Newsletter-21

325 LABOR LAW The temporary employee procurement agreement to be concluded between the private employment agency and the employer shall remain valid throughout the duration of the cases that are set forth under sub- paragraph (a) above, for an indefinite term for the cases set forth under subparagraphs (b) and (c), and for a term up to four months for those cases set forth under the other subparagraphs. This agreement shall only be renewed twice for periods that shall not exceed eight months in total, excluding the cases of significant increases of workloads. In accordance with the preamble of the Draft Law, the aim of the time limitation of certain temporary employment relationships is to avoid adverse effects on the regular operation of the workforce market, and to encourage a system in which temporary employment relationships are only used in circumstances where they are genuinely needed. As per the eleventh subparagraph of the same provision, if the temporary employment relationships continue in force after their expi- ration dates, provided that the circumstance allowing such relationship still exists, an employment agreement with an indefinite period shall be deemed to be established between the employee and the employer. Authority of Private Employment Agencies to Establish Temporary Employment Relationship Article 5 of the Draft Law amends Article 17 of the Labor Law that governs private employment agencies. This provision of the Draft Law regulates the principles of authorization and permits real and legal persons to apply to operate as a private employment agency. In addition, such article also enables some eligible private employment agencies to open a branch and to put their system or brand into use. As it is stated, above, another novelty concerns the authority to establish a temporary employment relationship. Certain qualified pri- vate employment agencies operating for an uninterrupted period of two years may be granted authorization to establish temporary em- ployment relationships by the Turkish Employment Institution. This authorization is for a period of three years, and such period may be renewed for periods of three years, provided that such renewal is re- quested at least fifteen days prior to the expiration date.