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04August2025

Amendment to the Regulation on Lines of Business

An amendment has been made to the Regulation on Lines of Business, which governs the scope of work falling under various sectors, an essential element in union organization within the framework of collective labor relations.

The list of lines of business is included in Annex-1 of the Regulation; the jobs covered under each line of business are determined in accordance with international norms and standards concerning the classification of economic activities.

Author Ümit Kır, Category Labor Law

28July2025

Supreme Court 9th Civil Chamber: Pandemic Unpaid Leaves May Be Included in Severance Calculation to a Limited Extent

A divergence emerged among the decisions of the regional courts of appeal concerning whether the period an employee spent on unpaid leave during the COVID-19 pandemic should be included in the calculation of the service period that forms the basis for annual paid leave and severance pay. As a result of this disagreement, the matter was brought before the High Court (Supreme Court of Appeals).

In its ruling dated 29.05.2025, numbered 2025/3201 E. and 2024/1108 K., the 9th Civil Chamber of the Supreme Court held that, in determining the periods that serve as the basis for annual paid leave and severance pay, the time an employee spent on unpaid leave during the pandemic under the scope of provisional Article 10/2 added to Law No. 4857 should be taken into account, provided that it does not exceed the duration formed by adding six weeks to the statutory notice period. Any period exceeding this limit shall not be included in the calculation of the service period.

Author Ümit Kır, Category Labor Law

23July2025

Expenses for Foreign Nationals Working Without a Permit to Be Recovered from Employers

Published in the Official Gazette dated July 23, 2025, and numbered 32502, the "Regulation on the Recovery of Various Expenses from Employers of Foreign Nationals Who Are Subject to Deportation Due to Unauthorized Employment" introduces a new legal obligation directly affecting employers.

According to this Regulation, any public expenses arising during the deportation process of foreign nationals working without a permit in Türkiye shall be recovered from the employer or the employer's representative who engaged these individuals.

Author Ümit Kır, Category Immigration Law

24July2025

New Limitations on R&D Income Tax Incentives and Notification Obligations to KEP

With the Law No. 7555 on the Protection of the Value of the Turkish Currency and Amendments to Certain Laws and Decree Law No. 635, published in the Official Gazette dated July 24, 2025, various regulations have been amended, including notably the Labor Law No. 4857, the Law No. 5746 on Supporting Research, Development and Design Activities, and the Law No. 4691 on Technology Development Zones.

Among the key changes, the amendment establishes new principles for calculating income tax withholding incentives for design and support employee working in R&D, design, and technology development zones. It also introduces new procedures for written and electronic notifications under the labour law.

Author Erdoğdu Onur Erol, Category Taxation Law

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