Managing employees in Turkey requires employers to comply with both Turkish employment law and Social Security Institution (SGK) regulations.
The obligations extend throughout the entire employment lifecycle: establishing the employment relationship, registering employees with SGK, managing workplace transfers, processing sick leave and temporary incapacity benefits, reporting occupational accidents, and eventually terminating the employment relationship.
Employers must also understand the distinction between resignation, employer termination and mutual termination agreements (ikale), since the legal consequences can differ significantly.
This guide provides an overview of important Turkish employment and SGK rules concerning mutual termination agreements, unemployment benefits, part-time employees, employee SGK notifications, workplace transfers, sick leave, maternity benefits, occupational accidents, SGK inspections and fictitious insurance registrations.
What Is a Mutual Termination Agreement in Turkey?
A mutual termination agreement, known in Turkish as an ikale or bozma sözleşmesi, is an agreement under which the employee and employer mutually agree to terminate the employment contract.
Unlike unilateral resignation or dismissal, termination results from the agreement of both parties.
The ikale mechanism is not specifically regulated as a standalone termination method under Turkish employment legislation.
Its legal foundation derives primarily from the principle of freedom of contract under the Turkish Code of Obligations.
Resignation or Mutual Termination Proposal?
The wording used by an employee when leaving employment can be important.
For example, an employee may submit a document stating:
“I resign provided that my severance and notice compensation are paid.”
Such a statement does not necessarily constitute an unconditional resignation.
The Turkish Court of Cassation has considered such declarations capable of being interpreted as an offer to conclude a mutual termination agreement.
In Court of Cassation 9th Civil Chamber, E.2016/25939, K.2020/11981, a resignation conditional upon payment of severance and notice compensation was evaluated within this framework.
Why the Distinction Matters
The legal characterization of termination can affect matters such as:
- severance compensation;
- notice compensation;
- unemployment benefits;
- reinstatement rights;
- termination documentation; and
- potential employment litigation.
Employers should therefore avoid automatically processing every employee departure letter as a resignation.
The actual wording and circumstances surrounding the termination should be reviewed.
Freedom of Contract Under Turkish Law
The Turkish Code of Obligations recognizes the general principle of freedom of contract.
Within the limits established by law, parties are generally free to determine the contents of their agreements.
This principle provides the legal basis for many contractual arrangements that are not specifically regulated as named contracts.
Are Contracts Required to Follow a Particular Form?
Unless legislation provides otherwise, contracts are generally not subject to a specific form under the Turkish Code of Obligations.
However, specific employment-law provisions can impose written-form or documentation requirements in particular circumstances.
For practical and evidentiary reasons, employers should generally document important employment arrangements in writing.
Limits to Freedom of Contract
Freedom of contract is not unlimited.
Contractual provisions can be invalid where they conflict with:
- mandatory statutory provisions;
- morality;
- public order;
- personality rights; or
- objectively impossible subject matter.
Employers therefore cannot use contractual freedom to eliminate mandatory employee rights.
What Is an Insured Unemployed Person?
Under Turkey’s unemployment insurance system, an insured unemployed person (sigortalı işsiz) generally refers to an individual who:
- worked as an insured employee under an employment contract;
- worked at a workplace covered by unemployment insurance legislation;
- lost employment for a qualifying statutory reason; and
- applied to İŞKUR while declaring readiness to accept employment.
This status is relevant when determining entitlement to unemployment benefits.
When Can Unemployment Benefits Be Terminated?
Unemployment benefit payments can be discontinued in several circumstances.
One important example is the unjustified refusal of suitable employment proposed through İŞKUR.
Refusal of Suitable Employment
Unemployment benefits can be terminated where the beneficiary, without justified reason, refuses employment proposed by İŞKUR that:
- corresponds to the person’s occupation;
- offers wage and working conditions reasonably close to those of the person’s previous employment; and
- is located within the relevant municipal area associated with the person’s residence.
The precise statutory conditions should be reviewed according to the individual case.
Working While Receiving Unemployment Benefits
Unemployment benefits can also be terminated where it is established that the beneficiary is performing income-generating work while receiving the allowance.
Employers hiring an individual receiving unemployment benefits should therefore ensure that the employee’s new employment is properly registered.
Receiving a Retirement Pension
A person receiving a qualifying old-age pension from a social security institution can also lose entitlement to unemployment benefits under the applicable rules.
Unemployment insurance is intended to provide temporary income protection for qualifying unemployed individuals rather than supplement ordinary retirement income.
Refusal of İŞKUR Training
İŞKUR can offer beneficiaries:
- vocational development;
- vocational training; or
- professional qualification programs.
Unemployment benefits can be terminated where the beneficiary refuses qualifying training without justified reason or accepts the program but subsequently fails to attend without justification.
Failure to Respond to İŞKUR
Beneficiaries are also expected to cooperate with İŞKUR.
Benefits can be affected where an individual, without justified reason:
- fails to respond to İŞKUR communications or calls; or
- fails to provide requested information and documents within the required period.
Can Part-Time Employees Receive Healthcare Services?
Part-time employment does not automatically prevent an employee from benefiting from SGK healthcare coverage.
Under the relevant general health insurance framework, part-time employees can continue benefiting from healthcare where the applicable contribution conditions are satisfied.
GSS Conditions for Part-Time Employees
Under the framework reflected in the applicable SGK rules, employees who:
- have at least 30 days of General Health Insurance (GSS) contributions during the preceding year; and
- work as insured employees for at least 9 days during the relevant month
can benefit from healthcare without necessarily having to complete the remaining monthly GSS contribution days.
The employee’s exact insurance status should nevertheless be checked individually.
Employee’s Own SGK Notification
Employers have the primary responsibility for submitting employee commencement notifications.
However, employees covered under 4/a (SSK) also have a notification mechanism available to them.
Under the Social Insurance Transactions Regulation, employees can notify SGK that they have started working.
One-Month Employee Notification Period
A 4/a insured employee can notify SGK of the commencement of employment within:
1 month from the employment start date.
The notification can be made using the applicable insured-person notification procedure through authorized channels.
What Happens if Employer and Employee Notifications Differ?
SGK can compare the employee’s declaration with the information submitted by the employer.
Where SGK determines that:
- the employer did not report the employee; or
- there is a discrepancy between the employer’s and employee’s notifications,
SGK can inform the relevant parties and investigate the discrepancy.
If the inconsistency cannot be resolved through the declarations, SGK can proceed according to the results of its inspection and control procedures.
Does Failure by the Employee to Notify SGK Work Against Them?
No.
Failure by an insured employee to submit their own notification does not, by itself, constitute evidence against the employee.
The employer’s statutory registration obligations remain separate.
An employer therefore cannot rely on the employee’s failure to self-notify as justification for failing to register the employee.
What Happens if the Employer Does Not Submit the Termination Notification?
Normally, the employer must submit the employee’s SGK termination notification when insured employment ends.
However, situations can arise where the employer does not submit the required declaration.
Examples can include:
- workplace closure;
- inability to contact the employer;
- abandonment of the workplace; or
- employee notification that work has ceased.
SGK Can Register Termination Ex Officio
Where the relevant social security center concludes that employment has ended, SGK can in certain circumstances prepare the termination notification ex officio.
The last date reported through the applicable monthly premium/service records can be used when determining the relevant termination date according to the regulatory framework.
This prevents an employee’s insurance record from remaining indefinitely open solely because the employer failed to submit the required notification.
Determination of Unreported Employee Service
SGK inspectors and auditors can establish the existence of employment through workplace inspections and other evidence.
During an inspection, evidence can include statements from:
- the employee concerned;
- other employees;
- individuals present at the workplace; or
- the employer.
One-Year Retrospective Service Determination
Based on qualifying factual findings made during an SGK inspection, service periods within the:
1 year preceding the determination
can be recognized under the applicable regulatory framework.
This is particularly relevant to unregistered employment.
Can Employment Older Than One Year Be Recognized?
Potentially, yes.
Employment extending beyond the one-year factual determination period can be recognized where supported by legally valid records and documentation that are not capable of being freely created retrospectively.
The quality and legal reliability of the evidence therefore becomes particularly important for older employment periods.
Transfer or Relocation of a Workplace
Employers must notify SGK when a workplace employing insured employees is:
- relocated;
- transferred to another employer; or
- inherited following the employer’s death.
Different notification periods apply depending on the event.
Workplace Relocation to Another Province
Where an insured workplace is transferred from its existing address to an address located in another province, the employer must submit the applicable workplace declaration.
Under the regulatory framework, the notification must generally be made within:
10 days following the relocation date.
Transfer of the Workplace to Another Employer
Where a workplace is transferred to another employer, the acquiring employer is responsible for submitting the applicable workplace declaration.
The relevant period is generally:
10 days following the transfer date.
Employment, payroll and SGK responsibilities should therefore be reviewed as part of every business or workplace transfer.
Workplace Inheritance Following Employer’s Death
Where a workplace passes to heirs following the employer’s death, the heirs are subject to a longer notification period.
The workplace declaration must generally be submitted within:
3 months from the date of death.
Cancellation of Incorrect SGK Workplace Registrations
SGK can remove or cancel workplace registrations that were created incorrectly or unnecessarily.
Where SGK determines that a workplace was incorrectly registered, the relevant unit can cancel the registration.
Multiple Registration Numbers for the Same Workplace
If more than one SGK workplace registration number has been issued for the same work or workplace, later registration numbers can be cancelled ex officio.
Cancelled registration numbers are not reassigned to another workplace.
Where transactions have already been processed through the later number, SGK can consolidate records in order to avoid unnecessary retrospective corrections.
Workplace Files With No Employees for Two Years
Except for certain private construction workplaces and workplaces relating to tendered projects, SGK can remove a workplace file from active coverage where:
- the workplace has not formally closed, been abandoned or liquidated; but
- no insured employee has been reported for at least 2 years.
The workplace can be removed from the scope of the legislation from the date on which employment of insured persons ceased, according to the applicable procedure.
Why Does SGK Investigate Occupational Accidents?
SGK can conduct investigations following an occupational accident (iş kazası) to determine the legal and factual circumstances of the event.
These investigations can affect both employee benefits and employer liability.
Determining Insurance Status
One purpose of an SGK investigation is to establish whether the injured individual was legally insured at the time of the incident.
This can become particularly important where:
- registration was late;
- employment status is disputed;
- the employee was unregistered; or
- the relationship was presented as independent contracting.
Determining Whether an Event Is an Occupational Accident
Not every accident involving an employee automatically qualifies as an occupational accident for SGK purposes.
SGK can investigate whether the circumstances reported in the occupational accident notification satisfy the statutory definition.
Occupational Disease Investigations
SGK investigations can also examine whether the part of the workplace in which the employee worked could have caused or contributed to the alleged occupational disease.
This can involve analysis of:
- working conditions;
- occupational exposure;
- workplace risks; and
- the employee’s actual duties.
Employer Responsibility and Unavoidability
The investigation can examine whether the legal principle of unavoidability (kaçınılmazlık) applies when determining employer responsibility.
This can affect the assessment of liability following an occupational accident or occupational disease.
Employee, Employer and Third-Party Fault
SGK can also investigate whether the incident involved:
- intentional conduct by the insured employee;
- serious fault by the employee;
- intentional conduct by the employer;
- violations of occupational health and safety obligations; or
- fault attributable to third parties.
The findings can affect social security recovery claims and other legal consequences.
How Long Can a Doctor Issue a Sick Leave Report?
Turkish social security rules regulate the duration of medical incapacity reports issued to insured employees.
For outpatient treatment, a single physician can generally issue a sick leave report for up to:
10 days at one time.
Annual Limit for Single-Physician Reports
Single-physician outpatient reports are generally subject to an annual limit of:
40 days.
Longer periods require the appropriate medical-board procedures.
Extension Following a Control Examination
Where the original medical report requires a follow-up examination, the incapacity period can be extended following the examination.
Under the applicable framework, the total period issued through this mechanism can reach:
20 days.
Sick Leave Exceeding 20 Days
Where the required incapacity exceeds 20 days, the report must generally be issued by an authorized medical board (sağlık kurulu).
The initial medical-board incapacity period can generally not exceed:
6 months from the beginning of treatment.
Further rules can apply depending on the employee’s condition.
Sick Leave Issued by an Authorized Workplace Physician
A workplace physician authorized by the competent Ministry can issue a shorter medical incapacity report.
Under the applicable regulatory framework, the workplace physician can generally issue up to:
2 days of sick leave at one time.
Electronic Notification of Medical Reports
Medical incapacity reports issued by authorized physicians or medical boards are transmitted electronically to SGK using the applicable SGK system.
This significantly reduces the need for employees to physically deliver certain medical reports.
Employer Access to Medical Incapacity Information
The employer can view the relevant electronic report through the applicable system.
Under the regulatory framework, electronic availability of the report can serve as notification for purposes connected with the employer’s declaration that the employee did not work during the incapacity period.
Employers should therefore monitor the relevant SGK system rather than relying solely on employees to provide paper certificates.
Temporary Incapacity Allowance Following an Occupational Accident
An insured employee who becomes temporarily unable to work because of an occupational accident or occupational disease can qualify for temporary incapacity allowance (geçici iş göremezlik ödeneği).
For occupational accidents and occupational diseases, the allowance can be payable for:
each qualifying day of incapacity.
Temporary Incapacity Allowance for Ordinary Illness
Different rules apply where the employee is unable to work because of ordinary illness.
The employee generally needs at least:
90 days of short-term insurance contributions during the year preceding the beginning of incapacity.
Where the conditions are satisfied, temporary incapacity allowance is generally paid beginning from the:
third day of incapacity.
The first two days of ordinary sickness are therefore generally excluded from the SGK temporary incapacity payment.
Maternity Temporary Incapacity Allowance
Qualifying insured women can receive temporary incapacity allowance during statutory maternity leave.
The employee generally needs at least:
90 days of short-term insurance contributions during the year preceding childbirth.
Standard Maternity Period
For a normal pregnancy, the statutory incapacity period generally covers:
- 8 weeks before childbirth; and
- 8 weeks after childbirth.
This represents a total of:
16 weeks.
Multiple Pregnancy
For multiple pregnancies, an additional:
2 weeks
is generally added to the prenatal period.
The total statutory period therefore becomes:
18 weeks.
Working Until Three Weeks Before Childbirth
With the employee’s request and medical approval, an insured pregnant employee can continue working until:
3 weeks before the expected date of childbirth.
The unused portion of the ordinary prenatal maternity period is then transferred to the postnatal period.
This allows employees who are medically fit to work later into pregnancy to use the unused maternity period after childbirth.
Premature Birth
Where childbirth occurs earlier than expected, prenatal maternity leave that could not be used because of the premature birth is generally transferred to the postnatal period.
This protects the employee from losing statutory maternity incapacity time solely because the child was born early.
Reporting Occupational Accidents Occurring Abroad
Special timing rules apply where an occupational accident occurs outside Turkey.
The ordinary occupational accident reporting framework generally requires notification within:
3 business days.
However, determining when the period begins can depend on the circumstances of the foreign accident.
Accident Within the Employer’s Knowledge or Control
Where the relevant foreign occupational accident is known and falls within the applicable reporting framework, the statutory notification period runs according to the rules governing the occurrence of the event.
Accident Outside the Employer’s Control
Where the occupational accident occurs in a place outside the employer’s control, the three-business-day notification period generally begins from the date on which:
the employer learns about the accident.
This distinction is particularly important for employees travelling or working internationally.
Documented Excuse for Late Notification
Where an acceptable and documented reason prevents timely notification, the relevant period can begin from the date on which the qualifying impediment ceases.
Employers should document the reason carefully where relying on such an exception.
Producing Documents During an SGK Inspection
Employers, workplace owners and subcontractors must provide SGK inspectors and auditors with the workplace books, records, information and documents that they are legally required to maintain.
When requested, the relevant documentation must generally be produced within:
15 days.
Partial Production Can Be Treated as Non-Production
Providing only some of the requested documents may not satisfy the employer’s obligation.
Where SGK requests several books, records or documents and the employer fails to produce one or more required items, incomplete production can be treated as a failure to fully comply with the document-production obligation.
Employers should therefore respond to SGK requests systematically rather than sending only the documents that are immediately available.
Responsibility of Certified Accountants and Financial Advisers
Turkish social security legislation also places responsibilities on certain professional accountants involved in preparing statutory declarations.
This can concern professionals authorized under Law No. 3568, including relevant SMMM and YMM professionals.
Joint Liability for Incorrect MPHB Information
Where a professional accountant has been authorized through a written agreement and the Muhtasar ve Prim Hizmet Beyannamesi (MPHB) submitted to SGK does not correspond to:
- statutory accounting books; or
- the underlying documents supporting those books and records,
the authorized professional can, under the applicable conditions, be held jointly and severally liable with the employer.
Outsourcing payroll or accounting therefore does not automatically eliminate the employer’s responsibility.
Employer Responsibility When Payroll Is Outsourced
Even where an external accountant or payroll provider prepares statutory declarations, employers should provide accurate and complete information concerning:
- employees;
- salaries;
- bonuses;
- commissions;
- working days;
- absences;
- benefits;
- new hires; and
- terminations.
A payroll provider cannot accurately report information it has not received.
Fictitious Insurance and False SGK Declarations
One of the most serious SGK compliance risks involves intentionally false declarations.
Documents, notifications or declarations submitted to SGK must reflect the actual employment and payroll situation.
Intentional misrepresentation can have consequences extending beyond administrative fines.
Why False SGK Documents May Be Created
The regulatory framework specifically addresses intentionally inaccurate documents designed to obtain improper advantages.
Examples can include attempts to:
- pay lower social security contributions;
- obtain SGK contribution incentives without entitlement;
- obtain larger incentives or reductions than legally available;
- satisfy minimum-labor requirements for construction or tendered work;
- create artificial occupational accident rights;
- obtain sickness or maternity benefits;
- obtain general health insurance benefits; or
- create improper disability, retirement or survivor-insurance rights.
Potential Criminal Consequences
Where SGK determines that documents, declarations or notifications were intentionally prepared contrary to the truth for such purposes, the matter can be referred to the Public Prosecutor’s Office.
Depending on the conduct, criminal-law provisions including Articles:
204, 206 and 207 of the Turkish Criminal Code
can become relevant.
These provisions concern different forms of false documentation and false declarations.
What Happens to Contributions Paid for Fictitious Insurance?
Where contributions were paid in connection with an intentionally false or fictitious insurance registration and the relevant regulatory conditions are established, those contributions are not necessarily refunded.
Under the applicable framework, such contributions can be:
recorded as revenue by SGK rather than returned to the parties.
Fictitious insurance should therefore be treated as a serious compliance and potentially criminal matter.
Practical SGK Compliance Checklist for Employers
Employers operating in Turkey should ensure that:
- employee commencement notifications are submitted correctly;
- employee termination notifications are completed;
- part-time employee GSS status is reviewed where necessary;
- workplace transfers and relocations are reported;
- workplace SGK files remain accurate;
- occupational accidents are reported within applicable deadlines;
- sick leave reports are monitored through SGK systems;
- maternity leave and incapacity payments are processed correctly;
- requested documents can be produced within 15 days;
- payroll information matches accounting records;
- external accountants receive complete information; and
- no fictitious or inaccurate insurance registrations are created.
These controls should form part of the employer’s regular payroll and HR procedures.
Employer of Record and SGK Compliance in Turkey
International companies employing personnel in Turkey can use an Employer of Record (EOR) or local payroll provider to manage employment and social security administration.
Depending on the structure, services can include:
- Turkish employment contracts;
- employee onboarding;
- SGK registration;
- monthly payroll;
- social security contributions;
- MPHB reporting;
- sick leave administration;
- maternity administration;
- occupational accident reporting support;
- employee benefits;
- termination calculations;
- termination notifications; and
- payroll record management.
An EOR structure can be particularly useful where an international company wants to employ personnel in Turkey without establishing its own local employing entity.
Turkish employment and social security compliance extends far beyond monthly salary calculations.
Employers must correctly manage employment termination, unemployment insurance, SGK registration, workplace transfers, sick leave, maternity benefits, occupational accidents and statutory payroll declarations.
Mutual termination agreements require particular care because an ikale is legally different from an ordinary resignation or unilateral employer termination. The wording of the employee’s request and the circumstances surrounding the agreement can therefore affect its legal characterization.
SGK compliance also continues throughout employment. Part-time employees can have specific GSS rights, employees have mechanisms to notify SGK of their employment, and SGK can investigate and recognize unreported employment under applicable conditions.
Sick leave and temporary incapacity benefits require employers to understand the distinction between occupational accidents, ordinary sickness and maternity. Different contribution conditions and payment periods apply to each situation.
Finally, intentionally false SGK declarations or fictitious insurance registrations can create consequences extending beyond payroll corrections and administrative fines, including potential criminal proceedings.
For international employers, integrating Turkish payroll, SGK reporting, sick leave administration, occupational accident procedures, termination management and Employer of Record services can significantly reduce employment and social security compliance risks in Turkey.