Termination of Foreign Employees in Turkey: Legal Guide

Foreign employee employment in Turkey has increased in recent years. Many companies in tourism, healthcare, real estate, and technology sectors in Antalya benefit from foreign experts. When the business relationship ends, the relationship between the foreign employee's work permit, residence right, and labour law rights creates a complex equation for both employer and foreign employee. This guide examines the legal framework of foreign employee termination.

Foreign Employee's Status

In Turkish law, foreign employee has equal rights with Turkish employee in terms of labour law. That is:

• Same employment contract rules apply,
• Same severance, notice pay, overtime rights are protected,
• Equal pay for equal work principle is applied,
• Occupational safety and health rules apply equally.

In return, foreign employee is subject to additional legal obligations in terms of work permit and residence permit.

Legal Reasons for Termination

Labour law restricts employer's arbitrary termination. Termination without valid reason or justified reason:

• For employee in employment-security-required organisations who may be in scope of employment security, can lead to reinstatement lawsuit,
• In absence of justified reason, entitles to notice pay.

Valid Reason

Employer must have concrete and reasonable reason based on employee's inadequacy, behaviour, or business requirements. Typical reasons:

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

Justified Reason

Very serious culpable behaviours (theft, serious disciplinary violation, absenteeism, attack on employer, etc.) constitute justified reason. Termination on justified reason does not give rise to severance and notice pay.

Effect of Work Permit Ending

Foreign employee's work permit is tied to employment relationship:

• When employment contract ends, work permit becomes void as a rule,
• Foreign employee, when work permit is cancelled, must rapidly transition to another permit (new work permit, short-term residence, etc.) to not remain undocumented in Turkey,
• When new work permit application is initiated, foreign employee may remain in gap.

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

Employee's Compensation Rights

With end of employment relationship, compensation foreign employee will earn:

1. Severance Pay

Within conditions prescribed in law, when employee has worked specific period and in case of suitable termination reasons, severance pay is paid. Foreign employee earns severance under same conditions as Turkish employee.

2. Notice Pay

When employment contract is terminated without specific notice period, notice pay arises. Period is determined by employee's seniority.

3. Overtime Receivable

When overtime employee performed has not been paid with premium, can be claimed retrospectively.

4. Annual Leave Pay

Leave pay is paid for unused annual paid leave days.

5. Other Receivables

Unpaid portion of weekly holiday, public holiday pay, premium and social rights can be claimed.

Labour Receivables Lawsuit

When earned compensation isn't paid, foreign employee can file lawsuit before labour court. Process:

1. Mediation is mandatory pre-stage; parties' attempt to reach settlement within specific period.
2. If settlement not reached before mediator, lawsuit is filed at labour court.
3. Trial is conducted with witnesses and expert reports.
4. Routes of appeal and cassation are open after decision.

Reinstatement Lawsuit

If employee is within scope of employment security (i.e., works in workplace employing specific number of workers, has specific seniority) and dismissed without valid reason, can file reinstatement lawsuit. As result of lawsuit:

• Court decides on reinstatement if no valid reason exists,
• If employer doesn't reinstate, wages for time spent away and non-reinstatement compensation arise.

For reinstatement lawsuit, mediation process is again mandatory.

Foreign Employee's Strategy for Staying in Turkey

Options for dismissed foreign employee to continue legally staying in Turkey:

1. Finding New Job and Work Permit Application

When new employer is found, new work permit application is filed. Until old permit ends or new permit is approved, indeterminate period may be experienced; foreign employee must not remain undocumented during this time.

2. Independent Work Permit

Foreign meeting professional qualification and capital conditions may transition to entrepreneurship through independent work permit.

3. Short-Term Residence Permit

Through real estate ownership, commercial connection, or similar reasons in Turkey, can transition to short-term residence permit; however, this permit doesn't grant work right.

4. Family Residence Permit

If Turkish-citizen spouse or family member exists, can transition to family residence permit status.

Termination Must Be Documented

Employer:

• Must give termination decision in writing,
• Must state reason (if valid-reason),
• Must grant employee right to defence,
• Must apply disciplinary process,
• All documents must be kept compatible with insurance records.

Unwritten and reasonless terminations result against employer in lawsuits employee will file later.

Home Country Law Dimension

Separate evaluation is needed for foreign employee's home-country social security or pension rights. Turkey has signed social security agreements with many countries; period worked can be reflected to home-country pension calculation.

Frequently Encountered Scenarios

Scenario 1: Termination for Performance Decline

Employer's terminating foreign employee for performance inadequacy, in employment-security-scope workplaces requiring valid reason:

• Prior written warnings,
• Performance evaluation reports,
• Documentation that training and development opportunity was provided

without documenting, creates reinstatement lawsuit risk.

Scenario 2: Mass Termination for Economic Reason

In termination of multiple employees due to company downsizing:

• Mass worker dismissal rules apply,
• Notification must be made to Ministry of Labour and Social Security,
• Severance and notice pay are mandatory,
• For foreign employees, additionally work permit cancellation processes must be conducted.

Scenario 3: Dismissal of Foreign Manager

Termination of senior foreign managers is often resolved through a mutual termination agreement. Departure agreements containing high compensation and confidentiality provisions are made.

Legal Support

In Antalya, for foreign employees' labour law processes, MONA HUKUK provides support to both employers and foreign employees. For correct management of termination processes, prevention of rights losses, and where needed conducting lawsuit process, our professional team is with you with two-sided balance approach.

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