An employment contract transfer in Turkey allows an employee to move permanently from one employer to another while preserving the existing employment relationship and associated rights. Under Article 429 of the Turkish Code of Obligations, this process requires the employee’s written consent and transfers the contractual rights and obligations to the receiving employer.
For foreign companies operating in Turkey, employment contract transfers can arise during corporate restructuring, transfers between group companies, business reorganizations, and changes in Employer of Record (EOR) providers.
However, transferring an individual employment contract is legally different from transferring an entire workplace or business operation. Each process follows different rules regarding employee consent, employer liability, and employment continuity.
This guide explains the legal requirements for employment contract transfers in Turkey, the responsibilities of both employers, relevant Court of Cassation decisions, and the practical implications for payroll and social security compliance.
Employment Contract Transfer in Turkey: Is It Legal?
Yes. Turkish law permits the permanent transfer of an employment contract from one employer to another, provided the employee gives written consent.
The principal legal basis is Article 429 of the Turkish Code of Obligations (Law No. 6098).
A valid transfer changes the employer who is party to the employment contract without necessarily terminating the underlying employment relationship.
The receiving employer assumes the rights and obligations arising from the transferred contract, while the employee’s previous service period remains relevant for calculating seniority-based entitlements.
For example, an employee who has worked for Company A for four years may transfer to Company B through a valid employment contract transfer agreement.
Although Company B becomes the new employer, the employee’s four years of previous service must be considered when calculating applicable seniority-related employment rights.
This distinction is particularly important when determining severance pay, notice periods, annual leave entitlements, and other contractual benefits.
Legal Requirements for Employment Contract Transfer in Turkey
Article 429 of the Turkish Code of Obligations regulates the permanent transfer of an employment contract.
The provision establishes three fundamental principles:
- An employment contract may be permanently transferred to another employer only with the employee’s written consent.
- The receiving employer becomes the contractual employer and assumes the rights and obligations associated with the employment relationship.
- For employment rights calculated according to length of service, the employee’s original commencement date with the transferring employer must be recognized.
Although Turkish Labor Law No. 4857 does not contain a separate provision specifically regulating individual employment contract transfers, Article 429 applies to employment relationships governed by that law.
This interpretation was expressly confirmed by the Turkish Court of Cassation in its September 25, 2024 decision.
Before arranging a transfer, employers should understand the different types of employment contracts in Turkey and the legal requirements governing employment relationship
Is Employee Consent Mandatory?
Yes.
Written employee consent is a fundamental requirement for a valid individual employment contract transfer under Article 429.
An employer cannot simply assign an employee’s existing employment contract to another company without obtaining the required consent.
The fact that two companies belong to the same corporate group does not eliminate this requirement.
For example, if a foreign-owned Turkish subsidiary wishes to transfer an employee to another subsidiary, the companies should obtain the employee’s written consent and properly document the transfer.
Without a legally valid transfer arrangement, the intended change of employer may create disputes regarding employment continuity, termination entitlements, and contractual responsibilities.
Employment Contract Transfer vs. Workplace Transfer in Turkey
One of the most important legal distinctions is the difference between an individual employment contract transfer and a workplace transfer.
These transactions are governed by separate provisions of Turkish law.
Individual Employment Contract Transfer in Turkey — Article 429
An individual employment contract transfer occurs when the employment relationship of a particular employee is transferred to another employer.
The employee’s written consent is required.
The receiving employer becomes the contractual employer, and the employee’s relevant previous service period is preserved.
This arrangement may be used when transferring an employee between group companies or changing the legal employer without terminating the employment relationship.
Workplace Transfer — Article 6 of Turkish Labor Law
A workplace transfer occurs when a workplace or an identifiable part of it is transferred to another employer through a legal transaction.
Under Article 6 of Labor Law No. 4857, employment contracts existing at the date of a qualifying workplace transfer automatically pass to the receiving employer with their rights and obligations.
Unlike an individual contract transfer under Article 429, a qualifying workplace transfer generally does not require each employee’s separate written consent for the transfer itself.
However, the legal conditions for a workplace transfer must actually be satisfied. Merely describing a transaction as a workplace transfer does not establish that Article 6 applies.
Key Differences Between the Two Transfers
| Legal Issue | Individual Contract Transfer | Workplace Transfer |
|---|---|---|
| Applicable law | Turkish Code of Obligations, Article 429 | Turkish Labor Law, Article 6 |
| Employee’s written consent | Required | Generally not required for the transfer itself |
| Scope | Individual employment relationship | Workplace or identifiable part of a workplace |
| Employment continuity | Preserved | Preserved |
| Seniority rights | Previous service recognized | Previous service recognized |
| Receiving employer | Assumes contractual rights and obligations | Assumes transferred employment contracts |
| Former employer liability | Generally released under a valid Article 429 transfer | Joint liability for specified pre-transfer debts, generally limited to two years |
Employers should determine the correct legal classification before preparing transfer documentation or processing changes in payroll and social security records.
Turkish Court of Cassation Decision on Employment Contract Transfer in Turkey
A significant decision concerning employment contract transfers was issued by the 9th Civil Chamber of the Turkish Court of Cassation.
Decision details:
- Court: Turkish Court of Cassation, 9th Civil Chamber
- Case Number: 2024/7129 E.
- Decision Number: 2024/12435 K.
- Decision Date: September 25, 2024
The dispute concerned an employee who had been transferred from one company to another and subsequently experienced a reduction in remuneration.
The employee argued that the receiving employer had failed to respect the employment rights and salary conditions preserved under the transfer arrangement.
What Did the Court Decide?
The Court confirmed that Article 429 of the Turkish Code of Obligations applies to individual employment contract transfers involving employees covered by Labor Law No. 4857.
It also emphasized that the receiving employer assumes the employment contract with its associated rights and obligations.
Importantly, the employee’s rights are not limited to severance-related entitlements.
The employee’s previous service and contractual conditions must also be considered when determining other employment rights.
In the particular dispute, the Court found that the lower court had incorrectly assessed the employee’s remuneration under the applicable collective bargaining arrangements and ordered the decision to be overturned.
Why Is This Decision Important for Employers?
The ruling demonstrates that an employment contract transfer cannot be used simply to disregard existing salary conditions or other acquired contractual rights.
For example, an employer transferring an employee to another company should not assume that the receiving company can automatically apply a lower salary scale.
Any proposed change to essential employment conditions must be assessed separately under the applicable labor law requirements, including Article 22 of Labor Law No. 4857 where relevant.
Employee Rights After an Employment Contract Transfer in Turkey
A valid employment contract transfer generally preserves the continuity of the employment relationship.
The receiving employer assumes the contractual position of the previous employer, including the rights and obligations associated with the transferred employment contract.
Several employment entitlements require particular attention.
Severance Pay and Seniority
The employee’s original employment commencement date remains relevant when calculating seniority-based rights.
For example, if an employee worked for the transferring employer for three years and subsequently worked for the receiving employer for two years, the relevant continuous service period may be five years.
If the employee later becomes entitled to severance pay under Turkish law, the preserved service period must be considered when calculating the entitlement.
The transfer itself does not automatically trigger severance pay where the employment relationship continues through a valid contract transfer.
Annual Leave Entitlements
Previously accrued annual leave rights should be preserved as part of the transferred employment relationship.
The receiving employer should obtain accurate records of the employee’s annual leave usage and remaining entitlement.
Failure to transfer reliable leave records can create disputes when the employee later requests leave or terminates employment.
When an employment contract is transferred, accurate annual leave records are essential to preserving the employee’s existing entitlements. Our guide to annual leave in Turkey explains how leave entitlements are calculated, documented, and managed under Turkish employment law.
Salary and Contractual Benefits
The receiving employer must respect the rights arising from the transferred employment contract.
These may include:
- Base salary and agreed remuneration arrangements.
- Contractual bonuses and commissions.
- Allowances and benefits.
- Working time arrangements.
- Other enforceable contractual entitlements.
Any proposed modification should be reviewed under Turkish labor law rather than treated as an automatic consequence of the transfer.
Notice Periods
Statutory notice periods in Turkey depend on the employee’s length of service.
Because the relevant service period is preserved in a valid employment contract transfer, the receiving employer must consider the employee’s original commencement date when determining applicable notice periods.
Is the Former Employer Still Liable After the Transfer?
The answer depends on the type of transfer.
Under a valid individual employment contract transfer governed by Article 429, the receiving employer becomes the party to the employment contract and assumes its associated rights and obligations.
The Court of Cassation’s 2024 decision explains that the transferring employer is generally released from contractual responsibility for both pre-transfer and post-transfer periods in this type of transaction.
However, this conclusion should not be extended automatically to every business restructuring.
Separate statutory liabilities, public-law obligations, invalid transfer arrangements, or other legally distinct claims may require individual assessment.
Liability in a Workplace Transfer
The position is different under Article 6 of Turkish Labor Law.
For a qualifying workplace transfer, the transferring and receiving employers are jointly liable for certain debts that arose before the transfer and were payable at the transfer date.
The transferring employer’s joint liability under Article 6 is generally limited to two years from the transfer date.
This distinction is particularly important when businesses negotiate responsibility for unpaid wages, employment-related liabilities, and historical employee entitlements.
Employment Contract Transfers Between Group Companies
International corporate groups frequently reorganize their operations by transferring employees between subsidiaries or affiliated companies.
For example, a multinational group may wish to move an employee from one Turkish subsidiary to another as part of a restructuring.
Although the companies may share the same ultimate parent company, they remain separate legal employers.
A transfer between them should therefore be assessed under the relevant employment transfer rules.
For an individual contract transfer, employers should ordinarily prepare a written arrangement identifying:
- The transferring employer.
- The receiving employer.
- The employee.
- The effective transfer date.
- The employee’s original commencement date.
- Existing salary and contractual benefits.
- Accrued annual leave and other employment entitlements.
- The parties’ agreement concerning the transfer.
The agreement should clearly demonstrate the employee’s written consent.
Changing an Employer of Record (EOR) Provider in Turkey
Employment contract transfers can also arise when an international company changes its Employer of Record provider.
An EOR arrangement typically involves a local legal employer that hires employees and manages payroll, social security and employment administration on behalf of an international client.
If the international client decides to change EOR providers, the employees may need to move from the existing provider to the new provider.
Can Employees Transfer Directly Between EOR Providers?
Potentially, yes.
An individual employment contract transfer under Article 429 may be considered where the relevant legal requirements are satisfied.
However, changing EOR providers does not automatically qualify as a workplace transfer under Article 6.
The correct legal approach depends on the underlying facts and the structure of the transaction.
What Should Companies Check Before Changing EOR Providers?
Companies should review the following matters:
- Whether employees will transfer through a valid contractual arrangement or through termination and new employment.
- Whether the required written employee consent has been obtained.
- Whether previous service dates and accrued entitlements will be preserved.
- Whether outstanding salary, bonus, leave and benefit records are accurate.
- Whether social security registrations and payroll transitions can be completed correctly.
- Whether foreign employees hold work permits requiring additional action.
A poorly structured transition can expose the parties to employment disputes, unexpected termination liabilities and payroll compliance problems.
For international businesses, coordinating the legal transfer structure with the operational payroll transition is essential.
Companies unfamiliar with this employment structure can review our detailed guide to Employer of Record in Turkey, which explains employment contracts, payroll obligations, social security requirements, and the legal framework governing EOR arrangements.
Payroll and SGK Requirements for Employment Transfer in Turkey
Employment contract transfers involve more than signing an agreement between the parties.
The employers must also ensure that the change is correctly reflected in their employment administration and social security records.
SGK Registration and Reporting
Where an employee changes legal employers, the relevant Turkish Social Security Institution (SGK) notifications generally need to be reviewed and completed.
Depending on the circumstances, the transferring employer may need to submit the applicable employment exit notification, while the receiving employer must complete the required employment entry notification.
These administrative records should reflect the actual legal arrangement.
An SGK exit and entry recorded for administrative purposes should not automatically be treated as evidence that the employee’s substantive employment rights have been extinguished.
The applicable notification codes, deadlines and reporting procedures must be checked against the transaction’s legal classification.
Payroll Records and Historical Information
The receiving employer should obtain sufficient historical information to administer the employee’s entitlements correctly.
Relevant information may include:
- Original employment commencement date.
- Current gross salary.
- Accrued and unused annual leave.
- Bonus and commission arrangements.
- Payroll deductions and benefits.
- Relevant tax and social security records.
- Outstanding employee receivables or obligations.
The employers should also review the income tax treatment of payments made during the transition, including the applicable rules for cumulative payroll tax calculations.
The transfer of an employment contract does not remove the employer’s ordinary obligations concerning payroll taxes, social security contributions and statutory reporting.
Employment transfers may also require a review of payroll taxation and reporting obligations. For additional guidance on tax advisory and compliance in Turkey, companies can consult Metropol Partners.
What Happens to Foreign Employees’ Work Permits?
Additional considerations apply when an employment contract transfer involves a foreign national working in Turkey.
Turkish work permits are generally linked to the authorized employer and employment conditions.
Therefore, an employment contract transfer does not automatically transfer an existing employer-specific work permit to the receiving company.
Before implementing the change, the parties should determine whether a new work permit application or another applicable authorization procedure is required.
The timing of the employment transfer should be coordinated with the work permit process to avoid unauthorized employment.
This is particularly important for multinational groups, foreign-invested companies and EOR arrangements involving international employees.
When transferring foreign employees between legal employers, companies should review the applicable immigration requirements before implementing the change. Our Work Permit in Turkey guide explains employer eligibility, application procedures, required documents, and work permit conditions.
Employment Contract Transfer in Turkey: Step-by-Step Process
A structured transfer process can reduce legal uncertainty and administrative errors.
Step 1: Determine the Legal Type of Transfer
First, establish whether the transaction is an individual employment contract transfer under Article 429 or a qualifying workplace transfer under Article 6.
The applicable legal framework affects employee consent, employer liability and documentation requirements.
Step 2: Review the Existing Employment Contract
Examine the employee’s current salary, benefits, commencement date, annual leave records and any special contractual provisions.
Outstanding employee entitlements should be identified before the transfer.
Step 3: Obtain Written Employee Consent
For an individual employment contract transfer, obtain the employee’s written consent.
A tripartite agreement between the employee, transferring employer and receiving employer is commonly used to document the arrangement.
Step 4: Prepare the Transfer Documentation
The documentation should identify the effective transfer date, receiving employer and treatment of existing employment rights.
The agreement should not improperly waive mandatory employee protections.
Step 5: Coordinate Payroll and SGK Procedures
The employers should arrange the applicable social security notifications, transfer relevant payroll information and verify the continuity of employment entitlements.
Step 6: Review Work Permit Requirements
If the employee is a foreign national, assess the relevant work permit requirements before changing the legal employer.
Step 7: Maintain Complete Employment Records
Keep the signed transfer agreement, employee consent, payroll information, annual leave records and relevant social security documentation.
These records may be important in future employment disputes, audits or termination calculations.
Common Mistakes in Employment Contract Transfer in Turkey
Employers implementing employment contract transfers in Turkey should avoid several common mistakes.
Transferring employees without written consent: An individual transfer under Article 429 requires written employee consent.
Treating contract transfers and workplace transfers as identical: The legal requirements and liability consequences differ.
Resetting employee seniority: A valid transfer does not automatically erase previous service.
Reducing salary without a valid legal basis: The receiving employer must respect existing contractual rights and applicable rules governing changes to employment conditions.
Ignoring historical payroll records: Missing leave, salary or benefit information may lead to incorrect calculations.
Overlooking work permit requirements: A change of legal employer can require separate immigration compliance procedures.
Assuming the former employer is always released from liability: Liability depends on the applicable transfer framework and the nature of the obligation.
How Metropol Consulting Supports Employment Transitions in Turkey
Employment transfers require coordination between contractual documentation, payroll administration, social security reporting and employment compliance.
Metropol Consulting supports international companies operating in Turkey through services including:
- Payroll Administration: Managing payroll transitions, historical employee records and ongoing payroll compliance.
- Employer of Record Services: Supporting international companies with local employment arrangements and EOR transitions.
- Employment Compliance Coordination: Assisting with employment documentation and coordinating relevant legal requirements.
- Social Security Reporting: Supporting applicable SGK registration and notification procedures.
- Work Permit Services: Assisting with work permit applications when foreign employees change employers.
- Operational Support: Coordinating administrative requirements during corporate reorganizations and employment transitions.
Whether your company is restructuring its Turkish operations, transferring employees between group companies or changing EOR providers, a properly planned transition can help preserve employee rights and reduce compliance risks
Companies planning employment transfers or corporate reorganizations may also require support with contractual documentation and employee rights. Our labor law advisory services in Turkey help businesses assess employment-related obligations and coordinate compliant transitions..
Planning an employment transfer in Turkey?
Contact Metropol Consulting to discuss your employment structure, payroll transition requirements and operational compliance needs.
Frequently Asked Questions About Employment Contract Transfers in Turkey
Can an employee be transferred to another company in Turkey?
Yes. Under Article 429 of the Turkish Code of Obligations, an employee’s employment contract may be permanently transferred to another employer with the employee’s written consent.
Is written employee consent required for an employment contract transfer?
Yes, for an individual employment contract transfer under Article 429. A qualifying workplace transfer under Article 6 of Turkish Labor Law follows different rules and generally does not require separate written employee consent for the transfer itself.
Does an employment contract transfer reset seniority?
No. The employee’s original commencement date with the transferring employer must be considered when calculating applicable seniority-based rights.
Is severance pay required when an employee transfers to another employer?
A valid employment contract transfer does not automatically trigger severance pay because the employment relationship continues. However, severance entitlements may arise later if the employment relationship ends under circumstances qualifying for severance pay.
Can an employer reduce salary after transferring an employee?
An employer cannot automatically reduce existing contractual remuneration simply because an employment contract has been transferred. Any proposed change must comply with applicable Turkish employment law and contractual requirements.
Is the previous employer liable after an employment contract transfer?
Under a valid individual transfer governed by Article 429, the previous employer is generally released from the transferred contractual obligations. Different liability rules apply to workplace transfers under Article 6.
Can an employee transfer between two companies belonging to the same group?
Yes. However, separate group companies are distinct legal employers. An individual employment contract transfer between them generally requires compliance with Article 429, including written employee consent.
Can employees transfer between EOR providers in Turkey?
An employment contract transfer may be possible when changing EOR providers, provided the legal requirements are satisfied. The appropriate structure depends on the circumstances, and payroll, SGK and work permit implications should be reviewed.
Does an employee need a new work permit when changing employers?
Foreign employees holding employer-specific Turkish work permits generally require appropriate authorization for the receiving employer. The existing permit should not be assumed to remain valid for employment with a different legal entity.
What documents are required for an employment contract transfer?
Common documentation includes a written transfer agreement, the employee’s written consent, existing employment contract details, payroll records, accrued leave information and applicable SGK notifications.
This article provides general information about employment contract transfers in Turkey as of October 2026. The applicable legal requirements depend on the transaction’s structure and individual circumstances. Companies should obtain case-specific legal and payroll advice before implementing a transfer.