Legal News

Wages to be Paid Through Bank Account

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Wages of employees in the workplaces employing 5 or more personnel must be paid through banks as of 1st June 2016.

Turkish Labor Law No. 4857, Article 32 defines the “Wage” in general terms,as the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.

As a rule the wage should be paid at the establishment or should be deposited into a specially openedbank account.

By a Regulation issued in 2008 it was made compulsory for the establishments with at least 10 employees to pay every kind of remuneration via specially opened bank accounts.

Temporary Employment Accepted In Parliament

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temporary-employment-accepted-in-parliamentEmployers may apply to hire temporary employees by applying to private employment agencies that are authorized to establish temporary employment relationship by Turkish Employment Organization.

In many circumstances such as employees’ maternity leave, military service, annual leave, imprisonment, or for many reasons related to the workplace such as unexpected workload or emergency work, employer would be in need of additional personnel for a limited period which can be best to filled up by temporary personnel.

Government proposal, intended to meet the need of such temporary workforce, “AMENDING THE LABOR LAW AND TURKISH EMPLOYMENT ORGANIZATION LAW” got through the Parliament and soon to be published in Official Journal.

Telecommuting Accepted In Parliament

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telecommuting-accepted-in-parliamentThe concept of telecommuting (remote work) entered into Turkey's labor market by the amendments made in the Labor Law.

Telecommuting is the work performed in an environment other than the employer workplace. In general this type of work may be performed home based or from any other place through telecommunication, and it is also called remote, home, mobile, virtual, or cloud working.

New Regulation For Refugees

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new-regulation-for-refugeesForeigners who have the status of "Refugee" or "Subsidiary Protection" will be allowed to work without a work permit, however the "Applicants of International Protection" and "Conditional Refugees will still be under the obligation of obtaining a work permit to work independently or be employed.

"THE REGULATION ON WORKING PROCEDURES OF INTERNATIONAL PROTECTION APPLICANTS AND HOLDERS OF INTERNATIONAL PROTECTION STATUS," based on the Law on Foreigners and International Protection, No. 6458, and determining the procedures and principles governing the employment of the applicants or the beneficiaries of international protection status, has been issued in Official Journal No. 29695, dated 26 April 2016.

Incentive For Hiring Needy Person Issued In Official Journey

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incentive-for-hiring-needy-person-issued-in-official-journeyWe informed you in our article, dated 11 April 2016 that a Draft Law is about to introduce a new kind of incentive for employers in order to encourage the employment of needy people.

You can reach our article at the link below;

The Bag Law No. 6704 (Article 11) that appends an additional Article 5 to the Social Assistance and Solidarity Encouragement Law No 3294 got through the Parliament with some additional clauses on 14 April 2016 and issued in Official Journal 29695, dated 26 April 2016

Auto Enrolment In Turkish Private Pension System

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auto-enrolment-in-turkish-private-pension-systemGovernment is planning to change the status of voluntary private pension system into an auto-participation scheme in order to increase the domestic savings of the country. The newly-hired persons and the employees who changed their jobs will be automatically participated in the private pension scheme and they have to stay in the system at least six or eight months.

The proposed modification in private pension is also closely connected with the planned "severance allowance fund" which will bring about fundamental changes on severance pay system, and  is a long standing and highly controversial issue in Turkey's business community.

Annual Leave Periods may be Divided as Much as Possible

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annual-leave-periods-may-be-divided-as-much-as-possibleAnnual leave periods will be divided as much as possible, (instead of three), on condition that  one the segments cannot be less than ten days, according to a new arrangement which is expected to be in force soon.

As a rule, annual leave cannot be divided by employer and it should be used without interruption, however in the presence of mutual consent; leave periods currently may be divided into three parts at the maximum, provided that one of the parts shall not be less than ten days.

Regional Incentive Widened

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In recent decade Turkey has introduced many supportive arrangements to create employment through incentives. One of them is five point social security premium discount in general (Law No. 5763), and the additional six point social security premium support for employers who employ at least ten employees(Law No. 6486, dated 29 May 2013). For entitlement of this latter incentive, it was a requirement toemploy at least 10 workers.

Now with the "Law on Amending Income Tax Law and Some Other Laws No 6663"that has been accepted in General Assembly on 29 January 2016, the limit related to number of insured employee for entitlement of regional incentive has been lifted. It will be enough for the companies to be established in underdeveloped regions for certain periods to benefit from this 6 points social security premium support regardless of number of their employees.

By article 28 of above said Law; the phrase in the second paragraph of Article 81, Law No. 5510, "For the establishments who employs ten and over employees" is removed, and the phrase "For the private sector employers who employ insurance holders under item (a) of paragraph one of Article 4 of this Law" inserted.

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