Labor relations, often used interchangeably with terms like industrial relations, labor-management relations, and employment relations, describe the formal and structured relationships between employers, workers, and the state. As J. Henry Richardson famously stated, 'Industrial relations are the art of living together for purposes of production.' While it is common to assume that labor relations only involve two parties—the workers and the employers—the state plays a crucial, multi-faceted role as a regulator, an employer, and a conflict arbitrator. Thus, any comprehensive study of labor relations must analyze all three major actors: workers and their trade unions, employers and their organizations, and state institutions.
The entire system of labor relations is divided into two main branches: individual labor relations and collective labor relations. These two branches are the two sides of the same coin. Individual labor relations focus on the bilateral relationship established between an individual worker and his or her employer, which is primarily governed by individual labor law. In contrast, collective labor relations deal with the organized, group-level interactions between trade unions representing the workers on one side, and employers or employers' organizations on the other, regulated by collective labor law.
Regardless of whether the relations are individual or collective, the labor relations system establishes a complex network of rules to govern the workplace and the broader work community. These rules can take various forms, including legislative acts, government decrees, workplace customs, individual employment contracts, and collective labor agreements. Their primary objectives are to define the legal status of each actor and to govern their conduct. In the modern business environment, well-managed labor relations build trust and confidence, providing a smooth Human Resource Management (HRM) flow and a distinct competitive advantage to the organization.
In Turkey, individual labor relations are governed by the Labor Act (LA) No: 4857, which was enacted in 2003. To understand the legal boundaries of these relations, one must first define its fundamental subjects. The first subject is the 'Worker'. According to Article 2/1 of the Labor Act, a worker is a real person who works based on an employment contract. The defining characteristic of a worker is subordination (dependency), meaning they carry out their tasks under the direct orders and instructions of an employer. This distinguishes them from independent, self-employed individuals like tradesmen or craftsmen.
It is critical to differentiate workers from worker-like individuals such as public servants, apprentices, and trainees, none of whom are legally classified as workers. Public servants are appointed under the Public Servants' Act No: 657 and are governed by administrative law rather than labor law. Apprentices are governed by the Vocational Training Act No: 3308, which focuses on improving skills and work habits through a mix of theoretical and practical training under an apprenticeship contract. Trainees, on the other hand, are individuals who already possess theoretical knowledge and seek to acquire practical experience in their respective fields. Neither apprentices nor trainees work under a standard employment contract, and thus they do not hold worker status.
On the opposite side of the spectrum is the 'Employer', defined by the Labor Act as any real or corporate person, or a non-corporate institution or organization that employs workers. This broad definition means that universities, trade unions, private factories, shopping malls, municipalities, and foundations are all legally classified as employers if they hire workers. Because modern businesses are often too large for employers to manage alone, they delegate authority to 'Employer's Representatives'. These representatives act on behalf of the employer and are charged with directing the work, the establishment, or the enterprise. The employer remains directly liable to the workers for the actions of these representatives. Interestingly, holding the status of an employer's representative does not strip that person of their own rights and obligations as a worker in relation to the principal employer.
The physical and organizational boundary where labor relations occur is the 'Establishment' or workplace. The Labor Act defines it as a unit wherein workers, material elements (such as buildings, machinery, and equipment), and immaterial elements (such as patents, operational experience, inventions, and customer relations) are organized by the employer to ensure the production of goods or services. The legal definition of a workplace extends beyond the main production floor; it includes all annexed facilities such as rest rooms, day nurseries, dining rooms, dormitories, bathrooms, medical examination rooms, physical or vocational training areas, courtyards, and even company vehicles used for transport.
While the standard employment relationship is strictly bilateral (consisting of one worker and one employer), modern labor markets utilize triangular relationships. The first major triangular relationship is 'Subcontracting'. In this arrangement, a principal employer contracts a subcontractor (sub-employer) to carry out auxiliary tasks (such as cleaning, security, catering, or personnel transport) or specialized sections of the main activity that require technological expertise (such as a hospital subcontracting its laboratory services). The subcontractor recruits workers exclusively to work in the principal employer's establishment. Crucially, the principal employer is held jointly liable with the subcontractor for all obligations arising from the Labor Act, the individual employment contracts, or any applicable collective agreements.
The second major triangular relationship is 'Temporary Agency Work'. In this setup, a worker is legally employed by a private employment agency but is hired out temporarily to perform services under the supervision and direction of a user company. In Turkey, private employment agencies must be authorized to provide temporary workers. These flexible, non-standard working arrangements are increasingly common as businesses seek to adapt to fluctuating market demands and technological shifts, though they require careful legal monitoring to prevent the exploitation of the hired labor force.
The individual labor relationship is formally established by an employment contract. The Labor Act defines this as an agreement whereby the worker undertakes to perform work in subordination to the employer, who in turn undertakes to pay the worker a wage. Therefore, the contract is built upon three indispensable elements: the performance of work, the payment of a wage, and dependency (subordination). Subordination is the unique element that distinguishes an employment contract from other service contracts. For instance, an independent lawyer works for a client for a fee, but because they are not subordinated to the client's administrative control, their agreement is not an employment contract. However, if a company hires an in-house lawyer under its direct supervision, that lawyer is a worker.
While employment contracts do not generally require a specific written form to be valid, the Labor Act mandates a written form for contracts with a fixed duration of one year or more, as well as for on-call and telecommuting contracts. If no written contract is executed, the employer is legally obligated to provide the worker with a written document within two months at the latest. This document must outline the general and special working conditions, daily or weekly working hours, basic wage and supplements, payment intervals, contract duration (if fixed), and termination conditions. The parties can also agree to a trial (probation) period to evaluate mutual suitability. The trial period cannot exceed 2 months, though it can be extended up to 4 months through a collective labor agreement. During this trial period, either party can terminate the contract without notice or compensation, though the worker must be paid for the days they actually worked.
The freedom to contract is subject to specific legal bans and protective obligations. Employment of children under the age of fifteen is generally prohibited, with an exception for children who have completed fourteen years of age and their primary education, who may be employed in light jobs that do not hinder their development or schooling. Furthermore, it is strictly prohibited to employ men under eighteen and women of any age in underground or underwater works, such as mining, cabling, sewer works, and tunnel construction. Foreign nationals must obtain an official work permit before starting work. Conversely, the law mandates 'obligatory employment' for certain groups: public and private establishments employing 50 or more workers must employ disabled individuals (at a ratio of 3% in the private sector and 4% in the public sector). Public sector employers must also employ ex-convicts or victims of terrorism at a ratio of 2%.
The Labor Act categorizes employment contracts into several distinct types based on their duration, working hours, and the nature of the work. The first distinction is between 'Transitory' (temporary) and 'Continual' (permanent) contracts. Temporary work is defined as work that, by its nature, lasts up to 30 days, whereas permanent work requires a period longer than 30 days. This distinction is highly significant because key protective provisions of the Labor Act—such as annual paid leave, job security, and severance pay—do not apply to temporary employment contracts.
Another major classification is between 'Definite' (fixed-term) and 'Indefinite' contracts. A definite contract is concluded in writing for a specified term or is tied to the completion of a specific project or the occurrence of a certain objective event. Workers on definite contracts do not enjoy job security protections. An indefinite contract, which is the standard form of employment, has no set expiration date and receives full protection under the Labor Act. Contracts are also classified by hours: 'Full-time' contracts cover standard office hours, while 'Part-time' contracts are those where the weekly working hours are fixed considerably shorter (at least less than two-thirds) than those of a comparable full-time worker. For example, if full-time work is 45 hours, any contract for 30 hours or less is considered part-time.
To accommodate modern economic demands, the law regulates highly flexible, non-standard arrangements. 'On-Call' work is a special type of part-time contract where the worker performs work only when the employer calls upon their services. If the contract does not specify the hours, the weekly working time is legally deemed to be 20 hours. The employer must call the worker at least four days in advance and must provide at least four consecutive hours of work per call. Another modern arrangement is 'Telecommuting' (remote work), a written contract where the worker performs their services at home or outside the office using telecommunication devices within the work organization set up by the employer. These flexible arrangements are designed to help workers achieve a better work-life balance while allowing employers to optimize labor costs.
The Labor Act sets strict minimum and maximum standards for working conditions, which cannot be violated to the detriment of the worker. The most fundamental duty of the employer is the payment of wages. A wage is defined as the amount of money paid in cash (in Turkish Liras) by an employer or a third party (such as customer tips in the hospitality sector) to a worker in return for work performed. Wages cannot be paid in bonds, coupons, or goods, and they must be paid at least once a month, though this interval can be reduced to one week by contract. The wage cannot fall below the minimum wage, which is determined at least once every two years by the tripartite Minimum Wage Fixing Board. If a worker's wage is not paid within 20 days of its due date (except for force majeure), the worker has the right to secure their livelihood by avoiding work. This collective withholding of labor is legally protected and is not classified as an illegal strike.
Working hours are capped at a maximum of 45 hours per week and 11 hours per day. Weekly hours are generally divided equally among the working days (e.g., 7.5 hours per day for a 6-day workweek, or 9 hours per day for a 5-day workweek). However, the parties can agree to distribute hours unequally, provided that no single day exceeds 11 hours. The law also permits a 'balancing period' of up to two months (extendable to four months by collective agreement), where weekly hours can exceed 45 hours (e.g., up to 60 hours during peak production weeks) without triggering overtime pay, provided that the average weekly working time over the entire balancing period does not exceed 45 hours. Additionally, employers can require 'compensatory work' within two months to make up for hours lost due to force majeure or holidays, up to a maximum of 3 hours per day.
Overtime work is defined as any work that exceeds 45 hours per week. There are three types of overtime: normal overtime (for operational needs, requiring the worker's annual written consent and capped at 270 hours per year), compulsory overtime (due to machinery malfunctions or urgent force majeure, where worker consent is not required), and emergency overtime (during mobilization for national defense). Overtime hours must be compensated at a rate of at least 1.5 times the normal hourly wage. Alternatively, the worker can choose to receive 1.5 hours of free time for every hour of overtime worked, which must be used within six months. This must be distinguished from 'work at extra hours', which occurs when a contract sets weekly hours below 45 (e.g., 40 hours) and the worker works up to 45 hours. Work at extra hours is compensated at 1.25 times the normal hourly rate, or 1.25 hours of free time.
To protect the physical and mental well-being of workers, the law guarantees daily rests, weekly rests, and annual paid leaves. Daily rest breaks are mandatory and are determined by the length of the daily shift: a shift of up to 4 hours requires a minimum 15-minute break; a shift between 4 and 7.5 hours requires a minimum 30-minute break; and a shift exceeding 7.5 hours requires a minimum 60-minute break. These breaks do not count as working hours. Additionally, workers are entitled to at least one full, uninterrupted 24-hour day off in every seven-day period, typically on Sunday. If a worker is required to work on their weekly rest day, it is treated as overtime work, entitling them to 2.5 times their daily wage. Workers must also be paid their full daily wage for national and public holidays; if they work on these days, they must receive an additional full day's wage.
Annual paid leave is a constitutional right for workers who have completed at least one year of service at the establishment, including the trial period. The minimum duration of annual leave is determined by the worker's length of service: 14 days for 1 to 5 years of service; 20 days for 5 to 15 years of service; and 26 days for 15 or more years of service. Crucially, the annual leave for workers under 18 or over 50 years of age cannot be less than 20 days. Annual leave must be used in the year following the year in which it was earned. The employer must pay the leave remuneration in advance before the worker starts their leave. If the worker is spending their leave in another city, the employer must grant up to 4 days of unpaid travel leave upon request.
Occupational Health and Safety (OHS) is governed by the Occupational Health and Safety Act No: 6331, which applies to all public and private sector employees, including apprentices and trainees. The employer has an absolute duty to ensure the health and safety of workers in every aspect of the work. This duty includes conducting continuous risk assessments, implementing accident prevention measures, employing certified OHS staff (such as workplace doctors and safety occupational experts), establishing OHS boards in workplaces with 50 or more employees, and keeping detailed records of all workplace accidents and occupational diseases.
An employment contract can be terminated either by mutual consent, automatic expiration (for fixed-term contracts), the death of the worker, or unilaterally by either party. Unilateral termination can occur in two ways: by respecting a term of notice (regular termination) or with a just cause (extraordinary termination). For regular termination of an indefinite contract, the terminating party must give advance notice to the other party. The notice period is determined by the worker's tenure: 2 weeks for less than 6 months of service; 4 weeks for 6 months to 1.5 years; 6 weeks for 1.5 to 3 years; and 8 weeks for more than 3 years. The party who terminates the contract without respecting these notice periods must pay the other party 'notice pay' equivalent to the wage for that period.
To protect workers from arbitrary dismissal, the Labor Act establishes a 'Job Security' framework. To qualify for job security, a worker must have an indefinite contract, at least six months of tenure, and work in an establishment that employs 30 or more workers. To dismiss a qualifying worker, the employer must provide a valid reason based on the worker's capacity, conduct, or the operational requirements of the business (such as an economic crisis or technological restructuring). The law explicitly states that union membership, pregnancy, race, religion, or filing a grievance against the employer can never constitute a valid reason for termination. If a worker is dismissed without a valid reason, they can challenge the termination through a specific legal procedure.
The procedure to challenge a dismissal requires the worker to apply for mandatory mediation within one month of the termination notice. If mediation fails to resolve the dispute, the worker can file a lawsuit in the labor court or apply for voluntary arbitration within two weeks of the final mediation report. If the court or arbitrator rules that the termination was null and void, the worker must apply to the employer for reinstatement within ten business days of the ruling. The employer must reinstate the worker within one month; if they fail to do so, they must pay 'job security compensation' (ranging from 4 to 8 months' wages) plus up to 4 months of back pay for the period the worker was out of work during the lawsuit. If the court finds that the termination was due to union-related reasons, the worker is entitled to union compensation of not less than one year's wage.
Either party can terminate an employment contract immediately and without respecting any notice period if they have a 'just cause'. The Labor Act categorizes just causes into three main groups for workers (Article 24) and four groups for employers (Article 25). These groups include reasons of health, immoral or dishonorable conduct, and force majeure. For employers, a fourth group is the worker's arrest or detention if their absence exceeds the statutory notice period. For example, a worker can terminate the contract immediately if the employer fails to pay their wages, sexually harasses them, or misleads them about working conditions. Conversely, an employer can terminate the contract immediately if the worker is caught stealing, discloses trade secrets, sexually harasses a colleague, or is absent without permission for two consecutive days.
Severance pay is a lump-sum payment made to a worker when their employment contract is terminated under specific circumstances, provided they have at least one year of service at the establishment. Although the Labor Act No: 4857 envisioned a severance pay fund, it has not yet been established, meaning Article 14 of the previous Labor Act No: 1475 remains in force. A worker is entitled to severance pay if they are dismissed by the employer (except for immoral or dishonorable conduct under Article 25/II), if they terminate the contract themselves for a just cause under Article 24, or if the contract ends due to the worker's death, military service, or retirement. Additionally, a female worker who resigns within one year of her marriage is entitled to severance pay. However, a worker who simply resigns (regular termination under Article 17) without a just cause or qualifying reason is not entitled to severance pay.
The amount of severance pay is calculated as 30 days' wages for each full year of service, with any additional months paid pro rata. The calculation is based on the worker's last gross wage, which includes their basic wage plus any regular, measurable monetary benefits such as bonuses, meal allowances, and clothing allowances. There is a legal cap on the maximum amount of severance pay that can be paid per year of service, which is adjusted periodically by the government. Upon termination, the employer is also legally required to issue an 'employment certificate' to the worker, stating the nature and duration of their employment.
While individual labor relations focus on the single worker, collective labor relations deal with organized groups. In these relations, workers are represented by trade unions, and employers are represented either individually or by employers' organizations. Collective labor relations are built upon three fundamental, mutually reinforcing pillars: the right to organize, the right to collective bargaining, and the right to strike. In Turkey, these relations are governed by the Trade Unions and Collective Labor Agreement Act (TUCLA) No: 6356, enacted in 2012. Trade unions are self-helping, financially independent organizations funded solely by their members' dues, established to protect and promote the common economic, social, and working interests of their members.
According to the TUCLA, any person over the age of 15 who is legally considered a worker has the right to join a trade union. This right encompasses both 'positive union freedom' (the freedom to form and join unions of one's choice) and 'negative union freedom' (the freedom not to join a union or to resign from one). To prevent discrimination, the law prohibits employers from treating union members differently from non-members regarding working conditions or termination. Both union membership and resignation must be processed securely through the government's e-state portal. To establish a trade union, at least seven workers must come together. Trade unions and employers' organizations must be organized on an industrial basis; the law divides economic activities into 20 distinct industries, and occupational or craft-based unions are prohibited.
Trade unions often associate to form 'Confederations', which are umbrella organizations with legal personalities established by at least five trade unions or employers' organizations operating in different sectors. In Turkey, there are five major labor confederations, with Türk-İş being the oldest and largest, alongside DİSK, Hak-İş, Tüm-İş, and Birlik-İş. Employers are represented by a single major confederation, the Turkish Confederation of Employers' Unions (TİSK). To keep the public informed, the Ministry of Labor, Social Services, and Family publishes union density rates and membership numbers in the Official Gazette twice a year, in January and July.
Collective bargaining is a structured negotiation process between an authorized trade union and an employer or employers' organization to establish the terms and conditions of employment. The final output of this process is a 'Collective Labor Agreement' (CLA). A CLA is a legally binding, written contract that regulates the conclusion, content, and termination of individual employment contracts. It typically covers wage levels, payment systems, working hours, fringe benefits, job security, health and safety protocols, and union activities. Unless otherwise specified, the provisions of an individual employment contract cannot contradict the CLA; if they do, the more favorable provisions of the CLA automatically replace them.
To enter into collective bargaining, a trade union must first obtain 'authorization' (competence) from the Ministry. The TUCLA sets two strict thresholds for authorization: the union must represent at least 1% of the total workers employed in that specific industry nationwide, and it must represent more than 50% of the workers in the specific workplace (or 40% of the workers if bargaining at the company/undertaking level). If no union meets these dual thresholds, collective bargaining cannot take place. Once authorization is granted, the parties must hold their first meeting, and the collective bargaining period is limited to 60 days from that date. CLAs must be concluded for a period of not less than one year and not more than three years, with a two-year duration being the most common in Turkey.
There are three main levels of collective agreements in Turkey: the workplace (local) agreement, the undertaking (company) level agreement (mandatory when an employer has multiple workplaces in the same industry, such as a bank with many branches), and the group agreement (concluded between a trade union and an employers' organization covering multiple employers in the same industry). As a general rule, only members of the signatory trade union benefit from the CLA. However, non-member workers can benefit from it by paying a monthly 'solidarity due' to the union, which is slightly less than the standard membership fee. Certain high-level managerial staff, known as 'non-covered workers', are typically excluded from the CLA's coverage.
When negotiations break down during collective bargaining, a 'collective interest dispute' arises. Before any industrial action can be taken, the dispute must undergo mandatory mediation. The Ministry appoints a neutral mediator who has a maximum of 15 days (extendable by 6 days) to help the parties reach an agreement. The mediator's proposals are not legally binding. If mediation fails, the trade union has the right to call a strike. In Turkey, a lawful strike is defined as a concerted cessation of work by workers to safeguard or improve their economic and social positions during collective bargaining. Only strikes related to collective interest disputes are legal; political, general, solidarity, and wildcat strikes, as well as slow-downs or work-to-rule actions, are strictly prohibited.
An employer can respond to a strike by calling a 'lock-out', which is the collective suspension of workers from work, completely halting the workplace's activities. A lock-out is only lawful if it is defensive—meaning it is called in response to a trade union's strike decision. During a strike or lock-out, the individual employment contracts of the participating workers are suspended, not terminated. This means the employer's duty to pay wages and the workers' duty to perform work are both put on hold. Workers do not receive wages during this period, though trade unions may support their members using their internal strike funds. To ensure democratic decision-making, if one-fourth of the workers at a workplace request it in writing within six days of a strike announcement, a 'strike ballot' must be held. If the majority of workers vote against the strike, the strike is blocked, and the dispute is referred to the Supreme Arbitration Board.
The right to strike and lock-out is subject to permanent bans in critical sectors, such as life and property saving services, funeral services, water, electricity, natural gas, coal, petroleum, banking, firefighting, hospitals, and military businesses. In these sectors, if mediation fails, the dispute is automatically referred to the Supreme Arbitration Board, a tripartite compulsory arbitration body whose decisions are final and binding, acting as a collective agreement. Furthermore, the President of Turkey has the authority to postpone a legal strike or lock-out for up to 60 days if it threatens public health, national security, or urban mass transportation. During this 60-day postponement, the mediator continues to work; if no agreement is reached by the end of the period, the Supreme Arbitration Board settles the dispute permanently.