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

vergi indirimHeadnotes for executives

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.

Government Support For Employing Registered Unemployed Of İŞKUR

isverenbulteni1Executive Summary

Private sector employers will be refunded daily 22,22 TRY of total SSI premiums to be paid for each personnel who are employed amongst the registered unemployed of İŞKUR until 31st December 2017, according to Cabinet Decree/687, issued in Official Gazette No. 29974, dated 9th February 201.

Also, for the above described employees, the withholding tax applied on minimum wage will be set-off from the withholding tax return after the minimum living allowance is applied. Besides, stamp tax deducted from minimum wage will not be declared and not paid.
In simpler words, the supports are applicable for all personnel employed in this way regardless of their monthly salaries, but it is applied to only for the part of monthly salary equal to 1.770,50 TRY (monthly gross minimum wage).

Latest Developments – Bag Law Enters into Force

bag lawOmnibus Bill No.6770 issued in Official Journal on 27 Jan 2017 has introduced many changes involving minimum wage support, postponements of SSI premium payments, occupational health and safety, restructuring of public receivables, credit amnesty and so on.

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