Business in Turkey
One of the ways of entering into Turkey markets for foreign-based commercial enterprises is setting up liaison offices, which are specified in Foreign Direct Investment Law No. 4857, and in the framework of procedures and principles stated in “Application Regulation”.
A liaison office (also called representative office), can be defined as an office established in a foreign country to act as a channel between the parent company and the entities in the country it is established. These offices can only engage in liaison, and do not perform any commercial activities that generate revenue or profit, and the all expenses of a liaison office shall be covered by the foreign based company.
Work permit can be granted to certain categories of persons who have some status and/or qualifications determined by Ministry of Labor and Social Security. However, there is not such a type of work permit called "exceptional," and it should not be taken as an exemption from work permit requirements. Granting work permit exceptionally is simply means that, principles for assessments of applications and time periods specified in Law will not be applied to some persons.
According to Income Tax Law No. 193, minimum living allowance is applied on the taxation of wages with the "actual method of taxation."
If the foreign employee in your company's payroll is "settled" in Turkey, he is deemed as a "full liability tax-payer" and will benefit from the MLA.
But firstly we should clear the above judicial definitions.
In case an open-ended employment contract of a worker who is outside the scope of job security terminated by the employer in bad faith, the worker will be entitled to file a lawsuit demanding compensation, which is three times the worker's salary for the notice period.
In Turkish Labor Law No. 4857 employees have different kinds of rights concerning compensation arisen from termination of their employment contract. The main distinction is between the workers in and out of the scope of job security. While the ones in the scope of security have the right to file a reemployment lawsuit in case of their contracts terminated without a valid reason, the others may demand bad faith compensation in the event of being dismissed by employer's abusive exercise of the right to terminate the contract.
In this article, after given a brief explanation about job security, we will discuss the bad faith compensation of employees who are out of the scope of job security.
The rights related to childbirth and adoptions, which are arranged in Labor Law No. 4857 has undergone significant changes in 2016 and new types of rights and leaves are introduced for mothers, parents and adopter of a child.
As we are getting so many questions about the application of these newly introduced arrangements, we will approach the matter holistically and try to clear any uncertainties in this article.
Temporary Work Permit
- Foreigners will be granted upmost one year work permit on their first application provided that the permit's duration is not exceeding their employment or service contract periods, and that they are employed for a certain job in a certain workplace owned by real person or legal entity, or public institution and public enterprise, or in the workplaces belong to these employers in the same sector.
- Foreigner serving under same employer will be given upmost two years extension on the first application and maximum three years for the ensuing applications. However, applications lodged for employment under different employer shall be assessed as the first application.
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