Glossary List
| Administrative Services Organization (ASO) | Administrative Services Organization refers to the organization that provides outsourced solutions to meet the administrative and HR requirements of the client, by fulfilling all the employment-related risks and obligations of the client. |
| Annual Leave | Annual leave is the leave given to the employee in order to be able to rest and protect the workforce and it is a constitutional right. Its details are regulated within the framework of the Labor Law. |
| Annual Paid Leave | Annual paid leave is the leave is the employee has provided the condition that worked for at least one year including the probationary period as of the day of employment. |
| Back Office Management | Back Office management is the management of departments of a non-public business. However, the composition of the concept of an organization’s back Office depends on its core industry, it generally includes administrative and clerical services, technology support and data management. |
| Base Erosion and Profit Shifting (BEPS) | Base Erosion and Profit Shifting is the general term defined as tax strategies especially implemented by multinational companies in which profits are artificially transferred to countries with zero or very low tax, by taking advantage of the legal gaps in the global taxation system and the cross-advantages in the tax legislation of countries. |
| BES (Individual Retirement System) | Individual retirement (BES) is a savings and investment system supported by the state and provides regular savings to enable individuals to maintain their active working life standards in the period of retirement. |
| Business Process Outsourcing (BPO) | Business process outsourcing (BPO) provides a flexible range of services and options regarding redesigning, managing and operating specific business functions. Contemporary BPO, often seen as a way to reduce labor cost by moving IT operations to lower-cost markets, take advantages of the most appropriate infrastructure and skills from around the world to design, build and operate processes that optimize the strategic results a business needs to reach its customers. |
| Certificate of Activity | The certificate of activity is the document that proves that the companies carry out their business actively. The certificate of activity is proof that the firm, tradesman or sole proprietorship is still actively doing business. With the certificate of activity, the work you do is officially recognized and it is proof that you continue in this line of business. |
| Code of Obligations | Code of Obligations is the discipline that legally deals with the debt relationship between the parties and limits/determines the rights of both parties. |
| Commercial Law | Commercial law is a legal unit that protects the rights of traders within the scope of laws. This discipline, which is a very comprehensive legal unit, also refers to all of the legislation in force, regulating all trade-related activities. |
| Corporate Tax | Corporate tax is the tax levied on the earnings of corporations during a financial year. In order for a corporation to be a corporate taxpayer, it should have legal personality. |
| Corporate Tax Return | The corporate tax return is the type of declaration submitted to the tax Office where the legal or business center of the taxpayers’ corporation is located, from the first day of the fourth month following the month in which the accounting period is closed to the evening of the twenty-fifth day. |
| Corporate Training | Corporate training is a set of trainings that aim to enable an organizational employee to adapt to innovations, update and become better equipped on an individual basis, and also aim to develop as an organization. |
| Cyber Security | Cybersecurity can be defined as technologies and processes that help protect the confidentiality, integrity and availability of computer systems' networks and data against cyber attacks or unauthorized access. |
| Data Inventory | The data inventory includes the personal data processing activities, personal data processing purposes and legal reason, the data category, the transferred recipient group and the data subject group, by explaining the retention period required for the purposes for which the personal data is processed, the personal data to be transferred to foreign countries, and the measures taken regarding data security regarding the data controllers business activities. |
| Definite Term Employment Contract | A definite term employment contract is a written employment contract concluded between the employer and the employee, depending on objective conditions such as the completion of a certain job or the occurrence of a certain issue according to Article 11 of the Turkish Labor Law. |
| Electronic Money | Electronic money, as monetary value, is issued against a certain fund, stored electronically, used to perform payment transactions defined in the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions and accepted as a means of payment by real and legal persons other than the electronic money issuer. |
| Electronic Signature | Electronic signature is a digital implementation that replaces wet signature in all official processes. Electronic signature, which has the same characteristics as wet signature in terms of its legal qualities, does not have a specific form like wet signature. E-signature, which consists of different characters, letters or symbols, is different from a wet signature in this sense and is used by adding it to another electronic data in order to verify the identity of the signing party. |
| Employer of Record (EOR) | The Registered Employer Service (EOR) is a third-party organization that acts as a business partner. EOR usually is a local business located in the target country. Thanks to the EOR partnership, customers do not have to follow up their transactions with local authorities in terms of their legal compliance obligations. EOR ensures the coordination of all tasks that should be performed regarding the employees. |
| Employment Contract | Employment contract is a contract in which the employee undertakes to perform a service on a regular basis. The service contract, which is a type of contract that is not subject to form, is also a burdensome contract that imposes debts on both parties. |
| Foreign Exchange | Foreign Exchange is known as “Commercial Bill” in the most general terms. All kinds of bills, checks, policies and other securities that can be used as a means of payment and money can be defined as foreign exchange. Literally, foreign exchange refers to the purchase and sale of all kinds of instruments and bills that replace cash or money. |
| Gross Payment | Gross wage refers to the total wage amount in the employee's payroll before social security premium deductions, tax deductions and other deductions are made. |
| Human Resources | Human Resources could be defined as the whole of actions aiming that provide a high performance workforce within the organization, create a suitable working environment, generate and sustain the motivation by taking into account the organizational and environmental conditions. |
| Human Resources Management | Human resource management is all work related to the review, structuring and evaluation of human resources in an organization in order to create, develop and use effectively in accordance with internal and external developments. |
| Human Resources Software | Human resources software are digital solutions that manages a company's human resources processes and human resources management with a technology-based smart system. |
| Income Tax | Income tax is a type of tax levied on the income of unincorporated real persons who have rights and powers under the law. |
| Indefinite-term Employment Contract | An indefinite-term employment contract is a type of contract in which the employment relationship between the employer and the employee is not established for a period of time. |
| Insurance Premium Incentive | Insurance premium incentive is the support of many workplaces and workers within the framework of the conditions determined by the Social Security Institution in order to contribute to the increase in employment and decrease in unemployment. |
| ISAE 3402 | The ISAE 3402 standard indicates that the services offered by the service provider are stable and optimized, and also include high-level controls. In order to measure these controls and verify their consistency, an independent audit company analyzes and reports all processes with a long-term study. |
| ISO 27001 | ISO 27001 Information Security Management System is a type of certification and management that ensures the management and protection of valuable information and assets. Organizations that want to certificated with ISO 27001 should establish and actively implement their systems according to information security management system standards. |
| İŞKUR (Türkiye Employment Agency) | İŞKUR (Turkish Employment Agency) is an organization that enables citizens to find jobs and employees, conducts various researches and produces solutions for the continuity of employment. |
| Joint-Stock Company | Joint-stock companies are companies with a fixed capital divided into shares and whose liability regarding the debts is limited to its assets. Joint stock companies, whose rights are determined in the Commercial Code and whose establishment is subject to the permission of the Ministry of Customs and Trade, are managed and represented by their boards of directors. Joint-stock companies can go public, offer their shares to the public. |
| KVKK Compliance | KVKK compliance means that data controllers are obliged to act in accordance with the principles and procedures of data protection law in all transactions from the moment of obtaining personal data. The aim of the project to be carried out for KVKK compliance is to make your company fully compliant with the Law, both legally and technically, for all personal data stored and processed. |
| Labor Law | Labor law can be defined as a discipline that regulates and examines the relations between employees and employers. Labor law only deals with human relations arising from the service contract and under the dependent (subjective) service obligation. Briefly, it is the discipline that examines the legal rules created for the purpose of regulating the employee, employer and their relations with the state as a whole. |
| Leave Management | Leave management is the general name of the systems allowing a manager to give approval when an employee requests leave, management of entire leave tracking and reporting processes. Informasoft® can be cited as an example. |
| Limited Liability Company | Limited liability companies are the companies that are founded by one or more natural or legal persons under a commercial name. The joint stocks of these companies is certain and consists of the sum of the joint stocks. Limited companies, which can be established for any economic purpose and subject that are not prohibited by law, cannot operate solely in the fields of insurance and banking. |
| Maternity Leave | Maternity leave is based on the principle that female employees are not employed for a total of sixteen weeks, eight weeks before the birth and eight weeks after birth. |
| Minimum Wage | The minimum wage is the lowest wage that should be paid to an employee. It refers to the wage paid for work and amount sufficient to meet basic needs at the minimum level such as food, housing, clothing, health, transportation, culture, etc. |
| Net Payment | The net payment is the monthly wage that the employee is entitled to after legal deductions such as income tax, stamp tax and social security premium etc. from gross payment. In case of deduction such as advance, execution, the relevant amounts are deducted from the net wage and the amount to be paid is found. |
| Non-Disclosure Agreement | A non-disclosure agreement is a type of contract signed between the employer and the employee, which guarantees that the employee shall not disclose the company's private or confidential information and shall not share it with third parties. |
| Occupational Health and Safety | It is a concept that determines the health and safety standards of employees in the workplace. Its main purpose is to promote health and take measures to prevent accidents, injuries and deaths in the workplace. |
| Official Gazette | Official Gazette is an announcement organ that publishes decisions such as decrees, laws, regulations, and circulars issued by the government, parliament, president, and prime minister. |
| Payment Service Provider | Payment service provider (PSP) is the company providing services in electronic transactions to online processors, merchants and other businesses regarding easier and more convenient transactions. |
| Payroll | Payroll is an elaborated document presenting the wages that should paid to the employee, deductions and tax details and prepared for each person by the employer. It is also referred to as pay slip. |
| Payroll Outsource | Payroll Outsource is the execution of the organization needs regarding payroll-related functions with an outsourced (third party) business partner. |
| Payrolling | Payrolling is the execution of the organization needs regarding payroll-related functions with an outsourced (third party) business partner. |
| Performance Tracking | Performance tracking is a set of operations aimed at determining the success of the employees in a certain period and their potential for future development. |
| Permanent Establishment | It is the general name given to establishments that are constantly operating with fixed personnel and facilities in pursuant of the permanent staff. |
| Personal Data | Personal data refers to any information that belongs to a real person. In order to talk about personal data, the data should belong to a real person and be specific or identifiable. It is all kinds of information that presents the personal, family and professional qualities of the person, distinguishes that person from other people and reveals his characteristics. |
| Personnel File | Personnel file is a record file that contains all kinds of information about a company’s employees and should be kept separately for each employee. |
| Provisional Tax Return | Provisional tax return is a type of return that is submitted quarterly on corporate earnings. |
| R&D | R&D, which stands for Research and Development, is the process of producing various projects and examining and testing these projects before they are implemented. |
| Recruitment | Recruitment is the entire process of an organization consisting of finding, selecting and adapting of human resources. |
| Recycling Contribution Declaration (GEKAP) | It is the declaration regarding the payment of the recycling contribution fee to be paid by the sales points for plastic bags and the marketers/importers for their other products in the manner determined by the Revenue Administration. |
| Recycling Contribution Share | It is the amount determined in the attached list (1) of the Environmental Law No. 2872, depending on the type of product, in the supply of the products within the scope of the General Communiqué on Recycling Contribution Share Declaration. |
| Security Premium | Insurance premium is the fee paid by the employer to the Social Security Institution on behalf of the employee in order for the employees to benefit from health services and entitle the right to retirement. SSI premium amount paid monthly by employers is determined by calculating the gross salary of the employee. |
| Severance Payment | Severance payment is a type of compensation in which the employee is entitled to an average of thirty days' gross wage for each seniority year in case of termination of the employment contract with unjust termination or for a valid reason. |
| Social Security | Generally, social security means taking the necessary measures to protect all individuals in the society regarding social risks via social insurance, social assistance and social services tools and covering the damages that may arise. |
| Social Security Institution (SSI) | SSI (Social Security Institution) is an organization that aims to meet the needs of people whose incomes or earnings has been cut, without needing anyone's help. |
| Sole Proprietorship | A sole proprietorship is a type of company with a legal entity that can be established to carry out commercial activities with one person or a small number of partners and has unlimited joint responsibilities. Sole proprietorships are a type of company in which the partnership share is difficult to transfer, the approval of the other partners is required to transfer the shares. |
| Sponsor Company (Firm) | Sponsorship can be defined as providing support to companies through organization to reach large audiences. Sponsorship, which continues to be used as a common marketing tool enables companies to communicate with the target audience. |
| Stamp Tax | Stamp tax is a type of tax collected by the state, arising from papers and contracts documenting legal and official transactions between individuals and institutions. Stamp declaration notification is given to the tax office to which the taxpayer is affiliated until the 26th day of each month and then the payment is made. Papers and contracts that will be subject to stamp declaration should be created by signing or placing a sign that replaces signature. |
| Sub - Employer | A sub-employer is defined as the persons who have the title of employer, undertakes work in a part of a particular job and its extentions from the original employer and employs employees on their behalf in that workplace and its extentions. |
| Sub-Employer Service - Professional Employer Organization (PEO) | The professional employer organization (PEO) is a human resources service shaped by workforce deficiencies and needs of clients. PEO is an outsource that provides services for small and medium-sized enterprises, i.e. SME. |
| Tax Board | The tax board is the document whose format is determined by the Ministry of Finance, showing the income tax and corporate taxpayers' income as a basis for the tax amount and the tax amount corresponding to these earnings. The mentioned document can be obtained from the website of the revenue administration. |
| Taxation Law | Taxation Law is the whole of the substantive and formal legal rules regarding the nature of tax duty, the delivery and disappearance of tax debt. |
| Temporary Employment Relationship | Temporary employment relationship is established by an employee to be assigned within a company for a certain period of time through private employment agencies. |
| Trade Registry Gazette | The trade registry gazette was first published in 2004 as a result of the common law decision of the Union of Chambers and Commodity Exchanges of Türkiye. In the Trade Registry Gazette, companies or institutions operating in Türkiye have to register and announce their information and/or changed information in the Trade Registry Gazette. Information about companies and institutions is publicly available information. |
| Training Management | Training management is the whole of the human resources processes of determining, planning, organizing and budgeting the appropriate education policy in an organization in order to train and develop it in line with the vision, mission, objectives, long-term plans and strategies to be determined. |
| Turkish Personal Data Protection Law (KVKK) | Turkish Personal Data Protection Law (KVKK) is the main law to protect the fundamental rights and freedoms of individuals, in particular the right of privacy, and to regulate the obligations of natural and legal persons who process personal data and the procedures and principles to be followed in the personal data processing processes. |
| Unemployment Insurance | Unemployment insurance is a compulsory type of insurance paid by the state in case the person loses the job without any fault during the period of work in any workplace. |
| Unpaid Leave | Unpaid leave means that the employee is given a leave of absence for a certain period of time by the employer and the employee is not paid any wages during this period. |
| Value-Added Tax (VAT) | In the delivery of goods or services, it is the type of "indirect tax" that is paid by the person who delivers the goods and services but is undertaken by the purchaser. Three types of VAT rates are applied in Türkiye as follows: 1%, 8%, and 18%. |
| VAT Return | The VAT return notification is submitted to the tax office until the 26th day of each month to which the taxpayer is affiliated, and then the payment is made. Since the consumer makes the VAT payment while purchasing the goods or services, the VAT return should be declared by the goods or service provider. |
| VAT-2 Return | The VAT return notification is submitted to the tax office until the 26th day of each month to which the taxpayer is affiliated, and then the payment is made. It is a VAT return that was put into effect by the Ministry of Treasury and Finance and started to be implemented for sectors that have difficulty in collecting VAT. It is known as VAT-2. |
| VERBIS | Natural and legal entity data controllers that process personal data shall required to register with the Data Controllers Registry in advance of processing personal data within scope of the Article 16 of the Turkish Personal Data Protection Law No. 6698. Herein, data controllers are Required to register with the Data Controllers' Registry Information System ("VERBIS"), an online platform of Turkish Personal Data Protection Authority. |
| Withholding and Premium Service Declaration - MUH SGK 1003A | The MUHSGK 1003A declaration notification is given to the tax office to which the taxpayer is affiliated until the 26th day of each month, and then the payment is made. It is a declaration that taxpayers who have to make tax deductions according to the Tax Laws and have to report the payments made within a month or the profits and revenues and accrue and the taxes deducted from them with the Withholding and Premium Service Declaration (1003A). |
| Withholding and Premium Service Declaration - MUHSGK 1003B | The MUHSGK 1003B declaration notification is given to the tax office to which the taxpayer is affiliated until the 26th day of each month, and then the payment is made. According to the Law No. 5510, those/employers who are obliged to report the income and service information subject to premium of the insured are obliged to report the income and service information subject to premium for the current month with the Withholding and Premium Service Declaration (1003B). |
| Work Permit | A work permit is a permit obtained from the Ministry of Labor and Social Security for a foreign citizen to work in any workplace in Türkiye. |
| Workplace Registration Number | The workplace registration number is the registration number of the workplace that belongs to a certain workplace and is specified the SGK and consists of 26 digits. The absence of this number means that there is no official record of the specified workplace. |