Turkey: Employment contracts – Applicable Law
Until a recent decision of the Turkish Constitutional Court, Turkish law allowed the parties to an employment contract to choose freely the jurisdiction whose laws would apply that contract.
The Court has now ruled that this freedom was unconstitutional and invalid. The Court found that the imbalance of power in employment relationships put employees in a weaker position when negotiating the applicable law clause. As a result, employers could select a legal system that provides employees with a lower level of employee protection.
The Position Now
Following the decision, the Court applied a six-month transition period. The Court ruling took effect on September 10th 2025. However, new legislation on the applicable law point has not yet been introduced. This leaves considerable uncertainty.
The Court stressed that employee rights should be safeguarded to the highest standard. Therefore, Turkish law must be applied where a foreign law would contravene Turkish public policy. The principle is that the law chosen should provide the highest possible standard of protection of the employee’s rights.
It is important to note that the ruling applies equally to existing employment contracts as to new ones. Therefore, all contracts may need review.
Actions by HR teams
- All employment contracts that apply a foreign (non-Turkish) law clause will need to be reviewed to ensure they meet the employee protection standards required by Turkish public policy.
- Turkish companies employing staff outside Turkey need to ensure their employments contract and employment practices comply with Turkish employment law standards.
- Generally, ensure that all employment contracts and HR policies for workers in Turkey comply with the highest standards of Turkish employment policies.
- Watch out for changes in Turkish employment law and HR regulation which will formalize the Court’s ruling.
This is a high-level general update only. Legal advice should be obtained on specific circumstances.