Can a Foreign National Employer Employ Workers in Türkiye? Rights and Responsibilities of the Employer
Legal Framework for Foreign Employers Employing Workers in Türkiye
The employment of workers in Türkiye by foreign individuals or foreign legal entities requires the combined assessment of Turkish labour law, corporate law, social security legislation, and regulations concerning the employment of foreign nationals.
A foreign individual’s ownership of a company or engagement in commercial activities in Türkiye does not prevent that individual from acquiring employer status and employing workers. However, once a foreign employer begins employing personnel in Türkiye, various legal obligations arise from the employer-employee relationship.
These obligations may include entering into employment contracts, paying wages, completing social security registrations and notifications, taking occupational health and safety measures, complying with working-time and leave requirements, and observing the prohibition of discrimination.
The fact that the foreign employer’s company headquarters or residence is located outside Türkiye does not, by itself, eliminate the application of mandatory Turkish legal provisions to employment relationships carried out in Türkiye.
Can a Foreign National Become an Employer in Türkiye?
A foreign individual may legally have the status of an employer in Türkiye.
For example, a foreign national conducting commercial activities, owning a company, or operating a business in Türkiye may employ personnel where the relevant legal requirements are satisfied.
However, the foreign nationality of the employer does not eliminate the employment rights of employees under Turkish labour law.
The employer must comply with the legislation applicable to the employees.
This is particularly important when foreign employers employ personnel in Türkiye for the first time, as their employment structures should be organized in accordance with local Turkish legislation.
Can Foreign Companies Employ Workers in Türkiye?
Foreign companies operating in Türkiye may also employ workers.
Where a foreign company operates in Türkiye through a:
- branch,
- liaison office,
- subsidiary,
- affiliated company,
- representative office, or
- other legal structure,
the legal framework governing the employment of personnel should be assessed according to the specific structure.
It is particularly important to determine which legal entity has entered into the employment contract, which company pays the employee’s wages, and under which employer the employee is registered for social security purposes.
Failure to correctly determine the employer-employee structure may result in significant disputes concerning employment claims and employer liability.
Foreign Employer’s Obligation to Enter into an Employment Contract
A foreign employer should prepare an employment contract appropriate to the nature of the employment relationship in Türkiye.
The contract should, where appropriate, clearly specify:
- the employee’s position,
- workplace,
- salary,
- working hours,
- leave entitlements,
- overtime,
- additional benefits,
- duration of the contract, and
- termination conditions.
In multinational companies, employment contracts are frequently prepared in English or another foreign language. However, the contract must not contain provisions that conflict with mandatory Turkish employment law.
The inclusion of a foreign governing-law clause in an employment contract does not necessarily mean that all mandatory provisions of Turkish employment law are excluded.
Foreign Employer’s Obligation to Pay Wages
A foreign employer must pay employees working in Türkiye the agreed and legally applicable remuneration on time.
The fact that wages are denominated in a foreign currency or paid by a company located abroad does not automatically eliminate the employer’s wage obligations under Turkish labour law.
It is important for wage payments to be properly documented.
Bank records, payroll records, payment receipts, and employment contracts may constitute important evidence in future wage disputes.
Foreign Employer’s Minimum Wage Obligations
Employers must comply with the applicable minimum wage requirements when determining the remuneration of employees working in Türkiye.
The fact that the employer’s headquarters are located in another country or that the employee is a foreign national does not, by itself, eliminate the application of Turkish minimum wage rules.
Foreign employers must take mandatory Turkish wage regulations into account when establishing their compensation policies.
Where specific salary criteria apply to a foreign employee under the work permit legislation, those requirements should also be considered.
Foreign Employer’s Social Security Obligations
Foreign employers employing workers in Türkiye may also have various obligations under the social security system.
Where an employee is required to be insured, the necessary registrations, notifications, and contribution obligations must be fulfilled.
The fact that the foreign employer is located abroad does not automatically eliminate social security obligations concerning employees working in Türkiye.
However, different rules may apply in cases involving international social security agreements or specific legal statuses.
Accordingly, foreign employers should assess the applicable social security requirements according to the status of each employee.
Foreign Employer’s Occupational Health and Safety Responsibilities
Foreign employers employing workers in Türkiye must comply with the relevant Turkish occupational health and safety legislation.
Depending on the circumstances, the employer may be required to:
- assess workplace risks,
- take the necessary safety measures,
- inform employees about workplace risks,
- provide appropriate training, and
- provide suitable personal protective equipment.
The fact that the company headquarters are located outside Türkiye does not automatically eliminate the employer’s potential liability for workplace accidents occurring at a workplace in Türkiye.
Can a Foreign Employer Also Be a Foreign Employee?
In some circumstances, a foreign individual may be both the owner of a company and a person who personally performs work for that company.
In such cases, ownership or shareholding in a company and the legal right to personally perform work in Türkiye should be assessed separately.
Being a shareholder does not necessarily provide an automatic right to work in Türkiye.
If a foreign company owner intends to personally participate in the company’s activities in Türkiye, their own work authorization and legal status should be separately examined.
This distinction is particularly important for foreign nationals operating small businesses in Türkiye.
Foreign Employer’s Obligation to Treat Employees Equally
Foreign employers must also comply with the prohibition of discrimination and the principle of equal treatment in Türkiye.
Employees cannot be unlawfully treated differently because of characteristics such as:
- nationality,
- language,
- sex,
- religion,
- political opinion, or
- other legally protected personal characteristics.
This is particularly important in multinational workplaces where Turkish and foreign employees work together. Objective criteria should be used when determining wages, promotions, leave, and employment benefits.
Foreign Employer’s Obligation to Comply with Working-Time Rules
Foreign employers must comply with the applicable Turkish employment rules concerning the working hours of employees in Türkiye.
Working hours, overtime, rest breaks, weekly rest, and annual leave must be regulated in accordance with the applicable legislation.
Different working-time practices at a company’s headquarters abroad do not prevent employees working in Türkiye from benefiting from mandatory Turkish employment law provisions.
Foreign Employer’s Annual Leave Obligations
The annual paid leave rights of employees working in Türkiye are generally assessed under the applicable Turkish employment legislation.
The leave system applied by a foreign employer in its home country may not necessarily be sufficient for employees working in Türkiye.
In particular, implementing company policies that provide less annual leave than mandatory Turkish law may create legal risks.
Multinational companies should therefore establish a local leave system or adapt their global leave policies to comply with Turkish legislation.
Foreign Employer’s Obligation to Respect Employee Rights
One of the fundamental obligations of a foreign employer is to protect the rights arising from both legislation and the employment contract.
Accordingly, the employer should:
- pay wages on time,
- establish lawful working conditions,
- take occupational health and safety measures,
- provide statutory leave,
- refrain from discrimination, and
- accurately calculate employment-related receivables.
Whether the employee is a Turkish citizen or a foreign national does not fundamentally change these obligations.
Termination of Employment by a Foreign Employer
When a foreign employer terminates an employee’s employment, the relevant Turkish employment law provisions concerning termination should be taken into consideration.
Factors such as whether the termination is based on a valid or justified reason, the nature of the workplace, the employee’s length of service, and the type of employment contract may be relevant.
The employee’s foreign nationality does not allow the employer to avoid mandatory Turkish employment law provisions when terminating the employment relationship.
Foreign Employer’s Liability for Severance and Notice Compensation
Where the statutory requirements are satisfied, a foreign employer may be required to pay severance and notice compensation.
The fact that the employer is located abroad or that the company’s headquarters are situated in another country does not automatically eliminate employment-related claims arising in Türkiye.
Foreign companies should therefore maintain accurate records concerning severance, notice compensation, and other employment-related receivables of their employees working in Türkiye.
International Employment Contracts and Foreign Employers
Employment contracts used by multinational companies may often contain references to the laws of more than one country.
However, where an employee physically works in Türkiye, mandatory provisions of Turkish employment law may apply.
A contractual choice of foreign law does not necessarily exclude all mandatory provisions of Turkish law.
For this reason, international employment contracts should be carefully reviewed from both a contractual and Turkish employment law perspective.
Can a Foreign Employer Be Liable for a Workplace Accident in Türkiye?
A foreign employer operating in Türkiye may be subject to liability under Turkish legislation for workplace accidents occurring at its workplace.
Relevant considerations may include whether the employer took the necessary occupational health and safety measures, whether workplace risks were properly assessed, and whether the employer was at fault in connection with the accident.
The fact that the company headquarters are located abroad does not automatically eliminate the employer’s potential liability for a workplace accident occurring in Türkiye.
What Should Foreign Employers Consider When Employing Workers in Türkiye?
Foreign employers should pay particular attention to the following areas when employing personnel in Türkiye:
- correctly determining the employer structure,
- preparing employment contracts in compliance with Turkish law,
- verifying work permits,
- completing social security procedures,
- establishing appropriate payroll and wage systems,
- fulfilling occupational health and safety obligations,
- providing annual leave and other employee entitlements,
- complying with the prohibition of discrimination, and
- carrying out termination procedures in accordance with the applicable legislation.
For multinational companies, supporting these processes with human resources policies specifically adapted to Türkiye can significantly reduce legal risks.
Conclusion
Foreign nationals and foreign companies may employ workers in Türkiye. However, acquiring employer status also creates obligations under Turkish labour law and other applicable legislation.
The fact that the foreign employer is located outside Türkiye, that the company headquarters are abroad, or that the employees are foreign nationals does not, by itself, eliminate the application of mandatory Turkish employment law provisions.
Foreign employers must comply with the relevant Turkish rules concerning employment contracts, wages, minimum wage requirements, social security, working hours, annual leave, occupational health and safety, discrimination, and termination of employment.
It is particularly important for foreign companies operating in Türkiye to align their global human resources policies with the mandatory provisions of Turkish law.
Employing workers in Türkiye as a foreign employer is legally possible. However, the employer structure, work permits, social security obligations, employment contracts, and employee rights should be considered together to ensure that the employment relationship is properly structured.
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