New Labor Market Standards in Turkey: A Shift for Foreign Workers
The Turkish Ministry of Labor has introduced significant amendments to work permit regulations for foreigners, effective from October 1, 2024. These changes aim to simplify the process of obtaining work permits, addressing long-standing bureaucratic challenges that have previously hindered both foreign workers and employers. The new regulations are designed to reduce the number of undocumented workers and enhance legal protections for foreign employees, thereby stabilizing the labor market and minimizing exploitation.
Key Changes to Work Permit Regulations
Among the most notable amendments is the removal of the previous requirement for companies with annual net sales exceeding 50 million Turkish liras (approximately $1.47 million) to hire five Turkish citizens for every foreign worker. This change allows larger companies to hire foreign talent more freely, especially in sectors facing skill shortages. Additionally, the financial criteria have been relaxed; the minimum paid-up capital for institutions has been lowered from 500,000 Turkish liras to just 100,000 liras, and sales requirements have also been significantly reduced.
The regulations now also redefine the minimum wage for foreign workers, particularly for executives and specialized professionals, which has been adjusted to make employment more attractive for companies. The amendments further exempt foreign workers residing in Turkey for at least three years from certain employment criteria, although they must still adhere to the stipulation that foreign employees cannot exceed the number of Turkish workers in the establishment.
Implications for the Turkish Labor Market
These regulatory changes come in response to the pressing need for Turkey to attract qualified foreign workers and investors, a sentiment echoed by legal experts like Ibrahim Sayji. The new measures are expected to enhance Turkey's competitiveness on the global stage by facilitating the legal employment of foreign nationals, thereby contributing to economic growth and labor market stability. With over 316,000 applications for work permits in 2023, the Turkish government is keen on improving the legal status of foreign workers and reducing the informal labor sector that has proliferated due to stringent regulations.
In summary, the recent amendments to Turkey's work permit regulations represent a pivotal shift aimed at creating a more inclusive and efficient labor market for foreign workers, while also addressing the needs of businesses seeking to hire skilled personnel.
