Subcontractor

Under Article 2 of the Labour Law, a subcontractor is a natural or legal person that takes on work from an employer in ancillary work relating to production of goods or services at the workplace, or in parts of the main work requiring expertise for business and technological reasons, and employs the workers it assigns only at that workplace for that work. In practice it is also known as “taşeron”.

Which Work May Be Subcontracted?

• Ancillary work: Work related to production but not an essential element of it and dependent on the main work, such as cleaning, catering, security and transport services.
• Part of the main work: Only parts requiring expertise for business and technological reasons.

As a rule, the main work may not be divided and given to subcontractors.

Sham Arrangements

The main situations in which a subcontracting relationship is deemed a sham are:

• The principal employer’s employee being hired by the subcontractor and continuing to work in a way that restricts their rights,
• Establishing a subcontracting relationship with a person previously employed at that workplace,
• Dividing main work not requiring expertise and giving it to a subcontractor,
• The subcontractor having no actual management authority over the workers, who work under the principal employer’s instructions.

In a sham arrangement, the subcontractor’s employees are deemed the principal employer’s employees from the outset and benefit from the rights applying to them.

The Subcontractor’s Obligations

As employer of its own employees, the subcontractor must meet all employment law obligations: employment contracts, wage payments, social security premiums, occupational health and safety and working time. The subcontracting relationship is notified to the Provincial Directorate of Labour and Employment Agency and may be inspected.

When the Subcontractor Changes

Where the subcontractor at a workplace changes and employees continue working for the new subcontractor, transfer of undertaking rules arise regarding seniority and rights. Periods worked under different subcontractors at the same principal employer’s workplace may be combined for severance pay.