Employer of Record in Turkey

A company offering EoR services takes on the recruitment of an employee on behalf of another company. It pays a salary that corresponds to that of a regular employee and bears the associated duties. In addition, the EoR company charges the client a monthly service fee that covers not only the salary but also other operating expenses in accordance with the contractual agreements.

As described above, there is no statutory regulation for the EoR triangular concept.

Temporary employment, on the other hand, refers to a situation in which an employee is hired by a personnel service provider (temporary employment agency) and then loaned to another company to work there. In this case, the employee is formally employed by the personnel service provider, but actually works for another company. The economic and legal employer is identical here, namely the personnel service provider. 

The regulations on temporary employment are set out in Turkish labor law. It can be seen that there is a similar relationship between personnel service providers (employment agencies), employers and employees as in the EoR concept. This relationship is referred to in the law as "professional employee leasing". According to the legal provisions, a temporary employment contract may last a maximum of four months; extensions are generally not possible or are regulated as exceptional cases.

The relationship between the personnel service provider, the employee and the employer is similar to the EoR in some respects, but differs due to legal requirements.

It is important to note that the personnel service providers that provide temporary employment services are entities that are subject to mandatory approval by the Turkish Employment Agency. It is therefore prohibited to carry out activities as a personnel service provider without having obtained a corresponding permit from the Turkish Employment Agency. Administrative penalties are imposed for violating this prohibition.

As described above, it is necessary for personnel service providers to have a permit/license from the Turkish Employment Agency. You may only provide your services within the scope of this authorization. It is therefore strictly forbidden to arrange such an employment relationship without the required authorization from the Turkish Employment Agency.

Any violation of this explicit prohibition will result in administrative sanctions. Administrative penalties are imposed to ensure that the regulations are complied with and the legal integrity of the employment placement process is maintained. It is therefore the responsibility of the parties involved to ensure that all necessary authorizations have been obtained in order to avoid possible legal consequences.

With regard to cases in which the activities were carried out without a license, there are judgments of higher instances according to which it was decided that both the lending company and the borrowing company are jointly and severally liable for all claims of the employee. According to this case law and general principles of labor law, the rights of employees are subject to special protection. 

No license or special permit is required for the hirer's activities. As described above, the time limit is generally four months.

According to the general provisions of the Turkish Labor Code regarding salary, the parties to the employment contract are free to determine the amount within the scope of contractual freedom, provided that the salary is not below the minimum wage. When determining the salary, the type of work and the employee's qualifications are important. In addition, salary practices in the workplace and professional customs may also be taken into account when determining the salary. However, these requirements apply to the Turkish labor market. As things stand at present, there is generally no entitlement to adapt working conditions to markets that extend beyond Turkey's borders.​​