Protecting Your Company from Employee Lawsuits
In a dynamic corporate environment, safeguarding a company from employee lawsuits requires diligent compliance with labor laws and regulations.
Author: Lawyer Kaan Karanfiloğlu
· · 21 min read

In Turkey, the basic rights and responsibilities of employers and employees are set by Labour Law No. 4857 (İş Kanunu), the severance pay provision of Law No. 1475 that is still in force, and Occupational Health and Safety Law No. 6331. The employer must pay wages on time, make the required notifications to the Social Security Institution (SGK), provide a safe working environment and terminate employment in line with the proper procedure; the employee, for their part, must do the work with care and loyalty.
In this article we cover the rules and time limits that both sides need to know, from the formation of the employment contract to its end, together with the relevant article numbers. We also address separately the rules on employing foreign staff for foreign-capital employers that have set up a company in Turkey. The information reflects the legislation in force as of October 2026.
The main source is Labour Law No. 4857. On its own, however, it is not enough. In an employment relationship, the following rules usually apply together:
Special rules or exceptions apply in some areas, such as maritime employment contracts, press employees and domestic services. Foreign-capital companies often ask whether a foreign law can be chosen in the contract. It can, but under Article 27 of Law No. 5718 on International Private and Procedural Law, if the employee's habitual workplace is in Turkey, this choice cannot remove the minimum protection provided by the mandatory provisions of Turkish law.
The rule is the indefinite-term contract. Under Article 11 of the Labour Law, a fixed-term contract may only be made for fixed-term work or on the basis of objective conditions, such as the completion of a specific job or the occurrence of a specific event. Unless there is a material reason, fixed-term contracts may not be concluded more than once in succession (chain contracts); otherwise, the contract is deemed indefinite-term from the start. In practice, the problem we encounter most often is the "one-year" contract renewed every year for a permanent position.
A contract whose weekly working time is significantly shorter than that of a comparable full-time employee is a part-time contract (Art. 13). On-call work is regulated separately in Art. 14. A part-time employee may not be treated differently from a comparable full-time employee unless there is a justified reason.
Employment contracts with a term of one year or more must be made in writing (Art. 8). If no written contract has been made, the employer must give the employee, within two months at the latest, a written document showing the general and special working conditions, the wage and any wage supplements. The lack of a written contract does not make the employment relationship invalid. It only makes proof harder.
The parties may include a probation clause in the contract. The probation period is at most two months; it may be extended up to four months by collective labour agreements. During this period, either party may terminate the contract without a notice period and without compensation. The employee's wages for the days worked and their other rights are, however, preserved.
Under Article 63 of the Labour Law, working time is at most 45 hours a week. Unless otherwise agreed, this time is spread equally over the working days of the week. The parties may agree to spread it differently; in that case, daily work may not exceed 11 hours, and the weekly average within a two-month balancing period (denkleştirme) may not exceed 45 hours. Breaks are regulated in Art. 68, and an uninterrupted weekly rest of at least 24 hours (the weekly holiday) in Art. 46.
Work beyond 45 hours a week is overtime (fazla çalışma). Each hour of overtime is paid at the normal hourly wage increased by fifty per cent. If the contract sets weekly hours below 45, work beyond the agreed hours and up to 45 hours counts as "extended working hours" (fazla sürelerle çalışma) and is paid at the hourly wage increased by twenty-five per cent. If the employee wishes, they may take one and a half hours of time off for each hour of overtime instead of payment.
There are two further limits. Total overtime may not exceed 270 hours a year. Under the relevant regulation, the employee's written consent to overtime is also required. For unpaid overtime, see our article on the overtime pay claim case.
An employee who has worked for at least one year, including the probation period, becomes entitled to paid annual leave. The length of leave depends on length of service:
The right to annual leave cannot be waived. If the parties agree, leave may be divided into parts, provided that one part is not less than ten days. When the contract ends for any reason, the pay for unused leave days is paid to the employee (Art. 59).
Law No. 6331 covers every employer, whatever the number of employees. The employer must carry out or commission a risk assessment (Art. 10), train employees, provide health surveillance and, according to the hazard class of the workplace, appoint an occupational safety specialist and a workplace physician. Under Art. 13, an employee facing a serious and imminent danger has the right to refuse to work. We cover the subject in detail in our article on the employer's occupational health and safety obligations.
The employer must submit the employment start notice (işe giriş bildirgesi) to the SGK before the employee starts work as an insured person; for some types of work, such as construction, agriculture and fishing, this notice may be made on the day work begins at the latest. The employment termination notice (işten ayrılış bildirgesi) is, as a rule, submitted within 10 days of the departure. Monthly premium and service information is reported through the combined withholding tax and premium service return (muhtasar ve prim hizmet beyannamesi). Late or missing notifications lead to administrative fines; the amounts are updated every year.
The employee must perform the work undertaken with care and loyally protect the employer's legitimate interests (TBK Art. 396). The employee must comply with general rules and specific instructions on how the work is to be done and on conduct at the workplace. Article 19 of Law No. 6331 also requires employees, in line with the training they have received, not to endanger their own health and safety or that of other employees. If the contract contains a written non-compete clause, it is valid within the limits of TBK Art. 444 and Art. 445 (as a rule, for at most two years and reasonable in terms of place, time and type of work).
A party wishing to terminate an indefinite-term contract with notice must notify the other party in advance, according to the employee's length of service, within the periods below. These periods are minimums and may be increased by contract.
| Employee's length of service | Notice period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months to 1.5 years | 4 weeks |
| 1.5 years to 3 years | 6 weeks |
| More than 3 years | 8 weeks |
A party that does not observe the notice period pays notice pay (ihbar tazminatı) equal to the wages for that period. The employer may also end the contract at once by paying the wages for the notice period in advance. If the contract of an employee who is outside the scope of job security is ended through abuse of the right to terminate, bad-faith compensation (kötüniyet tazminatı) of three times the wages for the notice period becomes payable. For calculating the period, see our article on the notice period in labour law.
The employee may terminate the contract without waiting for the notice period where there are health reasons, situations contrary to the rules of morality and good faith (for example, non-payment of wages, sexual harassment or failure to apply the agreed working conditions), or compelling reasons that stop work at the workplace for more than one week (Art. 24). The employer may also terminate immediately in the cases listed in Art. 25: these include conduct of the employee that breaches the rules of morality and good faith, absence without permission and without just cause (for example, failing to come to work on two consecutive working days, or on three working days in one month), long-term illness and compelling reasons.
Watch the time limit. The right to terminate based on a breach of the rules of morality and good faith can no longer be used once six working days have passed from the day the event became known and, in any case, once one year has passed since the event; however, the one-year limit does not apply where the employee obtained a material benefit from the event (Art. 26).
In workplaces with thirty or more employees, an employer that terminates the contract of an employee who has at least six months of service and works under an indefinite-term contract must rely on a valid reason arising from the employee's capability or conduct, or from the requirements of the business, the workplace or the work. If the employer has more than one workplace in the same line of business, the number of employees is determined by their total. Employer representatives who manage the business as a whole are outside this protection.
Notice of termination must be given in writing, and the reason for termination must be stated clearly and precisely (Art. 19). Before a termination based on the employee's conduct or performance, the employee's defence should, as a rule, be obtained.
An employee who considers the termination invalid must apply to a mediator within one month of service of the termination notice. If no agreement is reached in mediation, a lawsuit may be filed at the labour court within two weeks of the date on which the final report (son tutanak) was drawn up. If the court finds the termination invalid, the employee must apply to the employer within ten working days of service of the final judgment. If the employer does not take the employee back to work within one month, it pays job security compensation of at least four and at most eight months' wages, plus wages for the idle period of up to four months.
Severance pay (kıdem tazminatı) is paid to an employee who has worked for at least one year where the contract is terminated by the employer (except in the cases of breach of the rules of morality and good faith in Art. 25/II), where the employee terminates for just cause, or in cases of military service, retirement, a female employee leaving of her own will within one year of the date of her marriage, or death. For each full year, 30 days of gross wages including regular benefits (giydirilmiş brüt ücret) are taken as the basis; periods of less than a full year beyond that are calculated at the same rate.
The compensation is subject to a ceiling. The ceiling is linked to the highest retirement bonus paid to civil servants and is updated twice a year together with the civil servant salary coefficients. The current amount must be checked separately as of the termination date. For details, see our articles on what to know about severance pay and the calculation of employee claims.
For claims for severance pay, notice pay, bad-faith compensation and annual leave pay, the limitation period (zamanaşımı) is five years from the date the contract ended (Labour Law, Additional Art. 3).
Under Article 3 of Labour Courts Law No. 7036, in lawsuits concerning employee or employer receivables and compensation based on the law or on an individual or collective labour agreement, and in reinstatement lawsuits, a prior application to a mediator (arabuluculuk) is a precondition for filing suit. A lawsuit filed without going to a mediator is dismissed on procedural grounds. Compensation claims arising from occupational accidents and occupational diseases are outside this requirement.
The application is made to the mediation office at the other party's place of residence or where the work is performed. The mediator, as a rule, concludes the process within three weeks; where necessary, this period may be extended by at most one week. If one of the parties fails to attend the first meeting without a valid excuse, that party is held liable for half of the court costs that the other party is obliged to pay, even if it wins the case in part or in full, and only half of the attorney's fee is awarded in its favour. If the parties reach an agreement, no lawsuit can later be filed on the matters agreed in the settlement document. We explain the process step by step in our article on mediation in labour law.
Foreign employees working in Turkey enjoy the same protection under the Labour Law as Turkish citizens. However, under International Labour Force Law No. 6735, foreigners must, except for the exemptions in the law, obtain a work permit before starting work in Turkey. A residence permit alone does not give the right to work.
A situation we often see at foreign-capital companies is this: a company manager arrives on a business visa and actually starts working before the permit is issued. This is a risk that is difficult to correct later.
Most losses of rights come not from not knowing the rules but from not managing documents and time limits. A written contract, regular records and acting within the time limits protect both sides of the employment relationship. For questions about your own workplace or contract, you can also look at our employment law service page.
If you would like advice on your own situation, Karanfiloglu Law Firm is a registered law firm in Istanbul serving foreign and Turkish clients across Turkey. You can reach us by phone or WhatsApp on +90 532 659 35 11, by email at karanfiloglu.lawyer@gmail.com, or visit us at Merkez Mah. Hasat Sk. No:12, 34384 Şişli / İstanbul. You can also write to us through our contact page. Contact us to discuss your situation.
For an employee who has worked at least one year, including the probation period, annual leave is at least 14 days with one to five years of service, at least 20 days with five to fifteen years, and at least 26 days with fifteen years or more. For employees aged 18 or under and 50 or over, leave may not be less than 20 days (Art. 53).
As a rule, no. During the probation period, either party may terminate the contract without a notice period and without compensation. However, the employee's wages for the days worked and their other rights must be paid. The probation period is at most two months and can be extended up to four months only by a collective labour agreement.
You must have worked for at least one year for the same employer. In addition, the contract must end in a way that gives rise to severance pay: for example, termination by the employer for a reason other than a breach of the rules of morality and good faith, or termination by the employee for just cause. For each full year, 30 days of gross wages are paid; the amount is limited by a ceiling that is updated twice a year.
An employee who leaves of their own will and without just cause is, as a rule, not entitled to severance pay. However, the right to severance pay arises in cases such as termination for the just causes in Art. 24, for example non-payment of wages, military service, retirement, or a female employee leaving within one year of her marriage. We also cover this subject separately in our article on severance pay due to marriage.
An application to a mediator must be made within one month of service of the termination notice. If no agreement is reached in mediation, a lawsuit is filed at the labour court within two weeks of the date on which the final report was drawn up. Missing these time limits means losing the right to reinstatement.
Making a written demand to the employer is useful for evidence but is not mandatory; before filing a lawsuit, however, you must apply to a mediator, because mediation is a precondition for filing suit for these claims. If no agreement is reached, a lawsuit can be filed at the labour court. Unpaid overtime pay may also give the employee the right to terminate for just cause under Art. 24.
No. Except for the exemptions in the law, employing a foreigner without a work permit leads to administrative fines for both the employer and the employee. A residence permit does not give the right to work; the application must be made to the Ministry of Labour and Social Security before the employee starts work.
For claims for severance pay, notice pay, bad-faith compensation and annual leave pay, the limitation period is five years from the date the contract ended. Wage and overtime claims are, as a rule, also subject to a five-year limitation period; this period starts from the date on which each claim became due.
Av. Kaan Karanfiloğlu is the founder of Karanfiloglu Law Firm, a registered law firm based in Istanbul serving Turkish and international clients across Turkey. He is a lawyer registered with the Istanbul Bar Association (Registration No. 58270) and a member of the Union of Turkish Bar Associations (No. 133074); he is also a registered mediator (Registration No. 41909). He has practised law in Turkey since 2017. He graduated from Galatasaray University Faculty of Law in 2016 and advises clients in Turkish, English and French; the firm serves Russian- and Chinese-speaking clients through native-speaking advisors who work at the office.
Disclaimer: This article provides general information about Turkish law and does not constitute legal advice. Laws, regulations, official fees and procedures change over time, and every situation is different. Please consult a qualified lawyer for advice on your own circumstances. No liability is accepted for any loss arising from reliance on the information in this article.
The content on this site is for general information and does not constitute legal advice.
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