LABOR LAW NEWSLETTER 2024/4

I. LEGISLATIVE AMENDMENTS

• The Regulation Amending the Regulation on Social Insurance Transactions (“Regulation”) Has Been Published!

With the Regulation published in the Official Gazette dated October 1, 2024 and numbered 32679, amendments were made to the Regulation on Social Insurance Transactions.

The obligation to register a workplace file with the Turkish Employment Agency (İŞKUR) for persons benefiting from unemployment allowance in accordance with the Unemployment Insurance Law and trainees participating in trainings about acquiring, developing and changing professions organized by the Turkish Employment Agency has been abolished.

The Regulation entered into force on October 1, 2024.

You can access the text of the Regulation here.

• The Regulation Amending the Regulation on Workplace Opening and Operation Licenses (“Regulation”) Has Been Published!

With the Regulation published in the Official Gazette dated October 10, 2024 and numbered 32688, the practice of requesting a duplicate opinion from the Governorships for workplaces that trade second-hand motor vehicles in collective workplaces has been prevented. If a governorate opinion has been obtained for all workplaces in collective workplaces regarding the burden on the environment, infrastructure and traffic and the risk to life and property safety, there is no need to obtain a separate governorate opinion for workplaces engaged in the trade of second-hand motorized land vehicles in these collective workplaces. With the amendment, the governorate opinion obtained by the collective workplace will be sufficient for workplaces engaged in the trade of second-hand motor vehicles in collective workplaces.

Another regulation regarding collective workplaces is related to vehicle display areas. It is stated that the areas used as reception and administrative offices in collective workplaces can be used as vehicle display areas and will be evaluated as such. 

The Regulation also extends the deadline for the elimination of violations of the Regulation on Business Opening and Operation Licenses until 31 July 2025 in order to facilitate the licensing processes of electric vehicle charging stations and to expand the electric vehicle infrastructure.

You can access the text of the Regulation here.

• The Regulation Amending the Implementing Regulation on International Workforce Law (“Regulation”) Has Been Published!

The Regulation published by the Ministry of Labor and Social Security in the Official Gazette dated October 15, 2024 and numbered 32693 amends the periods for obtaining work permits and introduces exemptions.

The Regulation extends the work permit exemption period from six months to three years for foreigners who can provide significant services and contributions to Türkiye in economic, socio-cultural, technological and educational fields.

The Regulation abolished the requirement of having a visa with a sports license for professional athletes and sports personnel who are exempted from work permits, and it is now possible to exempt foreigners who meet the other conditions from work permits, provided that they have the approval of the Ministry of Youth and Sports or the Turkish Football Federation.

In addition, those who are granted humanitarian residence permits pursuant to Article 46 of the Law on Foreigners and International Protection No. 6458 and those who are under temporary protection under Article 91 and who are notified by the Ministry of Interior through the system will be exempted from work permits for the scope and duration specified in the notification. These persons are also exempted from the application and evaluation process.

The amendment also exempts foreign press members who come within the scope of a permanent press card from work permits for the duration of their assignment, provided that they have the approval of the Presidential Communications Directorate.

With this amendment, the maximum time limit of 30 days from the date of entry into Türkiye for work permit exemption applications has been removed. As a result of this amendment, it will be sufficient to apply for work permit exemption within the period of the foreigner’s legal stay in Türkiye.

The Regulation entered into force as of October 15, 2024.

You can access the text of the Regulation here.

• The Law on Teaching Profession (“Law) Has Been Published!

Tha Law, published in the Official Gazette dated 18 October 2024 and numbered 32696, aims to regulate the selection, training and appointment of teachers providing education and training services; the rights, duties and responsibilities, rewards and punishments, career progression and other issues related to the teaching profession; and the establishment, duties, organizational structure and personnel of the National Education Academy.

One of the most important innovations introduced by the Law is the establishment of the National Education Academy, which aims to ensure that the professional development of teachers and administrators who are on duty or will take office is carried out through this Academy.

The Law repealed the Law on Teaching Profession dated February 3, 2022.

You can access the text of the Law here.

• The 2025 Presidential Annual Program (“Program”) Has Been Published!

The Program, published in the Official Gazette dated October 30, 2024 and numbered 32707 (Repeated), announced that changes are planned to be made regarding working life and the pension system. Accordingly, some of the targeted activities are as follows:

• Making legal arrangements regarding flexible working and remote working systems, which have become widespread after the pandemic,
• What is different from the Individual Pension System (“BES”) is the transformation of the “Auto-Enrollment System”, which is created with the employer’s contribution to which employees automatically participate, into a second-tier pension system and the preparation of a new model for it,
• Increasing the diversity of funds to enable compulsory second-tier retirement,
• Reducing BES deductions and encouraging university students under the age of 25 to participate in the BES,
• Increasing cooperation and statistical capacity among institutions in social security, and establishing a regular monitoring and reporting mechanism,
• Conducting research to encourage employees to stay in employment longer,
• Creation of ‘care insurance’ as a new branch of insurance to finance elderly care services,
• Vocational rehabilitation for the re-employment of recipients of permanent incapacity or disability income,
• Enabling the collection of premium debts, strengthening supervision, combating unregistered employment and unregistered wages through data analysis,
• Developing the infrastructure to facilitate all Social Security Instutuion (SGK) related transactions of employers,
• Expansion of complementary health insurance,

In order to fulfill the above-mentioned objectives, changes are expected to be made in the social security legislation.

You can access the full Program here.

• The Regulation Amending the Regulation on the Procedures and Principles Regarding the Implementation of the Labor Force Adaptation Program (“Regulation”) Has Been Published!

With the Regulation published in the Official Gazette dated 2 November 2024 and numbered 32710, various amendments have been made to the Regulation on the Procedures and Principles Regarding the Execution of the Workforce Adaptation Program published by the Turkish Employment Agency (“İŞKUR”) in the Official Gazette dated 29 August 2024 and numbered 32647.

The Regulation entered into force as of the date of publication and it is stated that the provisions of the Regulation will be executed by the General Manager of the Turkish Employment Agency.

The Regulation stipulates that the duration of benefiting from the labor force adaptation program (“Program”) shall be maximum twenty-two and a half hours and three days after the first four weeks of the Program and that the pocket money to be determined for the Program participants shall not exceed 1.25 times the minimum wage.

In addition, in the Programs to be organized with the Presidency of the Council of Higher Education and universities, the provisions regarding the duration of utilization specified in the first paragraph of Article 9 of the Regulation and the provisions stipulated in the eighth paragraph of the Regulation regarding the completion of vocational training and/or personal development training within the first four weeks may not be applied, the weekly utilization period of these programs may be limited to a maximum of twenty-two and a half hours and three days, and if the utilization period is applied in this way, vocational training or personal development training must be completed before the last two weeks of the program.

As a result, the Regulation introduced an upper limit on the duration of the program and increased the rate of pocket money to be paid to the participants of the program.

You can access our previous newsletter where we reviewed the Regulation on the Procedures and Principles Regarding the Implementation of the Workforce Adjustment Program here and the Regulation containing the amendments to the relevant regulation here.

• Communiqué No. 2024/32 on National Occupational Standards (“Communiqué”) Has Been Published!

Communiqué No. 2024/32 on National Occupational Standards (“Communiqué”) was published in the Official Gazette No. 32710 dated November 10, 2024.

A national occupational standard is a document that defines the duties and responsibilities, required competencies, skills and training requirements of a profession. These standards regulate the qualifications required for a particular occupation and the training, certification and examination processes for that occupation. National occupational standards are established to ensure standardization in the labor market, to improve the quality of the workforce and to ensure the recognition of professions

With the Communiqué, the Aluminium and Composite Sheet Facade Cladding (Level 3) National Occupational Standard and Panel Facade Cladding (Level 3) National Occupational Standard, which are annexed to the Communiqué, entered into force as of the date of publication of the Communiqué. Communiqué No. 2024/32 on National Occupational Standards (“Communiqué”) was published in the Official Gazette dated November 10, 2024, and numbered 32710.

Thus, the National Occupational Standards for Aluminium and Composite Sheet Facade Cladding (Level 3) and Panel Facade Cladding (Level 3) published with the Communiqué have determined the job descriptions and required skills for these occupational groups. The declaration of these occupations as Level 3 indicates that these occupations need to reach a certain level of competence and generally require intermediate level education or expertise. Level 3 refers to a level defined for people who generally require professional knowledge and skills, can work independently and can perform advanced practices in a specific field. This occupational standard provides a basis for the training and career development of sector professionals.

You can access the full Communiqué here.

• 2025 Minimum Fee Tariff for Mediation Has Been Published!

The Ministry of Justice published the Minimum Fee Tariff for Mediation for 2025 (“Tariff”) in the Official Gazette dated December 25, 2024 and numbered 32763. While this Tariff sets the lower limits of the fees to be applied in mediation processes, it prohibits any fee below the amounts specified in the Tariff. Any agreements to the contrary shall be deemed legally invalid. Article 7 of the Tariff explains how mediation fees will be determined.

The Tariff entered into force as of January 1, 2025, and it is stipulated that the tariff in effect at the time of termination of the activity shall be taken as basis in determining the mediation fee.

You can access the full mediation fee tariff here.

• International Agreement on the Implementation of the Social Security Agreement between Türkiye and Romania Has Been Ratified!

Agreement between Türkiye and Romania Approved By the Presidential Decree No. 9226 published in the Official Gazette No. 32745 dated 7 December 2024, it has been decided to ratify the “Administrative Agreement on the Implementation of the Social Security Agreement concluded on 6 July 1999” signed between the Republic of Türkiye and Romania on 21 May 2024 in Ankara.

The main objective of this agreement is to protect and regulate the social security rights of the citizens of Türkiye and Romania. This agreement between Türkiye and Romania also aims to guarantee the social security rights of citizens of both countries, both in their own country and in the other country.

You can access the full presidential decree here.

• Critical Information from SSI to Employers with Circular No. 2024/14

The Circular dated December 6, 2024 was published by the Presidency of the Social Security Institution on ‘Submission of Monthly Premium and Service Documents / Withholding and Premium Service Declarations’. With this Circular, the procedures and principles to be followed in the processing of monthly premium and service documents or withholding and premium service declarations for situations that have been submitted outside the legal period or that are outside the legal period but are deemed to have been submitted within the legal period are detailed below.

Within the framework of this Circular, employers are granted an additional period of 5 business days for documents and declarations that cannot be submitted within the legal period, in case the debts processed in the system on the last day of the document or declaration submission period or accrued debts from previous periods are not credited to the account even though they have been paid until 23:59 on the last day of the period. However, it is important that employers fulfill their responsibilities for the timely submission of documents.

Based on the relevant articles in the Regulation on Social Insurance Transactions, the Circular contains regulations on how to handle documents that cannot be submitted within the legal deadline. The relevant regulations are summarized;

• When monthly premium and service documents are submitted within three months of the expiry of the legal deadline, they are processed without any additional examination, provided that the notifications of insured employment are submitted on time.
• Documents submitted beyond the three-month period are carefully examined by audit officers. If there is no change in the number of premium days or earnings in the documents submitted for correction, no administrative fine is imposed.
• It is of utmost importance that the documents are processed through the “Accrual-Entry-Accrual Transactions-Registration Entry” system. In order to prevent such situations, employers should be informed on time and document approval processes should be completed without delay.
• If the employer has to enter the documents for the current month into the system only on the last day due to debts and cannot submit them on time, these documents will be deemed to have been submitted within the legal period when they are submitted on the grounds of (B) accrual.
• A similar regulation applies if the declarations were processed until the last hour of the payment deadline, but the transaction has not yet been credited to the account.

In such cases, if the documents are submitted within 5 working days after the due date, citing (B) accrual, these documents will be deemed to have been submitted within the legal period. Therefore, the administrative fines stipulated under Article 102 of Law No. 5510 will not be applicable for employers who are deemed to have submitted the documents within the legal period.

You can access the full Circular here. You can access the entire Circular here.

II. JUDICIAL DECISIONS

• Y** K**’s Application No. 2019/7376 to the Constitutional Court of the Republic of Türkiye on the Violation of the Right to a Fair Trial by Not Taking Witness Statements into Consideration

In the application subject to the Constitutional Court’s (“CC”) decision dated 11.06.2024 and numbered 2019/7376, published in the Official Gazette dated October 3, 2024 and numbered 32681, the Applicant claimed that his right to a fair trial was violated due to the erroneous evaluation of the evidence regarding the validity of the rescission agreement in the reemployment case.

The employment relationship between the applicant and their employer ended on 02.08.2017 with a rescission agreement. The Applicant filed a lawsuit for reinstatement on the grounds that they signed the rescission agreement by fraudulent inducement, that they were subjected to pressure that no labor receivables would be paid to them even though they did not sign the rescission agreement, and that the rescission agreement was therefore invalid.

The First Instance Court examined the terms of the rescission agreement and evaluated that there was no reasonable benefit in favor of the employee, and decided to accept the lawsuit on the grounds that it is not usual for an employee with a long service period and a union member to sign a rescission agreement without providing reasonable benefit; and decided to invalidate the termination and reinstate the plaintiff. The defendant employer appealed against this decision.

At the end of the appeal examination by the Regional Court of Appeal, it was concluded that the applicant could not prove that they were subjected to pressure, and although it was stated by the First Instance Court that there was no reasonable benefit in favor of the applicant in the rescission agreement, it was evaluated that the rescission agreement was valid by stating that in the signed protocol, the amount of 4 months salary was paid as an additional benefit in addition to severance pay and annual leave fee, therefore the plaintiff was not entitled to file a reinstatement lawsuit, and the decision of the First Instance Court was abolished and the lawsuit was dismissed.

The Constitutional Court ruled that although the Applicant relied on witness evidence, witnesses were heard by the First Instance Court and moral pressure was proved in this way; the fact that the reasoned decision issued by the First Instance Court did not include the witness statements and only stated that the Applicant did not benefit from signing the rescission agreement in the concrete case and that the witness statements were ignored by the Regional Court of Appeal damaged the applicant’s right to a fair trial.

For the reasons explained, the Constitutional Court concluded that the Applicant’s right to a fair trial within the scope of the right to a fair trial was violated and, in addition to awarding compensation in favor of the Applicant, the Constitutional Court decided to hold a retrial within the scope of the reinstatement case brought by the Applicant.

With this decision, it has been revealed that the statements of the witnesses heard during the trial should be included in the reasoned decision, especially in cases such as fraud of will, which can be proved by witnesses, not taking into account the witness statements may lead to the violation of the right to a fair trial.

You can access the full judgment here.

• The Constitutional Court Decides that the Regulation on the Revocation of Private Security Officers’ Identity Cards is Unconstitutional!

With the Constitutional Court decision dated 24.09.2024 and decision no 2024/65, docket no 2024/163 and published in the Official Gazette dated 21.11.2024 and numbered 32729, the request for the annulment of paragraph 4 of Article 11 of the Law on Private Security Services on the grounds of unconstitutionality was examined in terms of freedom of work. This provision stipulates that the identity cards of private security officers will be cancelled if they subsequently lose the conditions for practicing this profession.

Although the Constitutional Court stated that in order to become a private security officer as stated in Article 10, paragraph 1, subparagraph d of the Law, there must not be an ongoing investigation or prosecution regarding the constitutional order, private life, sexual immunity or drug crimes; otherwise, the private security identity card must be cancelled, and that this practice aims to ensure public security, protect the rights of third parties and protect trust in private security officers, it was emphasized that the proportionality of the Law should also be evaluated.

In this respect, the Constitutional Court stated that the Law is appropriate in terms of ensuring public security, protecting the rights of third parties and protecting trust in private security officers, but the measures taken in the absence of a finalized conviction should not be as severe as the measures that should be taken after the finalization of the conviction, and it was evaluated that the relevant article of the Law was not proportionate in terms of the right and freedom to work.

As a result, the Constitutional Court concluded that the revocation of the private security guard ID card of private security officers who have not been convicted and against whom an investigation and prosecution has been initiated for the aforementioned crimes within the scope of the Law is not proportionate as it is a severe measure and ruled that the relevant regulation is contrary to Articles 13, 48 and 49 of the Constitution and decided to cancel the regulation and to enter into force nine months after the publication of the decision in the Official Gazette.

Thus, as of 21.08.2025, private security guard ID cards cannot be revoked unless there is a finalized conviction.

You can access the full decision of the Constitutional Court here.

• Method of Calculation of Syndical Compensation Amount: Decision of the 9th Civil Chamber of the Court of Cassation Docket No. 2024/10265, Decision No. 2024/14468 and Dated 04.11.2024

The current dispute in the relevant decision focuses on the method of calculation of the union compensation awarded under Article 25 of Law No. 6356. At the heart of the dispute is the question of whether to take 360 days or 365 days as a basis when calculating the employee’s daily bare gross wage over a year.

In the decision of the 9th Civil Chamber of the Bursa Regional Court of Appeal, it is stated that the union compensation should be calculated by multiplying the daily bare gross wage of the worker by 360. On the other hand, another opinion argues that 1 year should be accepted as 365 days in line with the case law of the Court of Accounts and other evaluations. According to this approach, the employee’s daily bare gross wage should be multiplied by 365 days to determine at least one year’s wage.

In line with the decision of the 9th Civil Chamber of the Court of Cassation, numbered Docket No. 2024/10265, Decision No. 2024/14468 and dated November 4, 2024, it is stated that the agreement between the parties regarding the hourly wage should be taken into account, and in this context, at least one year’s wage, which is the subject of dispute, should be calculated by assuming that the calendar year is 365 days. Accordingly, the employee’s one-day wage was determined based on 7.5 hours of working time, multiplied by 365 and the amount of union compensation was correctly determined.

You can access the full decision via the relevant link.

• Decision of the 9th Civil Chamber of the Court of Cassation Dated 4.11.2024, Docket No. 2024/9395, Decision No. 2024/14465 Regarding That the Mere Fact That the Parties to the Employment Contract Are Turkish Citizens Is Not Sufficient Alone for the Existence of a Close Relationship in Terms of the Applicable Law

In the case subject to the review of the Court of Cassation, the plaintiff employee stated that he worked in the defendant’s projects abroad and his salary was paid in US dollars, and demanded the collection of severance and notice pay and other labor receivables that were not paid to him. The defendant argued that the dispute should be resolved in accordance with foreign law, but the Court of First Instance did not take into account this objection of the plaintiff and directly applied Turkish law and decided to partially accept the case. However, during the appeal examination, the Regional Court of Appeal did not make an assessment in terms of the applicable law, and the 9th Civil Chamber of the Court of Cassation found the First Instance Court’s assessment inconsistent with the scope of the file.

The relevant legal chamber of the Court of Cassation firstly stated that if there is no choice of law agreement between the parties, the law of the place where the employee permanently performs his/her work should be applied in accordance with Article 27/II of the Law No. 5718 on Private International Civil and Procedural Law, and that the law of the place in question refers to the law of the country where the employee actually works and is the law that establishes the closest relationship with the employment contract; however, by interpreting it narrowly, a different law may be applied in accordance with Article 27/IV in the presence of an exceptionally closer relationship.

In the case subject to the Court of Cassation review, it was determined that the plaintiff worked at the defendant’s workplace in Kazakhstan between 05.09.2014 and 27.12.2015, that he actually performed the work in Kazakhstan and received his salary in US dollars, and that Kazakhstan was his habitual workplace. The 9th Civil Chamber ruled that the mere fact that the parties are Turkish citizens is not sufficient to determine the more closely related law (Turkish law) and that the law of Kazakhstan, which is the law of the habitual establishment, should be applied to the dispute.

You can access the full decision via the relevant link.

III. GLOBAL EMPLOYMENT TRENDS

• According to the Announcement Published by the General Directorate of Insurance Premiums of the Social Security Institution on 22.10.2024, e-Declaration User Change Applications Can Be Made via e-Government!

Employers can fulfill their obligations to the Social Security Institution (“Institution”) through the e-Insurance user name and password obtained from the Institution. e-Insurance user code and password are obtained at the stage of workplace registration. For employers who meet the necessary conditions, e-Declaration activation procedures can be performed automatically by approving the e-Insurance contract through the e-Government portal.

These persons are the employer or employer representative for real person workplaces, the manager for legal public and legal private workplaces, the employer or partner for ordinary partnership and business partnership workplaces, and the manager for apartment management workplaces.

In the announcement published by the General Directorate of Insurance Premiums on 22.10.2024, it was announced that the above-mentioned persons can apply for e-Declaration user change transactions via their e-Government accounts. Prior to the announcement, e-Declaration user changes could only be made by physically applying to the units; after the announcement, it became possible to make these applications online, provided that the application procedure to the units does not end.

You can access the full announcement here.

• Australian Supreme Court Rules that Employers Can Be Liable for Psychiatric Injuries Caused by Breach of Employment Contract!

The case before the High Court of Australia is as follows: An employee of an Australian company stayed at a hotel during a business trip and had an argument with the hotel manager. After the incident, the hotel manager complained to the employee’s employer about the employee’s aggressive behavior. Thereupon, the employer sent a letter to the employee stating that a disciplinary investigation had been opened against him and that his information would be sought. Accordingly, a meeting was organized and the employee denied the allegations in the letter. Thereupon, the employer sent a letter to the employee stating that he was suspended from work. Subsequently, a disciplinary investigation was simultaneously conducted and the employee’s employment contract was terminated.

After the termination of the employment contract, the employee was diagnosed with major depression and adjustment disorder and a report was issued stating that it was not possible for him to work in the foreseeable future. Subsequently, the employee filed a claim for damages against his former employer, claiming that his former employer was responsible for his psychiatric problems and his inability to work as a result of these problems.

As a result of the proceedings held by the First Instance Court, it was concluded that the employer terminated the employee’s employment contract on the basis of some previous incidents that were not the subject of the complaint and were not subject to the employee’s knowledge and defense, that this was in violation of the Disciplinary Procedure, that the Disciplinary Procedure was part of the employment contract, The employer was found to have in fact breached the employment contract by failing to comply with the disciplinary procedure, the psychiatric injury caused by the breach of the employment contract fell within the class of injuries that could be compensated for breach of contract, and the employer was ordered to compensate the employee for past and future loss of earning capacity.

The defendant employer applied for a higher remedy against the decision of the first instance court. A higher court, which examined this application, accepted the employer’s application, stating that if the psychiatric damage is not caused by a physical damage, compensation for this damage cannot be requested on the grounds of breach of the employment contract alone and that it is a remote possibility that the psychiatric damage is caused by the breach of the employment contract.

The dispute was then brought before the High Court of Australia and the High Court departed from its long-standing view that psychiatric injury resulting from a breach of an employment contract is not compensable and held that an employer may be liable for psychiatric injury resulting from a breach of contract. The Supreme Court considered that it is a social reality that the employment relationship is one of the most important things in a person’s life, that the employment relationship provides not only a source of livelihood but also a sense of vocation, identity and self-esteem, that if the employment contract is terminated unfairly, the person’s sense of identity and self-esteem will be affected as well as the source of livelihood, and that psychiatric damages arising from the breach of contract are compensable since the workplace policies, especially the Disciplinary Procedure in dispute, are part of the employment contract. As a result, compensation of approximately 1.45 million Australian dollars was awarded in favor of the employee for the pain and suffering and loss of earnings suffered.

As a result of the decision made by the Supreme Court, reversing its long-established opinion, employees will now be able to claim compensation for psychiatric damage resulting from the employer’s violation of the employment contract. For employers to harmonize their work processes with the Supreme Court decision and minimize the risk of employees being exposed to a serious psychiatric injury, they should follow a fair and systematic approach in investigating, punishing or terminating employees, especially in investigations that may end with a possible termination of the employment contract and the employment contract. It is expected to comply with all regulations, including workplace policies and procedures that are part of it.

You can access the summary of the decision here and the full decision here.

• The International Labor Organization published an Information Note entitled “The Impact of Caring Responsibilities on Women’s Labor Force Participation” on 29 October 2024!

The Note was prepared by the International Labour Organization (“ILO”) based on statistical data collected from 125 countries. The Note states that care responsibilities are the biggest obstacle for women to enter and stay in the labor market.  For men, this barrier is due to health problems and other personal reasons such as education. Globally, approximately 800 million men and 1.6 billion women are out of the labor force, with 45% of women and 5% of men citing care responsibilities as the reason for not participating in the labor force.

This marked gender gap highlights the imbalance in women’s responsibilities for childcare, support for people with disabilities and long-term care needs, housework and other care activities.

In response to such systemic inequalities based on gender, ILO members adopted the historic “Resolution on Decent Work and the Care Economy” at the ILO International Labour Conference in June 2024. This resolution is an important milestone for countries in addressing the challenges arising from the care economy globally and at the same time seizing the opportunities in this area. Adopted for the first time as a global tripartite agreement, the resolution emphasized that the effective functioning of the care economy not only supports individuals and families, but also contributes to a healthier workforce, creates new jobs and increases productivity. The resolution also addresses the “structural barriers” created by unpaid care work in areas such as women’s labor force participation, employment retention and career advancement as an important problem.

You can access the information note here.

• Worldwide Wage Inequality Has Declined Over the Last 25 Years, According to the ILO’s Global Wage Report 2024-25 (“Report”)!

According to the Report, since 2000, income inequality between low and high wages has declined at an average annual rate of between 0.5% and 1.7% in most countries. The most significant declines have been in low-income countries, where the average annual rate of decline over the past two decades has ranged from 3.2% to 9.6%.

The Report notes that wage inequality declined at a slower pace in rich countries, falling at an annual rate of between 0.3% and 1.3% in upper middle-income countries and between 0.3% and 0.7% in high-income countries. Although wage inequality has narrowed overall, this decline has been most pronounced among high-wage workers, and the Report emphasizes that wage inequality remains a major problem. According to the report, the lowest paid 10% of the world’s wage earners receive only 0.5% of global wage income, while the highest paid 10% of the world’s wage earners receive almost 38% of this pie.

You can access detailed information on the report here.

• İŞKUR’s Artificial Intelligence Supported Risk Profiling and Counselling Service

The Turkish Employment Agency (İŞKUR) started to offer an artificial intelligence-based profile analysis service to assess individuals’ unemployment risks and provide personalized counselling. Launched in 2021, this model was put into practice in 2023, and the unemployment risks of individuals actively looking for a job through İŞKUR, excluding retirees and those looking for better conditions, for more than 6 months were calculated using artificial intelligence algorithms.

To use this system more effectively, training programs were organized to increase the competencies of job and vocational counsellors. In this context, 250 job and vocational counsellors received online risk profiling training on November 22, 2024. With the effective use of the model, it is aimed to expand individual counselling services.

As a result, artificial intelligence has also manifested itself in the world of employment and has started to be used in a way to minimize the risk of unemployment.

You can access the scope of the service provided by İŞKUR here.

• Parental Leave for Single Parent Families in Spain

With its Decision No. 140/2024 dated 06.11.2024, the Spanish Constitutional Court ruled that the current parental leave regulations in force for single-parent families constitute discrimination. In this context, the Spanish Constitutional Court found that while parental leave up to a maximum of 16 weeks for single-parent families, up to a total of 26 weeks for two-parent families is contrary to the principle of equality. The Court stated that the regulations should be amended to remedy this situation.

As a result, the decision was based on the principles of family protection in Article 39 of the Constitution and aims to create a fairer leave system, considering the diversity of family structures.

You can access the Spanish Constitutional Court’s decision here.

• European Union (“EU”) New Framework for Digital Business Platforms: Directive (EU) 2024/2831

Directive (EU) 2024/2831, a comprehensive regulation by the EU Parliament and the Council to strengthen the rights of workers on digital job boards, was published in the EU Official Journal on 11 November 2024.

The Directive defines a “digital job platform” as any legal entity that establishes a direct relationship between recipients of services and service providers through an online platform and organizes the performance of those services, and “platform work” as any work or service performed through a digital job platform. In this context, the term “platform worker” refers to any individual who provides work or services through a digital work platform.

This regulation aims to eliminate ambiguities as to whether platform workers are employees or independent contractors. The status of workers employed through platform work will be assessed not only according to their employment contracts but also according to their actual working conditions. Platforms will be obliged to provide social security, wage security and other labor rights for employees who may have worker status. This regulation aims to regulate the working conditions of individuals working through digital platforms to protect their rights and increase job security.

• Clarification of Employment Status

The Directive aims to eliminate uncertainties regarding the employment status of digital platform employees. Within the framework of Labor Law, the presumption that platform employees have the status of workers brings an important innovation in terms of access to rights. In this context, it is an important responsibility for the platforms to clearly determine the status of the employees by considering the actual working conditions of the employees and for the employer to bear the burden of proof that the employee status will be valid unless proven otherwise.

• Transparency in Automated Systems

The Directive requires platforms to clearly communicate their automated decision-making systems to their employees. Employees are informed about and can challenge work management decisions (pay, task allocation, performance) made through algorithms. This regulation aims to protect workers’ rights by increasing transparency in algorithmic management processes.

• Data Protection Rights

Data protection standards have been strengthened by limiting the platforms’ authority to process employees’ personal data. Within the scope of respecting the private lives of employees, only the necessary business-related data is allowed to be processed. Given the nature of the platform business model based on data collection and algorithmic decision-making processes, this regulation is critical in terms of protecting the fundamental rights of employees and taking care of their privacy. In addition, the presumption that platform employees have the status of workers is a fundamental basis for ensuring that they are subject to data processing only to the extent required by the job.

• Job Security

The Directive enhances job security by prohibiting employees from being punished or dismissed for exercising their rights. This regulation aims to prevent employers from putting pressure on employees and make the work environment fairer, and platforms are required to respect employees’ rights and avoid arbitrary dismissals.

As a result, the presumptive employee status of employees in the platform business model enables them to benefit from the rights such as data protection and job security that currently apply to employees. This regulation addresses an imbalance specific to the platform business model, making it possible for employees to benefit from existing legal protections.

Member states are obliged to adapt this directive to their national legal systems. The regulation aims to create a more balanced and fair structure in the digital labor market for both employees and platforms.

Thus, the legal obligations of employers will be clarified, while the rights of platform employees will be protected. This new framework supports the sustainability of the digital economy, while enabling employees to enjoy safer and fairer working conditions.

You can access the full Directive here.

• Regulation from the European Union (“EU”) to Combat Forced Labor: New Era Begins in the Market!

On November 19, 2024, the EU Parliament and Council adopted Regulation (EU) No 2024/3015 of November 27, 2024, prohibiting the sale, import and export on the EU market of products produced using forced labor (“Regulation”). This new legislation aims to prevent the placing on the market, within the EU and in third countries of products manufactured using forced labor. The European Commission will establish guidelines and a database to provide information on products and regions at risk and to support Member States’ implementation.

As a result, this process is intended to give businesses the necessary time to comply with the regulation while supporting the EU’s goal of creating a global supply chain standard that is sensitive to human rights. With this new regulation, the EU is expected to take a stronger stance against human rights violations and ensure fair working conditions in global supply chains, while businesses are expected to comply with these regulations and companies that produce with forced labor will be excluded from the market.

You can access detailed information about the regulation here and the Regulation here.

• Japan Plans to Reduce the Number of Weekly Working Days to 4 Days for Population Growth!

The Tokyo Metropolitan Government has issued a statement taking the first step towards increasing the birth rate and family time, and plans to introduce a four-day work week as a reflection of these moves in the workplace.

During the regular session of the Tokyo Metropolitan Assembly, Governor Yuriko Koike emphasized the importance of creating flexible working environments and that no one should give up their career for reasons such as childbirth and care. Parliament passed revisions in May requiring companies to offer flexible work options for employees with young children, and these revisions are expected to take effect next April. The reforms will introduce regulations on working from home and shorter working hours and require companies with more than 300 employees to disclose data on paternity leave. At the same time, the Governor of Tokyo announced that daycare will be made free for all preschool children in line with these goals.

 Under the “working style reform”, parents whose children are in the first and third grades of primary school will be allowed to leave work early. This would allow employees to reduce their daily working hours by up to 2 hours through a system of “partial childcare leave”, but would also result in a slight reduction in wages for those who wish to take advantage of these rights.

• People’s Republic of China Adds Two More Days to Public Holidays!

The Chinese government has made an important regulation regarding public holidays. The State Council decree reorganizing the holidays entered into force on January 1, 2025 with the signature of Premier Li Chiang. According to the decree, the Spring Festival holiday, when the Chinese celebrate the new year according to the traditional lunar calendar, was extended from three to four days with the addition of New Year’s Eve; the one-day holiday on May 1, Labor Day, was extended by one day, including May 2. The two-day increase in the number of public holidays during the year also affects the calculation of workers’ monthly working hours. Prior to this adjustment, the Chinese government had a “monthly working day” of 20.83 days, derived from the formula (365 – 52×2 (i.e. weekends) – 11 (i.e. statutory public holidays))/12, and from January 1, 2025, the “monthly working day” will be adjusted to 20.67 days (i.e. (365 – 52×2 – 13) / 12). If an employer allows its employees to work on the newly added public holidays, they will have to pay overtime at the rate of 300% of the employees’ regular salary.

In China, when public holidays are combined with weekend holidays, employees make up the additional days by working one day each on the weekends before the holiday. In addition, the decree on the inclusion of two new days in the official holidays states that the holidays to be combined with the employees’ annual leave should not exceed 6 days. With this limitation, the decree aims to increase labor productivity without disrupting workplace continuity. With these changes in China, employers and employees are expected to act according to the new order.

You can find the details of the relevant regulation here.

• Austrian Disability Employment Act Introduces Several Improvements for Persons with Disabilities in Legislative Package!

Taking into account the United Nations Convention on the Rights of Persons with Disabilities, Austria complies with international standards in protecting the right to work and employment of persons with disabilities. In this framework, various support and incentive mechanisms are implemented to increase the employment of persons with disabilities and to encourage employers. For example, tax reductions and financial support are provided to employers in case of employment of persons with disabilities. As a result, the legislation on the employment of persons with disabilities in Austria is continuously updated and improved in order to encourage the participation of persons with disabilities in the labor force and to encourage employers to take responsibility in this regard. In this regard, Vienna is adding to its extensive efforts to facilitate the daily lives of people with disabilities.

Section 22h of the Disability Employment Act in a package of laws passed by the Social Committee of the Vienna National Council provides for the mandatory appointment of an accessibility officer for companies with more than 400 employees. In this context, employers are expected to take the necessary measures to increase accessibility in the workplace and support the integration of employees with disabilities. More than one accessibility officer can also be appointed within the company on a voluntary basis. These accessibility officers have a comprehensive responsibility. They are required to both identify deficiencies in the work environment in line with the needs of persons with disabilities and make recommendations to improve working conditions. However, the sanction part of the law, which is the main incentive for employers to implement this new regulation, has not been regulated. Currently, the regulation does not provide for sanctions (e.g. administrative fines) in case accessibility officers are not appointed. This regulation will be implemented as of January 1, 2025.

You can access detailed information here.

• Gender Balance Law in Denmark

Denmark has implemented various legal regulations and policies to promote gender equality. In this context, important steps have been taken to ensure gender balance, especially in business and family life. In particular, as a result of policies and incentives implemented to increase the representation of women on boards of directors, the proportion of women in senior management positions has increased. However, efforts are ongoing to fully achieve gender equality targets. In relation to these efforts, a new Bill on gender balance among members of management in certain large, publicly listed companies has been proposed in the Danish Parliament and aims to implement EU Directive 2022/2381 (Gender Balance Directive). The Bill proposes stricter requirements for addressing gender imbalance at senior and other management levels in certain listed companies. It is stated that this law will be effective as of January 1, 2025.

The Law will apply to joint stock companies whose shares are admitted for trading on a regulated market within the European Union, except for companies with fewer than 250 employees and an annual turnover of not more than DKK 50 million in a financial year, and will affect employers in this respect. Such companies will need to take more robust measures to comply with the requirements of the Law when it comes into force, in order to avoid facing sanctions.

The draft law establishes a comprehensive timetable for covered companies by regulating the selection of candidates, criteria, and means of reaching target figures to ensure gender balance. In addition, the Draft Law regulates that limited liability companies that fail to duly fulfill the requirements of the matters regulated by this draft law can be sued, have compensation obligations and have the burden of proof regarding these matters.

The details of the Draft Law can be found here.

• Regulation on the Fair Distribution of Tips in the United Kingdom (“UK”)

In response to concerns that the increase in card payments was leading to employees not receiving their tips in full, the government has introduced new legislation regulating the distribution of tips. According to this legislation, the main responsibilities that employers must fulfill are:

• Allocate fairly to employees qualified tips, bonuses and service fees that they receive, control or have significant influence over. 
• Avoid any deductions from tips other than statutory taxes and other deductions.
• Deliver all tip payments to employees by the end of the month following the relevant month.
• Provide employees with a written policy explaining how tips are to be managed. 
• Maintain a record of qualified tips paid for three years, and ensure that employees can request access to these records. 
• Explaining in detail to employees how and according to what criteria tips are distributed. 
• Effective October 1, 2024, these regulations will require employers to update their tipping policies and procedures. Courts have also been given new powers to oversee the distribution of tips by employers or to order payment to employees. This includes
• If employers breach the new regulations, employees will be able to claim up to £5,000 in court within 12 months of the breach for damages arising from lost financial benefits.
• If a worker exercises the right to a 3-year review and it is found that the employer has failed to disclose its tipping records or policy, the worker will be able to complain to the tribunal. If the court finds that the complaint has merit, it may order the employer to review its tip allocations, make non-binding recommendations regarding previous tip allocations, or award compensation to the worker.

The Legal Code of Practice aims to make the distribution of tips more transparent and fair and encourages employers to take this guidance into account when formulating their policies.

Details of the regulation can be found here.

• New York Becomes the First State in the United States to Mandate Paid Prenatal Leave!

New York will become the first state to mandate paid leave for prenatal care under a new law approved by Governor Kathy Hochul. By January 1, 2025, all private sector workers in New York will be entitled to an additional 20 hours of paid sick leave for prenatal health care.

Under the current Paid Sick Leave Law, New York employers with five or more employees must provide their workers with 40 to 56 hours of paid sick leave annually. The new law requires an additional 20 hours of paid leave for prenatal care. This leave must be allocated directly to employees and cannot be accrued. When the law comes into force, employers must offer the leave immediately and pay employees at the normal wage rate or the minimum wage, whichever is higher. Employees can also take this leave at hourly intervals.

Employees can use this leave during pregnancy or for prenatal medical appointments. The Law states that this leave includes prenatal health services such as physical examinations, medical procedures, tests and doctor’s appointments, while abortion procedures and fertility treatments are not explicitly defined in the legal text but are listed as covered services on the website.

This authorization is limited to individuals directly receiving antenatal health care and does not apply, for example, if a pregnant individual’s partner accompanies them to an appointment. In addition, health check-ups during the postnatal period are not covered by this leave. Employers may not request medical records from employees for their use of this leave, nor may they ask for probing or confidential information about their prenatal care. As with existing paid sick leave, employers are strictly prohibited from retaliating against employees who take this leave.

Although employers are not explicitly required to notify employees of these new rights, employers should familiarize themselves with the law to ensure compliance with legal requirements. The Law also requires additional administrative preparations to correctly categorize and track leave requests.

Details of the law can be found here.

• Developments on the Digital Employment Contract in Germany

The German Government is involved in various legislative initiatives and laws with implications for employers. On October 18, 2024, the Bundesrat approved the Bureaucracy Relief Act IV (BEG IV) on employment and its conditions. Among these measures are innovations on the digitalization of the employment contract. According to these innovations, as of January 1, 2025, employers will be able to provide information on the main contractual conditions by e-mail. This change allows employers to provide their employees with their employment contracts electronically. Previously, under the German Evidence Act (Nachweisgesetz – NachwG), employers were obliged to provide their employees with written employment contracts. With the new regulation, this obligation can also be fulfilled by digital means. However, certain conditions must be met for the validity of digital employment contracts.

• The main contractual terms can be documented and transmitted electronically in text form.
• ‘Text format’ also includes e-mails and an electronically qualified signature is not required.
• The digital employment contract must be accessible, saved and printable by the employee.
• The employer must request proof of receipt from the employee at the time of transmission.
• If employees request written evidence of their working conditions, employers are required to send this information on paper.
• Any changes to the terms and conditions of employment can also be made in text form. Formal simplifications do not apply to employees working in an economic sector or industry that is at particular risk of undeclared work and illegal employment (Section 2a (1) of the Illegal Employment Act). In this case, providing evidence in paper form remains mandatory.

These legal innovations promote the digitalization of business processes and aim to reduce bureaucratic burdens for both employers and employees. However, the use of digital employment contracts requires attention to data security and confidentiality issues. Furthermore, it is important that the content of digital contracts is clear and understandable in order to fully understand the rights and obligations of the parties.

In conclusion, this step towards digitalization of employment contracts in Germany aims to increase flexibility and efficiency in the world of work. Employers and employees are advised to take the necessary measures to comply with these new regulations and fulfill the legal requirements of digital employment contracts.

Details of the Law can be found here.

• New Era of Meal Card Regulations by 2025

Pursuant to various decisions and circulars issued by the Social Security Council and the Regulation Amending the Regulation on Social Insurance Transactions (“Regulation”) published in the Official Gazette dated December 2, 2024 and numbered 27579, important regulations regarding meal benefits provided by means of meal cards and similar instruments have been implemented.

As per the Regulation published on December 2, 2024, in cases where meals are not provided at the workplace or its outbuildings, in the event that cash payments are made to provide meals to the insured or benefits are provided through instruments such as meal cards, coupons or checks, the daily exemption amount will be determined by the SSI Board of Directors.

Pursuant to the decision of the Social Security Institution dated December 5, 2024 following the Regulation, as of 01.01.2025, the daily amount to be exempted from the premium-based earnings of the meal cost was announced as TRY 158,00.

One of the regulations that attracted the most attention from employees, employers and meal card providers was the distinction made by the Social Security Institution with the Circular dated December 31, 2024 and numbered 2024/17 (“Circular”) regarding payments made by means such as meal cards, vouchers or vouchers. At the end of this process, which started with the decision of the 10th Chamber of the Council of State with the Decision No. 2023/170 and Decision No. 2024/1853, it has been regulated that if the employer provides the meal allowance only with the tools dedicated to cover the cost of the meal, the aforementioned aids can be considered as in-kind aid; if the tools such as meal cards, vouchers or vouchers can be used for purposes other than the payment of the meal price, only a certain part of these aids will not be included in the earnings based on the insurance premium. In this framework, in the event that meal cards, vouchers or coupons are used only for the payment of meal fees and cannot be spent for other purposes or in cash, the amounts loaded on these instruments will not be included in the earnings subject to insurance premium.

However, if the meal cards, vouchers or coupons can be used for other purposes other than meal payment, such as cash or food and beverage shopping, the amount up to TRY 158.00 per day will not be subject to the insurance premium; however, the portion exceeding this amount will have to be included in the insurance premium.

You can access the Regulation here.

• 2025 Minimum Wage Amount and SSI Monthly Ceiling and Base Amounts Has Been Determined!

The new minimum wage amount that will be valid as of January 1, 2025 has been announced. The new minimum wage, determined as TRY 26,005.50 gross per month, will be reflected to employees as 22,104.67 TL net. This net amount means a 30% increase compared to the previous period. However, this regulation affects not only employees but also employers. The total cost of the new minimum wage to the employer has reached TRY 30,621.48. A 5-point discount has been taken into account in the calculation of the employer’s share of the SSI premium. For employers who do not meet the required conditions, the employer’s share will be calculated at a rate of 20.75%.

According to Article 82 of the Social Security and General Health Insurance Law No. 5510, the daily earnings that form the basis of the premiums to be calculated within the scope of this law have been determined as one-thirtieth of the minimum wage. However, the upper limit of the daily earnings cannot exceed 7.5 times this amount.

You can review the content of the news here.

Minimum Wage

Gross Wage	TRY 26.005,50
Social Security Premium Worker’s Share (14%)	TRY 3.640,77
ISP Worker Share (1%)	TRY 260,06
Income Tax Base	0
Income Tax	0
Minimum subsistence allowance	0
Income Tax After Minimum Subsistence Allowance	0
Stamp Duty	0
Total Deduction	TRY 3.900,83
Net Minimum Wage	TRY 22.104,67

Cost of Minimum Wage to Employers

GROSS WAGE	26.005,50
EMPLOYER’S SHARE OF SOCIAL SECURITY PREMIUM (15,75%)	4.095,87
EMPLOYER’S SHARE OF UNEMPLOYMENT INSURANCE (2%)	520,11
COST OF MINIMUM WAGE TO THE EMPLOYER	30.621,48

Limits on Earnings Based on Insurance Premium

	Daily (TRY)	Monthly (TRY)
Lower limit	866,85	26.005,50
Upper limit	6.501,38	195.041,40