Employment & Workforce Regulations

Establishing a factory in Turkey involves navigating complex employment and workforce regulations to ensure legal compliance and the well-being of your employees. Here's a detailed guide to help you through this process:
  1. Work Permits and Residence Visas for Foreign Employees
    To legally work in Turkey, foreign nationals must obtain a work permit. The application process involves both the employer and the employee and is coordinated through Turkey's Ministry of Labor and Social Security (MLSS). Here's a detailed breakdown of the process:
    1. Job Offer:
      • The foreign national must first secure a confirmed job offer from a Turkish employer.
    2. Employer's Application:
      • The employer initiates the process by submitting a work permit application to the MLSS.
      • This application is submitted through the E-Permit System.
    3. Employee's Application:
      • The employee applies for a work visa at the Turkish consulate in their home country
      • Necessary documents include the passport, visa application form, and a letter from the employer.
      • Other required documents should be submitted to the MLSS by the employer within ten working days after the employee's application.
    4. Supporting Documents:
      • Both the employer and employee must provide necessary documents, including:
        • Employment contract.
        • Valid passport.
        • Relevant educational or professional qualifications.
        • Other documents as specified by the MLSS.
    5. Review Period:
      • The MLSS reviews the application, which may take up to 30 days.
    6. Approval:
      • Upon approval, the employee receives a work permit and visa, allowing legal employment and residency in Turkey.
      • Work permits issued by the MLSS are considered as residence permits as long as they are valid.

      It's important to note that certain professions are restricted for foreign nationals, such as dentistry, veterinary medicine, law, notary public, and roles involving the sale of state-specific items. Employing foreigners in these positions is prohibited.

  2. Registration with the Social Security Institution (SGK)
    All employers in Turkey are legally required to register their employees with the Social Security Institution (SGK) to ensure access to health insurance, pensions, and other social benefits. Steps for Registration:
    • Obtain Employer Registration: Before hiring, register your business with the SGK to receive an employer registration number.
    • Employee Registration Declaration: Submit the employee registration declaration to the SGK before the employee begins working. This declaration must be filed no later than one day before the employee's start date.
    • Premium Contributions: Both employer and employee are required to make monthly premium contributions to the SGK. As of recent updates, the Social Security Upper Limit is increased to 195.041,40 TL, which applies to both employer contributions and worker deductions.
  3. Mandatory Employee Benefits
    Employers must provide certain mandatory benefits to their employees, including:
    • Health Insurance: Compulsory health insurance is provided through the SGK, covering medical expenses for employees and their dependents.
    • Retirement Benefits: Employees are entitled to retirement benefits upon meeting specific conditions, with both employer and employee contributing to the pension system
    • Unemployment Insurance: Both employers and employees contribute to unemployment insurance, providing financial support to employees in case of job loss.
    • Occupational Accident and Disease Insurance: Coverage for work-related accidents and occupational diseases is mandatory, ensuring compensation and support for affected employees.
    1. Hazardous Materials & Hazardous Waste Liability Insurance
      • Required by law for factories dealing with flammable, explosive, or toxic materials.
      • Covers damage to third parties and the environment due to hazardous material spills, leaks, or explosions.
    2. Mandatory Earthquake Insurance
      • Required for all industrial and commercial buildings, including oil factories.
      • Covers damage to factory buildings caused by earthquakes.
    3. Coastal Facilities Marine Pollution Liability Insurance
      • Required if the oil factory is located near coastal areas and uses ports or marine logistics.
      • Covers oil spills, leaks, or contamination affecting the sea and marine life.
    4. Mandatory Liability Insurance for Vehicles Carrying Hazardous Materials
      • Required if the factory owns trucks/tankers transporting oil or hazardous chemicals.
      • Covers damage to third parties in case of accidents, spills, or explosions during transportation.
    5. Compulsory Motor Vehicle Liability Insurance
      • Mandatory for all company vehicles, including oil tankers, employee transport, and delivery trucks.
    6. Mandatory Liability Insurance for Private Security Services
      • Required if the factory has private security guards (common in oil factories due to security risks).
      • Covers legal liabilities for damages caused by security personnel.
  4. Compliance with Labor Laws
    Adherence to Turkish labor laws is crucial for legal compliance and maintaining a positive work environment. Key regulations include:
    • Labor Law No. 4857: Governs employment contracts, working hours, leave entitlements, and termination procedures.
    • Occupational Health and Safety Law No. 6331: Mandates employers to ensure workplace safety, conduct risk assessments, and provide necessary training to employees.
    • International Labor Force Law (ILFL): Regulates the employment of foreign nationals, including work permit requirements and restrictions on certain professions.

By meticulously following these guidelines, you can ensure compliance with Turkish employment regulations and foster a secure and supportive workplace for your employees.