The Social Security Institution (the “SSI”) Published a General Letter Regarding Temporary Employment Relationships Established in Violation of Applicable Law

The SSI published a general letter (“General Letter”) on “Transactions in Violation to the Applicable Law on Temporary Employment Relationship” which arranges that administrative sanctions will not be imposed subject to fulfilment of certain criteria if unlawfully temporary employment relationships are detected by the reports issued after 01.11.2023 through inspections conducted by the Ministry of Labour and Social Security (“Ministry”). In line with the General Letter:

  1. No administrative fines, penalties and fees as a result of overdue payment will be applied to the workplace to which the employees are transferred, for the obligations fulfilled within the statutory periods by the private employment agency (“Agency”) and persons acting as an Agency, and
  2. Due to the payment of social security premiums – although indirectly – through the fee paid by the employers receiving service from the Agency or persons acting as an Agency, the registrations of insured services and the collections related to those will be transferred to the registered workplaces of the employers receiving services and no premium refund will be made for the transferred amounts.

Provided that:

  • It is determined that the employees notified by the Agency or persons acting as an Agency in violation of the relevant legislation are considered as employees of the employers receiving services from them in reports prepared by labor inspectors after 01.11.2023,
  • The employment of the employee notified by the Agency or persons acting as an Agency is actual,
  • No unfair benefit is detected regarding the situations specified in Annex 7 of the Regulation on Social Insurance Transactions, and
  • There is no change in the earnings, and days based on the social security premium for employees whose actual employment is determined.

In line with the examples provided in the General Letter;

  • If it is set forth with the report issued by the labour inspectors that (i) the temporary employment relationship between the Agency (A) and the employer (B) is established in violation of the applicable legislation and (ii) the relevant employees notified by the Agency – or persons acting as an Agency – should be the employees of the (B), registrations as to the insured services and the collections (if any) made for those will be transferred to the (B) without imposing administrative fines, penalties and fees as a result of overdue payments on the condition that the social security obligations are duly fulfilled by the (A),
  • However, if the insurance premium accruals for the employees employed under the (A) are more than the premiums paid or if debt occurs due to the necessity of issuing additional monthly premium and service document/withholding and premium service declaration for the employees whose services are transferred to the social security file of the (B), penalties and fees as a result of overdue payments will be calculated from the due date for the payment until the payment date, and this debt will be collected from the employer (B) if it is not paid by private employment agency (A), as well as an administrative fine will be imposed for the additional monthly premium and service document/withholding and premium service declaration given in this way.