Employee Non-Disclosure Agreement in Turkish Law

Employees are under the obligation of performing their jobs with loyalty and diligence that can be called “care duty” of workers.  

Confidentiality obligation of employees is part of this care duty; and employees may be required to sign a “Non-disclosure Agreement” (also called confidentiality agreement) that binds them legally to pay compensation in case they reveal trade secrets of employer during or after the termination of employment.


Employee’s duty of care that also includes the confidentiality obligation is arranged in Article 396 of Turkish Code of Obligations No 6098.

Employee must;

  • Perform his duty with care and act in loyalty for safeguarding of employer’s interests,
  • Use the machinery and tools, technical systems, facilities and vehicles properly and with due care,
  • Not serve third persons based by receiving wage during his employment, and cannot compete with his own employer
  • Not use the job and trade secret of employee he acquired while working in the workplace, during and after the termination of employment.

Employee Non-Competition Contracts in Turkish Law

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Employees who have knowledge of business secrets may be required, for a certain period after the leave of employment, not to establish directly or indirectly a business enterprise in the employer’s line of business or take in partnership or work in a competitive company in a specified province or a geographical area. 

An employee may obtain trade secrets or confidential information of the company he is working for, such as documents, projects, designs, computer programs, pass codes or other information related to technical work, which can be harmful for the company in the hands of the competitors.  

This competition ban is a very delicate issue, while protecting the employer’s interests on the one side; it may bar the employee’s freedom of work on the other.  Principles of employee non-completion contract is arranged in Article 444-447 of Turkish Code of Obligations No 6098, which intended to establish a fair balance between the parties.

Workplace Transfers in Turkey – Social Security Rights of Employees

sigorta devirIn case a workplace or some of its section is transferred to another employer, employment contracts and employees’ all rights and obligations existing on the date of transfer pass on to the new employee (transferee).

Neither transferor and transferee, nor the employees can terminate the employment contracts just because of such transfer.


Employer, who has taken over a workplace, is obliged to submit the workplace notification to SSI within 10 days following the transfer.
Transferor and transferee don’t need to submit any new starter and leaver declaration, because the social security transactions of transferred company employees will be carried out under the old workplace ID in SSI portal.

New starter/leaver declaration and monthly premium and service declarations related to periods before the date of transfer will be notified by old user code and password, and the ones related to periods after the date of transfer by new user code and password.

The insurance rights and obligations of the insurance holders working at transferred workplaces will continue.

Social Security Status of Employees Assigned Abroad


Social security coverage of employees on foreign assignments is a complex and controversial issue involving bilateral or multilateral social security agreements and the nature of assignment, whether temporary or permanent.

Employees on temporary assignment abroad

There is no problem assigning an employee to work temporarily abroad. Employee’s social security coverage will continue in Turkey. This rule is valid for employees working in branches of foreign based companies.

Compulsory Arbitration in Labor Disputes is on the Way


Many of the labor disputes will be finalized within 3 weeks by the arbitrators to which resorting will be compulsory before filing a lawsuits, according to new law draft submitted to Prime Ministry.

In today’s complex business world, settling the grievances and disputes between employers and employees is an important issue, and many countries are introducing alternative dispute resolution enabling the parties to reach out-of- court settlements which are time saving and less costly in comparison with litigation.

In this respect Turkish government have been working on “Labor Courts Law Draft” and taking opinion of relevant state institutions and organizations. Now the draft has taken its final shape and been sent to Prime Ministry.

Tax Reduction for Compliant Taxpayers

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Taxpayers who pay their personal income and/or corporate taxes on time regularly will benefit from 5% tax discount not exceeding one million TRY in any case.

Tax returns that belong to the year discount is applied in and to the previous two years must be submitted and paid within the legal period.

In case the discount amount is over the tax to be paid in the year, remaining part will be set-off from the following year’s taxes.

Arrangement covers business, agricultural and occupational earnings; banks, finance, insurance and pension companies will be out of the scope.

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