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Halfway between the status of employee and entrepreneur, the Umbrella Company in Turkey is an innovative solution. It allows you to set up an independent professional business activity while preserving the social security of an employee.


The Umbrella Company allows individuals to set up their activity and work for their own customers while retaining their employee status. Created in 1980, the Umbrella system has experienced rapid  adoption in Turkey since the 2000s. As previously mentioned, this concept is now incorporated into the Labour Code.

The basic principle of this system is to convert a self-employed professional activity into a self-employed job with an employment contract and employee status.

The employee of the Umbrella Company in Turkey performs a given business activity for a client willing to pay a Payroll Turkey Company as part of the Umbrella Company.

Three actors are therefore involved, and each have specific roles:

  • The client company

It benefits from a quality service delivered by the employee. It also delegates the administrative management of the contract.

  • The Umbrella Company in Turkey

It hires the employee, accepts the contract and remunerates the employee every month.

  • The employee

The employee enters into a contract and negotiates the conditions of service with their clientele. He/she also concedes the contract to the Umbrella company in exchange for an employment contract. He/she also performs a service on behalf of the Umbrella Company in Turkey.

Who is the Umbrella Company for?

It is intended for all people wishing to work independently and aiming to take advantage of the benefits of the employee plan.

It is also compatible with a large number of trades, including:

  • executives and engineers
  • project management
  • communications and marketing consultancy
  • management and finance
  • internet and digital professions

The stages of working with the Payroll Turkey Company

Prospecting and commercial negotiation:

The employee concerned enters into a contract with a company likely to entrust him with a job. Together, they establish rates, define a duration of work, as well as the objectives of the service entrusted and costs to be included etc.

Employment contract :

The signing of this contract takes into account the various elements established during the commercial negotiations.


The Umbrella Company carries out the work entrusted to them according to the established specifications.

Nichols JR, the network leader at Payroll Turkey, is involved in these different stages. In fact, the client company and Nichols JR sign the service contract. For their part, the employee signs the employment contract with Nichols JR Payroll Turkey Solution, according to elements validated during the negotiation stage.

Throughout the work process, the responsible professional informs Nichols JR of the progress of the service entrusted.

Nichols JR also intervenes at the administrative level (invoicing, contract, etc.), and ensures the professional salary management (pay slip, pension funds, etc.). The monthly remuneration is then paid by the carrier company.

Once the work is finished and if no other is entrusted, Nichols JR pays the balance of any account to the employee carried.

What are the different contractual documents?

These documents are:

The job contract: Drawn up between the Umbrella Company, the employee and the client company. This document includes essential elements, such as the nature of the assignment and duration, the amount of services, the deadline for the payment terms, legal responsibilities, assignment fees and professional fees.

The Payroll agreement: This indicates the conditions of collaboration between the employee and the Payroll company. Invoicing, finding assignments, fees received by the company and employee compensation are all stipulated in this agreement.

The employment contract: This comes after the two previous documents have been signed.

Our Umbrella Company, Nichols JR was created in 2000’s in Istanbul. Since then, the company has positioned itself in the top three Turkish payroll groups. With the largest franchised network of agencies in Turkey, Nichols JR is a leader at both the local and national level.

It is recognised in the fields of consulting, engineering and training by nearly 1,000 clients located in more than 15 countries.



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