1. Introduction: The Importance of Free-Trade Zones and Employment of Foreign Personnel
With the globalization of trade, free-trade zones have been established in Turkey to support economic development, providing various advantages to encourage both domestic and foreign investors. Free-trade zones are special areas created to increase Turkey’s foreign trade, encourage foreign capital investment, and create employment opportunities, offering special customs regimes and certain tax advantages. These zones provide investors with benefits such as customs duty exemptions, low-cost production and storage facilities, while companies located in these zones can conduct international trade independently from the local market and carry out various production activities.
The free-trade zone implementation in Turkey was regulated by the Free Zones Law No. 3218, which came into effect in 1985. This law defines the establishment and operations of free-trade zones and the role of foreign capital in these zones. According to this law, companies operating in these zones need to employ foreign personnel to meet their specialized workforce requirements.
2. Legal Basis for Employing Foreign Personnel in Free-Trade Zones
The free-trade zone implementation in Turkey is regulated under Free Zones Law No. 3218, and the process of employing foreign personnel in free-trade zones is subject to special regulations that differ from general work permit procedures. In this context, the framework established by the legislation operates in parallel with the special regulations regarding foreign personnel employment in free-trade zones.
Work permit applications for foreign employees in free-trade zones are conducted in accordance with the legal framework determined by both the Ministry of Labor and Social Security and the Ministry of Trade.
a. Free Zones Law No. 3218 encourages companies in free-trade zones to employ foreign personnel who possess qualifications that cannot be met by the local workforce and mandates that specific procedures and rules must be followed for such employment.
b. The now-repealed Law No. 4817 on Work Permits for Foreigners stated that foreign nationals must obtain necessary permits to work legally in Turkey and that applications for these permits should be made to the Ministry of Labor and Social Security. However, applications in free-trade zones are submitted to the Ministry of Trade, with the final approval becoming valid through the permit obtained from the Ministry of Labor and Social Security.
c. Labor Law No. 4857 regulates the Turkish labor market while also establishing the basis for regulating important elements such as working conditions, rights, and occupational safety of foreign workers. However, the legal framework for employment in free-trade zones has been developed to be compatible with local labor market conditions.
3. Stages of the Application Process for Foreign Personnel Employment in Free-Trade Zones
The steps that must be followed to employ a foreign national in free-trade zones are based on specific legal regulations. The first of these regulations is that the foreign personnel must have a work permit. According to Turkish law, foreign nationals are required to obtain a work permit to work legally in Turkey. While this work permit application is normally made to the Ministry of Labor and Social Security, because the foreign personnel will be working in a free-trade zone, this application is made to the Ministry of Trade through the Free Zone Directorate, and after the approval stage, it is validated with the work permit card issued by the Ministry of Labor and Social Security.
An important point to note in this process is that the application process was previously conducted by the Ministry of Economy. However, with the change made in 2018, these applications were transferred to the Ministry of Trade instead of the Ministry of Economy. This change aimed to finalize applications from companies operating in free-trade zones more quickly and effectively.
The work permit application for foreign personnel must be made by the employer physically or by mail. Applications are generally finalized within 2-4 weeks. In the initial application, a 1-year permit is usually granted, which can be requested for extension if applied for at least 2 months before the permit expires. Applications for the extension of work permits are also made to the Ministry of Trade.
In this context, the steps to be followed when applying for a work permit for foreign personnel in free-trade zones are as follows:
3.1. Residence Permit and Work Permit
For an application to be made, the foreign personnel must have a valid residence permit. Personnel without a residence permit can obtain one by applying to the diplomatic missions of the Republic of Turkey in their country of residence. If a residence permit is to be obtained based on employment in Turkey, the submission of an employment contract is also required.
3.2. Application Process by the Employer and Required Documents
The first step for a work permit for foreign personnel who will work in a free-trade zone is for the employer to apply to the free zone directorate where they operate. The application file is prepared by the employer and submitted to the relevant free zone directorate in person or by mail. This application is carried out to regulate and supervise activities to be conducted in free-trade zones supervised by the Ministry of Trade. Therefore, the application made by the employer must include the necessary documents for the work permit, and these documents must include justifications such as the specifics of the applied position and the existence of a situation that cannot be met by the local workforce.
While in general work permits, permission is usually granted for foreign personnel up to 10% of the company’s staff, the quota for foreign personnel in free-trade zones is more flexible than the general work permit. However, it is still important for employer applications to be well-justified and complete.
4. Review and Approval Process of the Application to the Ministry of Trade
Upon the employer’s application, the free zone directorate where the employer operates conducts a preliminary assessment and then forwards the application to the General Directorate of Free Zones at the Ministry of Trade to initiate the necessary examinations for the work permit. The Ministry of Trade decides by examining whether the foreign workforce is in a position that cannot be met by the local workforce, whether there is local workforce available in the labor market for the applied position, and whether the foreign personnel is in a position that will contribute to the labor market.
The Ministry meticulously evaluates the documents in the employer’s application file and the company’s requirements regarding whether there is a possibility of employing Turkish citizens in the applied position. Generally, priority is given to applications made for qualified positions such as specialists, managers, and engineers. However, in recent practice in our country, to increase the employment of Turkish citizens, if the applied position is one where Turkish citizens can be employed, the application may not result positively. Therefore, the applied position and the company’s requirements are also important in the application to be made.
5. Work Permit Approval and Issuance of Work Permit Card
If the application is successful, the Ministry of Trade approves this application to be forwarded to the Ministry of Labor and Social Security. After the approval of the work permit application by the Ministry of Trade, the applicant employer is notified that the application has been approved. After this notification, the employer must apply to the Ministry of Labor and Social Security. This application is made by the employer through the e-Government/e-Permit Automation System. The Ministry of Labor and Social Security decides whether the work permit will be granted finally after the application is made. This decision is usually made within 15 business days from the application date. If the application is accepted, the procedures must continue to obtain a work permit card.
The Ministry of Labor and Social Security issues a work permit card to determine the legal status of the personnel. The work permit card is an official document showing that the foreign personnel can work legally in Turkey and is valid until its expiration date. After the work permit is approved, the foreign personnel legally enters Turkey and receives the work permit card.
Although work permit applications for foreign personnel who will work in free-trade zones are made to the Ministry of Trade, the work permit granted by the Ministry becomes valid with the work permit card issued by the Ministry of Labor and Social Security.
6. Social Security Procedures
After obtaining the work permit card, the employer must apply to the Social Security Institution to register the foreign personnel for insurance. This process takes place within the framework of Social Insurance and General Health Insurance Law No. 5510, ensuring that the insurance premiums of the foreign personnel are paid regularly.
7. Validity and Geographical Limitation of Work Permits
The work permit issued for foreign personnel who will work in free-trade zones is limited only to the free-trade zone applied for. That is, this permit is not valid throughout Turkey but is only valid for operating in the relevant free-trade zone. This situation stems from the special status and working principles of free-trade zones.
8. Conclusion and Evaluation: Legal Dimension of Foreign Personnel Employment in Free-Trade Zones
The application process for foreign personnel employment in free-trade zones is subject to specific regulations that differ from local workforce employment. This process serves Turkey’s international trade strategies beyond just requiring coordination between the Ministry of Trade and the Ministry of Labor and Social Security. Employers managing the application processes correctly, acting in accordance with legal requirements, and submitting the necessary documents completely are critical for the successful conclusion of the process. Therefore, to effectively benefit from the advantages provided by the free-trade zone implementation, it is necessary to closely follow the legislation related to the process and to obtain expert legal support when needed.
