The use of vehicles registered to a company or used for business purposes by individuals who are not the company’s insured employees has become one of the greatest financial and legal risks for businesses as of 2026. Thanks to data integration between the General Directorate of Security and the Social Security Institution (SGK), a routine traffic stop can quickly result in a hefty SGK fine.
How Does the Oversight Mechanism Work?
During traffic stops, routine police checks are no longer limited to driver’s licenses, vehicle registration, and criminal records. If the vehicle is registered as a commercial vehicle or in a company’s name, the system instantly verifies whether the driver has an active Social Security registration with that company.
If the person driving the vehicle is not an official, payroll-registered employee of the company—even if that person is a relative or friend of the company owner, or an uninsured driver working on a daily wage basis—the situation is documented by law enforcement. This report is forwarded directly to the Social Security Institution (SGK), and the agency initiates an administrative fine process against the company on the grounds of “employing unregistered workers.”
Administrative Fines for 2026
Penalties for identified cases of uninsured employment are calculated directly based on the gross minimum wage and are applied cumulatively, with separate penalties imposed for each violation. As of 2026, the primary penalties are as follows:
- Failure to Submit the Notice of Employment: Upon the first detected violation 2 times the minimum wage an administrative fine in the amount of (approximately 66,060 TL) will be imposed. If the same offense is repeated within one year, this amount for 198,180 TL can go as high as.
- Lack of Monthly Reports: For failure to report on the monthly premium and service statement, each month on his behalf 2 times the minimum wage (66,060 TL) applies.
- Invalidity of Registration and Documents: Because the individual is not listed on the payroll and the company’s legal records are deemed invalid, for each month worked without insurance, half the minimum wage each A fine of (16,515 TL) is added.
As can be seen, even a company vehicle entrusted to someone for just one hour can result in the company facing a fine of hundreds of thousands of liras.
Legal Basis and Legal Responsibilities
This issue is not limited to administrative fines imposed by the Social Security Institution (SGK). In the event of an accident or a violation of regulations that occurs while a company vehicle is being used by a third party, various laws come into effect and apply to company executives and employees.
1. Social Security Legislation (Law No. 5510)
The main basis for combating informal employment is the Social Insurance and General Health Insurance Law No. 5510, It is Article 102. The Social Security Institution (SGK) considers the commercial nature of the vehicle and the individual’s presence behind the wheel to constitute a “presumption of actual work.” Even if the vehicle owner claims, “I merely lent the vehicle to someone else,” the SGK does not accept this defense and imposes administrative sanctions.
2. Labor Law and Employer Liability (KTK and TBK)
Under the Highway Traffic Law (KTK) and the Turkish Code of Obligations (TBK), the principle of "Operator Liability" applies. If the person operating the vehicle causes an accident, they are liable for all resulting injuries, deaths, or property damage to the other party. The vehicle owner (company) is primarily liable for both material and moral damages. Furthermore, even if mandatory auto insurance covers the other party’s damages, the insurance company may seek reimbursement from the driver in cases of gross negligence, such as the driver being uninsured or driving without authorization. Comprehensive insurance companies, on the other hand, completely refuse to cover damages in cases of unauthorized use.
3. Criminal Law (Article 155 of the Turkish Penal Code)
This heading is of particular concern to employees. The company may have assigned (entrusted) a vehicle to an employee solely for business purposes. If the employee allows their spouse, a friend, or any other unauthorized person to use the vehicle, they will be subject to Article 155 of the Turkish Penal Code "Breach of Trust in the Course of Employment" the employee would be committing a crime. If the company files a complaint, the employee may face a prison sentence of 1 to 7 years and a fine. Furthermore, under the Labor Code, this situation constitutes just cause for the employer to terminate the employee without compensation.
What Should Companies Do?
In cases of car rentals or long-term fleet leases, written contracts with wet signatures between companies serve as a protective shield, and the primary liability for SGK penalties shifts to the company that employs the driver. However, for their own company-owned vehicles, businesses must take the following steps:
- Create a Vehicle Inventory Report: When the vehicle is handed over to an employee, a written statement must be signed that includes the clause: "This vehicle shall be used only by company employees and solely for business purposes."
- Attention Daily/Hourly Workers: No driver who is in a "probationary period" or is "paid by the day" and whose insurance has not yet been activated should be allowed to drive.
- Staff Announcement: Employees must be clearly informed that allowing third parties, including family members, to use company vehicles constitutes grounds for termination of employment.
What should be done regarding trucks or construction equipment leased to another company?
Leasing commercial and heavy vehicles, such as trucks and construction equipment, to another company is a much more complex process than leasing passenger vehicles. In this case, in addition to Social Security Institution (SGK) risks, tax regulations, transportation rules (U-ETDS), and Occupational Health and Safety (OHS) laws come into play.
To protect yourself and your company, the leasing process, "Rental with Operator/Driver" and "Unmanned (Dry) Rental" You need to structure it according to two different scenarios.
1. Rental Without an Operator/Driver (Dry Lease)
This is a situation where the vehicle or machine is delivered to the other company, and the other party provides the driver or operator. This is the key to avoiding SGK penalties.
- Authorization Certificate and U-ETDS Registration (for Trucks): When you rent a truck without a driver, this vehicle belongs to the rental company Authorization Certificate (K1, K2, etc.) This must be recorded. The vehicle must be added to the partner company’s fleet via the U-ETDS (Electronic Transportation Tracking and Monitoring System). Otherwise, any massive fines imposed by the Ministry of Transportation for violations related to tonnage and authorization certificates will be levied directly against the license holder (you).
- Occupational Safety and Health and Professional Competency (for Construction Machinery): The leasing company must provide documentation proving that the personnel who will operate the construction equipment hold a "Class G" driver's license and the relevant operator certification. The only way to avoid “operator liability” in the event of a workplace accident is to prove through the contract that you handed the vehicle over to qualified personnel.
- Contract Term: The lease agreement to be drawn up must include the following: "The renting company is liable for any and all Social Security, traffic, and occupational safety and health liabilities, as well as damages caused to third parties, arising from the operation, control, and use of the vehicle/machine." The phrase must be clearly stated.
2. Rental with Operator/Driver
This refers to a situation in which you assign a vehicle or machine, along with your own insured personnel, to another company’s construction site or service.
- The SGK Risk Is Yours: Since the driver is your salaried employee, there is no risk of being classified as “unregistered” with the Social Security Institution (SGK) during traffic stops. However, you remain fully responsible for your employee’s working hours, overtime, and employee benefits.
- Tax Aspect (VAT Withholding): From a tax law perspective, this model is not merely a vehicle rental transaction; it is generally "labor supply" or "Machinery and equipment rental service" is considered as such. When issuing an invoice, VAT withholding (for example, at a rate of 9/10 or 3/10) may need to be applied depending on the nature of the service. The utmost care must be taken with regard to withholding codes when issuing an invoice.
- Letter of Appointment: In order for your employees to work on another company’s premises, a written "Temporary Assignment" The document must be prepared and added to the employee's personnel file.
Essential Clauses for the Lease Agreement to Be Drafted
A standard "rent-a-car" contract is insufficient for heavy vehicles. The following details must be clarified in a contract between companies:
- Right of Recourse: Any administrative fines that may be imposed while the vehicle is in use (traffic, Social Security, Tax, Environmental, etc.)—even if they are issued to the license holder—shall be paid to the rental company "will be billed and recovered" This must be specified.
- Maintenance and Repair Limits: It must be clarified who is responsible for performing periodic maintenance on construction equipment and whether compensation for lost work (downtime pay) can be claimed in the event of a breakdown.
- Intended Use and Limitations: Restrictions must be placed on the types of cargo a truck can carry (including whether it can transport hazardous materials) or the types of terrain and construction site conditions under which a piece of construction equipment can operate.
- Subleasing Ban: The leasing company must be strictly prohibited from leasing or transferring this vehicle to a third-party contractor or another company (otherwise, the Social Security Institution’s connection regarding who employs whom is completely severed).
Heavy-duty vehicle and construction equipment rental transactions are one of the areas most prone to giving rise to “joint and several liability” for licensed companies. It is of critical importance to issue the relevant rental invoices regularly each month and to keep contracts up to date by renewing (or extending) them at the beginning of each fiscal year.