Subcontracting Regulations in Turkey

In Turkey, the Labor Law permits the practice of subcontracting employees from other employers under specific circumstances in the workplace. It’s important to note that subcontracted tasks must be carried out within the premises of the primary employer.

Regarding subcontracting regulations in Turkey, the nature of work that can be delegated to a subcontractor is closely regulated. Generally, subcontractors are limited to performing supplementary tasks or handling specific aspects of the primary work occurring at the employer’s workplace.

There is, however, an exception to this rule when it comes to primary work that demands specialized technical expertise. For example, in an industrial manufacturing setting, subcontracted employees may not engage in the actual manufacturing process but can provide supplementary services such as cleaning, catering, or security.

In cases where a subcontracted employee becomes involved in the core business of the employer, the employer is obligated to treat them on par with employees engaged in core business activities.

Subcontractor’s employees must be exclusively dedicated to the tasks assigned by the employer. To put it differently, employees of subcontractors are required to work solely for their respective subcontractor.

It’s imperative for both the primary employer and the subcontractor to notify the Ministry of Labor when establishing a subcontracting relationship in Turkey. In situations where the subcontractor fails to meet its obligations, including payment of wages to subcontracted employees, the primary employer may be held jointly and severally liable for these outstanding amounts.

Business Transfer by the Employer

When a business undergoes a transfer that involves the transfer of the workplace and the employment relationships necessary to carry out work in that location, it is governed by the assumption of liability principle. According to this principle, the new employer takes on all responsibilities and obligations towards the employees from the beginning of their employment with the previous employer. Nevertheless, the transferring employer maintains shared liability with the new employer for a duration of two years from the date of the transfer for any debts, including those owed to employees, related to the business.

Labor Unions and Collective Bargaining Agreements

In Turkey, the law grants the freedom for both employees to join unions and for unions to be established. An employee’s membership in a union and their participation in union-related activities cannot serve as grounds for the termination of their employment contract. Unions with a specified minimum number of members are entitled to engage in collective bargaining agreements with employers on behalf of their constituents. In such instances, employers are obligated to enter into a collective bargaining agreement with the union after the negotiation process is completed.

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.