Absolute immunity means that a State cannot exercise legislative, judicial or executive powers over another State due to the mere fact that the latter is sovereign. Today, it is rejected by a considerable number of States which represent various legal systems. States argue that private acts of a State performed jure gestionis, apart from the conducts performed jure impreii, are justiciable. It can be asserted that the current State practice embracing the restrictive approach is the direction in which international law has been evolving. That said, States’ interests which led to the adoption of State immunity still continue to induce legislative bodies and courts to be cautious in formulating a broad exception to immunity for employment contracts, causing them to refocus on the question of whether the employment relationship is destined for governmental, public, or sovereign purposes.

I. Introduction
 II. The Rationale for State Immunity
 III. The Development of the Restrictive Doctrine
 IV. State Practice on Commercial or Private LawException to Immunity
 V. State Practice as to the Exception forEmployment Contracts
 VI. Conclusion

• Yasir Gökçe(Former Diplomat at the Ministry of Foreign Affairs of the Republic of Turkey; John F. Kennedy School of Government of Harvard University.)