EVALUATION OF PROFIT-SHARING PLANS WITHIN THE SCOPE OF EMPLOYEE INCENTIVE SYSTEMS FROM THE PERSPECTIVE OF TURKISH LAW

Abstract

Profit-sharing plans are a type of compensation system that allows employees to earn additional income based on the company's financial performance. These plans are used to increase employee motivation, improve business performance, and strengthen the mutual interests between employees and employers. While there is no specific legislation directly regulating profit-sharing plans in Turkey, they are indirectly regulated under labor law, contract law, commercial law, and tax law. This study examines the conceptual framework of profit-sharing plans, evaluates their place in the Turkish legal system, and analyzes the legal problems encountered in practice. The study concludes that while existing legal regulations allow for the implementation of profit-sharing plans, the lack of clear and comprehensive regulation leads to uncertainties in practice. It is argued that a well-designed legal framework is crucial for the success of a profit-sharing plan, and that this issue is relatively under-researched in Turkey. This study presents a comprehensive and up-to-date review of the relevant literature, identifies insufficiently researched areas, and offers suggestions for future research.