What is PEO Turkey?
Let’s take a closer look at this new form of employment . . .
The world of work continues to evolve. The form of contracts, legal statuses and legal entities are changing profoundly. It was in this changing context that PEO Turkey was born.
If at the start this status was only reserved for some employees, today it is democratising and opening its doors to a number of workers.
Evolving at the same pace as the society in which it fits, PEO in Turkey is now legally anchored thanks to its union and collective agreement. Incorporated into the Labour Code, Payroll in Turkey is therefore fully recognised from a legal perspective.
But what is PEO in Turkey ? What exactly is this form of employment? How do you become a salaried employee? Who is this status for and what are its advantages and disadvantages?
We answer all these questions here, so that Payroll in Turkey is easy to understand!
At the heart of PEO Turkey is a tripartite relationship
The first thing to understand when talking about Payrolls, is that it is a form of employment halfway between the workforce and the sole proprietorship.
That is to say, PEO in Turkey requires the connection of 3 distinct entities:
- The self-employed person (consultant)
- The client (must be a business)
- The Payroll Turkey company
This 3-factor relationship is framed by the signing of two contracts. First, an employment contract between the consultant and the Payroll company is signed. Then another service contract is signed between PEO and the client company.
In reality, it is PEO in Turkey that invoices the client and collects the turnover, which is then payed to the consultant in the form of a salary.
Payroll was therefore designed to offer optimal support to each of the parties involved.
PEO Turkey: Roles and obligations
To gain a better perspective, let us ask: What does this tripartite relationship imply? What role does the Payroll company play? Is it a sort of intermediary between a freelancer and its clients?
An actor in charge of the social protection of the self-employed
In general, the Umbrella company based in Turkey ensures the “security” of the freelancers with whom it works. Particularly in the sense that this status allows self-employed workers to enjoy the same social benefits as an employee, namely:
– The right to social security (in the general scheme)
- The right to unemployment benefit
- A mutual fund
- Civil and professional liability
- Retirement contributions
- The right to paid holidays (5 weeks per year)
Thus, employees benefit from a strong social protection and a security in the event of illness or other unforeseen life events. Unlike some other forms of business practice, PEO Turkey allows the self-employed the option not to commit their personal wealth.
An administrative facilitator
Above all, this is one of the primary advantages of the Payroll company, PEO undertakes the management of all the administrative and accounting tasks on behalf of the employee.
Put simply, the Payroll Turkey company takes care of client invoicing and all management relating to the consultant’s business activity (tax declarations, accounting, etc.). The exercise of all these tasks is then summarised in an activity account, and transmitted at least monthly to freelance.
Employee status: Who is it for and for what type of activity?
As you can see, an employee can benefit from a hybrid status. The interest of the latter being to maintain their independence and autonomy while being protected both legally and socially – as is any employee.
But from a professional point of view, it is indeed a scheme aimed at self-employed workers. Being a salaried employee means being freelance, and offering your services in the form of work assignments to companies.
What types of business activity is PEO Turkey aimed at?
We have given a brief overview of the legal framework in which Payroll operates, but what about from a purely professional point of view? What types of activity fall under this status?
All consulting trades, all experts offering intellectual services can claim the status of employee. Payroll in Turkey, if it was initially “reserved” for executives, is now addressed to a multitude of professionals, provided that they have a “service” to offer.
Whether you are an executive, retired or have just graduated, whether you work as a project manager, trainer coach or IT consultant, you can opt for Payroll.
In short, PEO Turkey is open to a large number of professions. You just need to be able to prove that you have recognised experience in your field, and to be able to practice independently.
In summary: Advantages and disadvantages of PEO in Turkey
The main advantage of Payroll is in the time savings it offers to the self-employed. Sparing themselves the administrative and legal procedures to which every entrepreneur is subject, he/she can focus on his/her profession proper (prospecting, marketing, development and accomplishment of missions).
Whether you are freshly graduated or in retraining, Payroll is also a great way to start as a freelance. It is the ideal transition between salaried work and sole proprietorship since it is a status that allows you to test the market, develop your clientele and test yourself and your freelance skills.
PEO in Turkey also functions as real community, assuming a role of accompaniment of their employees. This large network of freelancers from all sectors contributes to the credibility and highlights the professionalism of all those who join it.
But beware, as in the context of a business creation, it is a question of thinking carefully about your project and its launch. Particularly because the prospecting and marketing tasks fall entirely to freelancers. PEO in Turkey does not have the right to find clients in place of the consultant.
In conclusion
PEO in Turkey therefore constitutes the perfect alliance between freedom and security. Combinable with any other status (one can be retired and employed, employee or job seeker and working employee), one retains his autonomy while enjoying the benefits of an employee and immense flexibility. Therefore, the Umbrella Company in Turkey represents the perfect solution for foreign companies which don’t have any legal structure in Turkey.
