Employer of Record in Turkey (EOR in Turkey)

Hire Globally, Pay Locally, Expand Effortlessly

We act as your Employer of Record in Turkey. This country (Türkiye), a significant player in the European economy with a strong industrial sector and a skilled workforce, offers vast opportunities for international companies. However, navigating Turkey’s complex regulatory environment, including labor and tax laws, can be challenging. Partnering with an Employer of Record (EOR) in Turkey simplifies this process, acting as your local partner to ensure smooth market entry and continuous regulatory compliance.

Want to have a Team in Turkey TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to Have a Team in Turkey TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in Turkey Streamlines Expansion in 3 Steps

Step 1 – Thorough Planning & Assessment

Your partnership with a Turkish Employer of Record, such as INS Global, begins with a comprehensive consultation to understand your business goals. This involves evaluating the number of employees needed, their roles, and your timeline for expansion. The Employer of Record then customizes its services to align with your specific needs, ensuring a seamless integration process in Turkey.

Step 2 – Efficient Setup, Recruitment & Onboarding

Whether forming a new team in Turkey or relocating current staff, an Employer of Record handles all legal requirements. This includes managing visas, work permits, payroll, contract administration, and ensuring compliance with Turkish labor laws. As your legal employer in Turkey from the outset, the Employer of Record eliminates the need to establish a local entity, saving both time and money.

Step 3 – Ongoing HR Management & Compliance

Once your employees are active in Turkey, an Employer of Record manages ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The Employer of Record serves as the HR liaison between you and your Turkish team, handling administrative tasks and addressing employee concerns, allowing you to focus on business growth confidently.

Benefits of Partnering with a Turkish Employer of Record

Accelerated Market Entry

Partnering with a Turkish Employer of Record allows your business to quickly and efficiently enter the Turkish market without the need to establish a local entity, speeding up your expansion process.

Compliance with Turkish Regulations

The Employer of Record ensures your operations in Turkey adhere to all local labor laws, including regulations on taxes, employment contracts, and employee benefits, reducing the risk of legal issues.

Access to Local Talent

The Employer of Record supports the recruitment and management of local employees, providing access to Turkey’s skilled workforce while taking care of all employment-related obligations.

Cost Efficiency

A Turkish Employer of Record helps you avoid the significant costs of setting up and managing a local entity. The Employer of Record handles payroll, benefits, and HR functions, allowing you to focus on strategic business growth.

Flexibility and Scalability

A Turkish Employer of Record offers the flexibility to adjust your operations based on market needs without the long-term commitment of establishing a local entity, ensuring operational flexibility.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

Employer of Record vs. Company Incorporation in Turkey: Making the Right Choice

While establishing a subsidiary in Turkey is a traditional method for local expansion, using an Employer of Record offers several advantages:

Speed – With an Employer of Record like INS Global, the setup process in Turkey is accelerated, enabling you to commence operations and hire staff much faster than company incorporation, which can take months. An Employer of Record can have your team operational within weeks or even days.
Compliance – Both Employer of Records and subsidiaries must adhere to Turkish tax laws and labor regulations. Employer of Records already have the expertise to handle these complexities and ensure ongoing compliance.
Cost – For small teams or temporary needs, Employer of Record services are often more cost-effective than establishing a subsidiary, as they avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, EORs provide streamlined solutions that integrate new markets into multi-country payroll systems efficiently.
Control – While incorporation offers full control over HR, finances, and operations, Employer of Records provide similar control over your workforce while reducing administrative responsibilities and liability.

Important Criteria for Selecting the Right Employer of Record in Turkey

Selecting the right EOR in Turkey is crucial for a smooth market entry. Keep these key factors in mind:

Expertise and Reputation – Look for a Turkish Employer of Record with proven experience and a strong industry reputation, like INS Global. Client testimonials and industry accolades are good indicators of reliability.
Comprehensive Service Suite – Confirm that the Employer of Record provides all necessary services or can customize offerings to fit your needs, including visa and work permit assistance, payroll management, tax compliance, and navigating Turkey’s labor regulations.
Scalability – Opt for an EOR that can scale its services as your business expands. Their staff should be capable of managing an increasing workforce and adapting to new business demands.
Effective Communication and Clarity – Select an Employer of Record known for consistent and clear communication. They should keep you informed about legal updates, upcoming deadlines, and potential issues, offering a dedicated contact and online tools for easy access to essential information.
Fair and Transparent Pricing – Compare the pricing models of different Turkish Employer of Record providers. Ensure their fees are transparent, competitive, and free of hidden costs. Third-party advice can help you secure the best value for your Employer of Record in Turkey.

Labor Law in Turkey

Contracts – In Turkey, employment contracts are a fundamental aspect of the employer-employee relationship, governed by Turkish Labor Law No. 4857. These contracts can be written or verbal, though written contracts are mandatory for agreements lasting more than a year. They must outline key terms such as job description, salary, working hours, and conditions of termination. The law recognizes both fixed-term and indefinite-term contracts, with specific rules applying to each regarding termination and severance. Most employment in Turkey is based on indefinite-term contracts, which provide greater job security compared to fixed-term agreements. Disputes over contract terms, particularly regarding unjust termination, are common in Turkish labor courts.
Probationary Periods – In Turkey, probationary periods are commonly used by employers to assess new employees’ performance and suitability. The Turkish Labor Law allows for a maximum probationary period of 2 months, which can be extended to four months through a collective bargaining agreement. During this period, both the employer and employee can terminate the contract without notice and without the obligation to provide severance pay. However, employees are still entitled to their wages and benefits for the time worked. Probationary periods are widely used across various sectors in Turkey, especially in industries where the job demands specific skills or performance standards.
Working Hours – Under Turkish labor law, standard working hours are set at 45 hours per week, typically divided into 6 working days. Overtime work is permitted but must be paid at 1.5 times the regular hourly wage or 1.25 times if compensated with additional time off. There is a cap on overtime, limiting it to 270 hours per year per employee. Some industries, such as tourism and retail, often require more flexible working arrangements, especially during peak seasons. The average Turkish worker’s weekly working hours are among the highest in Europe, reflecting the country’s dynamic and growing economy.
Paid Leave – Turkish labor law grants employees various forms of paid leave, including annual leave, sick leave, and maternity leave. Employees are entitled to 14 days of paid annual leave after one year of service, with this increasing based on length of service. For example, employees with 15 years of service receive 26 days of annual leave. Maternity leave is 16 weeks, split equally before and after birth, with an additional 6 months of unpaid leave available. Sick leave is provided with a medical report, and employees are entitled to compensation through the Social Security Institution (SGK). Paid leave policies are crucial in Turkey, where the law ensures workers have adequate rest and recovery time.
Social Insurance – Turkey’s social insurance system, administered by the Social Security Institution (SGK), is comprehensive, covering retirement, health, disability, and unemployment benefits. Both employees and employers contribute to the system, with contributions totaling around 34.5% of an employee’s gross salary—14% from the employee and 20.5% from the employer. The system covers nearly 85% of the Turkish workforce, providing critical social safety nets. The pension system in Turkey has undergone reforms to ensure sustainability, with the retirement age gradually increasing and incentives for private pension plans being introduced.
Severance Pay – Severance pay in Turkey is a legal requirement for employees who have completed at least a year of service and are terminated without cause. The severance payment is calculated based on the employee’s last monthly gross wage, with a month’s salary paid for each year of service. If an employee resigns voluntarily, they generally forfeit severance pay, except in cases of retirement or mandatory military service. Severance pay is a significant aspect of labor rights in Turkey, providing financial security to workers, especially in times of economic uncertainty or industry downturns. The system is seen as both a safety net for employees and a financial burden for employers, particularly in sectors with high turnover.

Navigating these complexities can be time-consuming and requires staying updated on legal changes. Partnering with an EOR in Turkey acts as your local legal partner, ensuring your business remains compliant with labor laws and protecting you from potential risks.

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FAQs

How does an EOR help with entering the Turkish market?

A Turkish EOR manages all necessary legal, HR, and compliance work involved in employing workers, allowing businesses to quickly enter the Turkish market without setting up a local entity.

What financial benefits does using an EOR in Turkey provide?

Using an EOR in Turkey is often more cost-effective than establishing a local subsidiary, as it avoids the costs associated with incorporation and reduces ongoing administrative expenses.

Can an EOR handle visa and work permit processes in Turkey?

Yes, a Turkish EOR oversees the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

Which types of businesses benefit most from EOR services in Turkey?

EOR services in Turkey are particularly advantageous for companies of all sizes seeking rapid market entry, cost efficiency, and minimized administrative responsibilities.

How does an EOR ensure compliance with Turkish labor laws?

EORs in Turkey employ local experts who stay up-to-date with regulatory changes, ensuring your business adheres to Turkish labor laws.

What control do I retain over my employees when using an EOR in Turkey?

Although the Turkish EOR is the legal employer, you retain substantial control over the day-to-day management and operational decisions regarding your employees.

Employer of Record in Turkey (EOR in Turkey)

Hire Globally, Pay Locally, Expand Effortlessly

How an Employer of Record in Turkey Streamlines Expansion in 3 Steps