Understanding Types of Employment Contracts and Termination Procedures in Turkey

The types of employment contracts in Turkey are classified as fixed-term and indefinite-term by duration, full-time and part-time by working hours, and on-call, remote, seasonal, team and trial-period contracts by form of work. This guide explains the form of employment contracts, the reasons for their termination and the termination procedure under Turkish Labor Law No. 4857 and the Turkish Code of Obligations No. 6098.

What Is an Employment Contract in Turkey?

An employment contract in Turkey is a contract under which one party (the employee) undertakes to perform work in a dependent capacity and the other party (the employer) undertakes to pay wages, as defined in Article 8 of Turkish Labor Law No. 4857. An employment contract is a legally binding agreement between the employer and the employee that sets out the terms and conditions of employment in accordance with labor law regulations.

The employment contract is formed when the offer of employment is accepted by the employee and is legally enforceable. Also referred to as a “contract of employment” or “labor contract”, an employment contract in Turkey may also be deemed to have been formed when the employee actually starts working at the employer’s workplace.

1- What Does an Employment Contract in Turkey Regulate?

The employment contracts in Turkey cover many topics such as the nature of the job, working hours, wages, leave rights, retirement plans, and the rights and responsibilities of the employee. The employer prepares the contract that determines the employment conditions, hiring process, working hours, wages, and leave rights. The types of employment contracts are determined and agreed upon by the parties depending on the nature of the job.

Regardless of which types of employment contract are applied, the rights of the workers in Turkey are specified in the contract, and it is guaranteed that the employers will provide lawful wages and working conditions. These rights include details such as working hours, wages, annual leave, retirement plans, sickness and leave rights. In addition, workers have the right to ensure that their employers comply with health and safety regulations.

2- What Obligations Does an Employment Contract Impose on the Employee and the Employer in Turkey?

The employment contracts in Turkey also ensure that employers respect the rights of their employees. Employers must make payments under the Turkish Labor Law in accordance with the working hours and wages of the employees and ensure compliance with retirement plans and other working conditions.

In conclusion, the employment contracts in Turkey determine the rights and responsibilities of employees and employers and regulate working conditions. It is an important part of the employment contracts in Turkey to ensure that employees receive fair wages and working conditions from their employers. Employers must respect the rights of their employees, and employees must comply with the occupational health and safety measures taken (Turkish Code of Obligations Article 417/2). When drafting employment contracts, it is crucial to seek legal assistance in Turkey to prevent potential loss of rights.

3- Which Law Applies to an Employee Working for a Foreign Company in Turkey?

If an employee provides services to a company operating in Turkey or to the Turkish branch of a foreign company, the employment relationship is, as a rule, subject to Turkish labor law. This is because, even in cases involving foreign elements, the fact that the work is habitually performed in Turkey leads to the application of Turkish law in accordance with the lex loci laboris principle; where the parties have not chosen the applicable law, the contract is governed by the law of the place where the employee habitually works (Turkish Code on Private International and Procedural Law, Article 27/2).

In this context, whether the employer is a domestic or foreign-owned entity does not affect the legal assessment; the employee’s working conditions, rights, and the employer’s obligations are governed primarily by the Turkish Labor Law No. 4857 and other relevant Turkish legislation. Even where the parties choose the law applicable to the contract under Article 27 of the Turkish Code on Private International and Procedural Law No. 5718, that choice cannot deprive the employee of the minimum protection afforded by the mandatory rules of the law of the employee’s habitual place of work.

What Are the Essential Elements of an Employment Contract in Turkey?

Under Turkish law, an employment contract has three essential elements: performance of work, wages, and dependency (legal subordination). Where one of these elements is missing, the relationship between the parties is not an employment contract but a contract for work, a mandate agreement or another service contract; this classification determines whether the protections of the Turkish Labor Law apply.

1. Essential Elements of an Employment Contract in Turkey

For an employment contract to exist in Turkey, the following elements must be present together. What matters is not the name given to the contract, but whether the actual relationship carries these elements:

• Performance of Work: The employee undertakes to provide their labor and working time to the employer for a definite or indefinite period; as a rule, the work is performed by the employee personally.
• Wages: The employer undertakes to pay wages in return for the work performed. Unpaid work does not constitute an employment contract.
• Dependency: The employee works under the instructions and supervision of the employer, as part of the employer’s work organization. Dependency is the key element that distinguishes an employment contract from other service contracts.

2. What Are the Main Characteristics of Employment Contracts in Turkey?

Employment contracts in Turkey are agreements that impose obligations and provide rights to both parties in exchange for the mutual exchange of performances. The internal relationship between the employee and the employer is established when the employee begins working at the employer’s workplace, either actually or based on the contract.

Both parties must comply with the obligation of care and loyalty required by the contract. Employment contracts in Turkey also have the characteristic of a personal unity relationship due to this feature. An employment contract is also a continuing obligation, in which performances are rendered continuously over time rather than at once.

3. How Does an Employment Contract Differ from a Contract for Work and a Mandate in Turkey?

Under Turkish law, an employment contract differs from a contract for work and a mandate agreement in terms of the element of dependency and the nature of the performance owed. In a contract for work, the contractor undertakes to produce a result (the work); in a mandate agreement, the agent undertakes to carry out a task with due care; in neither is there legal subordination to the principal. The table below summarizes these differences:

What Are the Types of Employment Contracts in Turkey?

In Turkey, types of employment contracts can vary according to the demands of the employer and employee, as well as the characteristics of the job. The Turkish Labor Law regulates employment contracts separately according to their duration, the nature of the work, working hours and the form of work; generally, the types of employment contracts in Turkey are classified as follows.

1. Fixed-Term and Indefinite-Term Employment Contracts in Turkey

An employment contract in Turkey may be concluded for a fixed or indefinite term; where the employment relationship is not tied to a specific period, the contract is deemed to be indefinite. An employment contract is a two-party, continuous debt relationship and a private law agreement that imposes rights and obligations on both the employee and the employer within a specified or indefinite period of time, and contains specific rules depending on the nature of the employment relationship; the distinction between contracts for specific and indefinite jobs derives from this definition.

a) What Is an Indefinite-Term Employment Contract in Turkey?

Where an employment relationship is not made for a specific period of time, it is considered an indefinite contract, which is one of the types of employment contracts in Turkey. The indefinite-term employment contract is the general rule under the Turkish Labor Law, whereas the fixed-term employment contract is an exception.

b) When Can a Fixed-Term Employment Contract Be Concluded in Turkey?

Under Article 11 of the Turkish Labor Law, a fixed-term employment contract may only be concluded for fixed-term work or based on objective conditions such as the completion of a specific job or the occurrence of a specific event, and in writing between the employer and the employee. Concluding a fixed-term contract without such objective conditions turns the contract into an indefinite-term contract and allows the employee to benefit from the rights attached to indefinite-term contracts (such as notice periods and job security).

• Fixed-Term Work: Work that, by its nature, is limited to a certain period of time (for example, a trade fair or a seasonal project).
• Completion of a Specific Job: Work with a defined result, such as completing a construction or a project.
• Occurrence of a Specific Event: Situations such as temporarily replacing an employee on leave or on military service.

c) Do Chain Fixed-Term Contracts Turn into Indefinite-Term Contracts in Turkey?

A fixed-term employment contract cannot be concluded more than once in succession (in a chain) without a substantial reason; otherwise, the employment contract is deemed to be indefinite from the outset (Turkish Labor Law Article 11/2). According to the doctrine, it is accepted that chain work agreements occur when a second fixed-term contract is made without any substantial reason, and it is also accepted that the contract turns into an indefinite-term contract once the second fixed-term contract is made. By contrast, chain contracts based on a substantial reason retain their fixed-term character (Turkish Labor Law Article 11/3).

2. Continuous and Non-Continuous Employment Contracts in Turkey

Article 10 of the Labor Law divides the types of employment contracts into continuous and non-continuous jobs based on the nature of the work that is the subject of the contract, not on the parties’ will. This distinction is a criterion that divides the types of employment contracts into two and determines which provisions of the Turkish Labor Law apply.

Whether an employment contract is continuous or non-continuous is determined according to the nature of the work; work that by its nature lasts at most thirty working days is non-continuous, while work lasting longer is continuous. The important point to consider here is that the duration of the job must continue based on the nature of the job, not the period of time determined by the parties or the actual duration of the job. The distinction has practical consequences: under Article 10(2) of the Turkish Labor Law, provisions such as notice periods (Art. 17), job security (Art. 18) and termination for just cause (Arts. 24, 25) do not apply to non-continuous work; the Turkish Code of Obligations applies to those matters instead.

3. Full-Time and Part-Time Employment Contracts in Turkey

Depending on whether the worked hours correspond to the necessary working hours, employment contracts are classified into two types: full-time and part-time employment contracts. This distinction is regulated under Article 13 of the Turkish Labor Law.

• Full-Time Employment Contract: Employment contracts in Turkey established based on the full-time working principle, in accordance with the weekly and daily working hours at the workplace, are considered full-time employment contracts.
• Part-Time Employment Contract: Contracts in which full-day work is agreed upon on certain days of the week or a certain period is determined within one or more days of the week are considered part-time employment contracts in Turkey. Under the Turkish Labor Law, a contract is part-time where the employee’s normal weekly working time is set significantly lower than that of a comparable full-time employee.

A part-time employee cannot be treated differently from a comparable full-time employee solely because of part-time work, unless there is a justified reason. Under the heading of part-time employment contracts in Turkey, distinguishing between the Job Sharing Employment Relationship, the Opportunity Employment Relationship, and the Rotation-Shift Employment Relationship is legally significant.

4. On-Call Employment Contract in Turkey

On-call work in Turkey is a part-time employment contract under Article 14 of the Labor Law, in which it is agreed in writing that the work will be performed whenever the employee is needed for the work he/she undertakes. It is worth mentioning the topic of on-call work at this point; the employment relationship established under this provision is a part-time employment contract based on on-call work, aimed at protecting the worker.

• Form: The contract must be made in writing.
• Notice of the Call: Unless otherwise agreed by the parties, the call must be made at least four days in advance.
• Minimum Working Time: If the parties have not set the weekly, monthly or yearly working time, weekly working time is deemed to be twenty hours; the daily working time for each call must be at least four consecutive hours.
• Wage Guarantee: Wages for the agreed working time are paid even if the employee is not called to work during that period.

5. Seasonal Employment Contract in Turkey

Seasonal employment contracts in Turkey, one of the types of employment contracts, refers to jobs that are performed only during certain periods of the year, while the activity is either suspended or not carried out during other periods. It can be done for a specific or indefinite period.

In seasonal jobs, the employment contract does not end at the end of the season but is suspended until the next season. According to the Turkish Court of Cassation, only the seasons actually worked are taken into account in calculating the seasonal worker’s severance pay; the off-season periods during which the contract is suspended do not involve actual work and are not counted towards seniority.

Indeed, in its decision Yargıtay 22nd Civil Chamber, E. 2017/8075, K. 2017/11718, dated 22.05.2017, the Court of Cassation held that work carried out in a mine operating from April to December was seasonal and reversed the lower court’s judgment for including the suspension periods in the period used to calculate severance pay, even though premiums had been paid for the whole year. The Chamber stated that the time the employee spent in suspension does not involve actual work and therefore does not count towards seniority under Turkish law.

6. Home Working and Remote Working Contracts in Turkey

A home working contract is one of the types of employment contracts in which the worker undertakes to perform the work given by the employer at home or at a workplace determined by himself/herself in exchange for a fee. In cases where there is no provision regarding the home working contract, the general provisions of the service contract will apply (Turkish Code of Obligations Articles 461 and 469).

Remote working in Turkey is an employment relationship established in writing under Article 14 of the Turkish Labor Law, in which the employee performs work at home or outside the workplace by means of technological communication tools, within the work organization set up by the employer. A remote working contract sets out the definition of the work, the manner of performance, the duration and place of work, wages and their payment, the equipment provided by the employer and the obligations to protect it, the employer’s communication with the employee, and the general and special working conditions.

A remote employee in Turkey cannot be treated differently from a comparable employee solely because of this form of work. The procedures and principles of remote working are further regulated by the Remote Working Regulation.

7. Team Agreement in Turkey

A team agreement in Turkey is a contract that must be made in writing under Article 16 of the Turkish Labor Law; the condition of it being in writing is a validity requirement. With the written team agreement, when each worker whose name is written starts to work, a contract of employment is deemed to have been made between that worker and the employer in accordance with the terms determined in the team agreement.

Under Turkish law, the contract shows the identity and wage of each worker separately; the employer is obliged to make separate payments to each worker who is part of the team, and no deduction may be made from the workers’ wages for the team leader on account of intermediation or similar reasons. A team agreement is therefore a framework contract through which a separate employment contract is formed for each worker in the team.

8. Trial Employment Contracts in Turkey

The parties may determine a trial period in Turkey in all types of employment contracts, including fixed-term or indefinite-term permanent employment contracts in Turkey (Labor Law Article 15). The trial period may be set for a maximum of 2 months, as the legislator has limited this period to 2 months; however, it may be extended up to four months by collective labor agreements.

During the trial period, the parties may terminate the employment contract without notice and without compensation under Turkish labor law; the employee’s wages and other rights for the days worked are reserved. If the trial period is not terminated during this period, the employment contract becomes definitive and continues.

9. Temporary Employment Relationship in Turkey

Under Article 7 of the Turkish Labor Law, a temporary employment relationship in Turkey may be established through a private employment agency, or by assigning the employee to another workplace within a holding or the same group of companies. Also known in practice as a loaned labor relationship, it involves the employee temporarily performing work at a workplace of an employer other than their own.

Because temporary employment mostly arises within holding and corporate group structures, it is also closely connected to Turkish commercial law. The basic rules of a temporary employment relationship within a holding or group of companies are as follows:

• Written Consent: The employee’s written consent must be obtained at the time of the transfer.
• Time Limit: The temporary employment relationship may be established in writing for up to six months and renewed at most twice.
• Joint Liability: The transferring employer’s obligation to pay wages continues; the employer to whom the employee is transferred is jointly responsible with the transferring employer for the unpaid wages during the period the worker worked for them, the duty to oversee the worker, and the social security premiums.

In a temporary employment relationship established through a private employment agency, the employer is the agency; such a relationship may only be established in the cases listed in Article 7 of the Turkish Labor Law (for example, where the employment contract is suspended, seasonal agricultural work, domestic services, or an unforeseeable increase in capacity) and within the statutory time limits.

Requirement as to Form of Employment Contracts in Turkey: Must an Employment Contract Be in Writing?

Article 8 of the Labor Law provides that employment contracts in Turkey are not subject to any specific form unless otherwise specified for certain types of employment contracts in Turkey. Written employment contracts are mandatory for some types of employment contracts under the law.

a) Which Employment Contracts Must Be Made in Writing in Turkey?

Employment contracts with a duration of one year or more must be made in writing. Parties have the freedom to make employment contracts for a period of less than one year without a written agreement; however, Article 11 of the Turkish Labor Law already defines a fixed-term employment contract as one made in writing. Employment contracts made in writing are exempt from stamp duty and all fees and charges (Turkish Labor Law Article 8/2).

The contracts for which the law in Turkey specifically requires written form are as follows:

• Team Agreement: Written form is a validity requirement.
• On-Call Employment Contract: The contract must be made in writing.
• Remote Working Contract: The employment relationship is established in writing.
• Seafarer Contract: Under Article 5 of the Maritime Labor Law, the service contract is made in writing in two copies between the employer and the seafarer. In addition, team contracts, on-call employment contracts, and seafarer contracts under maritime labor law are subject to the requirement of being in written form as a condition of validity.

b) What Happens If No Written Employment Contract Is Made in Turkey?

The absence of a written employment contract does not invalidate the employment relationship between the parties in Turkey; the employee may prove the existence of the employment relationship by any means of evidence. Where no written contract is made, the employer is obliged under Article 8(3) of the Turkish Labor Law to provide the employee, within two months at the latest, with a written document showing the general and special working conditions, daily or weekly working hours, basic wage and any wage supplements, the wage payment period, the term of the contract if it is fixed-term, and the provisions to be followed in case of termination.

This obligation does not apply to fixed-term employment contracts not exceeding one month; if the employment contract ends before the two-month period expires, the information must be given to the employee in writing by the termination date at the latest. An employer who fails to provide the document is subject to an administrative fine for each employee concerned under Article 99(c) of the Turkish Labor Law.

c) What Should an Employment Contract in Turkey Include?

An employment contract in Turkey should at least include the identity of the parties, the job description and place of work, the type and duration of the contract, working hours, and wages and payment terms. When drafting an employment contract that sets out employee rights under the Turkish Labor Law, clearly regulating the following matters helps prevent future disputes:

1. Parties and Workplace: The employer’s trade name, the employee’s identity details and the place of work.
2. Job Description and Start Date: The employee’s job description and start date.
3. Type and Duration of the Contract: Whether it is fixed-term or indefinite-term, the duration and objective reason if fixed-term, and any trial period.
4. Working Hours: Daily and weekly working hours, overtime and rest periods.
5. Wages and Supplements: Basic wage, bonuses, premiums and fringe benefits, and the wage payment period.
6. Annual Leave and Termination Terms: Annual leave rights and the notice periods to be observed upon termination.
7. Special Clauses: Confidentiality, non-compete and penalty clauses. Under Articles 444-447 of the Turkish Code of Obligations, a non-compete clause must be in writing and limited in terms of place, time and type of business; a penalty clause imposed only against the employee is invalid under Article 420 of the Turkish Code of Obligations.

What Are the Reasons for Termination of Employment Contract in Turkey?

The reasons for the termination of employment contract in Turkey are listed in the Labor Law. These reasons fall into two groups: cases of termination that do not require a notice of termination (expiry of the term, agreement of the parties, death of the employee) and cases where the contract ends by a party’s declaration of termination. In brief, the reasons for the termination of an employment contract are as follows:

1. Expiration of the Employment Contract in Turkey

A fixed-term employment contract in Turkey ends automatically upon the expiry of the term set by the parties. Employment contracts in Turkey can be made between the employee and employer for a certain period of time. The duration of the employment contract is determined in accordance with the agreement of the parties, and the employment contract terminates at the end of the specified period.

However, if the duration is not specified in the contract, the employment contract is deemed to be for an indefinite period, and the parties may terminate it by observing the notice periods and, where the employee is covered by job security, the employer must rely on a valid reason (Turkish Labor Law Articles 17, 18). If a certain period is specified in the contract, the employment relationship ends with the expiration of that period in Turkey.

Fixed-term employment contracts in Turkey cannot be established consecutively in a chain unless there is a substantial reason, and are deemed to be for an indefinite period. In fact, if the employer establishes another company in Turkey and continues to employ the worker, the employment contract is deemed to have continued without interruption.

What Can the Parties Do Near the Expiry of the Term?

Unless otherwise agreed, a fixed-term employment contract in Turkey ends automatically at the end of its term without any notice of termination (Turkish Code of Obligations Article 430). The law therefore imposes no obligation on the employer to give notice before the end date; nevertheless, it is advisable for the employer to inform the employee in advance that the contract will not be renewed, in order to prevent disputes. Importantly, a fixed-term contract that continues tacitly after its term expires turns into an indefinite-term contract (Turkish Code of Obligations Article 430).

The expiration of the employment contract is one of the reasons for the termination of the employment contract in Turkey, providing the employee with new career opportunities and the employer with the opportunity to find a new employee. Instead of making a new contract or terminating the employee, the employer can reach an agreement with the employee that the contract will not be renewed or will be terminated. This is a good opportunity for cooperation between the parties and a healthy termination of employment relationship in Turkey.

Near the expiration of the employment contract, the parties may reach an agreement to extend the employment contract in Turkey. The employer comes with the option of extending the employment contract instead of terminating the employee. The employee is free to accept the offer to extend the duration of the employment contract. However, if the offer of an extension is not made to the employee, the employment contract is considered to have expired.

In conclusion, employment contracts in Turkey can be made for a fixed or indefinite period, and it is also possible to renew or terminate the contract with the collaboration of the parties. The expiration of the employment contract is the most commonly encountered reason for the termination of employment contracts in Turkey in practice.

2. Termination of Employment Contract by Agreement of the Parties in Turkey (Mutual Termination Agreement)

Regardless of whether the employment contract is for a definite or indefinite period, it can be ended by agreement of the parties. Known in practice as a “mutual termination agreement” (ikale) or “rescission agreement”, this route is not separately regulated in the Turkish Labor Law and is based on the freedom of contract under the Turkish Code of Obligations.

Making an agreement between the employer and the employee for the termination of employment contract in Turkey is the most ideal method for ending employment relationships in a healthy manner. When the parties agree to terminate the employment contract, it helps to prevent the legal problems that may arise when an employee is terminated or when the employer dismisses an employee.

Generally, the parties make the agreement in writing for the termination of employment contract in Turkey. The terms of the agreement include the date of termination of the employment contract, the necessary procedures for the employee to leave the job, the mutual rights and responsibilities of the parties, and other details.

What Are the Validity Requirements of a Mutual Termination Agreement in Turkey?

For a mutual termination agreement to be valid in Turkey, the parties’ intentions must be freely formed and, if the offer came from the employer, the employee must be given a reasonable benefit. In judicial practice, where a mutual termination is made at the employer’s offer and the employee is not given a benefit in addition to severance pay and notice pay, whether the agreement is a genuine mutual termination is strictly assessed.

• Free Will: The employee’s consent must not be vitiated by mistake, fraud or duress.
• Reasonable Benefit: If the offer came from the employer, the employee must be given an additional payment or benefit that justifies bearing the consequences of the termination.
• Clear and Definite Agreement: The termination date and the amounts to be paid must be clearly specified.

Indeed, in its decision Yargıtay 9th Civil Chamber, E. 2017/20949, K. 2017/8597, dated 22.05.2017, the Court of Cassation of Turkey stated that a mutual termination must rest on the parties’ free will and that, where the offer comes from the employer, the employee must be given an additional benefit (reasonable benefit) on top of statutory compensation. As an additional payment had been made alongside severance pay and notice pay in that case, the Court accepted that a reasonable benefit had been provided, held the mutual termination valid and dismissed the reinstatement claim.

Terminating the employment contract in Turkey by agreement of the parties carries some risks for the employee. Since mutual termination is not among the grounds listed in Article 51 of Unemployment Insurance Law No. 4447 that entitle an employee to unemployment benefits, an employee who ends the contract by agreement cannot receive unemployment benefits. Likewise, as mutual termination is not among the cases giving rise to severance pay under Article 14 of Turkish Law No. 1475, severance pay is due only if the parties agree on it, not by law. Therefore, before terminating the employment contract by agreement, it is recommended that the employee carefully evaluate such issues and seek support from a lawyer or employee representative if necessary.

3. Termination of Employment Contract in Case of the Employee’s Death in Turkey

If an employee dies, the employment contract in Turkey naturally terminates. This does not mean that the employer terminated the employment contract due to the employee’s death. Since the act of performing the work is a personal act that the employee must perform, it does not pass on to their heirs.

a) What Rights Can the Heirs of a Deceased Employee Claim in Turkey?

In this case, the heirs or beneficiaries of the employee are entitled to the rights that the employee earned before their death according to Turkish Inheritance Law. The heirs or beneficiaries of the deceased employee may make a claim for the employee’s unpaid wages, severance pay, pay for unused annual leave and other rights at the workplace. The employee’s death is listed in Article 14 of Law No. 1475 among the cases giving rise to severance pay, and Article 59 of the Turkish Labor Law provides that pay for unused annual leave is paid to the right holders whenever the contract ends for any reason.

However, since death is not a termination, no notice pay arises, as notice pay is a consequence of failing to observe notice periods when terminating; for the same reason, a reinstatement lawsuit, which is based on the invalidity of the termination, and the related compensation do not arise either. In addition, under Article 440 of the Turkish Code of Obligations, the employer must pay the employee’s surviving spouse and minor children, or failing them the persons the employee was obliged to support, an amount equal to one month’s wages from the date of death, or two months’ wages if the employment lasted more than five years.

Since the employment contract is terminated in case of the employee’s death, the employer in Turkey is not obliged to offer a job to the employee’s heirs or beneficiaries. However, the employer is obliged to pay the rights earned by the deceased employee up to the date the employment contract ended to their heirs or beneficiaries.

In conclusion, the employment contract in Turkey naturally terminates in case of the employee’s death, and their heirs or beneficiaries may assert their unpaid rights in Turkey during the probate proceedings. However, it is important to note that heirs who have renounced the inheritance in Turkey cannot claim the deceased employee’s labor receivables. It is important to seek the assistance of an inheritance law attorney in Turkey for heirs to claim labor receivables.

b) The Employer’s Occupational Health and Safety Liability upon the Employee’s Death

Additionally, the death of an employee can lead to serious legal problems for employers regarding occupational health and safety. This is because the employer is obliged to take all measures necessary to ensure occupational health and safety in the workplace, and employees are obliged to comply with those measures (Turkish Code of Obligations Article 417/2).

It is extremely important for employers to take necessary measures for occupational health and safety, ensure the safety of employees, and pay the earned rights of the deceased employee to their heirs or beneficiaries. Under Article 417(3) of the Turkish Code of Obligations, compensation for damages arising from the employee’s death due to the employer’s breach of law or contract is subject to the rules on contractual liability.

4. Termination of Employer’s Activities in Turkey

Termination of an employer’s activities may occur due to the company’s bankruptcy, declaration of concordat, liquidation, or similar situations. In these cases the employees have no job to work; however, the closure of the workplace does not end the employment contracts automatically — the contracts end through termination by the employer, and the closure may constitute a valid reason arising from the requirements of the business (Turkish Labor Law Article 18).

In case of termination of the employer’s activities in Turkey, employees can claim their unpaid wages, severance pay, notice pay, reinstatement lawsuit compensations and other rights earned before the termination date through execution proceedings. Additionally, it should be noted that in the event of the employer’s bankruptcy, employees’ receivables accrued within the year before the opening of bankruptcy, including notice pay and severance pay, and the notice pay and severance pay earned due to the bankruptcy, rank first under Article 206 of the Turkish Enforcement and Bankruptcy Law.

In the event of the termination of the employer’s activities, it is clear that the employees will become unemployed. However, employees dismissed because of the closure of the workplace can receive unemployment benefits through the Turkish Employment Agency (İŞKUR), provided that they meet the premium payment conditions and apply in time (Law No. 4447, Article 51), and can also receive assistance during their job search process. Receiving services from İŞKUR during their job search process can help employees find a new job.

5. Resignation due to Retirement in Turkey

Retirement is one of the reasons that allow the employee to terminate the employment contract and receive severance pay in the context of the termination of employment contracts in Turkey. When an employee reaches retirement age or meets certain conditions, they earn the right to retire and leave their job due to retirement. Termination of employment contract due to retirement means the end of the employee’s working life.

Resignation in Turkey due to retirement may occur at the request of the employer or the employee. The employment contract can be terminated upon the employee’s request for retirement. The employer, on the other hand, may terminate the contract of an employee who is eligible for retirement only in compliance with the general termination rules of the Turkish Labor Law, namely the notice periods and, for an employee covered by job security, the valid reason requirement (Turkish Labor Law Articles 17, 18).

If an employee decides to retire and resigns from a job due to retirement in Turkey, the employer’s main obligation is to pay severance pay and other worker compensation rights in Turkey based on the length of service; the employee must document that they left to receive an old-age pension or lump-sum payment and applied to the relevant institution (Law No. 1475, Article 14). An employee who ends the contract themselves is not paid notice pay, but receives pay for unused annual leave (Turkish Labor Law Article 59). If an employee resigns due to retirement, the employer’s obligation to pay their health insurance premiums also ends.

6. Termination of Employment Contract by Resignation in Turkey

Resignation in Turkey is a common occurrence in the workplace and many people choose this route when changing jobs. Resigning from a job may be due to personal or professional reasons, but it is important to do it correctly. Knowing the correct steps in the resignation process in Turkey is important for workers’ future careers.

a) What Does Resignation Mean in Turkey?

Resignation in Turkey means an employee voluntarily leaving their job. The employee will leave their job after a certain period of time by giving a resignation letter to the employer. Resigning from a job means expressing the employee’s decision clearly; the resignation takes effect once it reaches the employer and does not require the employer’s acceptance. In legal terms, resignation means a notice of termination of the employment contract.

b) Reasons for Resigning From a Job in Turkey

Resigning can be due to many reasons in Turkey. Employees may leave their jobs due to dissatisfaction with their work, changes in working conditions, salary, career goals, or the management style of the business. Personal reasons, such as health problems or family reasons, may also lead to resignation in Turkey.

c) Resignation Process in Turkey

Resignation is a process that must be done correctly. It is important for employees to act in accordance with company policies and the Turkish Labor Law. Some steps that employees need to follow are as follows:

1. Notification to the Employer: Regardless of the types of employment contracts, employees must inform their employer in writing of their resignation. The resignation letter should include information such as the employee’s name, job position, leaving date, and reason for resignation.
2. Notice Period: The most important thing to pay attention to during the resignation process in Turkey is the notice periods. After informing the employer of the resignation, employees may need to work for a certain period of time, which is called the notice period. These periods are regulated in Article 17/2 of the Labor Law.
3. Communication with the Employer: After the resignation letter reaches the employer, the employer may need to communicate with the employee about the resignation process. During the resignation process, the employer and employee can agree on the terms of separation directly or through mediation process in Turkey.
4. Return of Company Property: During the resignation process in Turkey, employees must return all company property they have used, such as company cars, computers, keys, cards, documents, or any other assets related to their work.
5. Final Pay and Payments: During the resignation process in Turkey, employees must request their final pay and any unpaid salaries until the resignation date. This may also include requesting payment for unpaid leave, bonuses, allowances, and similar payments from the employer.
6. Leaving the Job: Employees must complete all necessary steps to leave their job on the specified departure date. This includes all matters related to the job, such as returning all company property, final pay, and payments. The resignation process is completed with leaving the job. Following the termination of employment, both the employer and the employee are obliged to ensure the security and confidentiality of personal data in accordance with the Personal Data Protection Law (KVKK).

d) Can an Employee Who Resigns Receive Severance Pay in Turkey?

As a rule, an employee who resigns in Turkey is not entitled to severance pay; however, severance pay is paid if the resignation is based on one of the just causes in Article 24 of the Turkish Labor Law or if one of the special cases listed in the law applies. These special cases are retirement (leaving to receive an old-age pension or a lump-sum payment), leaving after completing the conditions other than age, compulsory military service, and a female employee leaving voluntarily within one year of her marriage.

To be entitled to severance pay in Turkey, the employee must also have worked for the same employer for at least one year. If an employee resigns without just cause and does not observe the notice periods, they may be liable to pay the employer notice pay equal to the wages for those periods.

In conclusion, resigning from a job in Turkey is a common occurrence in the workplace. It is important for workers to show respect for their employers and abide by company policies during the resignation process. Resigning in Turkey may stem from personal or professional reasons, but it is crucial for workers to take the right steps during the resignation process to build a good foundation for their future careers.

7. Termination of an Employment Contract by Rescission in Turkey

The termination of an employment contract in Turkey through rescission can be carried out either with notice or without notice, depending on the type of employment contract. The process differs between the termination of an indefinite-term employment contract and a fixed-term employment contract.

Rescission is a right that creates a dissolutive effect and takes effect upon the declaration of the right holder’s intent. This declaration must be clear, precise, and free of doubt to effectively terminate the employment relationship between the parties. This clarity is crucial to ensure the protection of both employee and employer rights in Turkey.

What Is the Notification of Termination of an Employment Contract in Turkey?

The notification of termination of an employment contract in Turkey is the declaration of intent by an employee or employer to end the employment relationship. Through this notification, the termination of the employment contract is aimed, and the existing legal status is altered. Thus, the notification of termination constitutes a right that creates a dissolutive effect.

In Turkish labor law, the notification of termination of an employment contract can be utilized in two ways: termination with notice and immediate termination. Termination with notice allows indefinite-term employment contracts in Turkey to end after a specified period. Such notification can be made by either the employee or the employer (Turkish Labor Law Article 17/1).

a) What Are the Notice Periods for Termination of an Employment Contract in Turkey?

The minimum notice periods in Turkey that parties must comply with in cases of termination with notice are specified in Article 17/2 of the Turkish Labor Law. These periods depend on the employee’s length of service, as follows:

These minimum notice periods in Turkey begin from the moment the notification is delivered to the other party. However, these periods are minimum requirements and may be extended by individual or collective labor agreements (Turkish Labor Law Article 17/3). If the agreed notice period is shorter than the statutory minimum, the periods stipulated by law will apply.

b) How Is an Employment Contract Terminated by Advance Payment in Turkey?

Under Article 17/5 of the Turkish Labor Law, an employer may terminate an employment contract in Turkey without adhering to notice periods by paying the employee an advance payment equal to the wages for the notice period. This is referred to as “termination by advance payment” and is a right granted exclusively to employers. Employees cannot exercise this right.

If the employer terminates the contract by advance payment without observing notice periods, the wage calculation is based on the employee’s most recent gross salary plus any money or monetary benefits provided under the contract or the law (the “dressed” gross wage), in accordance with Article 17/7 of the Turkish Labor Law.

c) Statute of Limitations for Notice Compensation in Turkey

The statute of limitations for claims regarding notice compensation is 5 years, as per Additional Article 3 of Turkish Labor Law No. 4857. This provision came into effect on October 25, 2017. Under Provisional Article 8, the 5-year statute of limitations applies to employment contracts that ended after this date. For limitation periods that had started running before this date, the previous rules (10 years) continue to apply, but if the remaining part of the period exceeds 5 years, the limitation period expires 5 years after October 25, 2017.

d) Interest and Default on Notice Compensation in Turkey

Statutory (legal) interest is applied to claims for notice compensation in Turkey. Following the amendment made by Law No. 7589, in force since July 31, 2026, Article 1 of Law No. 3095 no longer sets a fixed percentage: the statutory interest rate is eighty percent of the rediscount rate applied by the Central Bank of the Republic of Turkey on December 31 of the previous year, and if that rate changes by five points or more on June 30, eighty percent of the new rate applies for the second half of the year. To initiate the accrual of interest, the other party must be placed in default.

Therefore, to place the party at fault in default and to provide clear evidence, it is advisable to issue a formal notice through a Turkish notary. This ensures that the debtor of the notice compensation is in default, and interest begins to accrue from the date of default.

If the debtor of notice compensation in Turkey is not placed in default prior to initiating legal proceedings, interest on the notice compensation claim will accrue from the date of the lawsuit. This process is essential for protecting claims related to notice compensation in Turkey and ensuring entitlement to legal interest.

What Are the Reasons for Terminating an Employment Contract in Turkey?

The reasons for terminating an employment contract in Turkey can be categorized into three main groups: termination with notice (for valid reasons), termination for justified reasons and constructive termination. It is crucial to ensure that each reason for termination complies with the law and regulations and that the process is managed properly.

1. Reasons for Termination of Employment with Notice in Turkey

Under the Turkish Labor Law, the right to terminate an employment contract with notice is a unilateral declaration of intent that ends an indefinite-term employment contract after a specified period. The validity of this declaration does not require acceptance by the other party; it is sufficient for the notice to be communicated to and received by the other party. Termination with notice in Turkey is a right that creates a legal change by ending the existing employment relationship and can be exercised by both employees and employers.

a) The Valid Reason Requirement for Employees Covered by Job Security in Turkey

However, the application of the right to terminate with notice differs for employees covered by job security and those who are not. While employees not covered by job security can terminate their contracts through notice, employees covered by job security must rely on valid reasons to end their contracts. Employers in Turkey may terminate an indefinite-term employment contract of a job-secured employee only for valid reasons. This serves to protect employees under job security from arbitrary termination by employers.

Article 18 of the Turkish Labor Law outlines the conditions for valid termination in Turkey, the employees it applies to, and the situations that do not constitute valid reasons. The rationale for Article 18 explains that valid reasons are “less severe than those listed in Article 25 but still negatively impact the normal functioning of the business or workplace.“ According to this, valid termination can be defined as a right enabling the employer to terminate an indefinite-term employment contract by adhering to notice periods without having to prove a just cause as severe as those in Article 25.

b) Which Employees Are Covered by Job Security in Turkey?

Under Article 18 of the Turkish Labor Law, job security covers employees with at least six months of seniority working under an indefinite-term employment contract at workplaces employing thirty or more employees; no seniority requirement applies to underground workers. Employer representatives and their assistants authorized to manage the whole enterprise, and employer representatives who manage the whole workplace and have the authority to hire and dismiss employees, are excluded from this protection.

An employee covered by job security who claims that the termination is not based on a valid reason must apply to a mediator within one month of the notification of termination and, if no agreement is reached, may file a reinstatement lawsuit within two weeks of the final mediation report (Turkish Labor Law Article 20). The burden of proving that the termination is based on a valid reason lies with the employer.

c) Is Termination for a Valid Reason a Last Resort in Turkey?

The employer’s termination of an employment contract in Turkey for valid reasons should be a last resort. If the employer has any other means to maintain the employment relationship, termination is not permissible. Moreover, under Article 18, termination is not allowed for reasons explicitly stated as invalid, or for similar reasons. Thus, an employer cannot terminate an employment contract in Turkey on such grounds.

It is essential to emphasize that the obligation to provide a valid reason for terminating an indefinite-term employment contract applies only to employees covered by job security. For employees not under job security, employers may terminate the contract by adhering to the notice periods specified in Article 17 of the Turkish Labor Law. In such cases, it suffices for the employer to issue a notice of termination without providing any justification.

d) What Are the Valid Reasons for Termination in Turkey?

Termination for valid reasons may arise from the employee’s inadequacies or behaviors or the requirements of the business, workplace, or the nature of the job. These three groups differ under Turkish law in terms of whether the employee’s fault is required:

• Employee’s Inadequacy: When termination is due to the employee’s inadequacies, the reasons often involve circumstances beyond the employee’s control. In cases of termination based on the employee’s inadequacies, the employee’s fault is not required.
• Employee’s Behavior: Conversely, termination due to the employee’s behaviors is more directly tied to the employee’s intent and actions. However, in cases of termination due to the employee’s behaviors, fault is a necessary element.
• Requirements of the Business, Workplace or Job: Employers may also terminate an indefinite-term employment contract for valid reasons arising from business, workplace, or job-related necessities. In such cases, the reasons for termination are unrelated to the employee’s physical, professional, or behavioral attributes.

2. Justified Termination of Employment Contracts in Turkey

The Turkish Labor Law does not provide a general definition of the concept of “justified reason.” Instead, Articles 24 and 25 of the Labor Law enumerate the specific grounds for justified termination in Turkey. A general definition of justified reasons can be found in Article 435 of the Turkish Code of Obligations.

This general definition may serve as a guiding principle for interpreting the Turkish Labor Law. Within this framework, justified reasons under the Labor Law can be defined as circumstances or conditions where it would be unreasonable to expect the employment relationship to continue in good faith.

a) What Are the Conditions for Justified Termination in Turkey?

The nature of the employment contract in Turkey, whether fixed-term or indefinite-term, does not preclude justified termination. Fixed-term employment contracts may also be terminated for justified reasons. However, under Article 10 of the Turkish Labor Law, the just-cause provisions of that Law (Articles 24 and 25) do not apply to non-continuous work; in non-continuous work, termination for just cause is governed by Article 435 of the Turkish Code of Obligations. Therefore, for an employee or employer to terminate a contract for just cause under the Turkish Labor Law, the employment must be continuous.

Additionally, the existence of a justified reason alone is insufficient; a declaration of termination must also be issued. Thus, justified termination of an employment contract under the Turkish Labor Law requires three elements: a continuous employment relationship, a justified reason, and a declaration of termination.

In this context, justified employment termination in Turkey can be described as a right that creates a legal change, enabling a party to terminate both fixed-term and indefinite-term contracts when the continuation of the relationship would be unreasonable under the principle of good faith. Justified termination scenarios are not only addressed in the Labor Law and the Turkish Code of Obligations but are also covered under the Maritime Labor Law, the Press Labor Law, and the Trade Unions and Collective Bargaining Agreement Law.

Different sectors may have their own specific legal regulations. For example, in order to collect football player receivables, it is necessary to examine Turkish sports law regulations, and support from a sports law attorney should be sought in the event of contract termination.

b) Into Which Groups Are Justified Termination Grounds Divided in Turkey?

In Turkish legal literature, justified termination is also referred to using terms like “immediate termination,” “termination without notice,” or “termination without a grace period.” Grounds for justified termination by employees are listed in Article 24 of the Labor Law, while those applicable to employers are outlined in Article 25.

The lawmaker categorizes justified employment termination grounds in Turkey for both employees and employers into the following groups:

1. Health Reasons
2. Situations Violating Moral and Good Faith Principles, and Similar Instances: The category of “situations violating moral and good faith principles” is not exhaustive, as indicated by the phrase “and similar instances,” meaning that analogous cases may also be considered justified reasons for termination. For the employee, failure to pay wages in accordance with the law or the contract (Turkish Labor Law Article 24/II-e) and psychological harassment such as mobbing in the workplace, which the employer is obliged to prevent (Turkish Code of Obligations Article 417/1), may also be assessed within this group.
3. Compelling Reasons
4. Detention or Arrest: Additionally, for employers, a fourth category under the Labor Law applies where an employee’s absence due to detention or arrest exceeds the notice period in Article 17.

c) How Is a Notice of Justified Termination Given in Turkey?

Employees or employers intending to terminate an employment contract in Turkey for a justified reason must clearly notify the other party. This is necessary because the party entitled to justified termination may still prefer to continue the employment relationship. Moreover, the termination notice takes effect once it is received by the other party and produces its legal consequences from that point onward. Under Article 435 of the Turkish Code of Obligations, the terminating party must notify the reason for termination in writing; for an employer terminating the contract of an employee covered by job security, Article 19 of the Turkish Labor Law also requires the notice to be in writing and to state the reason clearly and precisely.

Under Article 26 of the Turkish Labor Law, the right to terminate based on conduct contrary to morality and good faith must be exercised within six working days of learning of the conduct and in any case within one year of the act; after these periods the right can no longer be exercised. The one-year limit does not apply if the employee obtained a material benefit from the act.

3. Constructive Termination of Employment Contracts in Turkey

In practice, termination notices are often not explicitly issued. According to the jurisprudence of the Turkish Supreme Court (Yargıtay), if the course of events reveals that one party’s words or actions indicate the termination of the contract, such conduct should be regarded as termination. This is where the concept of “constructive termination” becomes significant.

If the termination stems from the employee’s words or actions, it is interpreted as the employee’s resignation in Turkey; conversely, if the termination results from the employer’s actions, it constitutes termination by the employer. For instance, an employee may refuse to work because overtime payments in Turkey have not been made. In such a case, the termination would be considered constructive.

Indeed, in its decision Yargıtay 9th Civil Chamber, E. 2020/4000, K. 2021/1257, dated 18.01.2021, the Turkish Court of Cassation accepted that an employee who stopped going to work because labor receivables had not been paid had constructively terminated the contract for just cause, and that the absence reports kept and the termination made by the employer afterwards had no effect on the outcome. The decision also stresses that a party who terminates the contract, even for just cause, is not entitled to notice pay.

However, the implications of constructive employment termination in Turkey are not always definitive. The complexity of issues and disputes related to constructive termination stems from this ambiguity. The Supreme Court, taking into account different scenarios, may classify certain employee words or actions as termination by the employer rather than by the employee. While this approach aligns with established jurisprudence, many disputes reveal conflicting outcomes, and the legal evaluation of incidents deemed constructive termination is often subject to errors.

Termination of Fixed-Term Employment Contracts in Turkey

Fixed-term employment contracts in Turkey generally terminate automatically upon the expiration of the agreed duration, without requiring any notice of termination. Since this automatic expiration does not constitute a termination, it does not give rise to termination-related consequences, such as severance pay claims by the employee.

Under Turkish law, a fixed-term employment contract can lawfully end before its term only by mutual agreement, the death of the employee, or termination for one of the just causes listed in Articles 24 and 25 of the Turkish Labor Law; termination with notice is not available for fixed-term contracts. Until the employment contract’s expiration, both parties are obligated to fulfill their obligations; an early termination without just cause ends the contract but exposes the terminating party to the liability for compensation explained below.

a) What Happens If a Fixed-Term Employment Contract Is Terminated Early in Turkey?

However, in practice, fixed-term contracts are sometimes terminated before the agreed term. Despite this, Turkish Labor Law does not explicitly regulate the legal nature and consequences of prematurely terminated fixed-term employment contracts.

Under Article 438 of the Turkish Code of Obligations, if an employer unjustifiably terminates a fixed-term employment contract in Turkey before its expiration, the employee may claim compensation. For indefinite-term contracts, this compensation corresponds to the notice period; for fixed-term contracts, it corresponds to the unexpired term of the contract. However, in fixed-term contracts, any savings resulting from the employment contract’s termination and income earned, or knowingly forgone, from other employment will be deducted from the compensation. In addition, the court may, considering all circumstances, award a further compensation amount it determines freely, which cannot exceed the employee’s six months’ wages.

This provision establishes the legal basis for classifying premature termination of a fixed-term contract as “unjust termination.” It clarifies that the amount payable to the employee constitutes compensation. Provisions of the Turkish Code of Obligations regarding premature termination explicitly allow for deductions from the compensation for savings or other income earned.

b) How Does the Turkish Supreme Court Classify Pay for the Remaining Term?

With the entry into force of Law No. 6098, Article 438 of the Turkish Code of Obligations expressly provides that the employee’s claim for the remaining term of a fixed-term contract terminated unjustifiably by the employer in Turkey is in the form of compensation. Regarding Supreme Court (Yargıtay) precedents, the Court reached the same result under the repealed Code of Obligations: in its decision dated December 20, 2010 (9th Civil Chamber, 2010/15688 E., 2010/38732 K.), the Supreme Court classified the claim of an employee who had justifiably terminated a fixed-term contract because safety measures were not taken, for pay for the remaining term, as equitable compensation under Article 345 of the repealed Code of Obligations.

In conclusion, when a fixed-term employment contract in Turkey is terminated prematurely, the employee is entitled to claim compensation for the remaining period. As the awarded amount constitutes compensation, it will be calculated based on the gross salary and subject to statutory interest.

c) Can an Employee Leave Before a Fixed-Term Contract Ends in Turkey?

An employee working under a fixed-term employment contract in Turkey may terminate the contract immediately before its term ends if one of the just causes listed in Article 24 of the Turkish Labor Law exists. An employee who does not start work or suddenly leaves the job without a just cause may, under Article 439 of the Turkish Code of Obligations, be liable to pay the employer compensation equal to one quarter of their monthly wage; the employer’s right to claim additional damages is also reserved. If the employer does not exercise this right by lawsuit or enforcement proceedings within thirty days of the employee leaving, the right to compensation lapses.

Therefore, the answer to the question “I signed a contract, can I leave my job?” depends on whether leaving is based on a just cause. Where there is no just cause, terminating the contract by mutual agreement is the route that removes the risk of compensation for the employee in Turkish practice.

Termination of Indefinite-Term Employment Contracts in Turkey

The termination of indefinite-term employment contracts in Turkey can be classified into two categories: termination with notice and termination for just cause. Both processes are governed by rules established under Turkish Labor Law.

a) Termination with Notice in Turkey

Termination with notice is primarily applicable to indefinite-term employment contracts. For employees outside the scope of job security, there is no obligation to provide a reason for ending the contract in this type of termination; an employer terminating the contract of an employee covered by job security must rely on a valid reason and state it clearly in a written notice (Turkish Labor Law Articles 18, 19). However, the compensation rights of the dismissed employee in Turkey, including severance pay and other entitlements, must be respected.

Employers’ freedom to terminate contracts is not absolute. If the contract of an employee outside the scope of job security is terminated in abuse of the right of termination, the employee may claim bad faith compensation equal to three times the notice period (Turkish Labor Law Article 17/6). For example, termination aimed at depriving the employee of certain rights, such as severance pay eligibility, may fall under wrongful termination in Turkey.

b) Termination for Just Cause in Turkey

Regardless of whether the employment contract is fixed-term or indefinite-term, either the employer or the employee may immediately terminate the employment contract without notice in Turkey if one of the just causes specified by law is present. A just cause is required, and the terminating party must notify the reason for termination in writing (Turkish Code of Obligations Article 435). In the event of a dispute, the terminating party must substantiate the just cause.

The Turkish Labor Law enumerates just causes for termination separately for employees and employers. These causes are grouped into three categories: health reasons, acts contrary to ethics and good faith and similar instances, and compelling reasons.

Reasons for Termination of Employment in Turkey

There can be many reasons for the termination of employment process in Turkey, and it is necessary to review whether these reasons comply with the law. Depending on the reason for termination, the employer reports the SGK exit code to the institution. Termination of employment in Turkey can occur for various reasons, categorized as follows based on practices and regulations:

1. Termination Due to Health Issues in Turkey

Under Article 25 of the Turkish Labor Law (No. 4857), employers are granted the right to terminate an employee’s contract for just cause based on health-related reasons in the following cases:

• a) If the employee’s illness or disability results from their own intent, disorganized lifestyle or addiction to alcohol (or the employee becomes disabled for these reasons) and leads to absenteeism exceeding three consecutive working days or five working days in a month.
• b) If a health board confirms that the employee suffers from a condition that cannot be treated and poses a risk to their continued work in the workplace.
• Other Cases: For illnesses, accidents, childbirth, or pregnancy unrelated to the employee’s fault, the employer may terminate the contract without notice only after the absence exceeds the statutory notice periods outlined in Article 17 by six weeks. For childbirth or pregnancy, this period begins after the maternity leave ends.

2. Termination Due to Breach of Ethics and Good Faith in Turkey

Failure to comply with moral principles and rules of good faith is considered grounds for dismissal in Turkey from the perspective of employees. Article 25(II) of the Turkish Labor Law lists conduct contrary to honesty and loyalty such as abusing the employer’s trust, theft and disclosing the employer’s trade secrets, words or acts offending the honour of the employer or family members and conduct amounting to defamation, coming to work drunk or under the influence of drugs or using such substances at work, sexual harassment and assault. As these cases are not exhaustive, conduct of similar gravity such as accepting bribes or embezzlement may also constitute just cause, while less serious behaviors such as speaking negatively about the employer behind their back, using technological devices for non-work purposes, or exceeding leave periods may, depending on the circumstances in Turkish practice, constitute a valid reason.

3. Termination for Professional Incompetence in Turkey

In Turkey, professional inadequacy alone does not constitute a sufficient ground for the termination of an employment contract. While employers may expect the employee to make efforts to overcome their current shortcomings and improve themselves, they are also obligated to provide the necessary support during this process.

If the employee lacks the knowledge and skills required for the job, it is the employer’s responsibility to offer the necessary training and development programs to address these deficiencies. Indeed, judicial decisions in Turkey emphasize that the employer must provide appropriate training and support opportunities to remedy the employee’s professional inadequacy. Otherwise, a termination based solely on professional inadequacy is not considered valid.

4. Termination Due to Physical Inability or Aging in Turkey

Physical inadequacy has a limited impact in terms of terminating an employment contract in Turkey and cannot be regarded as an independent ground for dismissal in every case. However, if the employee’s physical characteristics are not suitable for the nature of the job or if the employee lacks the physical strength required for the work, and this situation prevents the proper performance and completion of the job, the employer may have the right to terminate the employment contract. In such cases, if the employee is unable to fulfill their work obligation and this objectively makes it difficult to maintain the employment relationship, the termination in Turkey may be considered based on a valid reason.

5. Termination for Absenteeism in Turkey

In Turkey, an employee’s absenteeism may constitute a valid or even just cause for termination of the employment contract, provided that certain conditions are met. However, absenteeism does not automatically grant the employer the right to immediate termination in every case. According to the Labor Law, the employer may terminate the contract for just cause if the employee fails to come to work for two consecutive business days, for two times on the workday following a holiday within one month, or for a total of three business days within one month without a valid excuse.

In cases where these conditions are not met, the employer may still proceed with termination based on a valid reason. In Turkish practice, it is expected that the employer should first attempt to learn the reason for the employee’s absence, and if the employee fails to provide a valid excuse, the employer may then exercise the right to terminate. Otherwise, absenteeism alone may not justify termination.

6. Failure to Fulfill Job Duties in Turkey

In Turkey, an employee’s failure to fulfill assigned duties, perform their work properly, avoid negligence, or behaviors such as prolonged personal phone calls that disrupt work or excessive personal internet use that interferes with job performance may constitute a valid reason for termination of the employment contract by the employer. Such behaviors are considered breaches of the employee’s obligations arising from the employment relationship.

However, in these situations, the employer is required—under Article 19 of Labor Law No. 4857—to request a written defense from the employee before making a termination decision. If the employee’s defense is deemed insufficient or the behavior is repeated, the employer may validly terminate the employment contract. An employee’s persistent refusal to perform duties despite being reminded of them constitutes just cause under Article 25/II-h of the Turkish Labor Law. Conducting the termination process in accordance with legal procedures will reduce the employer’s liability in potential legal disputes.

7. Termination for Theft or Damaging Employer Property in Turkey

In Turkey, if an employee takes materials belonging to the employer without permission—that is, commits theft—the employer has the right to terminate the employment contract immediately for just cause (Turkish Labor Law Article 25/II-e). Causing damage or loss, wilfully or through negligence, to machinery, installations or other goods of the workplace to an extent that cannot be covered by thirty days’ wages is also a just cause (Article 25/II-ı). Such actions seriously damage the trust that forms the basis of the employment relationship, making it unreasonable to expect the employer to continue the contract.

The Turkish legislator expressly lists such behavior by the employee as just cause for termination from the employer’s perspective. However, it is essential that the termination process be carried out in compliance with the provisions of the Labor Law, in particular the six-working-day period in Article 26.

8. Misleading the Employer in Turkey

If an employee deliberately attempts to mislead the employer, makes false statements regarding work-related matters, or lies in a manner that undermines the trust relationship with the employer, such behavior may constitute just cause for immediate termination of the employment contract in Turkey. Misleading the employer at the time the contract is concluded, by claiming qualifications one does not have or giving untrue information, is regulated in Article 25/II-a of the Turkish Labor Law, while conduct contrary to honesty and loyalty during the employment is covered by Article 25/II-e. These actions violate the duty of loyalty and honesty, which are fundamental to the employment relationship, and destroy the trust the employer has in the employee, making it objectively impossible to continue the contractual relationship. Therefore, the employer has the right to terminate the employment contract immediately in response to such conduct.

9. Termination Due to Conflict or Incompatibility in Turkey

In Turkey, an employee’s incompatibility is a variable factor when it comes to the termination of an employment contract and must be assessed based on the specific circumstances. For instance, an employee’s inability to adapt to group work alone does not constitute an absolute ground for dismissal; however, if the employee frequently experiences conflicts with coworkers, disrupts workplace harmony, or displays negative behavior in customer relations, such conduct may justify termination on valid grounds, and in some cases, even on just grounds. These types of behaviors can negatively affect workplace order and productivity, making it difficult for the employer to maintain the employment relationship and potentially legitimizing the termination process.

10. Actions Related to Exercising Legal Rights in Turkey

Actions taken by an employee for the purpose of exercising their legal rights are not considered valid grounds for dismissal in Turkey. Under Article 18(3) of the Turkish Labor Law, the following in particular do not constitute a valid reason for termination:

• Union Activity: Union membership or participation in union activities outside working hours or, with the employer’s consent, during working hours; acting as a workplace union representative.
• Pursuing Rights: Applying to administrative or judicial authorities against the employer to pursue rights arising from legislation or the contract, or taking part in such proceedings.
• Prohibition of Discrimination: Race, colour, sex, marital status, family responsibilities, pregnancy, childbirth, religion, political opinion and similar reasons.
• Maternity Leave and Illness: Absence during the periods before and after childbirth when women may not be employed; temporary absence due to illness or accident during the statutory waiting period.

Moreover, behaviors such as encouraging other employees to join a union cannot be accepted as valid reasons for dismissal in Turkey. In addition, a dismissal made before the expiration of a statutory period in order to prevent the employee from becoming entitled to severance pay may amount to an abuse of the right of termination and give rise to bad faith compensation. Seeking assistance from an English-speaking lawyer in Turkey during the termination process will help understand the legal rights.

Employment Contract Termination Rights of Foreign Nationals in Turkey

Foreign nationals working in Turkey, whether employed by a Turkish company or a foreign company operating in Turkey, are subject to Turkish Labor Law. This ensures that foreign employees have the same rights and protections as Turkish citizens in the workplace. However, under foreign nationals law, different regulations may apply if there are bilateral international agreements between the foreign worker’s home country and Turkey.

Under Turkish Labor Law, foreign employees have the following main rights and obligations:

• Protection of Labor Rights: Foreign employees are fully protected under the provisions of Turkish Labor Law. This includes rights related to wages, working hours, overtime, annual leave, and severance pay.
• Claims for Employee Receivables: Foreign employees can file claims in Turkey for unpaid wages, overtime, unused annual leave, severance pay, and other employment-related receivables. These claims are recognized and enforceable in Turkish courts.
• Access to Turkish Courts: Foreign nationals have the right to initiate legal proceedings in Turkish courts to address any disputes or violations arising from their employment contracts. The legal system provides equal access to justice for all employees, regardless of nationality.
• Tax Obligations: Income earned by foreign nationals in Turkey is subject to Turkish tax laws. Foreign employees’ earnings in Turkey are taxed under Turkish tax legislation. Wages paid in foreign currency to employees working in liaison offices of foreign companies in Turkey, out of earnings the employer (whose legal and business centre is outside Turkey) derives abroad, are exempt from income tax on their foreign-sourced earnings under Article 23(14)(a) of the Turkish Income Tax Law. For detailed guidance on taxation, please visit our related article “Tax on Foreign Salary in Turkey”.

By aligning the employment rights of foreign nationals with those of Turkish citizens, Turkish Labor Law applies to all employees, regardless of nationality, whose place of work is in Turkey. It is important to seek assistance from a tax attorney in Turkey regarding the tax liabilities of foreign workers.