Important Decision by the Constitutional Court: The Freedom to Choose Applicable Law in Employment Contracts Has Been Annulled

By its decision dated November 5, 2024, numbered 2023/158 E., 2024/187 K., published on March 10, 2025, the Constitutional Court annulled Article 27(1) of Law No. 5718 on Private International and Procedural Law.

What Did the Annulled Provision Stipulate?

According to the annulled provision, employment contracts could be subject to the law chosen by the parties, provided that the mandatory rules of the law of the employee’s habitual place of work remained in force. This arrangement granted the parties the freedom to choose the applicable law in employment contracts.

However, the Constitutional Court annulled this regulation on the grounds that the employee, being the weaker party to the contract, could be deprived of the broader protection they would have if no law were chosen.

What Are the Legal Consequences of the Decision?

• After the decision comes into effect on September 10, 2025, the parties will no longer be free to choose the applicable law in employment contracts.
• Regardless of which country’s law applies to the contract, provisions offering the employee greater protection will remain valid.
• In particular, in the maritime sector, when Turkish seafarers work on foreign-flagged ships, Turkish courts may have jurisdiction regardless of the law chosen in the employment contracts.

Impact on Seafarers’ Employment Contracts in the Maritime Sector

The Constitutional Court’s annulment paves the way for Turkish employees to bring employment-related disputes before Turkish courts, regardless of the ship’s flag or the country of the shipowner or operator.

• Employers will no longer be able to unilaterally designate a law in their own favor in employment contracts.
• Even if a foreign law is chosen in the contract, it will have limited effect in the face of Turkish legislation that provides greater protection for employees.
• Turkish courts may have jurisdiction, even if the parties have chosen a different law, by considering the minimum protection standards afforded to employees.

In line with the regulation that will come into force on September 10, 2025, employers must review their existing employment contracts and revise any provisions that stipulate a choice of law. It will become inevitable for employment contracts to be evaluated within the framework of Turkish law in terms of the protection provided to employees.

In particular, Turkish employees working on foreign-flagged ships will enjoy broader opportunities to apply to Turkish courts regarding working conditions and disputes arising from their employment relationships.

You can access the full text of the Constitutional Court’s decision at the link below:

https://www.resmigazete.gov.tr/eskiler/2025/0 3/20250310-5.pdf