Business in Turkey

Tax Support for Employers of Registered Unemployed of İŞKUR

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As we informed you before; for each personnel who are employed amongst the registered unemployed of İŞKUR by the private sector employers until 31st December 2017, the withholding tax applied on minimum wage will be set-off from the withholding tax return after the minimum living allowance is applied. Besides, stamp tax deducted from minimum wage will not be declared and not paid.

Tax support will be applied in line with the following principles and procedures;

* Being valid for each worker employed until 31st December 2017,

* for the employed amongst the registered unemployed of Turkish Unemployment Agency (İŞKUR) by private sector employers as of 1st February 2017,

* provided that they are not included among the registered insured personnel of a company in their SSI premium and service documents within three months period preceding the working start date,

Turkey’s Turquoise Card Regulation Issued

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Implementation Regulation on Turquoise Card, the new introduced type of work permit that enables qualified foreigner to work in Turkey for an unlimited period of time, and grants the right of residence to his/her spouse and dependent children has been issued in Official Gazette No. 30007, dated 14th March 2017.

Turquoise Card owners will have the same rights as accorded to Turkish citizens after 3 years of transition period, excluding right to elect and be elected, or to enter into public service. And they will have no obligation of compulsory military service.

Applicants will be assessed by a point-based system based on the criteria determined by Directorate General; and a “certificate of suitability” will be required for some specific foreigners

Position Change in Workplace and its Consequences in Turkey

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Employment relation between employer and employee is established for a certain type of job expected from employees, however the requirements of a company may change in the course of time and employers want some of their personnel to work in different type of jobs or positions.

The change on the job description or in the position may not be welcomed by the employee and ensued conflicts are usually settled by the courts. 

Importance of Job description

Job description should include essential skills, training and education, as well as characteristic of job, duties and responsibilities of the personnel, in other words everything expected from the employee.

Change of Workplace and its Consequences in Turkey

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Changing an employee’s workplace location is a highly controversial issue in the implementation of Labor Law.

Main issues related to matter are whether;

  • Employees are obliged to accept the change?  
  • Or can terminate their employment contract for just cause?
  • Employer can dismiss the employee who doesn’t accept the change?
  • What kind of changes should be considered a substantial change?
  • Under which conditions a ground for termination with just cause is occur?

FAQ on Unemployment Benefits in Turkey

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İşsizlik Ödeneği İle İlgili Sıkça Sorulan Sorular 660x330What is Unemployment Benefit?

Unemployment benefit, also called "Jobseekers Allowance" or "Dole," is an allowance granted to insured employees who lost their jobs against their will.  In Turkey, it is simply referred as “unemployment salary” and paid to eligible workers in the scope of mandatory unemployment insurance in line with the Law on Unemployment Insurance No. 4447.

Who are in the scope of Unemployment Insurance?

Briefly, employees working against wage under an employment contract are in the scope of Unemployment Insurance.

Confusion About Sequencing After-Birth Rights

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In 2016 working mothers are offered new choices to work half time and/or part time up to some periods of time after birth in addition to existing post-natal leave entitlements, namely 8 weeks maternity leave and 6 months unpaid leave.

This newly introduced arrangement caused some confusion about the sequencing of the post-natal rights, i.e. which one should be used first.

After-birth rights of working women

After the Law No.6663 entered into force, working mothers has the following rights:

  • After the maternity leave (After the maternity leave period stated in the first paragraph of Article 74 of Labor Law,) working women (or the male or female adopter of a child under three years of age) may work half time up to sixty days on first childbirth, one hundred and twenty days on second and one hundred and sixty days for the third child. Insurance premiums and wages corresponding to hours worked will be paid by employer, and insurance premiums and wages for off-hours will be covered by the state through Unemployment Insurance Fund.
  • If the female employee so wishes, she shall be granted an unpaid leave of up to six months after the expiry of the sixteen weeks, or in the case multiple pregnancy after the expiry of the eighteen weeks (After the maternity leave period). This leave shall be granted to one of the married couple or the adopter who adopted a child under three years of age. 
  • After the leave periods set forth in Article 74 of Labor Law, mother or any of the parents may choose to work part time until the first day of the month following the date child’s compulsory schooling begins. If one of the parents is not working, this provision cannot be applied. Same right will be granted to adopters who, solely or together with the partner, adopted a child under three years of age, starting from the date the child is handed over to them.
  • Which one should be used first?

Amnesty for Unregistered Employment

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kacak isci siteEmployer who employs unregistered workers will not be devoid of premium incentives more than one month, and old fines will be pardoned, according to omnibus bill pass through the Parliament.

In current practice employers who, in the investigations and inspections performed by the officers authorized with audits and checks, are found out not notified the employed personnel as insured, or the notified insured is not working virtually (insured falsely), cannot benefit from the incentives for a period of one year. This fine is applied even for the one person employed illegally in the workplace.

How to Calculate Severance Pay?

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Hesap Makinesi

  • Qualified employee shall be paid a severance pay equal to last 30 days’ gross wages for each full year of employment.
  • For a portion of a year, pro rata payment should be made.  
  • In calculation of the last 30 days’ wage, the wage paid and the some contractual and statutory benefits in kind provided by employer shall be taken into account. Also periodical (annually, quarterly etc.) payments such as premium and bonuses will be added in monthly basis.

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