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

Definition of Umbrella Company Turkey


For people, Umbrella Company allows them to set-up their activity and work for their own customers. While retaining their employee status. Born in 1980, Umbrella system has experienced very strong growth in Turkey since the 2000s. As indicated, this concept is now incorporated into the Labor 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 mission. Then, for a client willing to pay a Payroll Turkey Company. As part of the Umbrella Company, three actors are therefore identified.

These all have specific roles:

The client company

It benefits from a quality service thanks to the know-how of the employee. It also delegates the administrative management of the contract.

The Umbrella Company in Turkey

It hires the employee, accepts the contract concluded by the latter. And remunerates it every month.

A physical person

The employee concerned prospects, enters into contact and negotiates with his clientele the conditions of the service. He also concedes to the Umbrella company the contract concluded in exchange for an employment contract. He also performs the service on behalf of the Umbrella Company in Turkey.

Who is the Umbrella Company for?

It is intended for all people wishing to be independent. And aiming to take advantage of benefits of the employee plan.

It is also compatible with a large number of trades:

  • executives and engineers,
  • project managers,
  • communications and marketing consultants,
  • management and finance,
  • web and digital professions…



Way of work of Umbrella Company in Turkey


Umbrella company is divided into several stages:

Prospecting and commercial negotiation:

The employee concerned enters into contact with a company likely to entrust him with a mission. Together, they establish an intervention tariff, define a duration, objectives of the service entrusted, costs to be included …

Employment contract :

Its signature takes into account the various elements established during commercial negotiations.


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

Nichols JR, the leading network of Payroll Turkey, intervenes in these different stages. In fact, the client company and Nichols JR sign the service contract. For its part, the employee carried signs with Nichols JR Payroll Turkey Solution the employment contract. According to elements validated during negotiation step.

During assignment’s performance, the professional taking charge of it regularly, informs Nichols JR of the progress of the service entrusted.

Nichols JR also intervenes at the administrative level (invoicing, contract, etc.). And it ensures the professional salary management (pay slip, pension funds, etc.). Regarding the monthly remuneration, this is 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 mission contract: concluded between Umbrella Company, employee and client company. This document includes essential elements such as the nature of the assignment and duration, the amount of the services, the deadline for the payment terms, legal responsibilities, assignment fees and professional fees.

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

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

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

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


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