Recent Development
The amendments to the Decree No. 32 Regarding the Protection of
the Value of the Turkish Currency ("Decree No.
32") published in the Official Gazette on September
13, 2018 introduced a ban on FX and FX-indexed payments for
employment agreements executed between Turkish residents. Following
the entry into force of these restrictions, the Ministry of
Treasury and Economy amended the Communiqué No. 2008-32/34
on the Decree No. 32 and introduced certain exemptions to the
respective restrictions. The exemptions were published in the
Official Gazette dated October 6, 2018.
What Do the Amendments Say?
The amendments to the Decree No. 32 no longer legally allow
contract prices and other payment obligations in employment
agreements executed between Turkish residents to be denominated in
or indexed to foreign currencies.
