Provisional Article 1 of the International Labor Force Law No. 6735 and the Regulation on Work Permits for Non- Turkish Citizens introduced comprehensive changes to the work permit criteria for foreigners who are company partners.

Financial Qualification Criteria

In the new regulation, in order for foreign partners to obtain a work permit, the amount of capital to be invested in the business subject to the balance sheet basis has been determined as at least TRY 500.000. Besides this capital amount, the foreign partner is required to own at least 20 percent of the capital. While the previous regulation defined financial adequacy in more general terms, the new regulation makes it more measurable and specific. These criteria aim to increase the contributing foreign partners to enterprises and to ensure the stability of financial structures.

Employment Requirements

The new regulation states that the employment criterion will not be applied in the evaluation of work permit applications for up to five foreigners to be employed in the workplace with a net sales amount of 50.000.000 TRY, although it is still obligatory to employ at least five Turkish citizens in the workplaces.

Net Sales and Export Criteria

Another noteworthy innovation in terms of financial criteria paying net sales and export figures. In the old regulation, the paid-in capital of the workplace had to be at least 100.000 TRY or the gross sales had to be at least 800.000 TRY or the export amount of the last year had to be at least 250.000 USD, whereas with the new regulation, in the work permit application to be made on behalf of the foreigner to be employed in the workplace; it is stated that the paid-in capital of the workplace must be at least 500.000 TRY or the net sales must be at least 8.000.000 TRY or the export amount must be at least 150.000 USD. These regulations stand out as a supportive element for businesses in international markets and contribute to Turkish firms to be more effective in international competition.

Wage Determination Criteria

The new regulation introduces more detailed criteria for determining the wages to be paid to foreigners. Under the previous regulation, certain occupational groups were required to be paid certain multiples of the minimum wage. For example, senior executives were to be paid 6.5 times the minimum wage, engineers and architects were to be paid 4 times the minimum wage, those working in specialized jobs were to be paid 3 times the minimum wage, and foreigners working in domestic services were to be paid the minimum wage. However, the new regulation only requires a general wage qualification.

Temporary Obligations and Exemptions

Transitional provisions also have an important place in the new regulation. It is stated that for work permit applications made until 01/01/2025, the conditions that the paid-in capital of the workplace must be at least 100.000 TRY, the gross sales must be at least 800.000 TRY or the export amount of the last year must be at least 150.000 USD will be considered sufficient. This regulation provides additional time for employers to adapt to the new conditions and facilitates the transition process.

Specific Assessment Criteria by Sector, Occupation or Job

Regulations on work permits for foreigners differ by sector. In the IT sector, employment and financial qualification criteria do not apply for specialized positions, while in the education sector, prior authorization from the Ministry of National Education or the Council of Higher Education is mandatory for positions requiring professional qualification. In the domestic services sector, it is essential to employ foreigners in child, disabled or elderly care and patient accompaniment jobs. In the aviation sector, employment criteria are not applied in the Turkish representative offices of foreign flag carrier airline companies. While some exemptions are provided for qualified investments in sectors requiring advanced technology, employment and financial qualification criteria do not apply to foreigners working in public projects. In the health sector, it is mandatory to obtain prior authorization from the Ministry of Health for positions requiring professional qualification. In the tourism sector, exemptions from employment criteria are provided for specialized jobs under certain conditions, and foreign students studying at higher education institutions in Turkey can work part-time under certain conditions. These regulations provide specific criteria and exemptions for the needs of each sector.

Financial qualification and employment criteria for foreign company partners

Law No. 6735 on International Labour Force has significantly updated the criteria for work permits for foreigners who are shareholders of companies. While in the previous regulation, it was sufficient for foreign partners to have a capital share of at least 20% and not less than TRY 40,000 in order to obtain a work permit, the new regulation stipulates that the paid-in capital of the business must be at least TRY 500,000 and the capital amount of the foreign partner must be at least TRY 500,000 and the share of the foreign partner must be at least 20%. This has enabled foreign partners to contribute more financially to the enterprises, while bringing a new understanding to increase local employment. In this framework, the obligation for companies to employ at least five Turkish citizens ensures the sustainability of the workflow, while it is stated that this requirement should be monitored every month starting from the 7th month of the first work permit. In addition, an exemption stating that these criteria will not apply to foreign shareholders with a capital share of USD 100,000 or more facilitates the entry of high-investment foreigners into the Turkish market.

Special Cases and Exemptions

The new regulation also provides exemptions for different groups. Under Law No. 6735, the extension of exemptions for foreigners whose parents or children are Turkish citizens, individuals with humanitarian residence permits and foreigners who have been married to a Turkish citizen for at least three years promotes social integration. These exemptions facilitate access to work permits for individuals who have stayed in Turkey for a long time and integrated into the local society. Furthermore, victims of trafficking in human beings and individuals with stateless status can also benefit from these regulations and be employed more effectively.

Regulations on Voluntary Activities

The new regulation states that work permit applications for voluntary activities that do not constitute work will be evaluated negatively. This change is considered as a step towards increasing efficiency in the labor market. In the previous regulation, there were no clear rules or assessment tools for voluntary activities; the new regulation further regulates the labor market and increases the transparency of employment procedures.

Foreigners Not Subject to Evaluation Criteria

Pursuant to the Regulation on Work Permits for Foreigners, applications are accepted for certain groups without being subject to work permit assessment criteria. This is an important innovation to support social justice and integration processes. In particular, foreigners requesting work permits based on family ties with Turkish citizens or on humanitarian grounds are exempted from these criteria.

Implementation Dates and Transitional Provisions

There are also important dates regarding the entry into force of the new regulation. Regulations on financial adequacy criteria and capital amounts will enter into force on 01/10/2024. The implementation regarding paid-in capital and net sales will start on 01/01/2025. These deadlines are intended to provide employers with the opportunity to adapt to the new regulations, while ensuring that the transition process is carried out in an orderly manner.

In this context, taking into account the criteria applicable at the date of the first application allows for the reduction of pre-existing uncertainties and the regular and systematic assessment of applications.

In conclusion, these important regulations introduced by the International Labor Law No. 6735 include a series of innovations that both increase employment and strengthen the investment climate in the labour market. The innovations in these regulations aim to protect the rights of employers and foreign workers and create a sustainable business environment for both parties.

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