Legal News

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.

Compulsory Arbitration In Labor Disputes

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The new legislation is on the way to prevent parties filing a lawsuit in Labor Courts for their claims of wages and re-employment.

In today’s complex business world, settling the grievances and disputes between employers and employees is an important issue, and many countries are introducing alternative dispute resolution enabling the parties to reach out-of- court settlements which are time saving and less costly in comparison with litigation.

In order to lessen the heavy burden of labor courts, Turkish government prepared a “Labor Courts Law Draft, which stipulates that the parties will be obliged to resort to arbitrator in the first place instead of litigation process for their labor disputes and conflicts.

Workers' claims arising from employment contract and collective bargaining agreements and re-employment claims shall be referred to arbitration before initiating a lawsuit. Unless the parties reach an agreement they may resort to labor courts.

New Overtime Balancing Period In Tourism Establishments

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new-overtime-balancing-period-in-tourism-establishmentsOvertime wage and working times are arranged in articles 41 and 63 of Labor Law No. 4857, which give the employer an option of balancing the extra worked hours without paying overtime wages by applying the equalizing principle, currently, within a time period of two months, and this equalizing (balancing) period may be increased up to four months by collective agreement.

Now, as a side support to Turkey's tourism sector that has been badly affected by recent developments in the region and is expecting hard times ahead, duration of this balancing period is to be extended to 4 months and may also be increased to 6 months by collective agreements.

Flexible Work Models on the Way

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flexible-work-models-on-the-wayTurkish government has taken a decisive step to introduce flexible working arrangements into labor market. Despite the similar previous legislative efforts had been remained inconclusive in the past, the draft "ON AMENDING THE LABOR LAW AND TURKISH EMPLOYMENT ORGANIZATION LAW” that arranges the temporary working relationship and widening the activity-areas of private employment agencies, and introducing new type of telecommuting, is accepted in Parliament's Health, Family, Labor and Social Policies Commission now.


Flexicurity, a combined term refers to flexibility and security in the labor market, had been introduced at the beginning of the 2000's. The framework of the term is determined in Directive 2008/104/Ec of the European Parliament and of the Council, adopted on 19 November 2008, stating that "…new forms of work organization and a greater diversity of contractual arrangements for workers and businesses, better combining flexibility with security, would contribute to adaptability. Furthermore, the December 2007 European Council endorsed the agreed common principles of flexicurity, which strike a balance between flexibility and security in the labor market and help both workers and employers to seize the opportunities offered by globalization."

Turkey prepares a spurt in the research and development area in order to achieve innovative technology and high value added products to get a sustainable economic growth rate, which is seen as the only way to promote the competitive capacity of Turkish enterprises and enhance the welfare level of country's rapidly growing population.

The government proposal "Draft on Amending the Law on Supporting Research and Development Activities and Some Other Laws and Statutory Decrees," that includes some articles concerning work permits of foreign R&D personnel, is now in Turkish General Assembly's agenda and is expected to pass through in the forthcoming weeks.

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