06/10/2023

10 pitfalls when using an Employer of Record in Turkey

pitfalls employer of record turkey

Employer of Record (EOR) services can be valuable for companies expanding into Turkey or seeking to employ remote workers in the country. However, there are potential pitfalls to be aware of when using an Employer of Record (EOR) in Turkey. Here are 10 common pitfalls:

Turkey has complex labor laws and regulations. Failing to comply with these laws when using an EOR can result in legal issues and penalties. Ensure the EOR is well-versed in Turkish labor laws.

Turkish tax laws can be intricate. Ensure that the EOR accurately handles payroll taxes, social security contributions, and other tax-related matters to avoid financial penalties.

Miscommunication due to language and cultural differences can lead to misunderstandings and compliance issues. Choose an EOR that can bridge these gaps effectively.

Maintaining a positive relationship with employees can be challenging when you are not the direct employer. Ensure the EOR has effective mechanisms for employee engagement and dispute resolution.

Turkey has data protection laws that must be adhered to. Ensure that the EOR handles employee data with the necessary privacy and security measures.

Some EOR providers may have hidden fees or unexpected costs. Thoroughly review the contract and pricing structure to understand the full cost of using their services.

Turkish labor laws require employers to provide certain benefits to employees. Ensure the EOR is providing these benefits in compliance with local regulations.

Terminating an employee in Turkey can be complex. The EOR should be well-versed in the legal requirements and procedures for termination.

Turkish labor laws and regulations can change over time. The EOR should stay up-to-date with these changes and adapt their services accordingly.

Not all EOR providers offer the same level of service quality. Research and select an EOR with a strong reputation and a track record of success in Turkey.

To mitigate these pitfalls, it’s crucial to conduct thorough due diligence when selecting an Employer of Record in Turkey. Seek legal counsel or consult with experts in Turkish employment law to ensure compliance. Additionally, maintain open communication with the EOR to address any issues promptly and ensure that your employees are well taken care of while working in Turkey.

Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.