Under Statutory Decree (KHK) No. 696 and relevant regulations, the transition process of subcontracted workers to permanent public worker status in government institutions was established. Although the initial transition period has passed, the conditions for transition, the legal validity of the waivers signed by workers, and ongoing disputes regarding Collective Bargaining Agreements (CBA) remain highly relevant under Turkish Labor Law.

Fundamental Conditions for Transition

The statutory conditions required for subcontracted workers in central administrations to transition to permanent status include:

  • 1) Personnel-Based Service Procurement: The tender under which the worker is employed must specify the number of personnel, dedicate all working hours to the administration, allocate at least 70% of the approximate cost to minimum labor and related expenses, and be of a continuous nature throughout the year.
  • 2) General Conditions of the Civil Servants Law: The worker must be a Turkish citizen, not be deprived of public rights, have no convictions for crimes against state security or the constitutional order, have no active military service obligations, and pass a security/archive clearance.
  • 3) Pension Status: The worker must not be entitled to retirement, old-age, or disability pensions.
  • 4) Active Employment on the Milestone Date: The worker must have been actively employed by the subcontractor as of December 4, 2017 (or on maternity leave, sick leave, or military service on that date).
  • 5) Waiver and Settlement Declarations (Restricted by Current Supreme Court Precedents): Workers were required to sign declarations waiving past claims and lawsuits against the administration. However, according to current precedents of the Turkish Court of Cassation (Yargıtay); these standard waivers only cover claims regarding "collusion allegations" and the "right to transition." They do not extinguish the worker's right to claim actual unpaid labor receivables from the past, such as overtime, weekly rest, annual leave, or severance pay, which can still be pursued through litigation.

The Collective Bargaining Agreement (CBA) Process for Workers

During the initial transition years, the financial and social rights of the workers were capped by the decisions of the Supreme Arbitration Board (YHK). However, this transitional restriction officially ended on October 31, 2020.

Under current regulations and practice, transitioned workers are now registered under the primary business line of the administration. They fully benefit from the Public Framework Protocols (KÇP) applied to all regular public sector workers and the primary collective bargaining agreements to which the administration is a party.

The Status of Workers Not Transitioned

For workers who fell outside the scope of the decree (e.g., those failing to meet the 70% labor cost threshold), the specific tenders they were employed under were terminated at the transition date. Workers whose employment contracts were terminated during this process retain the right to claim their severance pay, notice pay, and other unpaid labor receivables from both the subcontracting company and the administration as the principal employer.

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.