Introduction
Under Turkish law, an employment contract is defined as a contract in which the employee agrees to perform work under the employer’s supervision in exchange for the payment of a wage. While negotiating with a domestic employer or employee, foreign-managed companies operating a company in Business Turkey, as well as prospective expatriates looking for work in Turkey, should be aware of, among other things, the statutory requirements regarding the formal framework of employment contracts.
This article will describe the many forms of employment contracts and the legal requirements for them.
Contractual structure
Unless otherwise specified by law, an employment contract is not required to take a specific form. As a result, an employment relationship founded on a verbal agreement or even an implicit, nonverbal mutual understanding is legal.
However, employment contracts for a period of one year or longer must be signed in writing. Written contract documents, on the other hand, are exempt from stamp duty and additional fees.
In the absence of a formal contract between the parties, the employer must provide the employee with a written document containing this information.
- General and Specific Working Conditions,
- Daily or Weekly Work Hours,
- Wage Amount and Additional Payments (if applicable)
- Time of Payment
- Contract Duration (if stated)
- General and Specific Working Conditions,
Except in the case of a contract for a term of one month or less, such a document should be provided within two months of the start of work.
Contractual Terminology
A contract must be executed in Turkish if a Turkey-based commercial entity is a party to it and performed in Turkey, according to the statute requiring the use of the Turkish language in retail businesses.
As a result, employment contracts formed by and between commercial enterprises incorporated in Turkey and their employees, whether Turkish residents or foreign nationalities, should be written in Turkish.
Duration of the Agreement
The length of employment, validity period and expiration date do not have to be specified in an employment contract.
The contract is regarded to be concluded for an open-ended duration if it is not made for a certain amount of time.
On the other hand, fixed-term contracts are made for a certain length of time or for a specific event whose duration can be objectively determined even if it is not explicitly stated in the contract. A fixed-term contract can be defined as an employment contract between a contractor firm and a building foreman that lasts to complete a specific construction project. It’s worth noting that fixed-term contracts must be in writing, as required by law.
A fixed-term contract cannot be successively extended or renewed unless there are compelling reasons to do so. Aside from that, such agreements are considered open-ended from the start. Similarly, if the parties implicitly continue their job connection after the term expires, a fixed-term contract becomes an open-ended contract.
It’s worth noting that employees with open-ended contracts have more rights than those with fixed-term contracts. The significant differences between the two are shown in the table below:
Common Types of Employment
Unless otherwise prohibited by law, parties are free to schedule work periods according to their needs and the nature of the activity. As a result, contracts may specify full-time or part-time employment, a trial term, or other techniques and types of work.
The purpose of this article is to discuss the fundamental characteristics of the most prevalent types of work.
Full-Time Employment
In full-time employment, labor hours are limited to a maximum of 45 hours per week. Working hours are evenly spread amongst workdays of the week unless otherwise agreed. The regular working hours may be dispersed unevenly among workdays if the parties agree, as long as the daily working hours do not exceed 11 hours on any one workday.
Employees may also be required to work extra for national benefit, nature of employment, or increased productivity. Overtime work is defined as work that lasts more than 45 hours per week. An employee’s overtime pay per hour should be 50% greater than their regular hourly wage.
Labor performed beyond 40 hours but less than 45 hours is also considered overtime in circumstances where the work period is set less than 45 hours in the contract, such as 40 hours a week. In such instances, overtime compensation is paid at a rate that is 25% greater than regular hourly pay.
Employees must give their approval to work overtime before the company can require them to do so. Overtime employment is limited to 270 hours per year.
Part-Time Employment
The employment contract is termed a part-time contract if the employee’s regular weekly working time is significantly less than an equivalent full-time employee.
A part-time work period of more than two-thirds of a full-time job cannot be prescribed. Since full-time employees can work up to 45 hours per week, part-time employees can work up to 30 hours per week.
A part-time employee cannot be treated differently than a full-time equivalent employee simply because their work is based on a part-time employment contract unless there is a valid reason for doing so.
When compared to a full-time equivalent employee, part-time employees’ divisible benefits, such as salaries and other monetary benefits, must be paid in proportion to the length of their working time.
On-Call Employment
Employer requirements differ significantly based on the nature of the business. On-call staff is typically employed during special events, busy hours, or when business demands require additional help.
Contracts for on-call work must be written to be valid. If the parties have not agreed on the length of work time in a given time frame, such as a week, month, or year, the work time is presumed to be fixed at 20 hours per week.
Regardless of whether the employee is working within the time set out for work on call, he is entitled to pay. Unless otherwise agreed, the employer who has the authority to require the employee to fulfill his commitment to work on-call shall make the call at least four days in advance.
If the contract’s daily work time is not specified, the employer must keep the employee on the job for at least four hours on each call.
Trial Period of Contracts
Trial period clauses in employment contracts allow parties to get to know one another and determine whether they want to continue doing business together. Trial period clauses are permissible under Turkish law in all sorts of employment contracts.
When parties stipulate a trial period in an employment contract, the period cannot be longer than two months. Collective bargaining agreements, on the other hand, can prolong this period up to four months. Trial durations that are longer than those mentioned earlier are void.
Each party has the right to terminate the employment contract without notice or compensation during the trial period. However, the employee’s right to pay for the duration of their actual labor and any other rights that may arise from it is protected in Business Turkey.
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