Turkish Labor Law
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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
Social Security Registration
Companies need to register only upon hiring staff. The appropriate social security authorities are notified as and when a new member of staff starts working for the company. Upon registration companies will receive a social security registration number.
Tax Registration
Tax registration process is completed during legal set up of the company. Tax number is given by tax office – it is both same for corporation tax and employee tax.
Employment Law
Union Membership / Worker Councils / Collective Labour Agreements
Workers unions exist only in the industry sector. Membership rights, arising from the legal relationship between the union and the member, include the following:
– Every member is entitled to participate in union meetings
– Every member has the right to vote on the issues under consideration
– In addition to its regular meetings, the general congress must convene upon the written request of at least one-fifth of its members
– Members also have the rights to criticise, file complaints and resort to court litigation against the actions or decisions taken by the unions
– The right to withdraw or resign from the union
– The right to equal treatment
– The right to benefit from the services activities of unions
There is no worker councils system in Turkey.
Collective agreements are negotiated and agreed by union representatives and employers. An employer who is not a member of a union is however authorized to apply a collective agreement for the company.
Collective agreements determine terms and conditions of employment such as:
– Wages
– Restrictions on the employer’s right to terminate the employment contract
– Length of terms of notice for the termination of an employment contract
– Payment of severance pay following the termination of a contract
– Fringe benefits such as bonus and premiums
– Working conditions
– Length of vacation and other forms of leave
Nothing in a contract of employment may be in conflict with a collective agreement unless stated otherwise in the collective agreement.
