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TRANSFER FEE: LEGAL CHARACTERIZATION AND PRACTICAL APPLICATION
1. Introduction The concept of a transfer fee is not directly defined in the Turkish Labor Code; its framework and legal nature in practice have largely been shaped by the decisions of the Court of Cassation (Turkey). This practice, which arises particularly in sectors with intense competition and limited skilled labor, is a type of payment that employers must carefully consider within the scope of their employment policies.
COMPETITION IN THE LABOR MARKET: HR PRACTICES TO AVOID
The Turkish Competition Authority ("Authority"), which is entrusted with ensuring the proper functioning of markets, identifying practices that restrict competition, and imposing sanctions against infringements, operates under Law No. 4054 on the Protection of Competition ("Law") without distinction between input and output markets. Labor markets have recently emerged as one of the primary arenas in which entities compete in input markets and, with the influence of various additional dynamics, have become a market increasingly prioritized by the Authority. The Guidelines on Competition Violations in Labor Markets ("Guidelines"), adopted by the Authority on November 21, 2024, serve as an important reference for the prevention of competition infringements in labor markets. In this bulletin, in light of the Guidelines and decisions of the Competition Board ("Board") within the Authority, (i) the fundamental principles and information regarding the application of competition law to labor markets, and (ii) the main prohibited practices to be observed when competing in labor markets will be addressed.
