Hiring in Turkey: Legal Guide for US Startups

As US startups expand into global markets, Turkey stands out as a hub for affordable, skilled, and tech-savvy talent. However, hiring employees or contractors in Turkey requires navigating a complex legal landscape.

This guide outlines the key legal considerations for US startups hiring in Turkey — from employment contracts to compliance with Turkish labor law.

1. Employment Contracts Are Mandatory

In Turkey, every employment relationship must be based on a written contract.

• Language: Contracts must be in Turkish to be legally enforceable.

• Core Terms: Job title, working hours, salary (in Turkish Lira), and notice periods.

• Startup Tip: Include a clear clause on remote work and confidentiality, especially for tech teams.

2. Employee Classification Matters

US startups often misclassify workers as independent contractors to simplify payments.

• Risk: Turkish labor courts can reclassify a contractor as an employee, leading to back payments, social security debts, and penalties.

• Solution: Use the correct employment type — full-time, part-time, or fixed-term.

3. Social Security and Tax Obligations

Employers must register every employee with the Social Security Institution (SGK).

• Employer Contribution: Around 22.5% of the employee’s gross salary.

• Income Tax: Withheld by the employer at progressive rates (15%–40%).

• Tip: Even remote hires from Turkey may trigger SGK obligations if they work under your direction.

4. Termination Rules Are Strict

Turkish labor law heavily protects employees.

• Notice Periods: Vary by tenure (2–8 weeks).

• Severance Pay: 1 month’s salary per year of service if terminated without cause.

• Startup Tip: Always document performance and disciplinary issues properly.

5. Data Protection and Privacy Compliance

• Employers must comply with Turkey’s KVKK (Data Protection Law) when processing employee data.

• Consent: Written consent is required for storing or transferring personal information.

• Cross-Border Data Transfers: Allowed only with explicit employee consent or approved jurisdictions.

6. Hiring Remote Teams Through Local Partners

If you don’t have a legal entity in Turkey, consider:

• EOR (Employer of Record): A local partner legally employs your staff and handles payroll/tax.

• Freelance Platforms: Legal but requires careful contract drafting to avoid misclassification.

Conclusion

Hiring in Turkey can help US startups scale quickly and cost-effectively — but compliance with local labor and data laws is crucial.

At AGD Law & Consultancy, we assist US companies with Turkish employment contracts, compliance audits, and dispute prevention strategies.

📧 Contact us: info@ahmetgokaydincer.av.tr

" This guide outlines the key legal considerations for US startups hiring in Turkey — from employment contracts to compliance with Turkish labor law. "