Client Alert:

NEW CRITERIA INTRODUCED FOR THE ASSESSMENT OF WORK PERMIT APPLICATIONS

NEW CRITERIA INTRODUCED FOR THE ASSESSMENT OF WORK PERMIT APPLICATIONS

In recent years, Türkiye has become an increasingly more favoured destination for skilled foreign workers seeking new opportunities. The diverse job market and economic potential have attracted individuals from various professions. To improve clarity and predictability in the work permit application process, the Ministry of Labour and Social Security (the “Ministry”) published a new guideline on 1 October 2024 (the “New Guideline”), outlining the assessment criteria for work permit applications under the International Workforce Law. Additionally, the Ministry introduced changes to the Regulation on the Implementation of the International Workforce Law (the “Regulation”) on 15 October 2024.

A. NEW GUIDELINE

The New Guideline outlines the main criteria that the Ministry will consider when assessing work permit applications and introduces additional requirements for employers. While some of these requirements may seem restrictive, they are designed to ensure job security and create a more equitable work environment for foreign workers.

1- Financial Capabilities of the Employer

Potential employers of the applicants must have (i) a registered share capital of at least TRY 500,000 or (ii) annual net income of at least TRY 8,000,000 or (iii) aggregate annual net exports of at least USD 150,000.

The previous requirement, namely (i) having a registered share capital of TRY 100,000 or (ii) annual net income of at least TRY 800,000 or (iii) annual net exports of at least USD 250,000 will remain in force until 1 January 2025.

2- Employment Criteria

According to the New Guideline, the Ministry still requires potential employers to hire at least 5 Turkish nationals for each foreign worker. However, under the New Guideline, for employers who have an annual net income of at least TRY 50,000,000 (approximately USD 1,450,000 in today’s exchange rate) and up to five foreign workers, this criteria does not apply, although the number of foreign workers cannot exceed the number of Turkish citizens employed in the same workplace.

3- Salary Thresholds

The New Guideline expands on the salary thresholds for foreign workers in different job roles:

a) at least 5 times the minimum wage for senior executives and pilots ,

b) at least 4 times the minimum wage for engineers and architects,

c) at least 3 times the minimum wage for other executives,

d) at least 2 times the minimum wage for jobs requiring expertise or craftsmanship, and

e) at least the minimum wage for jobs related to homecare or other jobs.

4-Assessment Criteria for Foreign Shareholders

For applicants who are shareholders in Turkish companies, The New Guideline sets forth the following requirements: (i) the company must have at least TRY 500,000 paid-in share capital, (ii) the foreign shareholder must own at least 20% of the company’s shares, and these shares must be valued at a minimum of TRY 500,000, and (iii) the company must employ at least five Turkish citizens. This means that 5 equal shareholders of a company that hires 5 Turkish citizens with a paid-in share capital of TRY 2,500,000 will allow all these foreign shareholders to have a better prospect of obtaining a work permit.

Furthermore, if the foreign shareholder owns shares worth more than USD 100,000, the above criteria will not apply for obtaining a work permit.

5. Exemptions for the Employers in the IT Sector

Employers in the IT sector are exempt from the employment and financial criteria mentioned above in the assessment of the work permit applications for the jobs requiring expertise, such as software development, database management and mobile app development.

B. REGULATION

In addition to the above, new changes were adopted recently under the Regulation. While these changes are relatively minimal, they may still be of concern for some individuals. Previously, work permit applicants visiting Türkiye were required to submit their applications at least 30 days after their arrival. The Regulation removes this requirement, allowing applicants to file their work permit applications at any time during their stay in Türkiye.

For further information or assistance regarding the application for Turkish work permit, please do not hesitate to contact us.

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