The Court found that allowing the choice of law to override the rights an employee would have in the absence of such a choice violates the Constitution.

The contested provision stipulated that employment contracts would be subject to the law chosen by the parties, provided that the employee retained the minimum protection under the mandatory provisions of the habitual workplace law.

This decision has significant implications, particularly in determining the applicable law for employment contracts involving foreign elements. The Court concluded that the existing regulation—allowing the application of the law chosen by the parties, subject to the mandatory provisions of the employee’s habitual workplace law—failed to adequately protect employees and was inconsistent with the principle of a social state.

I.Grounds for the Applications

The applications argued that applying the habitual workplace law to disputes concerning employees’ entitlements in foreign workplaces violated constitutional rights. It was emphasized that Turkish employees employed at the foreign workplaces of companies registered in Turkey could not enjoy the same rights as those working in Turkey due to the application of foreign law chosen by the employer.

This situation was claimed to be in violation of the constitutional principle of equality and the state’s obligation to protect employees, justifying the annulment of the contested provision.

 II. The Court’s Assessment

The Constitutional Court determined that the current regulation permitting the choice of law in employment contracts could deprive employees of the protective provisions of the law with which their employment relationship has the closest connection. In this context, the Court highlighted several key points:

– The Principle of a Social State and Employee Protection

Under Article 49 of the Constitution, the state is responsible for protecting employees’ rights. Subjecting employees to a less protective legal system based on the employer’s chosen law contradicts the principle of a social state.

– The Principle of Equality

Turkish employees employed abroad by companies registered in Turkey would be subject to a less protective legal system than those working in Turkey. This contradicts Article 10 of the Constitution, which guarantees equality before the law.

– The Right to a Fair Trial and Legal Certainty

The Court found that allowing the parties to choose the applicable law could deprive employees of the protections provided by the most closely related law, thereby undermining legal certainty and violating the right to a fair trial.

III. Importance and Implications of the Decision

With this annulment, employers operating in Turkey must exercise greater caution when choosing the applicable law for employment contracts involving foreign elements. Employers must assess the most closely connected law comprehensively and ensure that the law applied provides employees with the highest level of protection.

This decision will strengthen the protection of employees’ rights, particularly for those employed by international companies, and will require employers to be more diligent in drafting employment contracts.

The ruling is expected to take effect within six months following its publication in the Official Gazette. This means that the new rules will officially come into force on September 10, 2025. This change will enhance employees’ legal protections in employment contracts and impose significant obligations on employers.