey, especially for permanent positions.

Probation Period

The probation period for an employment agreement cannot exceed two months. Both parties can terminate the employment agreement within the probationary period without notice or compensation.

Work Week, Overtime & Maximum Working Hours

In Turkey, the standard workweek is 45 hours, and the daily work durations are defined by the individual employment contract. Without accounting for overtime, an employee’s standard workday should not exceed 11 hours.

The duration of an employee’s lunch break is determined by their daily working hours. Shifts up to 4 hours grant a 15-minute break. For shifts lasting up to 7.5 hours, a break of at least 30 minutes is required, while longer shifts necessitate an hour-long interruption. The minimum weekly rest period is 24 hours.

Hours worked beyond the standard 45-hour week qualify as overtime and should be compensated at rate (depending if occurred on a workday, public holiday, or weekend). Employees can work up to an extra 270 hours annually

Typical Benefits

Some common side benefits or fringe benefits (yan haklar) that employers may offer their employees in Turkey are:

  • Meal Allowance (Yemek Kartı/Yemek Ücreti): Many companies give meal allowance. Previously companies provided meal cards, which are pre-loaded with a certain amount of money each month for employees to spend on meals. Due to changes in the regulation, payment is now done directly to the bank account of the employee.
  • Transportation Allowance (Servis/ Ulaşım Ücreti): Some companies offer shuttle services or reimburse employees for their transportation costs.
  • Private Health Insurance: While there’s a national health insurance system in Turkey, many employers also provide private health insurance to their employees, offering faster and more extensive services. It can be an individual policy or family policy depending on the position and/or companies’ policies.
  • Bonuses: Performance-based bonuses, holiday gifts (like for Eid or New Year), and 13th-month salaries can be provided by some companies.

Time off Policies

Public Holidays

  • New Year’s Day (Yılbaşı): January 1
  • National Sovereignty and Children’s Day (Ulusal Egemenlik ve Çocuk Bayramı): April 23 – Commemorates the first gathering of the Grand National Assembly in 1920.
  • Labor and Solidarity Day (Emek ve Dayanışma Günü): May 1
  • Commemoration of Atatürk, Youth and Sports Day (Atatürk’ü Anma, Gençlik ve Spor Bayramı): May 19 – Honors Mustafa Kemal Atatürk’s landing at Samsun in 1919, which marked the start of the Turkish War of Independence.
  • Democracy and National Unity Day (Demokrasi ve Millî Birlik Günü): July 15 – Commemorates the thwarted coup attempt in 2016.
  • Victory Day (Zafer Bayramı): August 30 – Celebrates the decisive win at the Battle of Dumlupınar ending the Turkish Independence War in 1922.
  • Republic Day (Cumhuriyet Bayramı): October 29 – Commemorates the proclamation of the Republic of Turkey in 1923. Half day on 28th

Additionally, Turkey also observes religious holidays based on the Islamic lunar calendar, so their Gregorian calendar dates change every year:

  • Ramadan Feast (Ramazan Bayramı or Şeker Bayramı): A three-day festival marking the end of the holy month of Ramadan. The exact date varies each year based on the Islamic lunar calendar. It is 3 calendar days and 0,5 day eve.
  • Sacrifice Feast (Kurban Bayramı): This four-day holiday commemorates the willingness of Ibrahim (Abraham in Christianity) to sacrifice his son. Like Ramadan Feast, its date changes every year based on the Islamic calendar. It is 4 calendar days and 0,5 day eve.

Annual Leave

An employee’s annual leave allocation grows with tenure. Newcomers begin with an entitlement of 14 paid leave days. Upon completing 5 years of service, this increases to 20 paid days off. After a tenure of 15 years, the paid time off (PTO) extends to 26 days.

Employees aged below 18 or above 50 are entitled to a minimum of 20 days of annual leave. In addition, employees are exempt from working on public holidays.

Other Leave Types

  • Maternity Leave: In Turkey, women are entitled to 16 weeks of maternity leave, with 8 weeks designated before the birth and 8 weeks after the birth. In the event of multiple births, this leave is extended to 18 weeks. The Turkish Social Security Institution pays maternity benefits, amounting to two-thirds of the mother’s regular wages. Upon the conclusion of her maternity leave, a mother has the option to take an additional 6 months of unpaid leave to care for her newborn. Alternatively, she can negotiate a 50% reduction in her working hours for 60 days, which extends to 120 days for the second child and 180 days for the third. During this period, the employer compensates the mother only for the hours she works, while her unemployment insurance covers the gap in her salary.
  • Paternity Leave: Fathers are eligible for 5 days of paternity leave.
  • Additional leave allowances include:
    • 3 days for the employee’s own wedding.
    • 3 days in the event of the passing of an immediate family member (first-degree relatives).

Sick Leave

An employee’s sick leave duration is contingent upon their tenure with the company. The base duration for sick leave is 6 weeks. If the employee remains unfit to resume work post this duration, the employer is permitted to terminate the employment, ensuring they honor the appropriate notice period based on the employee’s length of service.

Terminating an Employee

Beyond the standard means of employment termination such as expiration of a fixed-term contract, resignation, and mutual agreement, employment can also be terminated for several specific reasons, including but not limited to:

  • Redundancy and other business-centric reasons
  • Demonstrable underperformance by the employee
  • Grave misconduct, encompassing acts like fraud, negligence, or dishonesty
  • Extended illness

The requisite notice period for termination is determined by the employee’s length of service, with the legal baseline set at 2 weeks:

  • 2 weeks for 0 – 6 months of service
  • 4 weeks for 6 – 18 months of service
  • 6 weeks for 18 – 36 months of service
  • 8 weeks for more than 3 years of service

It’s imperative to recognize that these notice durations are applicable to both the employer and the employee.

Any employee with a tenure surpassing a year, who faces termination without just cause, is entitled to seek severance pay equivalent to a month’s salary for every year of service. Nonetheless, there is a statutory cap on the severance pay which is adjusted every 6 months. In instances where employees believe they’ve been terminated unjustified, they retain the right to pursue a “reemployment lawsuit” in court.

Client Examples for Employer of Record in Turkey

Client situation: A UK-based, global Company in the medical sector decided to hire their own employees in Turkey, without forming their own legal entity, to manage their distributor in Turkey.

Project scope: In the first step, recruitment of the Country Manager through FMC Human Resources. The manager was employed by FMC Group in Turkey with our employer of record service.

Result: Within the first year, the business grew heavily, and our client decided to hire 2 additional employees. After 4 years, additional 3 employees were hired. FMC Human Resources recruited the complete team.

 

Client situation: An international supplier of the construction industry decided to manage their distributors in Turkey and their key accounts with their own local employees. The decision for our employer of record service for a fast and easy business development and operation.

Project scope: Recruitment of a Country Manager with the support of FMC Human Resources. The country manager was hired by FMC Group 2012 with our employer of record service. The employee is still employed by us. To enlarge the business and make it more stable, our client decided to use our import & distribution service in addition.

Result: They are still using the same set-up with FMC Group, despite the challenges that the Turkish construction industry has been going through in the past.  

 

Client situation: A global healthcare company decided to split from its local distributor in Turkey. They were requesting a solution to hire the already existing team of 9 people, to take over the local stock, and handle the complete operations in Turkey, also including maintenance and service.

Project scope: Employer of record for the team of 9 people, including office and a small warehouse. Management of import & distribution, operations, maintenance, and service by FMC group.

Result: Management by FMC Group of the complete business, smoothly from the beginning.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.