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Employees and Social Security

Employment ConditionsWorking conditions in Turkey is mainly governed by the Labor Code and Trade Union Law.

In accordance with the Labor Law, there are different types of employment contracts:

“Non-Continuous” and “Continuous” jobs employment contracts“Definite Time” or “Indefinite Time” employment contracts“Part-time” and “full time” jobs employment contracts“Work on Call” jobs employment contractsTrial term employment contractEmployment contracts created with the gang contractEmployment contracts are exempt from stamp duty and all kinds of charges and fees. It is legally prohibited to discriminate among employees based on language, race, gender, political opinion, philosophical belief, religion or similar criteria. Gender-based discrimination is also prohibited while determining the wages for employees who perform the same or equivalent work.

Termination of Employment Contract In accordance with the relevant provisions of the Labor Law No. 4857, employers and employees who terminate their employment contracts need to notify a certain period of time before the termination as shown in the table below.

Minimum termination notice periods of employers and employees Employment period Notice periodAn employment contract is terminated in two ways:

Time Termination Both the employee and the employer may terminate the indefinite term employment contracts on the basis of the notification periods specified in the table above. The party that fails to comply with the notification requirement may terminate the employment contract by paying compensation in the amount corresponding to the notification period.

Termination of the employment contract before the expiration of the contract term or without waiting for the above mentioned notification periods based on the valid and justified reasons specified in the Labor LawUnder the following conditions, both the employer and the employee have the right to terminate the employment contract without waiting for the notification period:

Health-related reasonsSituations that do not comply with the rules of ethics and good faith and the likesForce majeur Social Security System The social security system in Turkey went through a major transformation process in 2007, and has become a more efficient and faster functioning system at the end of this process, which is based on collecting different social security funds under a single institution for a centralized inspection.

SSK, Retirement Fund and Bağ-Kur, three different social security institutions, were merged into a single institution under the name of Social Security Institution (SGK) in 2007. As of 2008, these three social security institutions cover approximately 81% of the population. The new system is fully operational since the beginning of 2008.