Legal News

Facts for Employers To Set Up A Company In Turkey

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Facts for Employers To Set Up A Company In Turkey	COMPANY DETAILS

Employers

Employers must set up a legal entity if they wish to employ staff. This could be either a branch company or a subsidiary company established in Turkey.

Setting up Bank Accounts

Necessary documents for bank account set up:

-   Official  Publication  including  company  registration  details  (Articles  of Association)

-    Tax number

-    Signature Circulars of the authorized executives or shareholders

-    Notary stamped copies of ID's of authorized person

ID Number Assignment For Foreigners And Tax Identification Number

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ID Number Assignment For Foreigners And Tax Identification Number	On the Tax Identification Number General Notice with serial no 4 published on the official gazette number 27588 dated May 22, 2010, it was set forth that foreigners who meet certain conditions are entitled to use tax identification numbers. As per article 8 of the Population Service Law 5490; " (1) Foreigners who obtain a minimum six months residence permit for any purpose in Turkey are registered in the foreigners' registry by the General Directorate. The foreigners who are registered in this registry are obliged to inform the registration offices of all their matters regarding census matters. Diplomatic mission members are exempt from this application..."

As per article 69 of the same law;"(1) The legislations regarding the application of this law are prepared within 180 days by the Ministry and is put into effect by the cabinet council.

Essential Facts About Turkish Labor For Expats Working In Turkey

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Essential Facts About Turkish Labor For Expats Working In Turkey	WORK HOURS

The working week for employees is 45 hours. This total is spread over a six-day week so as not to exceed seven and a half hours per day.

MINIMUM WAGE

The minimum wage as of 01st January - 30th  June 2010 is:

TL Gross: 729,00      TL Net: 576,57  for employees over 16

TL Gross: 621,00      TL Net: 499,25  for employees under 16

The minimum wage as of 07st July - 31th  December 2010 is:

TL Gross: 760,50      TL Net: 599,12   for employees over 16

Current Status In The Matter Of Incurring Debt For Maternity

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Current Status In The Matter Of Incurring Debt For Maternity	Ramazan Çanakkaleli

The matter of incurring debt for maternity which is frequently discussed nowadays has been set forth by Social Security Institution under the law no.5510 first and afterwards a circular and a communiqué have been issued to define the enforcement of the said law. The circular and the communiqué have brought additional conditions to the terms and conditions set forth in the law. The respective legal status has been rejected by the Supreme Court lastly.

Applicable legislation with respect to incurring debt for maternity

Currently, an insured woman under 4-a category (social insurant employee affiliated to Social Security Insurance with the former name) entitled to unpaid birth leave and maternity leave periods may incur debt for twice only with respect to the requested periods provided that such period not exceeding two years following the date of birth and only if she doesn't work at her working place pursuant to her employment contract and the baby is alive.

Should an employee, winning the reemployment lawsuit, be declared to SGK (Social Security Ins.)?

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Should an employee, winning the reemployment lawsuit, be declared to SGK (Social Security Ins.)?	İbrahim Işıklı

There are problems, especially, while declaring an employee, winning the reemployment lawsuit, to Social Security Institution (SGK). If the court has already decided to reemploy the employee, following issues would be matters of debate:

· Unless the employee applies for a job within 10 days, cancellation would be taken into account as an acceptable cancellation,

Implementation of the resolution of the Constitutional Court on wages

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Implementation of the resolution of the Constitutional Court on wages	In economy supplement of Habertürk newspaper of last Saturday,  news about the effect of resolution of the Constitutional Court on taxation of wages and right of action on returning of taxes overpaid was communicated widely. However, when I read the explanations of miscellaneous persons, especially of non -judiciary persons, I was confused as well. I had to reevaluate the subject in my column as my opinion on that subject was taken and published.

The Income Tax tariff given in Article 103 of the Income Tax Law was changed with Article 1 of 5479 No Law and binary tariff applied as 15-20-25-30-35 percent for paid workers and 20-25-30-35-40 percent for other Income Tax payers was brought to single tariff with four rates. It was forecasted that all incomes subjected to Income Tax would be taxed in rates varied between 15-20-27-35 percent and wage incomes, together with other income elements, were subjected to new tariff with varying tax bracket rates and amounts. In the new tariff enforced with the said law, it was stated that incomes more than 40.000 TL that subject to the Income Tax would be taxed in rate of 35 percent.

Statutory Limitation Period in Employee Wages

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Statutory Limitation Period in Employee Wages	The rights ensured through law, contracts and workplace procedure should be claimed within the legal period.

If not, the problem of statutory limitations will arise for the employee.

Statutory limitation stands for the maximum time for the right to claim due wages after which the case will not qualify for legal proceedings. As the definition suggests, the right to claim the due wages is not removed but it turns into "imperfect obligation" and it can be no longer subject to a law suit. In this respect, once the statute of limitations on a case runs out, if a party raises it as a defense and that defense is accepted, any further litigation is foreclosed and the court will not be able to examine the facts of the case.

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