With the development of globalization, more and more companies are expanding their businesses overseas. However, the employment regulations and cultural differences in different countries present numerous challenges and risks for employers. This article explores the employment risks and measures to address them for employers in Turkey.
I. Overview of Employment in Turkey
1. Employment Regulations in Turkey
The employment regulations in Turkey primarily consist of the "Turkish Labor Law" and the "Turkish Social Security Law." According to the Turkish Labor Law, employers are required to provide employees with legal employment contracts and comply with regulations regarding salary, social security, and other benefits. Additionally, Turkish law specifies that the maximum weekly working hours should not exceed 45 hours, and daily working hours should not exceed 11 hours.
2. Employment Costs in Turkey
Compared to Western countries, the cost of employment in Turkey is relatively low. According to 2019 data, the minimum wage in Turkey is 2,558 Turkish Lira per month (approximately $330), while the average wage is 6,000 Turkish Lira per month (approximately $770). Additionally, the social security contribution rates in Turkey are relatively low, with employers required to contribute approximately 14% of the employee's salary.
II. Employment Risks for Employers in Turkey
1. Issues with Labor Contracts in Turkey
Due to the complexity of employment regulations in Turkey, many companies may overlook or fail to comply with the requirements when signing labor contracts. If labor disputes arise, the company may face significant liability for compensation and legal risks.
Example: A company in Turkey recruited an employee and signed a labor contract without fulfilling the obligation to pay social security contributions. After leaving the company, the employee filed a lawsuit and received compensation due to the employer's non-compliance.
2. Cultural Differences in Turkey
Turkey has different cultural backgrounds and values compared to China. When managing employees, companies need to understand Turkish culture and respect local customs. Failure to do so may result in employee dissatisfaction or cultural conflicts, affecting the company's image and employee morale.
Example: A Chinese manager in a Turkish subsidiary of a company frequently used directive language without considering the local employees' emphasis on politeness and respect. As a result, the employees were dissatisfied with the manager's management style and lodged a complaint to higher authorities.
3. Compliance Issues in Turkey
The Turkish government regulates employment compliance and imposes penalties on non-compliant companies. Therefore, companies need to understand the relevant employment regulations in Turkey and ensure compliance with them. Failure to comply may result in fines or revocation of business licenses.
Example: A company in Turkey employed foreign worker without applying for a valid work permit as required. Consequently, the employee was deported by the local government, and the company faced a fine.
III. Measures to Address the Risks
1. Understand Local Employment Regulations
Before entering the Turkish market, companies need to familiarize themselves with local employment regulations and consult with local lawyers or professional organizations. Additionally, when signing labor contracts, careful review is necessary to ensure compliance with local legal requirements.
2. Strengthen Employee Management
Companies should understand Turkish culture and customs and take appropriate measures to enhance employee management. For example, using polite language when managing employees and showing respect for the local culture.
3. Establish Compliance Mechanisms
To avoid violations of local employment regulations, companies should establish comprehensive employment compliance mechanisms and provide internal training to ensure that employees are aware of relevant policies and procedures.
IV. Conclusion
As an emerging market with vast business opportunities and potential, Turkey holds great potential for companies. However, before entering the market, companies need to understand the local employment situation and develop corresponding measures to address potential risks. Only by implementing effective risk management and compliance practices can companies thrive in overseas markets.