Legal Disputes Between Foreign Employers and Employees in Turkey

Legal disputes between foreign employers and employees in Turkey; It may occur due to reasons such as non-payment of wages, work permit problems, missing insurance notification, change of employment conditions and wrongful termination. In connection with this topic Labor Law You can also review the content titled.

The fact that the employer or employee is a foreigner does not automatically bring the dispute to the law of a foreign country. The place where the work is actually carried out, the parties to the contract and whether the employer operates through a company, branch or representative office in Turkey are decisive.

First, It Should Be Determined Who the Real Employer Is

A company with foreign capital and a foreign employer residing abroad do not have the same legal structure. A foreign-owned company established in Turkey is a legal entity subject to Turkish law and generally complies with the labor and social security legislation in Turkey in its relations with its employees.

The employee may have signed a contract directly with the company abroad. In this case, it should be investigated which of the branches, representative offices, payroll companies or group companies in Turkey is the employer.

If another company carries out the hiring, wage payment and instruction processes while the name of a company is written in the contract, the actual working relationship is examined separately.

The Most Common Disputes

Which Country's Law Applies to the Employment Contract?

In an employment contract with a foreign element, the parties can choose the applicable law. However, this choice cannot eliminate the minimum protection that the worker has with the mandatory provisions of the country where he carries out his work continuously.

If the employee is habitually performing his/her duties in Turkey, the fact that the law of a foreign country is selected in the contract does not completely disable the compulsory worker protections in Turkey.

If the parties have not chosen any law, the law of the country where the employee habitually performs his/her job is generally applied. If the employee is constantly working in more than one country, the country where the employer's main workplace is located and the law with which the employment relationship is most closely related are evaluated.

Work Permit Disputes

A work permit issued under a specific employer does not allow the foreigner to work for another employer. If the employer is to be changed, a new work permit application must be made by the new employer. Also Legal Consequences of Foreigners Working in Turkey Without a Work Permit should be evaluated together with the concrete case.

A difference between the duty, workplace or employer information in the work permit and the actual work may pose a risk of administrative sanctions. The employer's reporting a high wage in the work permit application and paying a lower salary to the employee may also turn into a wage and SSI dispute.

Situations such as the start and end of the employment relationship or work within the scope of the work permit must be notified to the relevant authorities in due time. The employer's failure to notify does not automatically eliminate the employee's labor receivables.

Wage and Insurance Disputes

The foreign employee can also request full and timely payment of the wage agreed in the contract. The employer cannot unlawfully discriminate between employees doing the same or equivalent job on the grounds of citizenship or foreign language.

If the wage is determined in foreign currency in the contract, the payment date, the exchange rate to be applied, the gross-net distinction and deductions must be clear. Otherwise, exchange rate difference and underpayment discrepancies may arise.

SSI notification must be made over the actual wage in the contract and actually paid. If the wage appearing on the payroll and the bank payment are different, the employee's real salary is investigated together with other evidence.

Can the Employer Unilaterally Change Working Conditions?

Reducing the wage, changing the place of duty, aggravating working hours or removing fringe benefits may constitute a substantial change.

The employer must notify the substantial change in writing, and the employee must accept the change in writing. As a rule, a substantial change that the employee does not accept does not bind him.

Forcing the foreign employee to accept the change due to the concern of losing their work permit status should be evaluated separately. A signature obtained under pressure may not end the dispute on its own.

What Rights Can Be Claimed in Termination Disputes?

When the employer terminates the employment contract, the reason for termination, the duration of the contract and the seniority of the employee are examined. If the foreign employee has the conditions, he can request severance and notice pay.

If the employee, who is covered by job security, thinks that the reason for termination is not valid, he/she can apply for reinstatement. For reinstatement, an application must be made to the mediator within one month from the notification of the termination notice.

The fact that the work permit is dependent on the employer does not give the employer the right to terminate without reason or discriminatory. However, a valid work permit status must also be created in order for the foreigner to work again after the reinstatement decision.

Which Turkish Court is Competent?

If the employee is habitually performing his/her duty in Turkey, the Turkish court in the place where the workplace is located can hear the dispute. In lawsuits filed by the employee against the employer, the court of the employer's place of residence and the employee's place of residence or habitual residence in Turkey may also be competent. Labor Court Processes of Foreign Employees in Turkey its content explains other legal points related to this stage.

Including a provision in the employment contract that only foreign courts are competent does not deprive the employee of the opportunity to apply to Turkish courts protected by law in all cases.

The competent court is generally the labor court. In places where there is no labor court, disputes can be heard in the civil court of first instance, which acts as a labor court.

Mediation Before Filing a Lawsuit

A mandatory mediator must be applied before filing a lawsuit for employee or employer receivables, compensation and reinstatement claims.

The mediation application does not automatically disappear because the other party is not located in Turkey or is a foreign company. Invitation and notification to the employer abroad may prolong the process.

If an agreement cannot be reached in mediation, a lawsuit can be filed in the labor court. Short periods in reinstatement applications and statute of limitations for wage and compensation receivables should be followed separately.

How to Collect Receivables if the Foreign Employer is Abroad?

If the employer has a company, branch, bank account or other assets in Turkey, the finalized receivable can be subject to enforcement proceedings based on these values.

If all the assets of the employer are abroad, the decision taken by the Turkish court may need to be recognized and made enforceable in the relevant country. This stage is carried out according to the law of the country where the employer is located.

For this reason, before filing a lawsuit, not only the rightfulness, but also the identity of the real employer and where the decision can be collected should be investigated.

Which Evidence Should Be Protected in a Dispute?

• Employment contracts in Turkish and foreign languages,
• Work permit and e-Permit records,
• Payrolls and bank transactions,
• SSI service statement,
• E-mail, message and online meeting recordings,
• Shift and workplace entry-exit records,
• Task instructions and performance correspondence,
• Termination and defense documents.

The fact that the documents are in a foreign language does not eliminate the evidentiary value. A certified Turkish translation may be required during the court or mediation process.

Frequently Asked Questions

Is a foreign employer subject to Turkish labor law?

If the work is habitually carried out in Turkey, the mandatory labor protections of Turkish law may be applied.

If foreign law is chosen in the contract, can't a lawsuit be filed in Turkey?

The choice of law and court jurisdiction are separate issues. The employee's opportunity to apply to Turkish courts protected by law may continue.

Can a person working without a work permit demand a fee?

Unauthorized work creates administrative sanctions. Wage and other labor claims are evaluated separately based on the actual working relationship and evidence.

Does a foreign company have to pay SSI premiums?

If there is insured work under an employer in Turkey, social security obligations generally arise. Exceptions in international social security agreements are reserved. About the relevant aspect of the process Labor Law Rights of Foreign Personnel Working in International Companies There is detailed information on the page.

Can a lawsuit be filed directly against a foreign employer?

In workers' receivables, compensation and reinstatement claims, a mandatory mediator must first be applied.

Can the decision be collected if the employer is abroad?

If the employer has assets in Turkey, enforcement proceedings can be carried out in Turkey. If the assets are abroad, the decision may need to be recognized and enforced in the relevant country.

Legal information: This content has been prepared for general information purposes. Applicable law, competent court and collection method; It should be determined according to the country where the work is carried out, the legal structure of the employer and the foreign elements in the employment contract.