What happens to a foreign employee’s work permit if their Turkish employer closes or stops operating? Learn about permit termination, the 15-day notification rule, changing employers, residence status and employee compensation rights.

If a Turkish employer stops business operations, a foreign employee should not assume that an existing employer-specific work permit can simply be used until the expiry date printed on the permit.

In Turkey, an ordinary dependent work permit is generally connected to a specific employer, job and workplace. The Ministry of Labour and Social Security confirms that a foreign employee holding a permit for one employer cannot use the same permit to work for another employer; employment with a different employer requires a new work permit.

If the original employer closes the workplace, ceases operations or terminates the foreign employee’s employment, the work-permit position must therefore be addressed promptly.

1. Does the Work Permit Automatically Transfer to Another Employer?

No.

An ordinary employer-dependent work permit does not operate as a general authorization allowing the foreign employee to work for any company in Turkey.

The Ministry expressly states that these permits are issued for a specific job, workplace and address and that working for another employer requires a new work permit.

Therefore:

Employer A closes

→ Foreign employee finds Employer B

does not mean:

Employer A’s permit automatically transfers to Employer B.

Employer B must address the new work-permit requirements before the foreign employee begins working there.

2. What If the Employer Completely Closes the Business?

The foreign employee should determine exactly what has happened.

“Stopped business operations” may mean:

• Temporary suspension;
• Permanent workplace closure;
• Company liquidation;
• Bankruptcy;
• Closure of one branch;
• Termination of the employee’s employment;
• Merger or restructuring;
• Transfer of the business.

These situations do not necessarily have identical legal consequences.

3. Check Whether Employment Has Actually Ended

A temporary operational interruption is different from formal termination of employment.

The employee should determine:

• Has an employment termination notice been issued?
• Has social security termination been registered?
• Is the company still legally active?
• Is the workplace permanently closed?
• Is the company entering liquidation?
• Is another company taking over operations?

The factual structure matters.

4. Employer-Dependent Work Permits Are Tied to Employment

The ordinary work permit depends on the employment relationship for which it was issued.

If that employment relationship ends, the employer must address termination of the permit through the official work-permit system.

The Ministry states that employers use the post-permit procedures for a permit-termination request where a foreign employee does not start work or subsequently leaves employment.

5. There Is a 15-Day Notification Obligation

This is particularly important.

Employers employing foreigners must notify the Ministry within 15 days regarding commencement and termination of employment and circumstances requiring cancellation of the work permit or work-permit exemption.

Accordingly, closure of business operations should not simply be ignored while the permit remains apparently valid in the system.

6. What If the Employer Fails to Notify the Ministry?

The foreign employee should not assume that the employer’s failure to complete its administrative obligations preserves a lawful right to work indefinitely.

The underlying employment may already have ended.

The employee should preserve:

• Termination documents;
• Social security records;
• Employer correspondence;
• Work permit;
• Employment contract.

The employee’s actual legal status should then be reviewed separately from the employer’s administrative failure.

7. Can the Foreign Employee Start Working for Another Company Immediately?

Generally, not using the old employer’s permit.

The Ministry states that a foreigner with an employer-specific work permit cannot work at another employer’s workplace using that same permit. A new work permit is required for employment with a different employer.

Starting work first and applying later can create unauthorized-employment risks.

8. The Expiry Date Printed on the Card Can Be Misleading

Suppose:

Work permit expiry: December 31

Employer permanently closes: May 1

The foreign employee should not conclude:

“I can work anywhere until December 31.”

The permit was issued for employment connected with the original employer.

The printed expiry date does not transform it into an unrestricted employment authorization.

9. Can a New Employer Apply for a New Work Permit?

Potentially, yes.

If the foreign employee finds another employer, a new work-permit application may be possible provided that the applicable legal and eligibility requirements are satisfied.

The new employer and employee should review the process before the employee starts working.

10. Do Not Wait Until the Old Permit Expires

This is a common mistake.

Once the original employment ends, the foreign employee should promptly determine:

1. What happened to the existing permit;
2. Whether another lawful residence basis exists;
3. Whether a new employer will apply for a permit;
4. Whether immigration action is required.

Waiting for the printed expiry date can create unnecessary complications.

11. Does a Work Permit Also Provide Residence Rights?

Generally, yes.

The Ministry confirms that a work permit issued under Law No. 6735 is also considered a residence permit under Article 27 of Law No. 6458 during its validity, subject to specified exceptions concerning certain international-protection and temporary-protection categories.

This makes termination of the work permit especially important.

The issue is not necessarily limited to employment.

12. Work Permit Termination Can Affect Immigration Status

A foreign employee whose right to reside in Turkey depends on the work permit should review residence status immediately after employment and permit termination.

Do not assume that the foreign employee automatically receives an unlimited period to remain in Turkey after the employer closes.

The employee may need to determine whether another lawful basis for residence is available.

13. What If the Employee Already Has Another Residence Status?

The answer may differ where the foreigner independently holds or qualifies for another immigration status.

Examples may include qualifying:

• Family circumstances;
• Residence authorization;
• Student status;
• Other lawful immigration grounds.

However, a residence permit alone generally does not authorize employment. The Ministry expressly states that possession of a residence permit does not itself give most foreigners the right to work.

14. Residence Rights and Work Rights Must Be Separated

This distinction is crucial.

A foreign employee may have:

Right to remain in Turkey

but not:

Right to work for the new employer.

Alternatively, termination of an employer-dependent work permit may affect both.

The two questions should therefore be reviewed separately.

15. What If Only One Branch Closes?

Suppose a company has offices in several cities and closes only the branch where the foreign employee works.

This does not necessarily mean that the entire company has ceased business.

The Ministry states that, under specified conditions, a foreign employee may work in another position or another branch of the same employer in the same line of business.

However, the specific permit, workplace details and contemplated change should be checked before relocation.

16. Same Employer and New Employer Are Different Situations

Compare:

Scenario A

The company closes one office and moves the employee to another branch belonging to the same legal employer.

Scenario B

The company closes and an unrelated company hires the employee.

Scenario B ordinarily requires a new employer-specific work permit.

Do not treat the two situations as identical.

17. What If the Business Is Sold?

A business sale can create a more complicated issue.

The foreign employee should determine whether:

• Only shares changed ownership;
• The legal employer remains identical;
• Business assets were transferred;
• Employment moved to another legal entity;
• A merger occurred.

A change in economic ownership does not always mean that the legal employer changed.

18. Check the Employer’s Legal Identity

Compare:

Same company registration, new shareholders

with

entirely different company employing the worker.

The work-permit consequences can differ substantially.

The foreign employee should not rely only on statements such as:

“The business has a new owner.”

The legal employer must be identified.

19. What If the Company Enters Liquidation?

Liquidation does not necessarily mean that every employment relationship disappears at the exact moment liquidation begins.

However, if the employee’s employment is terminated and the business no longer employs the foreigner, the employer-dependent work permit cannot simply be treated as a continuing general authorization to work elsewhere.

The employee should obtain the relevant employment and corporate records.

20. What If the Employer Becomes Bankrupt?

Bankruptcy can create two separate problems:

Immigration and Work Permit Problem

What happens to the foreign employee’s authorization to work and reside?

Employment Claim Problem

What wages, severance or other employee receivables remain unpaid?

These issues should be handled separately.

21. Work Permit Termination Does Not Automatically Eliminate Employee Claims

A foreign employee may still have claims arising from the employment relationship.

Depending on the circumstances, these may include:

• Unpaid salary;
• Overtime;
• Unused annual leave;
• Severance compensation;
• Notice compensation;
• Contractual bonuses;
• Other employment receivables.

The work-permit issue and the employee’s financial claims should not be confused.

22. Foreign Employees Generally Retain Labour-Law Rights

A foreign employee who lawfully worked in Turkey should preserve evidence of employment rights just as carefully as work-permit documents.

Useful evidence includes:

• Employment contract;
• Payroll records;
• Bank transfers;
• Social security records;
• Work schedules;
• Emails;
• Termination notice.

23. What If Salary Has Not Been Paid Before Closure?

The employee should calculate:

Last salary paid

Outstanding monthly salary

Overtime

Unused annual leave

Bonus or commission

Other contractual benefits

Do not focus exclusively on finding a new employer and overlook existing employment claims.

24. What If the Employer Disappears Without Issuing Documents?

This can happen where a small business abruptly stops operations.

The employee should independently preserve:

• Work permit;
• Employment contract;
• Bank records;
• Payroll;
• Social security information;
• Workplace communications;
• Company information.

Evidence can become more difficult to obtain after the business fully closes.

25. Check Social Security Records

Employment termination and work-permit termination are related but separate administrative issues.

Review the employee’s social security registration and termination records.

The Ministry confirms that employers of foreign employees remain subject to the applicable social security obligations.

26. What If the Employer Continues Reporting the Employee Despite Closure?

A discrepancy between actual employment and official records should be investigated.

Do not assume that an inaccurate administrative record authorizes the foreigner to continue working elsewhere.

The actual employment situation remains important.

27. Can the Employee Work Freelance After the Employer Closes?

An employer-dependent permit should not be treated as permission to become an unrestricted freelancer.

Different work authorization rules may apply to independent work.

The employee should determine whether the proposed activity requires another type of work permit or qualifies for a specific exemption.

28. Can the Employee Establish a Company Instead?

Company ownership and authorization to work are different questions.

A foreigner may be able to own shares in a Turkish company, but actively working or managing in Turkey can raise separate work-permit requirements.

The Ministry confirms that certain foreign company partners and managers work subject to work-permit requirements, while specified non-resident board members and non-managing partners may fall within an exemption framework.

29. What If the Foreign Employee Is Also a Shareholder?

The employee should not assume that share ownership automatically preserves the existing employee work permit.

Determine:

• Nature of the company;
• Shareholding;
• Management position;
• Actual activities;
• Existing permit type.

A new work authorization analysis may be necessary.

30. What If the Employer Says the Employee Can Use the Old Permit Elsewhere?

This advice should be treated cautiously.

The Ministry’s current guidance is clear that an employer-specific work permit cannot simply be used to work for a different employer.

The new employment should be regularized before work begins.

31. Unauthorized Work Can Have Serious Consequences

Working without the required permit can expose both the foreign worker and employer to administrative sanctions.

The Ministry also states that foreigners found working without valid authorization may be reported to the Ministry of Interior for deportation procedures.

Therefore, changing employers informally can create immigration consequences beyond an employment-law problem.

32. A New Employer Should Apply Before Employment Begins

The new employer should assess:

• Work-permit eligibility;
• Employer criteria;
• Employee qualifications;
• Salary requirements;
• Required supporting documents.

The foreign employee should not assume that finding a job offer itself authorizes immediate employment.

33. What If the New Work Permit Application Is Rejected?

A rejection does not necessarily end all possibilities.

The Ministry states that relevant persons may challenge decisions concerning refusal, cancellation or termination of work permits within 30 days from notification. If the administrative objection is rejected, administrative judicial review may be pursued.

A new application may also be possible after correcting the reason for rejection.

34. Can Termination of a Work Permit Be Challenged?

Potentially.

The Ministry’s current guidance confirms that decisions involving cancellation or termination of a work permit can be challenged by the relevant persons within 30 days from notification.

Whether an objection makes sense depends on why the permit was terminated.

35. Employer Closure May Make Some Challenges Impractical

If the permit was issued specifically for employment with a company that has permanently ceased operations and the employment relationship genuinely ended, challenging termination merely to preserve the old employer-specific permit may not solve the employee’s practical problem.

The more important issue may be securing a lawful new employment and immigration status.

36. What If the Employer Falsely Claims That the Employee Resigned?

This is a separate employment-law dispute.

Preserve:

• Termination messages;
• Emails;
• Witness information;
• Payroll;
• Social security termination code;
• Any resignation document.

A false resignation allegation can affect financial claims even though the work-permit relationship has ended.

37. Do Not Sign a Resignation Letter Merely to Close the Permit

A foreign employee should distinguish between:

Administrative termination of work authorization

and

voluntary resignation from employment.

Signing a resignation document can have employment-law consequences.

The employee should understand what is being signed.

38. Do Not Sign a Full Release Without Reviewing Employee Claims

A closing employer may offer final payment in exchange for a broad release.

Before signing, calculate all outstanding rights.

A work-permit problem should not pressure the foreign employee into abandoning legitimate employment claims.

39. Preserve the Work Permit Termination Notification

The foreigner should obtain or retain evidence showing:

• When employment ended;
• When permit termination was requested;
• When the Ministry acted;
• When the decision was notified.

These dates can become important for both work authorization and immigration planning.

40. Foreign Employees Should Act Before Starting a New Job

The safest sequence is generally:

Old employment ends

→ existing permit status checked

→ new employer identified

→ new work-permit process completed as required

→ new employment begins lawfully.

Working first and addressing authorization later can create avoidable risk.

First 48-Hour Checklist After an Employer Stops Operations

A foreign employee should:

1. Determine whether the workplace closure is temporary or permanent.
2. Obtain written information concerning employment termination.
3. Preserve the existing work permit.
4. Check the permit’s employer and workplace information.
5. Obtain social security records.
6. Determine whether permit termination has been requested.
7. Record the termination date.
8. Check whether the employer completed the required notification.
9. Remember that the employer generally has a 15-day notification obligation.
10. Do not begin working for another employer using the old permit.
11. Identify whether another lawful residence basis exists.
12. Discuss a new work-permit application with the prospective employer.
13. Preserve the employment contract.
14. Collect payroll and bank records.
15. Calculate unpaid salary.
16. Calculate unused annual leave.
17. Review potential severance and notice compensation.
18. Preserve evidence if the employer alleges resignation.
19. Review any release before signing.
20. Address both immigration status and employment claims promptly.

Frequently Asked Questions

1. Does a foreign employee’s work permit remain usable after the employer closes?

An ordinary dependent permit is tied to the specific employment for which it was issued. The employee should not assume that the permit remains freely usable merely because the printed expiry date has not passed.

2. Can the employee use the old permit with a new employer?

No. The Ministry states that a foreigner with an employer-specific permit must obtain a new work permit to work for another employer.

3. How quickly must termination be reported?

Employers must notify the Ministry within 15 days regarding termination of work and circumstances requiring cancellation of the work permit.

4. Does losing the job affect the foreigner’s residence status?

It can. A work permit generally also functions as a residence permit during its validity, subject to statutory exceptions. The foreigner’s separate basis for remaining in Turkey should therefore be reviewed promptly.

5. Can the foreigner immediately start another job?

Not merely on the basis of the previous employer’s work permit. The new employment requires the appropriate work authorization.

6. What if only one branch closes?

If the legal employer remains the same, different rules may apply. The Ministry recognizes certain possibilities for working at another branch of the same employer in the same line of business where the necessary conditions are satisfied.

7. What if the company is sold rather than closed?

The legal structure of the transaction matters. A share sale where the employer remains the same should be distinguished from employment being transferred to a different legal entity.

8. Does work permit termination eliminate unpaid salary claims?

No. Work-permit status and employment receivables are separate issues. The employee may still have claims for unpaid wages and other employment rights.

9. Can a work-permit termination decision be challenged?

Relevant persons may challenge Ministry decisions concerning cancellation or termination within 30 days from notification. If the objection is rejected, administrative judicial remedies may be available.

10. What is the most important thing a foreign employee should avoid?

Do not start working for another employer on the assumption that the old employer’s permit remains valid for the new job.

Client-Focused Legal Support for Foreign Employees After Employer Closure

When a Turkish employer stops business operations, a foreign employee can face two different legal problems at the same time.

The first concerns immigration and work authorization:

What happens to the existing work permit?

Has the permit been terminated?

Can the employee remain in Turkey?

Does a new employer need to obtain a new work permit?

The second concerns employment rights:

Are salaries unpaid?

Is severance compensation owed?

Is notice compensation available?

Are unused annual leave, overtime, commissions or bonuses outstanding?

These issues should be handled together but legally distinguished.

Fırat Fesih Kaya Law Office assists foreign employees, executives, investors and international companies with work-permit termination, employer closure, changing employers, immigration status and employment claims in Turkey.

Lawyer Fırat Fesih Kaya provides legal assistance in reviewing existing work permits, evaluating new-employer applications, challenging relevant administrative decisions and protecting foreign employees’ financial rights following workplace closure or termination.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey

This article is intended for general information and does not constitute legal advice. The consequences of an employer stopping operations depend on the type of work permit, legal status of the employer, manner in which employment ends, the foreigner’s independent residence status and the circumstances of the proposed new employment.