Termination of Foreign Employees in Turkey: Legal Guide

The employment of foreign nationals in Turkey has increased significantly in recent years. Many companies in tourism, healthcare, real estate, and technology sectors — particularly in Antalya — rely on foreign experts. When the employment relationship ends, the interaction between the foreign employee's work permit, right of residence, and labour law entitlements creates a complex situation for both the employer and the foreign employee. This guide examines the legal framework governing the termination of foreign employees.

A Foreign Employee's Legal Status

Under Turkish law, a foreign employee has equal rights with a Turkish employee in labour law matters. This means:

• The same employment contract rules apply,
• The same rights to severance pay, notice pay, and overtime are protected,
• The equal pay for equal work principle applies,
• Occupational health and safety rules apply equally.

In addition, the foreign employee is subject to additional legal obligations in relation to their work permit and residence permit.

Legal Grounds for Termination

Labour law restricts an employer's right to terminate arbitrarily. A termination without valid grounds or justified grounds:

• May entitle an employee within the scope of employment security to bring a reinstatement lawsuit,
• In the absence of justified grounds, entitles the employee to notice pay.

Valid Grounds

The employer must have a concrete and reasonable reason based on the employee's performance, conduct, or business requirements. Typical valid grounds include:

• Performance inadequacy,
• Disciplinary violations,
• Business restructuring,
• Economic difficulty,
• Technological transformation.

Justified Grounds

Seriously culpable conduct — such as theft, serious disciplinary violations, absenteeism, or an assault on the employer — constitutes justified grounds. Termination on justified grounds does not give rise to an entitlement to severance pay or notice pay.

Effect of the Work Permit Ending

A foreign employee's work permit is tied to the employment relationship:

• When the employment contract ends, the work permit becomes void as a general rule,
• When a work permit is cancelled, the foreign employee must rapidly transition to another permit (a new work permit, a short-term residence permit, etc.) in order not to be undocumented in Turkey,
• During the gap between the expiry of the old permit and the approval of a new one, the foreign employee's status is indeterminate.

From the employer's perspective: a work permit cancellation notification must be submitted to the Ministry of Labour and Social Security for any dismissed foreign employee. This notification is part of the employer's social insurance and employment record obligations.

Employee's Compensation Entitlements

The following are the compensation rights that arise for a foreign employee at the end of the employment relationship:

1. Severance Pay

Where the conditions prescribed by law are met, including a minimum period of employment and a qualifying reason for termination, severance pay is due. A foreign employee earns severance under the same conditions as a Turkish employee.

2. Notice Pay

Where the employment contract is terminated without the required notice period being observed, notice pay is due. The applicable period depends on the employee's length of service.

3. Overtime Pay

Where overtime worked by the employee has not been compensated with the statutory premium, it can be claimed retrospectively.

4. Annual Leave Pay

Leave pay is due for any unused annual paid leave days.

5. Other Receivables

Any unpaid weekly rest days, public holiday pay, bonuses, and other agreed benefits can be claimed.

Labour Law Claim Proceedings

When earned compensation is not paid, a foreign employee can bring a claim before the labour court. The process is:

1. Mediation is a mandatory pre-condition; the parties attempt to reach a settlement within a set period.
2. If no settlement is reached before the mediator, the claim is filed at the labour court.
3. The trial is conducted with witnesses and expert reports.
4. Appeal and cassation routes remain open after the judgment.

Reinstatement Lawsuit

If an employee is within the scope of employment security — that is, they work at a workplace employing a qualifying number of workers and have the required minimum seniority — and is dismissed without valid grounds, they can bring a reinstatement lawsuit. If the court finds no valid grounds:

• The court orders reinstatement,
• If the employer does not reinstate the employee, pay for the period away from work and non-reinstatement compensation become due.

The mediation process is again mandatory before a reinstatement lawsuit can be filed.

The Foreign Employee's Strategy for Remaining in Turkey

Options for a dismissed foreign employee who wishes to continue living lawfully in Turkey include:

1. Finding a New Job and Applying for a Work Permit

Once a new employer is found, a new work permit application is submitted. The period between the expiry of the old permit and the approval of the new one is uncertain; the foreign employee must not be undocumented during this time.

2. Independent Work Permit

A foreign national who meets the professional qualification and capital requirements may transition to self-employment through an independent work permit.

3. Short-Term Residence Permit

Through property ownership, a commercial connection, or similar qualifying reasons in Turkey, the employee may transition to a short-term residence permit; however, this permit does not grant the right to work.

4. Family Residence Permit

If the foreign employee has a Turkish-citizen spouse or qualifying family member, they may transition to a family residence permit.

Documenting the Termination

The employer:

• Must issue the termination decision in writing,
• Must state the reason (where termination is on valid grounds),
• Must give the employee the right to submit a defence,
• Must follow the applicable disciplinary process,
• Must ensure all documents are consistent with the employee's social insurance records.

Undocumented and unreasoned terminations consistently produce adverse results for employers in subsequent lawsuits.

The Home Country Dimension

A separate evaluation is needed regarding the foreign employee's social security or pension entitlements in their home country. Turkey has signed social security agreements with many countries; service completed in Turkey can be counted towards home-country pension calculations.

Frequently Encountered Scenarios

Scenario 1: Termination for Performance Decline

An employer terminating a foreign employee for inadequate performance in a workplace subject to employment security rules requires:

• Prior written warnings,
• Performance evaluation reports,
• Documentation that training and development opportunities were provided.

Without such documentation, the dismissal creates a serious risk of a reinstatement lawsuit.

Scenario 2: Mass Termination for Economic Reasons

Where multiple employees are terminated due to company downsizing:

• Collective dismissal rules apply,
• Notification must be made to the Ministry of Labour and Social Security in advance,
• Severance and notice pay are mandatory,
• For foreign employees, work permit cancellation processes must additionally be managed.

Scenario 3: Dismissal of a Foreign Manager

The termination of senior foreign managers is often resolved through a mutual termination agreement. Such agreements frequently include substantial compensation packages and confidentiality provisions.

Legal Support

In Antalya, for the labour law processes of foreign employees and their employers, MONA HUKUK provides support to both sides. Whether correctly managing the termination process to avoid rights losses, or pursuing or defending claims in court, our professional team brings a balanced approach to each case.

Contact us at contact@monahukuk.com or call +90 (242) 606 14 32 to schedule a consultation in Antalya.