Abstract
This article examines the principal rules governing private-sector employment relationships in Turkey from the perspective of foreign-owned businesses and foreign employees. It considers contract types, probation, fixed-term employment, termination for valid and just cause, notice and severance, the job-security and reinstatement regime, work permits, post-employment non-compete obligations and the language of employment documentation. Particular attention is given to current 2026 work-permit criteria and recent Court of Cassation authority on operational dismissals and post-employment non-compete disputes. The analysis distinguishes statutory minimum rights from contractual risk allocation and emphasises that termination planning should begin with the legal basis, evidence and procedural route before a dismissal letter is issued.
Introduction
Employment law in Turkey is protective, document-driven and highly sensitive to the legal reason used to end the relationship. For a foreign investor, the practical risk is rarely the absence of a written contract alone. Problems arise when the contract type does not match the job, performance concerns are not documented, a dismissal is classified under the wrong statutory ground, or a foreign employee starts work before the immigration and labour authorisations are in place.
The principal statute is Labour Law No. 4857. Matters outside its scope may be governed by the Turkish Code of Obligations, while severance pay continues to rest on the surviving Article 14 of former Labour Law No. 1475. Disputes are also shaped by Labour Courts Law No. 7036 and a substantial body of Court of Cassation jurisprudence. 1
1. Contract types and the default position
An employment relationship that is not tied to a defined duration is treated as indefinite. Article 11 of Labour Law No. 4857 permits a fixed-term contract only where objective circumstances justify the duration, such as the completion of a specified job, the occurrence of a defined event or genuinely time-limited work. Successive fixed-term contracts require an essential objective reason; otherwise the relationship is treated as indefinite from the outset. 2
This matters because an employer should not use short consecutive contracts simply to avoid job-security or termination exposure. The legal classification follows the actual work and the statutory conditions, not the heading placed on the document. Project-based or seasonal work may justify a fixed term, while a permanently recurring role ordinarily requires a more careful analysis.
2. Probation can reduce notice risk, but it is not a rights-free period
A probation clause may be agreed for up to two months and extended to a maximum of four months only by a collective bargaining agreement. During a valid probation period either party may terminate without notice and without the notice-related compensation normally associated with ordinary termination, while the employee remains entitled to wages and other accrued rights for work already performed. 3
Employers should place the probation term expressly in the contract and use the period for genuine assessment. Probation should not be confused with permission to discriminate, withhold earned wages or ignore work-permit requirements. A foreign employee still needs the relevant authorisation before starting work.
3. Valid reason and just cause are different legal categories
Turkish law distinguishes a dismissal for valid reason under Articles 18 to 21 from immediate termination for just cause under Article 25. A valid-reason dismissal is part of the job-security regime and may concern the employee’s capability, conduct or the operational requirements of the enterprise, workplace or job. It does not automatically eliminate severance or notice obligations. 4
Article 25, by contrast, permits immediate termination in defined circumstances. Those grounds include specified health situations, conduct contrary to morality and good faith, force majeure and detention exceeding the applicable notice period. It is legally inaccurate to say that every Article 25 termination eliminates severance. Under Article 14 of Law No. 1475, the critical exclusion is principally an employer termination based on the morality and good-faith grounds corresponding to Article 25(II). Other Article 25 grounds require separate severance analysis. 5
The six-working-day period is also narrower than it is sometimes presented. Article 26 applies that short period to terminations based on conduct contrary to morality and good faith under Articles 24(II) and 25(II). The period begins when the entitled party learns of the relevant conduct, and a separate one-year outer limit ordinarily applies, subject to the statutory exception where the employee obtained a material benefit. 6
4. Procedure matters before an employer dismisses for conduct or performance
For employees within the job-security regime, the employer must use a written termination notice and state the reason clearly and precisely. Article 19 also requires the employee’s defence before termination based on conduct or performance, except where immediate termination under Article 25(II) is invoked. 7
A termination file should therefore contain the facts relied upon, the relevant policies or targets, contemporaneous warnings where appropriate, the employee’s explanation and the reasoning connecting the evidence to the chosen legal ground. A vague statement that performance was insufficient or trust was lost can create difficulty where the employer later needs to prove a concrete and consistent reason.
5. Operational dismissals and the Court of Cassation’s 2025 guidance
An employer may take commercial and organisational decisions within its management authority, but the existence of a business decision does not place the dismissal itself beyond judicial review. The employer must establish the operational reason, its real implementation and the connection between that decision and the employee’s position. Article 20 places the burden of proving the valid reason on the employer. 8
Yargıtay 9th Civil Chamber, E. 2024/14265, K. 2025/1325, 10 February 2025, resolved a conflict between regional appellate decisions concerning receptionists whose positions were removed after reception and related services were outsourced. The Chamber reiterated that courts do not review whether the employer’s business decision was commercially wise, but they do examine whether it was genuinely implemented, created the asserted employment surplus and made the dismissal necessary. The decision is a useful reminder that “restructuring” is an evidentiary proposition, not a label that ends the legal enquiry. 9
6. Notice periods and notice pay
Article 17 establishes minimum notice periods for indefinite-term employment: two weeks for service below six months, four weeks for six months to one and a half years, six weeks for one and a half to three years, and eight weeks for service exceeding three years. Contractual periods may be increased. A party that fails to observe the applicable period may owe compensation corresponding to that period. 10
The statutory calculation does not necessarily stop at base salary. Article 17 directs the calculation of notice compensation and pay in lieu to include, in addition to wage, contractual or statutory benefits provided in money or measurable in money. Employers should therefore identify recurring meal, transport, bonus and similar components rather than use only the nominal monthly salary where the statute requires a broader wage base. 11
7. Severance pay remains governed by Article 14 of former Law No. 1475
Severance pay, kıdem tazminatı, is still governed by Article 14 of former Labour Law No. 1475, which remains in force for this purpose. Where the statutory conditions are met and the employee has at least one year of qualifying service, the amount is generally thirty days of the relevant wage for each full year, with proportional treatment for additional periods. Qualifying events include specified employer terminations, employee terminations for statutory just cause, military service, retirement-related conditions, death and, under the provision, resignation by a woman within one year of marriage. 12
The calculation uses the final wage together with monetary and measurable contractual or statutory benefits. It is also subject to a statutory ceiling. For the period 1 July to 31 December 2026, the Ministry of Labour and Social Security publishes the annual severance ceiling as TRY 73,729.87 per service year. That figure is period-sensitive and should be checked again for any later termination date. 13
A termination budget should separate severance, notice pay, accrued salary, unused annual leave, bonus or commission rights, and any additional contractual or collective-bargaining entitlements. Paying one item does not automatically release the others.
8. Job security and reinstatement claims
The core job-security regime applies to an indefinite-term employee with at least six months of service in a workplace within the thirty-employee threshold, subject to the statutory rules on counting employees and the exclusion for specified employer representatives. The employer must rely on a valid reason relating to capability, conduct or operational requirements. 14
An eligible employee who challenges the dismissal must apply to mandatory mediation within one month from service of the termination notice. If mediation ends without settlement, the employee may file the reinstatement action within two weeks from the final mediation record. The burden of proving the valid reason rests on the employer, while an employee alleging a different prohibited motive bears the burden for that separate allegation. 15
If the dismissal is found invalid, the reinstatement regime is not reduced to ordinary damages. Article 21 requires the employer to reinstate the employee within one month following a valid return-to-work application, or face compensation of between four and eight months’ wages. The court also determines the employee’s rights for the statutory period of up to four months of lost wages and other benefits. The exact post-judgment steps and deadlines should be diarised immediately once the decision becomes final. 16
9. Foreign employees: work permit status is separate from the employment contract
Foreign nationals generally need a work permit or a recognised exemption under International Labour Force Law No. 6735. A residence permit by itself does not ordinarily confer the right to work. A standard definite-duration work permit is tied to the approved employer, workplace and role, and first applications may be granted for up to one year within the term of the employment or service contract. 17
The employment contract should therefore be coordinated with the work-permit timetable. The parties may sign an agreement before the permit decision, but actual work should not begin unless the person has the required legal authorisation. Unauthorised work can expose both employer and employee to administrative consequences and may lead to immigration consequences for the foreign national. 18
The general 2026 work-permit evaluation criteria are also more detailed than a simple “five Turkish employees per foreigner” slogan. The Ministry currently states that, under the general employment criterion, at least five Turkish citizens should be employed for each foreign worker in the relevant workplace, but it also provides financial and salary thresholds, exemptions, and sector-specific rules. Since 3 August 2026, additional exceptions apply in defined situations, and several categories of foreigners are exempt from the employment, financial and salary criteria. The proposed position and employer should therefore be checked against the current criteria at the application date. 19
Certain professions remain reserved to Turkish citizens under specific legislation, including several security, accounting and public-facing regulated roles. The Ministry maintains a current list. A foreign candidate’s qualifications do not override a statutory nationality restriction. 20
10. Non-compete and confidentiality clauses
Post-employment non-compete obligations are governed principally by Articles 444 to 447 of the Turkish Code of Obligations. A written non-compete may be valid only where the employment relationship gave the employee access to the customer base, production secrets or information about the employer’s activities, and use of that information could cause significant harm to the employer. 21
The restriction must also be proportionate. Article 445 prohibits restrictions that unfairly endanger the employee’s economic future in terms of place, time and type of activity, and ordinarily limits duration to two years except in special circumstances. A court may narrow an excessive clause. The restriction also ends where the employer no longer has a genuine interest in maintaining it or where the employer terminates without a just cause attributable to the employee, or the employee terminates for a reason attributable to the employer. 22
A major procedural development is now settled. Yargıtay İçtihatları Birleştirme Büyük Genel Kurulu, E. 2023/1, K. 2025/3, 13 June 2025, held that disputes arising from breach of post-employment non-compete obligations under Articles 444 to 447 belong before the commercial courts of first instance. This should be distinguished from disputes about the employee’s duty of loyalty while employment is still ongoing. 23
Confidentiality should be drafted separately. A legitimate confidentiality clause protects identified confidential information and trade secrets without pretending that the employer owns the employee’s general knowledge, experience or professional skills.
11. Language of the employment contract
For a foreign employee, a bilingual contract is usually the safest drafting approach. Law No. 805 requires Turkish companies to use Turkish in transactions and contracts in Turkey, while setting a separate framework for foreign companies’ dealings with Turkish companies and Turkish citizens. Where the Law applies, the Turkish text has direct legal significance; an English-only template should not be assumed to be risk-free merely because the employee is foreign. 24
The two language versions should be substantively identical and should state how inconsistencies will be resolved, subject to mandatory law. The Turkish version should not be produced as a last-minute translation after negotiations have concluded, because changes in terminology concerning bonus, termination, non-compete, notice or governing law can alter the legal effect of the agreement.
12. Practical termination checklist for foreign-owned employers
Before issuing a dismissal notice, counsel and HR should identify the exact employing entity, contract type, seniority date, employee headcount for job-security purposes, applicable collective agreement, protected-status issues, and the proposed statutory termination ground. The evidence should then be tested against that ground before the letter is drafted.
A financial schedule should separately calculate notice, severance, unused leave, salary, bonus or commission, expenses and any contractual payments. For a foreign employee, the company should also coordinate work-permit cancellation or status notifications and any residence consequences. The objective is a single termination plan in which labour, immigration, payroll and corporate records tell the same story.
Frequently Asked Questions
Can we use fixed-term contracts for everyone to reduce termination exposure?
No. Article 11 requires an objective basis for a fixed term, and unjustified successive fixed-term contracts can be treated as indefinite from the outset.
Can an employer terminate during probation without notice?
A valid probation clause allows termination without the ordinary notice period during the probation period, while earned wages and other accrued rights remain payable. The probation period is normally capped at two months unless a collective bargaining agreement extends it to four.
Does every just-cause dismissal eliminate severance pay?
No. That is too broad. The severance consequences depend on the specific Article 25 ground. The principal statutory exclusion under Article 14 of Law No. 1475 concerns employer termination for conduct contrary to morality and good faith under Article 25(II).
Can we simply pay severance and notice pay to eliminate reinstatement risk?
No. An eligible employee can still challenge the validity of the dismissal. Payment of notice or severance does not substitute for a valid statutory reason and the required procedure.
How quickly must an employee act in a reinstatement case?
The employee must apply to mandatory mediation within one month of notification of the dismissal. If no settlement is reached, the court action must generally be filed within two weeks from the final mediation record.
Can a foreign employee start work while the work permit application is pending?
Actual work should not begin unless the employee has the required work permit or a lawful exemption. The contract and start date should be structured around the authorisation process.
Is the five-Turkish-employees rule absolute for every foreign hire?
No. It is an important general evaluation criterion, but the Ministry publishes exemptions, financial and salary criteria, and sector-specific rules that must be checked at the application date.
Can an English-only employment contract be used?
The answer depends on the parties and the application of Law No. 805. For a Turkish employer, using a carefully prepared Turkish or bilingual contract is the safer approach. The Turkish text should be legally reviewed rather than treated as a convenience translation.
How long can a post-employment non-compete last?
Article 445 ordinarily limits the duration to two years unless special circumstances justify otherwise, and the restriction must also be proportionate in geography and activity.
Conclusion
Turkish employment law rewards early classification and careful evidence. The most expensive errors often occur before litigation: selecting an unjustified fixed term, using the wrong termination ground, missing the procedural requirements of a job-security dismissal, calculating severance from an incomplete wage base, or allowing a foreign employee to begin work before the permit position is secure.
For foreign-owned businesses, the employment contract, work-permit file, personnel record and termination strategy should be designed as parts of the same compliance system. For foreign employees, the same principle works in reverse: contractual rights, work authorisation and immigration status should be reviewed together, while remaining legally distinct. Current thresholds, monetary caps, work-permit criteria and court deadlines should be verified at the time action is taken.
Bibliography
Legislation
Labour Law No. 4857, particularly Articles 11, 15, 17 to 21, 25 and 26. Türkiye Büyük Millet Meclisi, enacted text and subsequent amendments.
Former Labour Law No. 1475, Article 14, severance-pay provision remaining in force.
Labour Courts Law No. 7036, particularly Articles 3 and 11, Official Gazette No. 30221, 25 October 2017.
Turkish Code of Obligations No. 6098, particularly Articles 444 to 447 on post-employment non-compete obligations.
International Labour Force Law No. 6735 and implementing legislation concerning work permits and exemptions.
Law No. 805 on the Mandatory Use of Turkish in Economic Enterprises, Official Gazette No. 353, 22 April 1926.
Judicial Decisions
Yargıtay 9th Civil Chamber, E. 2024/14265, K. 2025/1325, 10 February 2025, UYAP Mevzuat ve İçtihat Programı.
Yargıtay İçtihatları Birleştirme Büyük Genel Kurulu, E. 2023/1, K. 2025/3, 13 June 2025, concerning jurisdiction over post-employment non-compete disputes.
Institutional and Official Materials
Republic of Türkiye Ministry of Labour and Social Security, Work Permit Evaluation Criteria, current version reviewed 21 September 2026.
Republic of Türkiye Ministry of Labour and Social Security, Professions Reserved for Turkish Citizens, current guidance.
Republic of Türkiye Ministry of Labour and Social Security, Labour Statistics, Severance Pay Ceiling, July-December 2026.
Republic of Türkiye Ministry of Labour and Social Security, Work Permit Types and Frequently Asked Questions, current 2026 guidance.
Türkiye Büyük Millet Meclisi, official texts of Law No. 4857, Law No. 6098 and Law No. 805.
Footnotes
1. Labour Law No. 4857; former Labour Law No. 1475, Article 14; Labour Courts Law No. 7036; Turkish Code of Obligations No. 6098. Official statutory texts: Türkiye Büyük Millet Meclisi and mevzuat.gov.tr. Official-source review: 21 September 2026.
2. Labour Law No. 4857, Article 11: an indefinite contract is the default where no term is fixed; a fixed term requires objective conditions, and successive fixed-term contracts require an essential reason. Türkiye Büyük Millet Meclisi enacted text.
3. Labour Law No. 4857, Article 15: probation may be agreed for up to two months and extended to four months by collective bargaining agreement; either party may terminate during probation without ordinary notice or notice compensation, while earned rights remain due. TBMM enacted text.
4. Labour Law No. 4857, Articles 18 to 21, on valid reason, termination procedure, challenge and the consequences of invalid dismissal. TBMM enacted text and Labour Courts Law No. 7036, Article 11.
5. Labour Law No. 4857, Article 25; former Labour Law No. 1475, Article 14. Article 14 excludes, in particular, employer termination on the morality and good-faith ground corresponding to Article 25(II); severance consequences of other immediate-termination grounds require separate analysis.
6. Labour Law No. 4857, Article 26: the six-working-day period and one-year outer period apply to terminations based on conduct contrary to morality and good faith under Articles 24(II) and 25(II), with the statutory material-benefit exception.
7. Labour Law No. 4857, Article 19: written notice with a clear and precise reason; employee defence before termination based on conduct or performance, subject to the immediate-termination exception in Article 25(II).
8. Labour Law No. 4857, Articles 18 and 20. Article 20 places the burden of proving a valid termination reason on the employer; the employee bears the burden for an asserted different motive.
9. Yargıtay 9th Civil Chamber, E. 2024/14265, K. 2025/1325, 10 February 2025, UYAP Mevzuat ve İçtihat Programı, https://mevzuat.adalet.gov.tr/ictihat/1123147300. The decision concerns operational dismissal and judicial review of implementation, employment surplus and necessity.
10. Labour Law No. 4857, Article 17: minimum notice periods are two, four, six and eight weeks according to service length; contractual periods may be increased.
11. Labour Law No. 4857, Article 17, final paragraph: notice compensation and pay in lieu are calculated by adding monetary or measurable contractual and statutory benefits to the wage referred to in Article 32.
12. Former Labour Law No. 1475, Article 14, which remains in force for severance pay. It provides thirty days of wage per full year, proportional treatment for additional periods, and identifies qualifying termination events.
13. Republic of Türkiye Ministry of Labour and Social Security, Labour Statistics, “Kıdem Tazminatı Tavanı Tutarı”, July 2026. The published ceiling for 1 July to 31 December 2026 is TRY 73,729.87 per service year. https://www.csgb.gov.tr/istatistikler/calisma-hayati-istatistikleri/kidem-tazminati-tavan-miktari/
14. Labour Law No. 4857, Article 18: job security generally applies to an indefinite-term employee with at least six months of service in a workplace with thirty or more employees, subject to the statutory counting rules, underground-work exception and employer-representative exclusion.
15. Labour Law No. 4857, Article 20, as amended by Labour Courts Law No. 7036, Article 11: mandatory mediation within one month of termination notice; court action within two weeks after the final mediation record if no settlement is reached.
16. Labour Law No. 4857, Article 21: reinstatement within one month following the employee’s valid application; four-to-eight-month compensation if not reinstated, together with the statutory rights for up to four months of the period out of work.
17. International Labour Force Law No. 6735; Ministry of Labour and Social Security, “Work Permit Types”, current 2026 guidance: a first definite-duration work permit may be issued for up to one year and is tied to the approved employer, workplace and job. https://www.csgb.gov.tr/uigm/calisma-izni/calisma-izni-turleri/
18. Ministry of Labour and Social Security, Work Permit FAQ and 2026 information materials: a residence permit does not itself provide a general right to work; unauthorised work may trigger administrative consequences and notification to immigration authorities. https://www.csgb.gov.tr/uigm/ and https://calismaizni.csgb.gov.tr/.
19. Ministry of Labour and Social Security, “Work Permit Evaluation Criteria”, current version reviewed 21 September 2026. The general five-Turkish-employee rule is accompanied by financial and salary criteria, exemptions and sector-specific rules, including changes effective 3 August 2026. https://www.csgb.gov.tr/uigm/calisma-izni/calisma-izni-degerlendirme-kriterleri/.
20. Ministry of Labour and Social Security, “Professions Reserved for Turkish Citizens”, current guidance, listing professions and functions reserved by specific legislation. https://www.csgb.gov.tr/uigm/calisma-izni/turk-vatandaslarina-hasredilen-meslekler/.
21. Turkish Code of Obligations No. 6098, Article 444: a post-employment non-compete must be in writing and is valid only where the employee had access to customers, production secrets or business information whose use could cause significant harm. TBMM official text.
22. Turkish Code of Obligations No. 6098, Articles 445 to 447: proportionality in place, duration and activity; an ordinary two-year maximum subject to special circumstances; judicial power to narrow an excessive restriction; statutory termination of the restriction in specified circumstances. TBMM official text.
23. Yargıtay İçtihatları Birleştirme Büyük Genel Kurulu, E. 2023/1, K. 2025/3, 13 June 2025. The unification decision holds that actions arising from breach of post-employment non-compete obligations under Articles 444 to 447 belong before the commercial courts of first instance. Full decision reproduced in İstanbul Barosu Dergisi 2025/5 and analysed in Dokuz Eylül Üniversitesi Hukuk Fakültesi Dergisi, Vol. 28, No. 1 (2026).
24. Law No. 805 on the Mandatory Use of Turkish in Economic Enterprises, Articles 1 to 4, Official Gazette No. 353, 22 April 1926. Turkish companies must use Turkish for domestic transactions and contracts; the Law contains separate rules for foreign companies. TBMM official text: https://www5.tbmm.gov.tr/tutanaklar/KANUNLAR_KARARLAR/kanuntbmmc004/kanuntbmmc004/kanuntbmmc00400805.pdf.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
