Employment and Labor Law for Businesses in Istanbul, Turkey

For most companies, the day to day legal reality of doing business in Turkey is shaped by the relationship between employer and employee. Hiring staff, drafting employment contracts, managing working hours and wages, handling discipline, and ending a contract correctly all fall under business law in Turkey as it applies to the workplace. This page focuses on that perspective: employment law, labor law, workplace disputes, and the rights and obligations that connect employers and employees.

Karanfiloglu Law Firm is an Istanbul-based law firm that advises Turkish and international clients on business and employment law. We act for international companies, foreign investors, employers, HR managers, entrepreneurs, and businesses operating in Turkey, as well as for Turkish employees, expats, and foreign employees who need to understand and protect their rights. Employment law in Turkey is set out mainly in the Turkish Labour Law No. 4857, supported by the Occupational Health and Safety Law No. 6331 and related legislation.

Legal support matters here because Turkish employment law is strict and procedural. It contains mandatory protections for employees that the parties cannot simply contract out of, detailed rules on how an employment contract may be ended, and short deadlines that apply once a dispute begins. An employer who terminates a contract without following the correct procedure can face a reemployment lawsuit and significant compensation. An employee who does not act within the time limits can lose a valid claim. Whether you are hiring, managing, or parting ways with staff, getting the legal steps right from the start is far cheaper than correcting them in court.

Why You Need a Lawyer for Business and Employment Law in Turkey

Employment law in Turkey carries real risk for both sides of the relationship, and most of that risk is avoidable with proper advice.

For employers, the common exposures are invalid or poorly documented termination, which can lead to a reemployment lawsuit and compensation; unpaid wage, overtime, annual leave, and bonus claims; severance pay and notice compensation that is miscalculated or overlooked; liability for workplace accidents and occupational disease; and the failure to complete mandatory mediation before a lawsuit. Each of these can be controlled with the right contracts, records, and procedures in place before a problem arises.

For employees, the risk is usually the opposite: a termination that was not lawful, wages or overtime that were never paid, severance or notice compensation that was withheld, annual leave that was not granted, or a workplace injury that the employer did not properly address. Turkish law gives employees strong protections, but those protections only help if claims are raised correctly and within the deadlines.

Foreign companies face particular practical problems when hiring staff in Turkey. Turkish employment rules are mandatory and differ from those of most other countries, so a contract that worked abroad will not simply transfer. Payroll must run through the Turkish social security system, and employees must be registered with the Social Security Institution. Termination is restricted and cannot be carried out at will in the way some employers expect. Mediation is a required step before most labor lawsuits. Compensation on termination can be substantial. Foreign employers who are not aware of these rules often discover them only when a claim arrives.

A Turkish employment lawyer reduces this exposure on both sides. We prepare and review employment contracts, advise on compliance with Turkish labor law, assist with termination planning so that the procedure is correct and documented, conduct negotiation between the parties, represent clients in mandatory mediation, handle litigation before the labor courts, and manage enforcement of a judgment or settlement. The goal is a workplace relationship that is legally sound and a dispute process that is handled correctly.

Why Choose Karanfiloglu Law Firm for Business Law Matters

Karanfiloglu Law Firm provides business and employment law services from our office in the centre of Istanbul, and we act for clients across Turkey and abroad. Our practice combines knowledge of Turkish labor law with practical experience of how workplace disputes actually develop, which means we focus on advice that works in real working environments and not only on paper.

We support international clients directly. Many of the companies and individuals we advise are based outside Turkey or are foreigners working inside the country, so clear communication is part of the service. We explain Turkish employment rules in plain English, set out the options and their consequences, and keep clients informed at each stage. Our work covers the full life of an employment matter: legal strategy, document preparation, employment contract review, employer advisory, employee representation, mediation support, litigation, and end to end assistance.

We act for both employers and employees, although not on opposite sides of the same matter, and we are equally comfortable advising a foreign company building a workforce in Turkey or an individual employee facing an unfair termination. We do not promise particular outcomes and we do not rely on slogans. What we offer is careful, responsive, and honest legal work.

About our lawyer

The firm is led by attorney Kaan Karanfiloglu, an experienced lawyer based in Istanbul. He advises clients in English, French, and Turkish, and the firm also supports clients in Russian and Chinese through experienced translators in the office. Kaan Karanfiloglu is registered with the Istanbul Bar Association, registration number 58270, and the Union of Turkish Bar Associations, registration number 133074. He graduated from Galatasaray University Law School.

• Karanfiloglu Law Firm is listed at Justia as a Turkish  Lawyer firm. Mr. Kaan Karanfiloglu is a top Turkish lawyer for foreigners who need legal assistance in Turkey.
• Karanfiloglu Law Firm is listed at Lawzana as a Turkish  Lawyer firm. Mr. Kaan Karanfiloglu is a top Turkish lawyer for foreigners who need legal assistance in Turkey.
• Karanfiloglu Law Firm is listed at Lawyers.com as a Turkish  Lawyer firm. Mr. Kaan Karanfiloglu is a top Turkish lawyer for foreigners who need legal assistance in Turkey.

Our Business Law and Employment Law Services in Turkey

We provide a complete range of services across employment law and labor law in Turkey, for both employers and employees. The areas below are the ones our clients ask for most often. If your matter is not listed here, contact us and we will tell you whether and how we can help.

Employment Contract Drafting and Review

We draft and review employment contracts that comply with the Turkish Labour Law and reflect the real working arrangement. A sound employment contract in Turkey should address the job description, wage, working hours, probation, confidentiality, and termination, and it should avoid clauses that Turkish law will not enforce. We prepare contracts for new hires and review existing templates before they are used across a workforce.

Employer Legal Consultancy in Turkey

We provide ongoing employer legal support in Turkey, advising companies on their day to day labor law obligations. This includes guidance on hiring, working time, wages, leave, discipline, restructuring, and termination, so that the employer’s practices are compliant before a dispute can arise. Preventive advice is consistently less costly than litigation.

Employee Rights and Workplace Claims

We advise employees on their rights under Turkish labor law and represent them in workplace claims. Employee rights in Turkey include protection against unlawful termination, the right to be paid wages and overtime, paid annual leave, and severance and notice compensation where the conditions are met. We assess the strength of a claim and the deadlines that apply before action is taken.

Termination of Employment Contracts

Ending an employment contract in Turkey is a regulated process, not a free decision. We advise employers on lawful grounds for termination, the notice required, the documentation needed, and the risk of a reemployment claim. We also advise employees who believe their termination was unlawful. Correct handling at this stage is the single most important factor in avoiding a costly dispute.

Severance Pay and Notice Compensation Claims

We advise on and pursue or defend claims for severance pay in Turkey and notice compensation. Severance pay is generally due where an employee has completed at least one year of service and the contract ends in a way that qualifies, while notice compensation arises when the required notice period is not observed. We calculate entitlements correctly and resolve disputes over them.

Wage, Overtime, Annual Leave, and Bonus Disputes

We handle disputes over unpaid wages, overtime, annual leave, and bonuses. Turkish law sets a standard working week and requires overtime to be paid at an increased rate, and unused annual leave can give rise to a payment claim when employment ends. We help employers document these matters correctly and help employees recover what they are owed.

Reemployment Lawsuits in Turkey

A reemployment lawsuit in Turkey, known as a job security claim, allows an eligible employee whose contract was terminated without a valid reason to seek reinstatement and compensation. These claims are available to employees who meet the conditions on workplace size and length of service, and they are subject to strict deadlines and a mandatory mediation step. We represent both employees bringing such claims and employers defending them.

Workplace Disciplinary Procedures

We advise employers on workplace disciplinary procedures, including warnings, investigations, and the documentation required before disciplinary action or termination. A disciplinary process that is properly conducted and recorded protects the employer if the matter is later challenged. We also advise employees who consider that a disciplinary process was unfair.

Occupational Health and Safety Compliance

We advise on compliance with the Occupational Health and Safety Law No. 6331 and related obligations. Occupational health and safety in Turkey imposes specific duties on employers, and failure to meet them can lead to administrative penalties and to liability if an accident occurs. We help employers understand and meet these duties.

Workplace Accident and Occupational Disease Claims

We handle the legal consequences of workplace accidents and occupational disease, including the employer’s liability and the employee’s right to compensation. These matters often involve the Social Security Institution, medical reports, and expert examination. We act for employers managing their exposure and for injured employees pursuing a claim.

Employee and Employer Receivables

We pursue and defend employee receivables in Turkey and employer receivables, meaning the sums one side claims the other owes arising from the employment relationship. This covers wage, overtime, leave, severance, and notice claims, and it includes enforcement proceedings where a debt has been confirmed but not paid.

Mandatory Mediation in Labor Disputes

Since 2018, mediation has been a mandatory first step for most labor lawsuits in Turkey, including employee and employer receivable claims and reemployment claims. A lawsuit filed without first completing labor mediation in Turkey will not be accepted. We represent clients in the mediation process and work to reach a fair settlement where one is possible.

Labor Litigation and Court Representation

When a workplace dispute cannot be settled, we represent clients before the Turkish labor courts at every stage, including filing or defending the claim, hearings, expert examination, judgment, and appeal. We prepare the case carefully and explain the realistic course of proceedings before you commit to litigation.

Settlement Agreements and Release Documents

Many employment disputes are best resolved by agreement. We prepare settlement agreements, release and discharge documents, and termination protocols that close a matter cleanly. A properly drafted release records exactly what each side gives up and reduces the risk of a later claim on the same facts. Employees should always obtain legal advice before signing such a document.

Legal Support for Foreign Companies Hiring Employees in Turkey

We help foreign companies and international investors build a compliant workforce in Turkey. This includes drafting employment contracts under Turkish law, advising on payroll and social security registration, explaining mandatory employee protections and termination restrictions, and setting up sound HR practices from the start. Getting the framework right at the outset prevents the disputes that catch many foreign employers by surprise.

Legal Support for Foreign Employees and Expats Working in Turkey

We advise foreign employees and expats on their rights under Turkish labor law, review the contracts they are asked to sign, and represent them in workplace disputes. We explain how Turkish employment rules apply to their situation and, where relevant, how their work permit position interacts with their employment. This service often connects with our Foreigners Law in Turkey practice and matters such as the Turkish Residence Permit Lawyer practice area.

The Legal Process in Business and Employment Law Cases in Turkey

The way an employment matter proceeds depends on the dispute, but most cases follow a recognisable path. The stages below describe how we typically work.

Step 1 – Consultation. We begin by understanding the employment relationship, the issue, and your goals, whether you are an employer or an employee. This can take place in our Istanbul office or remotely.

Step 2 – Document review. We examine the relevant material, which may include the employment contract, payroll and social security records, termination or resignation documents, and workplace correspondence.

Step 3 – Legal risk assessment. We assess the strength of the position, the legal risks, the applicable deadlines, and the realistic outcomes, then explain them clearly.

Step 4 – Negotiation. Where appropriate, we negotiate directly with the other side to resolve the matter before any formal process begins.

Step 5 – Mandatory mediation. For most labor disputes, mediation is a required step in Turkey before a lawsuit can be filed. We represent the client in mediation and work toward a fair settlement.

Step 6 – Filing a lawsuit. If mediation does not resolve the matter, we prepare and file the claim, or defend a claim brought against the client, before the competent labor court.

Step 7 – Court hearings. The court holds hearings at which the parties present their arguments and evidence. We represent the client and manage the case throughout.

Step 8 – Expert examination. Labor cases frequently involve a court appointed expert, particularly for the calculation of wages, overtime, and compensation. We respond to and, where necessary, challenge the expert report.

Step 9 – Judgment. The court issues its decision on the dispute.

Step 10 – Appeal. A judgment can usually be challenged before the regional courts of appeal and, in certain matters, the Court of Cassation. We advise on the prospects of an appeal.

Step 11 – Enforcement. Once a judgment is final, we assist with enforcement so that the decision is actually carried out.

The exact process depends on the dispute, the employment relationship, the documents and evidence, the applicable deadlines, and whether the matter can be settled. The steps above are a general guide and not a fixed timeline.

Documents and Information You May Need

The documents required depend on the type of employment matter. As a general guide, the following are often useful when you contact us:

• Employment contracts and any annexes or amendments
• Payroll records and salary slips
• Social security (SGK) records showing registration and reported earnings
• Termination notices, resignation letters, and warning letters
• Workplace correspondence, including emails and messaging records such as WhatsApp messages
• Annual leave records and overtime records
• Witness information, where colleagues or others can support the account of events
• Settlement documents and mediation minutes from any earlier process
• Occupational accident reports and medical reports, where a workplace injury is involved
• Company documents and identification documents for the parties
• A power of attorney, where you wish us to act on your behalf

You do not need to gather everything before contacting us. After the first consultation we will tell you exactly what your specific matter requires.

Services for Foreign Companies, Employers, and Employees

A significant part of our business law practice is for foreign clients. We assist foreign companies, international investors, expats, foreign employees, and cross border clients with employment and workplace matters in Turkey.

Our support for foreign clients includes remote consultation by video call, review of documents and evidence, employment contract drafting, bilingual contract support so that the Turkish and English texts are consistent, advice on Turkish labor law compliance, termination planning, representation in mediation and litigation, coordination of certified translation, and guidance on notarisation and on apostille and legalisation requirements for documents issued abroad. All communication can be conducted in English, and we also serve clients in French, Russian, and Chinese.

The issues foreign companies face in Turkey are usually predictable. Mandatory employment rules cannot be replaced by a foreign template or company policy. Payroll and social security registration follow Turkish requirements. Termination is restricted and an at will approach is not available. Mediation is a required step before most labor lawsuits. Compensation on termination, including severance and notice, can be significant and is easy to underestimate. We help foreign employers understand these rules before they hire, and we help foreign employees understand the protections they are entitled to.

Common Legal Risks and Mistakes

Most employment disputes in Turkey trace back to a small number of avoidable mistakes. Recognising them early is the simplest way to protect yourself.

• Using foreign employment templates without Turkish legal review. A contract drafted under another country’s law often fails to comply with mandatory Turkish rules and may not protect the employer as intended.
• Terminating employees without proper procedure. Termination without a valid reason, correct notice, and proper documentation is the leading cause of reemployment claims.
• Failing to keep written records. Without records of contracts, hours, leave, warnings, and payments, an employer struggles to defend a claim.
• Ignoring mandatory mediation. Filing a labor lawsuit without first completing mediation means the case will not be accepted.
• Miscalculating severance pay. Errors in calculating severance and notice compensation lead to disputes and to additional liability.
• Failing to document overtime. When overtime is not recorded, disputes over hours and pay become difficult to resolve for both sides.
• Using invalid non-compete clauses. Non-compete and similar restrictive clauses are only enforceable in Turkey within defined limits, and an overbroad clause may be unenforceable.
• Overlooking occupational health and safety duties. These obligations are mandatory, and ignoring them creates both penalty exposure and liability if an accident occurs.
• Signing settlement documents without legal advice. An employee who signs a release without advice may give up valid claims, and an employer who drafts one poorly may not achieve a clean closure.

Proper legal assistance prevents these problems. A lawyer who sets up compliant contracts, advises on procedure before a termination, keeps the documentation sound, and handles mediation and litigation correctly turns a high risk situation into a controlled one.

Frequently Asked Questions

What does business law mean in Turkey?

Business law in Turkey is a broad term covering the legal rules that apply to companies and commercial activity. On this page it is addressed from the workplace perspective, meaning employment law and labor law: the rules that govern employment contracts, the rights and obligations of employers and employees, termination, compensation, and workplace disputes. Company and trade matters are handled through commercial law.

Does this page cover employment law in Turkey?

Yes. This page focuses on employment and labor law in Turkey, including employment contracts, employee and employer rights, termination, severance pay, reemployment lawsuits, wage and overtime disputes, occupational health and safety, mandatory mediation, and labor litigation. It is designed to be useful for both employers and employees.

Do I need a lawyer to prepare an employment contract in Turkey?

The law does not require a lawyer to prepare an employment contract, but legal review is strongly advisable. Turkish labor law contains mandatory rules that override conflicting contract terms, and a contract that does not reflect them can leave an employer exposed. A lawyer makes sure the contract is compliant, clear, and enforceable.

Can foreign companies hire employees in Turkey?

Yes. Foreign companies can employ staff in Turkey, but they must comply with Turkish labor law, register employees with the Social Security Institution, and run payroll according to Turkish requirements. Foreign nationals being hired generally need a work permit. Legal advice at the hiring stage helps a foreign employer set up a compliant structure from the start.

What are the main employer obligations under Turkish labor law?

An employer’s core obligations include providing a written framework for the employment relationship, paying wages and overtime correctly, granting paid annual leave, registering employees with social security, observing working time rules, meeting occupational health and safety duties, and following the correct procedure for any termination. These obligations are mandatory and cannot be removed by agreement.

What compensation can an employee claim after termination in Turkey?

Depending on the circumstances, an employee whose contract ends may be entitled to severance pay, notice compensation, payment for unused annual leave, and unpaid wages or overtime. An eligible employee dismissed without a valid reason may also bring a reemployment claim. The exact entitlements depend on the length of service, the reason for termination, and the facts of the case.

What is a re-employment lawsuit in Turkey?

A reemployment lawsuit, also called a job security claim, is a case brought by an eligible employee who was dismissed without a valid reason. If the claim succeeds, the court can order reinstatement and award compensation. These claims are available to employees who meet the conditions on workplace size and length of service, and they are subject to strict deadlines and a mandatory mediation step.

Is mediation mandatory in Turkish labor disputes?

Yes, for most labor disputes. Since 2018, mediation has been a mandatory precondition for filing many labor lawsuits in Turkey, including employee and employer receivable claims and reemployment claims. A lawsuit filed without first completing mediation will not be accepted by the court.

Can an employee claim unpaid overtime in Turkey?

Yes. An employee can claim payment for overtime that was worked but not paid. Turkish law sets a standard working week and requires overtime to be paid at an increased rate. Overtime claims are stronger when supported by records, which is why both employers and employees benefit from keeping accurate working time records.

What documents are needed for an employment dispute in Turkey?

Useful documents commonly include the employment contract, payroll and salary records, social security records, termination or resignation documents, warning letters, workplace correspondence, leave and overtime records, and any medical or accident reports where a workplace injury is involved. The exact documents depend on the dispute, and we will confirm what is needed after reviewing the file.

Can Karanfiloglu Law Firm represent foreign employers remotely?

Yes. We regularly act for employers and companies that are not based in Turkey. Documents can be sent electronically, consultations can be held by video call, and where we need to act on the client’s behalf in Turkey this is arranged through a power of attorney. Distance is not an obstacle to receiving proper legal support.

How long does a labor lawsuit take in Turkey?

The timeline varies. Many disputes are resolved at the mandatory mediation stage within weeks. A case that proceeds to court, including hearings, expert examination, and a possible appeal, can take a year or more. The duration depends on the complexity of the dispute, the evidence, the conduct of the parties, and the workload of the court.

Contact Karanfiloglu Law Firm, Your Turkish Lawyer

Whether you are an employer building or managing a workforce, a company facing a workplace dispute, or an employee who needs to protect your rights, the earlier you obtain legal advice, the stronger your position is likely to be. Karanfiloglu Law Firm advises Turkish and international clients on business law in Turkey from our office in Istanbul, with a focus on employment and labor law, and we work with clients across the country and abroad.

To discuss your business or employment law matter, contact our Istanbul law firm to book a legal consultation. We will review your situation, explain your options clearly, and tell you how we can help. We do not guarantee any particular legal outcome, but we are committed to careful, honest, and practical legal work focused on protecting your interests.

Karanfiloglu Law Firm
Address: Mecidiyekoy Mah. Buyukdere Cad. No:67-71, Alba Business Center, Floor 8, Sisli, 34387 Istanbul, Turkey
Phone: +90 532 659 35 11
To request a consultation, please use the firm’s contact page.

This content is for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified lawyer.