A significant number of the subcontracted workers of the municipalities have been transferred to the municipal corporations as of the second quarter of 2018. In addition, tenders for the personnel services have been prohibited starting from this date. As a consequence, the majority of the municipality personnel are currently employed by the municipal corporations, which are outside the municipal organization but are under the control of it. There are two main factors affecting the organisation as a corporation in this process of transferring subcontracted workers to permanent cadres. The first one is the aim of reducing costs related to the personnel. The unionization rate is high among the regular workers in the municipal organization; their wages and other benefits are regulated by collective labour agreements. If the subcontracted workers had benefited from the same rights as the regular workers of the municipality, this would put a heavy financial burden on the municipalities. The second factor is concerned with the aim of facilitating the recruitment of workers for municipal services. According to the legislation in force, taking the Public Personnel Selection Examination is prerequisite for the recruitment of civil servants and workers who will work at the municipality. Municipal corporations are not subject to this regulation. Therefore, an organization in the form of municipal corporation has been preferred for flexible wage and employment policy. However, the legislation in force on municipal corporations is not sufficient in terms of their political scrutiny. Municipal council, which is the elected decision-making organs of the municipality, lacks the mechanism to actively scrutinize the financial condition and performance of municipal corporations. Hence, the political scrutiny mandate and mechanisms of the municipal council should be reinforced by legislative amendments.