Who Can Drive a Company Car in Türkiye? Legal Rules and Employer Responsibilities

Company vehicles are a cornerstone of business operations in Türkiye, enabling efficiency and cost management. However, one of the most common legal questions is: who is legally allowed to drive a company car? While company cars provide significant benefits, their misuse can lead to serious legal and financial consequences for employers.

In this article, we explain the rules regarding company car use in Türkiye, the penalties for unauthorized use, and the legal remedies available for employers.

Who Can Legally Drive a Company Car?

If a company rents or owns a vehicle, it can be driven only by the company’s registered employees under the Social Security Institution (SGK) system and the company’s official shareholders. This rule applies regardless of whether the car is leased through a fleet rental agreement or directly owned by the business.

Employers must establish clear internal policies for vehicle use to avoid liability. During traffic inspections carried out by law enforcement, if the driver is not registered as an SGK-insured employee or an official partner, the company can face severe legal penalties.

Can a Company Car Be Driven by Someone Else?

The law is strict: company cars cannot be driven by individuals outside of the company’s SGK-registered employees and partners. Even family members, friends, or acquaintances are not legally allowed to drive the car if they are not properly authorized.

If a vehicle is driven by an unauthorized person, the SGK may classify the situation as undeclared employment, which can result in significant administrative fines for the employer.

Legal Consequences of Unauthorized Company Car Use

Allowing unauthorized individuals to drive company cars can expose employers to several penalties under Turkish law, particularly under Law No. 5510 on Social Insurance and General Health Insurance. Common penalties include:

• Failure to Submit Employment Notification: If an unauthorized driver is caught, the SGK may assume the company failed to notify employment. The penalty can be as high as two times the minimum wage per worker.

• Repeated Violations: For repeat offenses, fines can increase up to five times the minimum wage, leading to substantial financial loss.

• Failure to Submit Monthly Premium and Service Documents: Employers may face fines for each month these documents were not submitted for the unauthorized driver.

• Retroactive Social Security Premiums: The SGK can demand backdated premium payments if the person is treated as an undeclared worker.

Even if the unauthorized driver is a relative of the company owner or a friend, penalties can still apply.

SGK Fines and Court Challenges

In practice, the SGK often imposes fines based solely on traffic inspection reports without verifying whether an actual employment relationship exists between the driver and the company. This has led to cases where companies were fined even though the driver was not truly a worker.

Fortunately, administrative courts in Türkiye have annulled such fines when insufficient investigation was conducted.

Example Court Rulings

• Gaziantep Regional Administrative Court, 2022: The court canceled a fine because the SGK relied only on a traffic inspection report without confirming whether the driver was employed by the company.

• Adana Regional Administrative Court, 2022: The court ruled that before issuing fines, the SGK must conduct a thorough investigation, including verifying payments, obtaining witness statements, and checking employment records.

These rulings demonstrate that employers have a legal right to challenge unjust fines.

How Employers Can Protect Themselves

To avoid penalties and legal disputes, companies should:

1. Ensure All Drivers Are SGK-Registered
   Only registered employees and official company partners should drive company cars.

2. Issue Written Authorization
   If a company car must be driven by someone outside of the company, this should only occur through a properly documented and legally valid contract, such as a rental or service agreement.

3. Maintain Compliance with SGK Rules
   Employers must ensure employment notifications and monthly premium documents are submitted on time.

4. Challenge Unjust Fines
   If fined, employers should consult legal counsel immediately. Administrative courts have recognized that SGK fines must be supported by concrete evidence, not assumptions.

Conclusion

Company cars in Türkiye bring great advantages but also legal responsibilities. Allowing unauthorized drivers to use a company vehicle can result in significant SGK penalties and financial risks for employers. At Bayraktar Attorneys, we assist both local and international companies in protecting themselves from such liabilities. If your company has received an SGK fine for unauthorized vehicle use, or if you need to set up compliant policies for company car use, our experienced legal team is ready to provide full legal guidance and representation.