Private Employment Agencies Are Now Authorized To Provide Temporary Workers

The Labour Code numbered 4857 has been amended with the "Law Amending the Labour Law and Turkish Labour Agency Law" ("Amending Law") numbered 6715 adopted on 06.05.2016. Despite the opposition of labour unions, the Amending Law has been ratified by the Turkish Grand National Assembly and published in the Official Gazette on 20.05.2016, which opened a new era for outsourcing personnel by bringing in the legitimacy required by the employment agencies to carry out the loaning out activities within their permitted scope of business. This Client Alert only relates to innovations brought in terms of outsourcing personnel through Private Employment Agencies ("PEA").

Until the Amending Law came into force, temporary employment relationships could be established only within a holding or group of companies and the PEAs were specifically prohibited from engaging in employee loan-out activities in a professional manner.