How to Hire Employees Legally in Türkiye in 2026?

Hiring employees in Türkiye requires strict compliance with labor, social security, tax, and immigration regulations. Whether you are a foreign investor establishing a new company or a local enterprise expanding your workforce, understanding the legal framework is critical to avoiding penalties, disputes, and operational risks.

At Finlexia Turkish Accounting Firm, we have been advising local and international clients on Turkish employment and corporate law since 2017. Our corporate lawyers team provides a structured and up-to-date overview of how to hire employees legally in Türkiye in 2026, with a focus on risk management, compliance, and best practices.

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Expanding your business operations into the Turkish market offers unparalleled strategic advantages, but navigating the local employment landscape requires precision and expert legal oversight. As Finlexia Turkish Accounting Firm, we have been the premier choice for international investors since 2017, providing comprehensive Turkish company formation and governance services.

In 2026, the regulatory environment for labor in Türkiye remains rigorous. Whether you are a startup or a multinational corporation, understanding the nuances of the Turkish Labor Law No. 4857 is non-negotiable for maintaining corporate governance standards and avoiding costly administrative fines.

1. Legal Framework Governing Employment in Türkiye

Employment relationships in Türkiye are primarily regulated by:

• Turkish Labor Law No. 4857
• Social Insurance and General Health Insurance Law No. 5510
• Turkish Code of Obligations
• Occupational Health and Safety Law No. 6331
• Secondary regulations and case law of the Court of Cassation

These laws apply to most private-sector employees, regardless of nationality, unless specific exemptions exist. Employers must ensure full compliance from the moment recruitment begins.

2. Establishing Employer Status Before Hiring

Before hiring employees, an employer must have a legally established presence in Türkiye. This usually involves forming a company, branch, or liaison office, depending on the nature of operations.

Key steps include:

• Company registration with the trade registry
• Tax registration
• Registration with the Social Security Institution (SGK)
• Appointment of authorized signatories

Employment compliance is closely linked with corporate governance, as directors and managers may face personal liability for labor law violations.

3. Employment Contracts: Mandatory Rules and Best Practices

Turkish law requires employment contracts to comply with statutory standards. While verbal contracts are legally valid in certain cases, written employment contracts are strongly recommended and mandatory for fixed-term employment.

Employment contracts should clearly define:

• Job title and description
• Workplace and working hours
• Salary and benefits
• Contract duration (fixed-term or indefinite)
• Termination conditions
• Confidentiality and non-compete clauses where applicable

Proper contract drafting is essential to ensure enforceability and to minimize future disputes, particularly for managerial or expatriate employees.

4. Types of Employment Contracts in Türkiye

Employers in Türkiye may choose among several contract types:

• Indefinite-term contracts (standard employment)
• Fixed-term contracts (subject to objective conditions)
• Part-time contracts
• On-call employment
• Remote work contracts (regulated more explicitly in recent years)

Misclassification of employment relationships can lead to recharacterization by courts and administrative fines.

5. Salary, Working Time, and Employee Benefits

Minimum Wage and Salary Payments

Türkiye applies a mandatory national minimum wage, updated annually. Salaries must be paid in Turkish Lira via bank transfer for most workplaces.

Working Hours

• Standard working time: 45 hours per week
• Overtime: Maximum 270 hours per year, subject to employee consent

Statutory Benefits

Employers must provide:

• Paid annual leave
• National holiday and public holiday pay
• Sick leave and maternity/paternity leave
• Severance and notice pay upon termination (if conditions are met)

Failure to comply with wage and benefit rules is one of the most common sources of labor disputes.

6. Social Security and Payroll Compliance

All employees must be registered with the Social Security Institution (SGK) before their first working day.

Employer obligations include:

• Monthly SGK premium payments
• Income tax withholding
• Stamp tax payments
• Accurate payroll reporting

Late or incorrect filings result in administrative fines and interest. Payroll compliance is often reviewed during tax audits and labor inspections.

7. Hiring Foreign Employees in Türkiye

Employing foreign nationals requires additional compliance steps. A valid work permit is mandatory and serves as both a residence and work authorization.

Key considerations:

• Work permit application via the Ministry of Labor and Social Security
• Minimum capital and salary thresholds
• Sector-based and nationality-based restrictions
• Employer sponsorship obligations

Foreign employment is frequently scrutinized during corporate transactions, especially in mergers and acquisitions, making compliance critical for due diligence processes.

8. Occupational Health and Safety Obligations

Employers must comply with occupational health and safety (OHS) regulations regardless of company size.

Obligations include:

• Risk assessments
• Workplace doctor and safety specialist appointments
• Employee training
• Incident reporting

Non-compliance may result in work stoppages, administrative fines, and criminal liability in severe cases.

9. Termination of Employment and Legal Risks

Employment termination in Türkiye is heavily regulated and often contentious.

Key principles:

• Valid or just cause is required for termination
• Notice periods must be observed or paid in lieu
• Severance pay may be mandatory
• Reinstatement lawsuits are common for eligible employees

Poorly managed terminations frequently lead to lawsuits handled under corporate litigation, exposing employers to financial and reputational risks.

10. Workforce Reduction and Company Closure

When downsizing or closing operations, employers must follow specific procedures.

Situations involving:

• Mass layoffs
• Workplace closures
• Insolvency

require careful legal planning. Employment obligations continue during restructuring and company liquidation, including notice, severance, and unpaid wages.

11. Common Mistakes Employers Make in Türkiye

Some of the most frequent compliance errors include:

• Using generic or foreign-law-based employment contracts
• Failing to register employees with SGK on time
• Misclassifying employees as independent contractors
• Ignoring termination procedures
• Non-compliance with OHS requirements

These mistakes often lead to inspections, fines, and long-term litigation exposure.

12. Strategic Legal Support for Employers

Hiring employees in Türkiye is not merely an administrative task; it is a strategic legal process. Proper planning ensures:

• Regulatory compliance
• Workforce stability
• Reduced litigation risk
• Investor confidence

At Finlexia Turkish Accounting Firm, we provide end-to-end legal support for employers, from employment structuring and documentation to dispute resolution and corporate advisory services.

Contact us to Hire Employees Legally in Türkiye

Since 2017, Finlexia Turkish Accounting Firm has bridged the gap between international business standards and Turkish legal requirements. Located in the heart of Istanbul, our multilingual team ensures that your company formation, payroll setup, and governance are handled with world-class professionalism. We don’t just provide a service; we act as your long-term thought partner in the Turkish jurisdiction.

Contact Finlexia Turkish Accounting Firm today to schedule a consultation with our employment law specialists. Let us handle the complexities of Turkish labor regulations while you focus on scaling your business in one of the world’s most dynamic markets. With years of experience and multilingual legal services, we help businesses operate confidently and legally in Türkiye.