Termination of Foreign Employees in Turkey

1. Legal Basis: Which Laws Govern Foreign Employees in Turkey?

When a foreign employee works in Turkey under a valid employment contract, the relationship is usually governed by:

• Turkish Labour Law No. 4857
• Turkish Code of Obligations (for certain contractual aspects)
• Law on International Labour Force No. 6735 (work permit and status of foreign workers)
• Social Security Law No. 5510
• Secondary legislation on work permits, residence permits and social security procedures.

A foreign employee with a work permit is generally treated like a Turkish employee in terms of:

• Protection against unfair dismissal
• Notice periods
• Severance pay (if conditions are met)
• Overtime, annual leave, weekly rest day, national holidays, etc.

Therefore, as a default rule, the same termination rules apply to foreign and Turkish employees, unless a special exception is explicitly provided by law or in international agreements.

However, there is an important practical difference:
For a foreigner, losing the job often means losing the legal basis of his/her stay in Turkey, because the work permit is linked to the employment relationship. This creates an additional layer of risk and urgency for both sides.

---

2. Types of Employment Contracts with Foreign Workers

Before analysing termination, it is crucial to distinguish between different types of employment contracts that a foreign worker may have in Turkey. The structure of the contract strongly affects the termination method, compensation and procedural obligations.

2.1 Indefinite-Term Employment Contract

The most common form is the indefinite-term employment contract. In this type:

• There is no fixed end date for the employment.
• The relationship continues until one of the parties (employer or employee) validly terminates it.

For foreign employees, indefinite-term contracts are frequently used for:

• Middle and senior managers
• Long-term technical staff
• R&D, IT and engineering roles
• White-collar employees in multinational companies.

Termination of an indefinite-term contract must comply with general Labour Law rules on just cause, valid cause, notice periods and severance.

2.2 Fixed-Term Employment Contract

Foreigners are sometimes engaged with fixed-term contracts, usually in the following scenarios:

• Project-based work (construction, specific consultancy, start-up phase)
• Short-term assignments or secondments
• Seasonal employment (tourism, hospitality, etc.).

A fixed-term contract automatically ends when its term expires, provided that it is genuinely fixed-term and not used to circumvent employment security rules.

If the employer terminates before the end date, the rules on unjust termination and compensation may apply, except where termination is based on a just cause recognised by law.

2.3 Probation Period in Foreign Employees’ Contracts

Employment contracts in Turkey can include a probation period of up to 2 months (extendable to 4 months by collective bargaining agreements).

During probation:

• Each party may terminate the contract without notice.
• However, the employer must still respect prohibitions on discrimination, mobbing, and fundamental rights.

In practice, employers sometimes incorrectly assume that a foreign worker can be “easily dismissed” during probation without any consequence. This is not accurate: even in probation, dismissal can be challenged if it is based on discriminatory grounds (such as nationality, race, gender, pregnancy, union activity, etc.) or if it violates public policy.

---

3. Work Permits and Residence Permits: Why They Matter at Termination

The work permit is central to the legal status of a foreign employee in Turkey. Understanding its connection to termination is essential.

3.1 Impact of Termination on Work Permit

Under Turkish law, a foreigner usually needs a valid work permit (or exemption) to legally work in Turkey. This permit is:

• Employer-specific (tied to a particular company)
• Position-specific (tied to a certain job or role)
• Time-limited (e.g., 1 year, later extendable).

When an employer terminates a foreign employee’s contract:

• The work permit loses its basis, because the underlying employment relationship ends.
• The employer and the employee have notification duties towards the Ministry of Labour and relevant authorities.
• The foreigner may need to leave Turkey or switch to another legal basis (e.g., new employer applying for a permit, change of residence status, etc.).

Failure to properly notify or update the work permit status can result in:

• Administrative fines
• Future work permit complications
• Potential immigration consequences for the foreign employee (including entry bans in serious cases).

3.2 Employer’s Obligation to Notify Termination

In principle, the employer must:

• Notify the relevant authorities (e.g., Ministry of Labour and Social Security) that the employment relationship with the foreigner has ended.
• Ensure that social security and tax records are updated accordingly.

Good practice also includes:

• Providing the foreign employee with clear written information about the termination date and reasons.
• Explaining that the work permit linked to this employment may no longer be valid following dismissal.

---

4. Lawful Grounds for Termination of Foreign Employees

For indefinite-term employment contracts, Turkish Labour Law distinguishes between:

1. Termination with just cause (haklı nedenle derhal fesih)
2. Termination with valid cause (for business or performance reasons), subject to notice periods and severance
3. Termination by mutual agreement (ikalé)
4. Termination without cause, which normally leads to compensation and reinstatement risk for eligible employees.

4.1 Just Cause Termination (Immediate Dismissal)

Just cause termination allows the employer to end the contract immediately, without notice, when a serious event occurs. Examples include:

• Gross misconduct (theft, assault, harassment, serious insubordination)
• Serious breach of confidence or loyalty
• Repeated unjustified absence
• Serious endangerment of workplace safety
• Criminal acts against the employer or colleagues.

Just cause termination rules apply to foreign employees in the same way as to Turkish employees. However, in practice, employers must be extremely meticulous in documenting the facts. Otherwise, courts may reclassify the dismissal as unjust and award compensation.

For foreign employees, a just cause termination may also:

• Harm their future work permit applications or immigration status
• Make re-entry to Turkey more difficult if authorities consider them a risk.

Therefore, just cause termination should be used only when the facts strongly support it, and employers should carefully collect evidence, witness statements, emails, CCTV recordings, and follow internal procedures (warnings, disciplinary committee, etc.).

4.2 Termination for Valid Reasons (Personal Performance or Business Necessity)

If there is no “just cause” but the employer has a legitimate valid reason, dismissal can still be lawful, provided that:

• The company has at least 30 employees
• The employee has at least 6 months’ seniority
• The employee is not in a category excluded from employment security.

Valid reasons may be:

• Performance or competence reasons:
  • Inefficiency, inability to meet reasonable performance standards
  • Lack of adaptation despite training and warnings
  • Persistent but non-gross failure to perform duties.
• Business-related reasons:
  • Economic difficulties and downsizing
  • Technological changes
  • Organisational restructuring, department closure
  • Outsourcing of certain functions.

In such cases:

• The employer must apply notice periods (or pay in lieu).
• If the employee meets the conditions, severance pay must be paid.
• The reasons must be concrete, objective and provable, especially for performance-based dismissals.

Courts in Turkey often examine whether the employer has:

• Used less severe measures first (reassignment, performance improvement plan, training),
• Avoided discriminatory criteria (e.g., selecting only foreigners for termination while equally situated Turkish employees remain).

4.3 Collective Dismissals Involving Foreign Employees

In large companies and multinational groups, restructuring may involve collective redundancies. If the number of terminations exceeds statutory thresholds within a certain period, special rules apply, including:

• Prior notification to authorities
• Consultation with employee representatives (if any)
• Additional procedural obligations.

Foreign employees can be part of a collective dismissal, but employers must be careful not to target foreigners solely because of their nationality, which may be interpreted as discriminatory.

4.4 Termination by Mutual Agreement (İkale) with Foreign Employees

Another common practice is to end the employment relationship with foreigners by mutual termination agreement (ikale). In such an agreement:

• Both parties agree to terminate the employment contract on agreed terms.
• The agreement may include:
  • Additional compensation above legal minimums
  • Health insurance continuation for a period
  • Assistance in relocation or obtaining reference letters
  • Clarification on work permit and immigration issues.

For foreign employees, a well-drafted mutual agreement can be particularly attractive because it provides:

• Predictability regarding timing and compensation
• Time to organise their stay or departure
• A clear document that may be helpful in future visa or work permit applications.

From the employer’s perspective, mutual agreements can reduce:

• Litigation risk (if properly drafted)
• Reinstatement claims
• Reputational tension, especially in high-profile roles.

However, the mutual termination must be genuinely voluntary and not forced under duress or misrepresentation. Otherwise, the employee may challenge the agreement in court.

---

5. Procedural Requirements: How to Terminate a Foreign Employee Correctly

To avoid future disputes, employers should follow a clear, documented process when terminating a foreign worker.

5.1 Written Notice and Reasoned Termination

Under Turkish Labour Law:

• Termination of an indefinite-term contract must be made in writing.
• The employer must clearly state the reason(s) for termination, especially in cases where employment security rules apply.

For foreign employees, the notice letter should ideally be:

• In Turkish, as the official language; and
• Provided in English or another language that the employee fully understands, to prevent future arguments about misunderstanding.

This dual-language approach is not legally mandatory but is considered best practice in international HR management.

5.2 Notice Periods for Foreign Employees

Unless there is just cause for immediate dismissal, the employer must respect statutory notice periods, which depend on the employee’s length of service:

• 0–6 months: 2 weeks
• 6–18 months: 4 weeks
• 18–36 months: 6 weeks
• More than 36 months: 8 weeks

Instead of allowing the employee to work during the notice period, the employer may choose to pay notice compensation (payment in lieu of notice).

These rules apply equally to foreign employees, and failure to comply may result in notice compensation being awarded by the court.

5.3 Severance Pay for Foreign Employees

Foreign employees may be entitled to severance pay if:

• They have completed at least 1 year of continuous service with the employer; and
• The reason for termination fits within severance-eligible categories (for example, termination by employer without just cause, certain resignations with just reasons, etc.).

The amount is generally calculated based on:

• Last gross wage (subject to a statutory ceiling)
• Years of service (one month’s wage per completed service year, proportionally for fractions).

There is no distinction between Turkish and foreign employees regarding severance pay entitlement, as long as the employment is under Turkish Labour Law and the employee has worked in Turkey.

5.4 Final Settlement (İbraname) and Documentation

Upon termination, employers typically prepare:

• Final account / breakdown of payments (wages, unused annual leave, bonus, notice pay, severance, etc.)
• Release agreement (ibraname), where the employee acknowledges having received all due rights.

For foreign employees, these documents should be:

• Carefully drafted to reflect all components of compensation
• Signed clearly, ideally with translations or bilingual format
• Not used to waive mandatory rights in a way that would conflict with public policy (since such waivers may be invalid).

---

6. Discrimination and Equal Treatment: Nationality as a Sensitive Ground

Even though an employer has the right to reorganise business and manage its workforce, discrimination rules impose clear limits.

6.1 Prohibition of Discrimination Against Foreign Employees

Foreign employees in Turkey are protected against discrimination based on:

• Nationality
• Race, ethnic origin
• Gender, religion, political opinions, union membership, etc.

In practice, discrimination issues may arise when:

• Only foreign employees are chosen for dismissal, while similarly situated Turkish employees with equal or worse performance are retained.
• Foreign employees are systematically paid less for the same work or denied promotions and benefits.
• The termination reason is disguised but actually based on national origin.

If a foreign employee proves a prima facie case of discrimination, the burden of proof may shift to the employer to show that the termination was based on objective, non-discriminatory reasons.

6.2 Practical Tips to Avoid Discrimination Claims

To reduce the risk of discrimination claims, employers should:

• Develop objective selection criteria for dismissals (performance scores, seniority, skills, position necessity).
• Apply these criteria to both Turkish and foreign employees consistently.
• Document the decision-making process and keep internal records.
• Avoid any language in emails, chats or internal memos that may imply preference or hostility based solely on nationality (e.g., “let’s fire foreigners first”).

---

7. Termination and Immigration Consequences for Foreign Workers

For a foreign employee, termination is not only a labour law event; it may also directly affect the right to stay in Turkey.

7.1 Loss of Work Permit and Residence Status

Once the employment ends:

• The employer’s obligation to sponsor the foreign worker also ends.
• The work permit may become invalid or non-renewable, depending on timing and specific conditions.
• The foreigner may need to apply for a new work permit with another employer or change status (for example, to a different residence permit category) if available.

This creates a need for coordination between:

• The employer’s HR and legal teams
• The foreign worker
• Immigration consultants, if engaged.

7.2 Exit from Turkey and Re-Entry

If the foreign worker cannot immediately secure a new legal basis for stay, he or she may have to exit Turkey. In some scenarios:

• Overstay or working without a valid permit may lead to administrative fines and entry bans.
• It is therefore in both parties’ interests to plan the timing of termination and communicate clearly about deadlines.

Mutual termination agreements can include clauses regarding:

• The time given to the foreign worker to organise departure
• Support from the employer in dealing with administrative formalities (letters, confirmations, etc.).

---

8. Litigation Risk: Reinstatement and Compensation Claims by Foreign Employees

Foreign employees, like Turkish employees, may bring claims before Turkish labour courts if they believe their dismissal was:

• Unjust
• Without valid reason
• Discriminatory
• In breach of contractual or statutory rights.

8.1 Reinstatement Lawsuits (İşe İade Davası)

If employment security conditions are met (30+ employees, 6+ months of seniority, indefinite-term contract), a foreign employee can file an action for reinstatement when dismissed without valid cause.

If the court finds the termination invalid:

• The employer may be ordered to reinstate the employee; or
• If reinstatement is not practically possible (for example, due to work permit issues), the court may award compensation equivalent to a certain number of monthly wages.
• Additionally, the employer may be required to pay wages for the period between dismissal and court decision (with limits).

In practice, when a foreigner’s work permit has expired or cannot be renewed, reinstatement may be complex. Courts may instead focus on monetary compensation. Nevertheless, the risk of significant financial liability for the employer remains real.

8.2 Claims for Unpaid Rights and Moral Damages

Foreign employees can also claim:

• Unpaid wages, overtime, annual leave, bonuses, social benefits
• Notice pay and severance
• Moral damages if the dismissal involved humiliation, discrimination or violation of personal rights.

Employers should therefore ensure that all payment calculations are accurate and supported by documentation (payroll records, bank transfers, attendance records, etc.).

---

9. Practical Checklist for Employers Terminating Foreign Employees in Turkey

To summarise and give a practical tool for businesses, here is a checklist that HR and legal departments can use when terminating a foreign employee:

9.1 Before Making the Decision

1. Review the employment contract
   • Is it indefinite or fixed-term?
   • Is there a probation period?
   • Are there special clauses (non-compete, garden leave, golden parachute)?
2. Check the employee’s status
   • Seniority (years of service)
   • Whether employment security rules apply (30+ employees, 6+ months etc.)
   • Work permit type and expiry date.
3. Identify the real reason for termination
   • Performance-based?
   • Business reorganisation?
   • Misconduct or just cause?
   • Is there sufficient evidence?
4. Assess alternatives
   • Reassignment to another position?
   • Performance improvement plan?
   • Mutual termination with compensation (ikale)?

9.2 Preparing the Termination

5. Gather documentation
   • Performance evaluations, warnings, emails
   • Business justifications (budget cuts, restructuring decisions)
   • Any evidence supporting just cause if applicable.
6. Draft the termination letter
   • Clearly state the reason(s).
   • Ensure consistency between internal records and the letter.
   • Consider preparing bilingual (Turkish + English) documentation.
7. Calculate all financial entitlements
   • Unpaid wages
   • Unused annual leave
   • Notice pay (if not worked)
   • Severance pay (if applicable)
   • Bonuses, premiums or other contractual benefits.
8. Plan immigration and work permit implications
   • Determine when the work permit will effectively lose its basis.
   • Consider whether a short transition period is possible.
   • Prepare any confirmation letters that may help the foreigner in consular or immigration processes.

9.3 At Termination

9. Hold a termination meeting
   • Explain the reasons and the process respectfully.
   • Provide written documentation.
   • Avoid discriminatory or offensive language.
10. Obtain signatures
    • Termination notice receipt
    • Final settlement breakdown
    • Release agreement (if used), ensuring it complies with legal requirements.
11. Notify authorities
    • Update social security records.
    • Notify relevant ministries or agencies about the end of employment of the foreign worker.

9.4 After Termination

12. Retain records
    • Keep personnel file, termination letter, calculations and payment proofs.
    • Store evidence that may be needed if a lawsuit is filed later.
13. Monitor deadlines
    • Be aware that foreign employees can file claims within statutory limitation periods.
    • Ensure HR and legal teams are prepared to respond.

---

10. Best Practices for Employers Working with Foreign Staff in Turkey

To create a sustainable and compliant framework for employing foreigners in Turkey, companies should focus not only on termination but on the whole lifecycle of the employment relationship.

10.1 Clear, Written and Bilingual Contracts

• Use written employment contracts that specify:
  • Job title, duties, salary, benefits
  • Working hours, overtime rules
  • Term type (fixed or indefinite)
  • Probation period, notice periods and governing law.
• For foreign employees, provide an English translation or a bilingual version, even though Turkish remains the legally dominant language. This builds trust and reduces disputes about interpretation.

10.2 Transparent Performance Management

• Establish clear performance criteria from the beginning.
• Provide regular feedback and performance reviews.
• Document warnings and improvement plans.

This structure helps support any later performance-based termination and reduces the likelihood of allegations that termination was arbitrary or discriminatory.

10.3 Training HR on Work Permit and Immigration Issues

• HR staff should know the basics of work permit rules and how they interact with hiring and termination.
• Internal policies should define who is responsible for:
  • Filing and renewing work permits
  • Notifying authorities of changes
  • Assisting the employee in immigration-related matters upon termination.

10.4 Avoiding Informal or “Off-the-Record” Practices

Informal arrangements such as:

• Paying some salary off the books
• Allowing foreigners to work without permits or under a visitor status
• Simulating voluntary resignation when there is actually a dismissal

are highly risky. They can result in:

• Labour lawsuits
• High administrative fines and back payments
• Immigration sanctions for the foreigner
• Reputational damage domestically and internationally.

---

11. Frequently Asked Questions (FAQ)

Q1: Can we terminate a foreign employee more easily than a Turkish employee?

No. As a general rule, foreign employees working in Turkey under a valid employment contract are protected by the same labour law rules as Turkish employees. You cannot legally treat foreign staff as “easier to fire” simply due to nationality. Any termination must have a legitimate basis and comply with notice, severance and anti-discrimination rules.

Q2: What happens to the foreign employee’s work permit after termination?

When the employment ends, the work permit loses its legal foundation because it is tied to the specific employer and position. The employer and employee must ensure that relevant authorities are notified. The employee may need to obtain a new work permit with another employer or change their residence status if legally possible.

Q3: Do foreign employees have the right to sue for reinstatement?

Yes, if employment security conditions are met (for example, at least 30 employees in the workplace and 6 months of continuous service under an indefinite-term contract), foreign employees can file reinstatement lawsuits in Turkish labour courts, just like Turkish employees.

Q4: Can we avoid severance pay by using fixed-term contracts with foreigners?

Using fixed-term contracts solely to avoid severance pay and employment security rules is risky. Turkish courts may reclassify repeated or artificial fixed-term contracts as indefinite-term, especially if the work itself is of a continuous nature. In that case, the foreign employee may gain the same rights as an indefinite-term employee, including severance.

Q5: Is a mutual termination agreement (ikale) safe with a foreign employee?

Mutual termination can be a useful tool if it is:

• Truly voluntary
• Based on informed consent
• Supported by adequate compensation
• Properly documented (preferably bilingual).

If these conditions are met, it can significantly reduce litigation risk. However, an agreement that is obviously one-sided, unconscionable or signed under pressure may still be challenged in court.

---

12. Conclusion: Plan, Document and Respect Both Labour and Immigration Rules

The termination of foreign employees in Turkey is not just a routine HR process. It sits at the intersection of:

• Labour Law (4857)
• Work permit and immigration regulations
• Anti-discrimination and equal treatment principles
• Practical business realities in multinational and multicultural workplaces.

Employers who:

• Plan terminations carefully
• Build a clear file of objective reasons and documentation
• Respect notice and severance rules
• Coordinate with work permit and immigration requirements
• Avoid discriminatory practices

can significantly reduce their legal risks and maintain a fair, professional relationship with both Turkish and foreign staff.

For foreign employees, understanding their rights and obligations under Turkish law is equally important. Knowing what to expect in case of termination helps them better negotiate their contracts, protect their interests and plan their careers in Turkey.