Navigating Subcontracting Regulations in Turkey
In Turkey, subcontracting of employees from other employers is a practice allowed by the Labor Law under specific circumstances. This article explores the key aspects of subcontracting, shedding light on the regulations and responsibilities associated with this employment arrangement.
Subcontracting in Turkey is permissible when there is a demonstrated need at the workplace, and the work to be subcontracted must be carried out at the employer’s workplace. The type of work that can be entrusted to a subcontractor is rigorously regulated. Typically, subcontracted work is limited to supplementary tasks or specific components of the primary work conducted at the employer’s premises. An exception to this rule applies to primary work requiring special technical expertise. For example, in an industrial manufacturing setting, subcontracted employees might engage in supplementary services such as cleaning, catering, or security, rather than the core manufacturing activities. Should a subcontracted employee become involved in the employer’s core business, the employer is obligated to treat them on par with directly employed personnel engaged in core business functions.
Crucially, subcontracted employees must be exclusively dedicated to the work undertaken on behalf of the employer. This implies that employees of the subcontractor are restricted to working solely for that subcontractor within the defined scope of the subcontracting arrangement.
Establishing a subcontracting in Turkey relationship necessitates notification to the Ministry of Labor by both the employer and the subcontractor. This procedural step ensures regulatory compliance and transparency in the subcontracting process in Turkey. However, if a subcontractor neglects to fulfill their obligation of paying amounts due to subcontracted employees for their labor, the employer may find itself jointly and severally liable for these unpaid amounts. This joint liability underscores the responsibility of both the employer and the subcontractor in safeguarding the financial rights of subcontracted workers.
It’s noteworthy that the nature of subcontracting can be impacted by the growing trend of remote work in Turkey. For a comprehensive understanding of how remote work influences subcontracting, readers are encouraged to refer to Section G of this chapter.
In conclusion, subcontracting in Turkey is subject to specific regulations designed to balance the needs of employers and the rights of subcontracted workers. While providing flexibility in workforce management, subcontracting is intricately governed to prevent exploitation and ensure fair treatment of employees. Employers engaging in subcontracting must adhere to these regulations, promoting a work environment characterized by transparency, accountability, and respect for the rights of all workers involved.
San Global is well-equipped to assist you with your Employer of Record (EOR) and payroll requirements (also known as the Umbrella Company) in Turkey. We are capable of handling your HR (Recruitment) needs, even in the absence of a legal entity in Turkey.