Under Turkish Law, the relationship between a principal employer and a subcontractor is specifically defined in Article 2/6 of the Turkish Labor Law No. 4857. According to this provision, a "principal employer - subcontractor relationship" is established when an employer assigns auxiliary tasks related to the production of goods or services at the workplace, or parts of the principal work that require specialized expertise due to technological reasons, to another employer, provided that the subcontractor's employees are exclusively employed in that specific workplace for this assigned work.
The most crucial legal consequence of this relationship is joint and several liability. The principal employer is jointly and severally liable, alongside the subcontractor, for the obligations owed to the subcontractor's employees (e.g., unpaid wages, overtime, severance pay) arising from the Turkish Labor Law, employment contracts, or applicable collective bargaining agreements.
The Subcontracting Regulation and Classification of Work
The "Subcontracting Regulation" issued by the Ministry of Labor clarifies the concepts of principal work and auxiliary work. According to the regulation and Supreme Court (Yargıtay) precedents, tasks that are not directly part of the production organization or a mandatory element of production, but continue as long as the principal work continues—such as cleaning, security, catering, packaging, and transportation—are classified as auxiliary work and can be subcontracted. However, the "principal work" itself can only be subcontracted if it strictly requires specialized technological expertise; otherwise, it cannot be divided and given to a subcontractor.
Turnkey Contracts vs. Collusion (Muvazaa)
In practice, works in the private sector and certain public tenders are sometimes contracted out on a "turnkey" basis (independent contractor/work contract). In a genuine turnkey contract, the contracting company is completely independent, meaning no principal-subcontractor relationship is established under Turkish Labor Law, and the awarding entity is not liable for the contractor's labor debts.
However, to determine whether a contract is legally a "turnkey contract" or a "subcontractor relationship", Turkish courts examine the actual execution of the work rather than the title of the contract. If the daily routines, working hours, leaves, and direct orders of the contractor's employees are dictated directly by the principal employer (or administration), it cannot be considered a turnkey contract. Furthermore, if the subcontractor exists merely on paper and the principal employer directly manages the workers, this is legally deemed "collusion" (muvazaa). In collusive relationships, the subcontracting agreement is voided, and the workers are legally recognized as the direct employees of the principal employer from their very first day.
Successive Subcontractors and Workplace Transfer
For employees who work at the same principal workplace for many years while their nominal subcontractor employer changes continuously due to renewed tender periods, the rules of workplace transfer apply under Turkish Law. In such cases, the employee's seniority and accrued labor receivables are preserved. The principal employer remains jointly liable for the entire duration of the employment, while the subcontractor companies are generally liable only for their specific periods of operation (with the final subcontractor holding joint liability for the full severance pay).
Disclaimer: The information provided above is for general guidance purposes only and does not constitute formal legal advice. Consulting a qualified attorney is strongly recommended for specific legal disputes.