Hire Contractors in Turkey

The overall labor force in Turkey constitutes 34.3 million people, making it the second-largest labor force in the whole continent of Europe. 

Over the years, the government has taken numerous measures to transform its young population and immense labor force into a skilled workforce. 

For example, the rapid increase in universities across this country has resulted in more university graduates, approximately 900,000 annually. 

A skilled workforce enables you to increase your business productivity and leads to enhanced profitability and expansion.

This may be why more and more businesses are keen to hire contractors in Turkey. While most seek the services of an Employer-of-Record or contractor management software, others hire directly. 

If you are planning to hire contractors, this article is for you. Read about the detailed process of how to hire contractors in Turkey and the total cost involved.

How to Hire Contractors in Turkey

To hire Turkey contractors effectively, you can implement any of the following methods,

• Hiring contractors directly
• Partnering with an AOR, such as Skuad.

Hiring contractors directly can be a challenging and time-consuming option for you. 

This involves defining project needs, scouting for talent, negotiating payments, managing contractors, and handling payments independently.

Alternatively, a streamlined option is to engage with Skuad AOR to hire independent contractors in Turkey.

Hiring Contractors Through Skuad AOR

• An Agency of Record, such as Skuad, is a third-party service provider that handles all the administrative tasks of hiring contractors, all while ensuring 100% compliance. 
• From drafting country-specific contracts vetted by legal experts to making quick and accurate payments in over 100+ currencies, Skuad boasts some fantastic features. 
• It also has built-in IP protection to safeguard your company’s IP under Turkish law.
• Skuad also allows you to switch from a contractor to an employee while keeping your employment history and other crucial data intact. 

How to Pay Contractors in Turkey

Paying contractors in Turkey directly through platforms such as PayPal or Wise undoubtedly has many benefits. It allows for more flexibility and transparency. 

However, most do not realize that all these advantages come at a significant cost. From handling payroll in different currencies to juggling multiple banking partners, you need to manage various aspects to guarantee on-time and accurate payments for your freelancers. 

To avoid these headaches and, most importantly, to maintain full compliance with taxation laws, businesses switch to contractor management software, or AOR, like Skuad. 

It helps you by:

• Offering payroll in 100+ currencies.
• Guaranteeing reliability and accuracy in all your payroll processing.
• Facilitating a streamlined data payroll consolidation so that you can always ensure your organization’s fiscal health and success.

Challenges of Hiring Contractors in Turkey

While hiring contractors in Turkey offers numerous benefits, it is not exempt from its fair share of unique challenges. 

1. Juggling Complex Labor Laws

The legal landscape for hiring contractors in Turkey presents significant challenges for employers. 

Governed primarily by the Turkish Civil Code 1926, the process requires meticulous adherence to legal formalities. 

Drafting independent contractor agreements that clearly outline work scope and compensation terms is essential but fraught with complexities.

Two critical principles in Turkish contract law compound these challenges:

1. Freedom of Contract: While parties can negotiate terms, ensuring compliance within the bounds of Turkish law demands careful consideration. Missteps can lead to legal disputes and penalties.
2. Good Faith and Fair Dealing: Upholding principles of honesty and fairness throughout contract negotiation and execution is imperative. Failure to do so risks legal repercussions and reputational damage.

Additionally, understanding and adhering to the Turkish Commercial Code and industry-specific regulations further complicates the hiring process. 

The misclassification of contractors carries substantial risks, including financial penalties and operational disruptions.

2. Decoding the Payroll Intricacies 

Unlike employees, independent contractors in Turkey must file and pay their taxes. The tax system in Turkey is progressive, meaning the higher the income, the greater the rate at which individuals are required to pay tax. 

Individual tax rates vary from 15% to 40%, depending on income level. In addition, self-employed individuals, commonly called contractors, must pay an advance tax income (temporary tax) equal to 15% of their previous quarter’s revenue. 

Understanding these nuances and, most importantly, making accurate and on-time payments is a must for every business in Turkey. 

That is why most companies seek the services of an automated contractor payment platform to reduce the burden of all paperwork. However, it usually requires a large amount of monetary resources, which can be challenging for small- to mid-sized business owners. 

3. Non-Compliance with Intellectual Property Rights

Intellectual property created by freelancers or contractors in Turkey can also become a potential issue if it is not clearly defined in the contract. Take this provision, for example. 

According to Law No. 5846 on Intellectual and Artistic Rights, the person who creates a work automatically becomes its exclusive owner regarding material and moral rights. 

Therefore, anyone who wishes to use the material rights associated with the work must seek proper consent from the author. 

This means that unless explicitly specified in the contract if you hire a contractor to create website content for a particular client, the freelancer will automatically acquire the copyright to the content they create.

In the event of copyright infringement, the contractor can file an official complaint with the Public Prosecutor’s Office or even pursue a civil lawsuit. 

To understand and comply with all these legal requirements, you need the necessary in-house expertise or seek the services of contractor management software. 

Unfortunately, both options are expensive, which can be challenging, especially for companies with budgetary constraints.

Hiring Contractors Directly vs Hiring Contractors via Skuad

Here is a detailed comparison of the two main ways by which you can hire an independent contractor in Turkey.

Cost of Hiring Contractors in Turkey

There is no fixed cost to employing contractors in Turkey. It usually varies depending on multiple factors, such as,

• The industry/ sector
• The scope of the project itself or
• The experience level of the freelancers. 

An independent contractor in Turkey with many years of experience will charge you more than someone who has just started their career. 

For example, an entry-level building construction contractor with 1-3 years of experience usually charges around 931.28 Turkish Lira. 

In contrast, an experienced professional with over 8+ years of experience in the same field usually earns around 1.658.657 Turkish Lira.

How to Convert a Contractor into an Employee in Turkey

Switching employees from 1099 to W2 can be a wise decision, especially for valuable talent that plays a crucial role in your company’s overall achievement. 

However, the process is not always easy. It involves a few critical steps, such as the following.

• Research the various employment laws in Turkey, such as the Turkish Civil Code, the constitution, the Turkish Code of Obligations, and more. All these provisions lay down specific guidelines related to the terms and conditions of employment. For example, the average working time in Turkey constitutes 40 hours, and overtime is only allowed up to 11 hours per day.
• Discuss the salary, benefits, and work hours you can provide your future employee. 
• Draft a formal employment contract compliant with Turkish labor laws for the candidate's roles and responsibilities.
• Once your contractor has signed the agreement, conduct a thorough background check to avoid discrepancies. 
• Onboard the new employee into the company and register them on the payroll.

Hire Contractors in Turkey with Skuad

Skuad’s all-in-one solution has empowered multiple businesses worldwide to hire effortlessly while complying with all labor laws. 

With expertise in over 160+ countries, it is a unified platform with various robust capabilities, such as automated invoicing and payments, locally compliant contracts, multi-currency payroll, and more. 

With no hidden fees or surprises, we always guarantee high-quality global employment services to each of our clients.

So, join Skuad today and unlock an infinite pool of talent!

FAQs

Q1: Can I hire someone in Turkey?

Ans: You can hire a contractor if you comply with all labor-related regulations and provisions. You can hire directly or seek the services of contractor management software or an AOR, such as Skuad, to help you with the employment process.

Q2: Can I hire an independent contractor overseas?

Ans:  Yes, you can hire independent contractors overseas. It is one of the most common strategies for companies to expand their business globally. Hiring contractors carries a lot of benefits, such as increased business flexibility and productivity, reduced costs, and access to in-demand skills. 

Q3: Is it cheaper to hire employees or independent contractors?

Ans: Hiring contractors over employees is usually much more cost-effective since it does not involve all the expenses associated with long-term employment commitments. Additionally, independent contractors are not subject to the same benefits as an employee, such as health insurance, provident fund, or gratuity. 

Q4: How does Skuad help with hiring independent contractors in Turkey?

Ans: By partnering with an AOR such as Skuad, the entire journey of hiring contractors globally, not just in Turkey, becomes simplified. Its unified platform features various benefits, such as automated contractor invoicing and payments, payroll in over 100+ currencies, locally compliant contracts, and more. 

Q5: How do I pay an employee living in another country as an independent contractor?

Ans: You can pay independent contractors living in another country in two ways. You can either pay directly without the help of contractor management software. Various platforms, such as PayPal and Wise, are available. However, extensive knowledge of tax and employment laws in the countries where your business operates is required. You can also pay with the help of an AOR, such as Skuad. It is much more cost-effective in the long run and also helps you avoid potential fines and penalties related to non-compliance.