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No-poach and wage-fixing compliance in Turkey moved from a theoretical concern to an urgent boardroom priority on 8 April 2026, when the Turkish Competition Authority (TCA) imposed fines on multiple pharmaceutical companies for entering into no‑poach agreements and exchanging competitively sensitive wage data. The decision confirmed that labour‑market cartels are treated with the same severity as traditional price‑fixing under Article 4 of Law No. 4054 on the Protection of Competition. For in‑house counsel, HR leaders and compliance officers at companies operating in Turkey, the enforcement action demands an immediate review of hiring policies, salary‑benchmarking practices, vendor contracts and any informal industry‑forum participation.
This guide sets out the legal framework, analyses the 2026 pharma decision, and provides actionable checklists, model contract clauses and an FAQ to help organisations achieve and maintain compliance.
The core obligation is straightforward: competing employers in Turkey may not agree, formally or informally, to refrain from hiring each other’s employees or to fix, cap or coordinate wages and benefits. Any such arrangement is classified as a cartel‑type restriction by object under Article 4 of Law No. 4054 and attracts turnover‑based fines without the need for the TCA to prove anti‑competitive effects.
Following the TCA’s 8 April 2026 decision in the pharmaceutical sector, industry observers expect heightened scrutiny across all labour‑intensive industries, including technology, fast‑moving consumer goods and professional services. The immediate action items for every employer in Turkey are: (1) suspend any ongoing inter‑company salary data exchanges that are not properly aggregated and anonymised; (2) audit employment, consultancy and distribution agreements for clauses that restrict hiring; and (3) brief senior HR personnel on competition‑law red lines.
Law No. 4054 on the Protection of Competition, published in the Official Gazette on 13 December 1994, is Turkey’s primary antitrust statute. Article 4 prohibits all agreements between undertakings, decisions by associations of undertakings, and concerted practices that have as their object or effect the prevention, restriction or distortion of competition. The provision mirrors Article 101 of the Treaty on the Functioning of the European Union and is interpreted consistently with EU case law and European Commission guidance.
Critically, Article 4 does not limit its scope to product or service markets. Where competing employers agree to restrict the free movement of labour, whether through no‑poach pacts, wage‑fixing arrangements, or the exchange of competitively sensitive HR data, they engage in conduct that restricts competition in the labour market. The TCA treats such agreements as restrictions by object, meaning that actual harm to competition does not need to be demonstrated: the very nature of the agreement is presumed harmful.
An “agreement” under Article 4 is not limited to signed contracts. The TCA has consistently held that the concept encompasses:
Turkey’s unfair competition provisions under the Turkish Commercial Code (Law No. 6102) address different conduct, primarily deceptive business practices and trade‑secret misappropriation. They do not replace or exempt employers from competition‑law obligations under Law No. 4054. Compliance with one does not guarantee compliance with the other.
A no‑poach agreement is a bilateral or multilateral arrangement between two or more employers not to hire, solicit or recruit each other’s current (or sometimes former) employees. The restriction may be absolute, a blanket prohibition on hiring, or targeted at specific roles, departments or seniority levels.
Wage‑fixing occurs when competing employers agree to set, cap, or otherwise coordinate the salaries, bonuses, benefits or other compensation terms offered to employees or prospective hires. This includes agreeing on salary bands for particular roles, sharing individual offer letters with competitors, or coordinating annual pay‑increase percentages.
Each of these scenarios can constitute a per‑se infringement of Article 4 Law 4054, regardless of whether the parties intended to restrict competition or believed they were simply managing costs.
The TCA’s interest in labor market antitrust in Turkey has developed incrementally. The Authority first signalled its approach by publishing sector inquiries and opinion pieces examining whether competition law should apply to employer‑side coordination. This was followed by consultations on draft guidelines addressing the application of Article 4 to labour markets, a process that drew on OECD recommendations and European Commission precedent.
The TCA’s draft guidelines on competition in labour markets outlined the types of conduct the Authority considers most harmful, namely naked no‑poach agreements and wage‑fixing between competitors, while acknowledging that some ancillary restraints (e.g., non‑solicitation clauses in bona fide M&A transactions) may be assessed under a rule‑of‑reason approach. Industry observers expect the final version of the guidelines to closely follow the draft, particularly given the 8 April 2026 enforcement action.
| Date / Period | TCA Action | Significance |
|---|---|---|
| 2019–2021 | Sector inquiries and initial opinions on labour‑market competition | Established that Article 4 applies to employer‑side agreements in labour markets |
| 2024 | Publication of Draft Guidelines on competition in labour markets | Set out analytical framework: naked restraints (per se) vs ancillary restraints (rule of reason) |
| 8 April 2026 | TCA decision fining pharmaceutical companies for no‑poach and wage‑data exchange | First major multi‑party enforcement action; confirms aggressive stance and turnover‑based fines |
The trajectory is clear: the TCA has moved from guidance to enforcement. Early indications suggest that additional investigations in other sectors may already be underway, making proactive compliance essential for every employer in Turkey.
On 8 April 2026, the Turkish Competition Authority issued its landmark decision sanctioning multiple pharmaceutical companies for no‑poach agreements and the systematic exchange of wage data. The decision represents the most significant TCA fines for no‑poach conduct to date and has set a precedent that will shape labour‑market antitrust enforcement in Turkey for years to come.
The investigation revealed that competing pharmaceutical companies, operating through informal HR networks, had agreed not to recruit each other’s field‑force employees, particularly medical sales representatives and regional managers. In parallel, the companies exchanged detailed, company‑identifiable salary and benefits data, enabling them to coordinate compensation levels and suppress wage competition for skilled personnel.
Evidence included email correspondence between HR directors, minutes from informal industry meetings, and spreadsheets containing company‑specific compensation data circulated among competitors. The TCA concluded that these arrangements constituted both a no‑poach cartel and a wage‑fixing cartel within the meaning of Article 4 of Law No. 4054.
The TCA classified the conduct as a restriction by object, a category of infringement so inherently harmful that no assessment of actual effects on the market is required. The Authority drew on OECD and European Commission guidance to support its conclusion that naked no‑poach agreements between competitors are analytically identical to market‑allocation agreements in product markets. The exchange of individualised wage data was treated as a facilitating mechanism for the broader cartel.
Translating legal obligations into operational practice requires a phased approach. The following checklist is designed for compliance officers, in‑house counsel and HR leaders at companies operating in Turkey.
| Task | Responsible Team | Priority |
|---|---|---|
| Suspend inter‑company wage‑data exchanges | HR / Compliance | Immediate |
| Board‑level management directive | General Counsel / CEO | Immediate |
| Contract audit (competitor agreements, JV, recruiter) | Legal / Procurement | High, within 30 days |
| Competition‑law training for HR teams | Compliance / External Counsel | High, within 60 days |
| HR data‑governance policy update | HR / IT / DPO | Medium, within 90 days |
| Ongoing regulatory monitoring | Legal / Compliance | Ongoing |
Sharing employee compensation data externally engages two distinct legal regimes simultaneously. Under the Turkish Data Protection Law (Law No. 6698, commonly known as KVKK), salary and benefits information constitutes personal data. Processing or disclosing it to third parties requires a lawful basis, typically the data subject’s explicit consent or a legitimate interest that does not override the employee’s fundamental rights. The Turkish Data Protection Authority (KVKK) has published guidance on anonymisation standards that must be met before personal data can be considered de‑identified.
From a competition‑law perspective, sharing HR data that is competitively sensitive, meaning it could allow competitors to anticipate or coordinate compensation strategies, triggers the prohibitions under Article 4 of Law No. 4054. The risk increases sharply when the data is individualised, recent, and exchanged directly between competitors rather than through an independent intermediary.
Well‑drafted contractual clauses can protect legitimate business interests, such as safeguarding confidential information during and after an M&A transaction, without crossing competition‑law red lines. The following model clauses are provided as templates only and should be reviewed by qualified antitrust counsel before use.
“During the term of this Agreement and for a period of [12] months following its termination, neither Party shall directly solicit for employment any Key Employee of the other Party who was materially involved in the performance of obligations under this Agreement. This restriction does not apply to: (a) general recruitment advertising not targeted at the other Party’s employees; (b) responses to unsolicited applications; or (c) engagements through recruitment agencies acting independently and without employer‑specific exclusion instructions.”
Drafting note: The clause is limited in duration, scope (Key Employees only) and carves out general advertising and unsolicited applications. Broader restrictions, such as blanket bans on hiring any employee of the counterparty, risk classification as naked no‑poach agreements.
“Any exchange of employee compensation data between the Parties shall be conducted exclusively through an independent third‑party survey provider. Data shall be aggregated across no fewer than five participating companies per data point, shall not identify individual company contributions, and shall relate to historical periods of no less than [six] months prior to the date of publication. Neither Party shall share, request or accept individualised, company‑identifiable compensation data from the other Party or through any intermediary.”
Drafting note: This clause creates an affirmative obligation to use anonymised channels and an express prohibition on direct exchange. It aligns with both TCA guidance and KVKK anonymisation standards.
“The Service Provider warrants that it shall not, in the course of providing recruitment services to the Client, enter into or give effect to any agreement, understanding or arrangement with any other client or third party that restricts the pool of candidates by reference to their current or former employer. The Service Provider shall maintain and enforce internal policies designed to ensure compliance with Law No. 4054 on the Protection of Competition, including but not limited to prohibitions on no‑poach agreements and wage‑fixing.”
Drafting note: This warranty shifts contractual risk to the recruiter and establishes a clear record that the company did not authorise or encourage anti‑competitive restrictions on candidate sourcing.
Under Law No. 4054, the TCA may impose administrative fines of up to ten per cent of an undertaking’s annual gross Turkish‑market revenue for cartel‑type infringements. Individual executives involved in the infringement may also face personal fines. The TCA operates a leniency programme under its Regulation on Active Cooperation, which may offer full immunity to the first applicant that discloses an unknown cartel or partial fine reductions to subsequent cooperating parties.
| Entity Type | Typical Conduct at Risk | Enforcement / Reporting Implication |
|---|---|---|
| Competing employers (same market) | No‑poach agreements, salary coordination | Per‑se infringement; high fine risk; immediate compliance review required |
| Industry associations / HR forums | Salary surveys or benchmarking with competitor‑level detail | Risky if data is not aggregated/anonymised, can be treated as information exchange; safeguards and counsel review needed |
| Third‑party recruiters | Agreements not to submit candidates, sharing salary data among clients | Risk if coordinated across clients/competitors; document independence and confidentiality policies |
No-poach and wage-fixing compliance in Turkey is no longer an emerging risk, it is an active enforcement priority. The TCA’s 8 April 2026 pharma decision has removed any ambiguity about the Authority’s willingness to impose significant fines for labour‑market cartels. Companies operating in Turkey should act now by following a five‑point action plan:
This article was produced by Global Law Experts. For specialist advice on this topic, contact Efser Zeynep Ergun at ZESA Attorney Partnership, a member of the Global Law Experts network.
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