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If you’re planning to hire employees in Georgia, there are several things you should be aware of to ensure that you comply with Georgia employment laws. First, it’s critical to be familiar with the Georgia Labour Code, which outlines the legal rights and responsibilities of both employers and employees in the state.
Employment contracts, salaries and benefits, working conditions, and termination are only a few areas of the law addressed by the labour code. The employment contract, which all employees are compelled to sign by law, is another crucial component of Georgian employment law.
The contract should outline the employee’s responsibilities, compensation, and working conditions, as well as any additional compensation or benefits to which they may be entitled. In addition, businesses in Georgia must pay into a social security fund on their employees’ behalf.
The state of Georgia places a heavy focus on STEM education, resulting in a highly educated and talented labour force. In light of this fact, it’s safe to assume that many Georgians who work remotely hold advanced degrees in subjects like engineering, technology, and the sciences.
Georgia has made significant investments in its information technology infrastructure, as evidenced by its increasingly accessible high-speed internet and thriving IT sector. In this way, remote workers can more easily connect with others from all around the world, whether they are clients or colleagues.
Policies such as tax breaks for IT firms and expansions of high-speed internet connections to rural areas are only two examples of the Georgian government’s efforts to foster the growth of the tech industry and remote employment.
It might be challenging to know where to begin when it comes to hiring the right people for your company. This is why we at Native Teams are eager to lend a hand. To ensure the long-term success of your company, we offer Employer of Record services to aid in the smooth hiring and onboarding of new team members into your company. Having Native Teams on your side could help guarantee that your business complies with all Georgian laws, from the hiring process to the distribution of benefits.
Hire your first Georgian employee with Native Teams.
Below, we are exploring some of the most important legal requirements for hiring team members in Georgia:
Employment in Georgia is primarily governed by the Labour Code of Georgia, which was enacted in 2010 and has been amended several times since.
The main elements of Georgia’s employment framework include:
Together, these provisions form the legal framework governing employment relationships and employee rights in Georgia.
Employment contracts in Georgia can take different forms depending on the duration of employment and working arrangement.
The main types include:
Under the Georgian Labour Code, employment contracts must clearly define the key terms and conditions of the employment relationship.
The contract should include:
Download a free employment contract for Georgia through Native Teams.
Under Georgian law, employment contracts may be oral, written, or electronic.
Oral contracts are legally valid. However, without written documentation, proving the agreed terms may be more difficult in the event of a dispute. Employment relationships lasting more than one month must be documented in writing.
Written contracts provide a clear record of the terms agreed between the employer and employee, including matters such as job responsibilities, remuneration, and termination conditions. They may also serve as evidence of the parties’ obligations in case of a dispute.
Electronic contracts are legally recognised and have the same legal standing as written contracts, provided they meet the applicable requirements. Under the Law on Electronic Documents and Electronic Signatures, certified digital signatures may be used to authenticate electronic employment contracts.
In Georgia, standard working hours must not exceed 40 hours per week, which may be spread across five or six working days depending on the industry and role.
In certain sectors with specific operational requirements, such as continuous production or services, working hours may be extended to a maximum of 48 hours per week.
Regardless of the working schedule, employees must receive at least 12 hours of uninterrupted rest between shifts or working days.
Employees in Georgia are entitled to rest breaks during the working day, particularly when working more than six hours. The duration of the break is determined by agreement between the employer and employee. If the working day is shorter than six hours, the break must be at least 60 minutes.
Employees who are breastfeeding a child under 12 months old are entitled to an additional paid break of at least one hour per day.
Night work is defined as work performed between 10:00 PM and 6:00 AM.
Employees working night shifts are entitled to additional protections, including periodic medical examinations paid for by the employer. If a medical examination determines that night work is affecting an employee’s health, the employer must transfer the employee to day work, where possible.
Employees in Georgia are entitled to a minimum of 24 working days of paid annual leave per year.
Employees become eligible for annual leave after completing 11 months of employment. However, leave may be granted earlier if both the employer and employee agree.
Annual leave may be divided into multiple periods rather than taken all at once, provided this is agreed upon by the employer.
In Georgia, salary includes the basic wage or other compensation an employee receives in exchange for work performed.
The employment contract must clearly specify the form and amount of remuneration, and employees must be paid at least once a month.
Employers and employees should also consider any local ordinances and company policies that may affect wage rates.
To calculate the salary and taxes in Georgia, click here.
Employees in Georgia are entitled to sick leave when they are temporarily unable to work due to illness.
The duration of sick leave is generally determined by the employment contract.
An employer may terminate the employment if the employee is unable to work for more than 40 consecutive calendar days, or 60 days within a six-month period.
Employees in Georgia are entitled to different forms of maternity and parental leave.
Female employees are entitled to 126 calendar days of paid maternity leave. In cases of childbirth complications or the birth of twins, this increases to 143 calendar days. The leave may be divided between the periods before and after childbirth according to the employee’s preference.
Parents may also request 604 calendar days of parental leave, of which 57 calendar days are paid. In cases of childbirth complications or the birth of twins, parental leave is 587 calendar days, with 57 paid days.
Parental leave may be taken by either the mother or father. However, maternity leave of 126 or 143 days is available exclusively to the mother, unless she chooses not to use the full period.
Under the Labour Code of Georgia, employment may be terminated under several circumstances, including:
Under the Labour Code of Georgia, employers may unilaterally terminate an employment contract where there is a justifiable reason for dismissal.
Grounds for ordinary dismissal may include:
Employers must follow the applicable dismissal process and properly document the reasons for termination.
The notice period for dismissal in Georgia is generally 30 calendar days. During this period, the employee continues to work or receive pay.
If the employer wishes to terminate the employment earlier, they must provide severance pay. Employment contracts may establish different notice periods, provided they comply with the legal minimum.
If requested by the employee, the employer must provide a written justification for the dismissal within seven days.
Employees may challenge the dismissal in court if the employer fails to follow the required notice procedure.
Unemployed individuals in Georgia have certain rights designed to provide financial and employment-related support following the loss of a job.
These include:
Under the Labour Code of Georgia, employees may be entitled to severance pay when employment is terminated by the employer under certain circumstances.
Severance pay may apply in cases involving:
The amount of severance pay depends on the notice provided:
Upon termination, the employer must settle all outstanding payments, including severance pay and compensation for unused annual leave, within seven calendar days.
Under the Labour Code of Georgia, employment contracts may include non-competition clauses that restrict employees from using the knowledge and skills gained during employment to benefit a competitor.
A non-competition restriction may continue for up to six months after the termination of employment.
If the restriction applies after employment ends, the employer must compensate the employee throughout the non-competition period. The compensation must be at least equal to the salary the employee was receiving at the time of termination.
Non-competition clauses cannot be applied to employees working in the fields of education, science, or culture.
In Georgia, a probationary period may be agreed between the employer and employee to assess the employee’s suitability for the role.
The probationary period:
During the probationary period, the employee must perform the duties specified in the contract and is entitled to remuneration for the work performed.
Intellectual property rights in Georgia are primarily governed by the Law on Copyright and Related Rights and the Labour Code of Georgia.
A work made for hire refers to work created by an employee as part of their job duties or in connection with tasks assigned by the employer. In general, the property rights to such work belong to the employer, unless the employment contract provides otherwise. This may include intellectual property such as computer programs.
Employers and employees may negotiate and define the ownership and use of intellectual property in the employment contract.
Georgian legislation does not provide a clear framework for determining which tasks fall within an employee’s official job responsibilities and which constitute personal work, making clear contractual terms particularly important.
Employee data in Georgia is protected under the Personal Data Protection Law, which regulates how employers collect, process, manage, and protect personal information.
Employee data may only be processed where there is an appropriate legal basis, such as:
Personal data must be collected for specific and legitimate employment-related purposes and must not be used for other purposes. Employers must also implement appropriate technical and organisational measures to protect data against unauthorised access, loss, or destruction.
Employees have several rights regarding their personal data, including the right to access their data, request corrections, request deletion under certain conditions, restrict or object to processing, and request data portability where feasible.
When employee data is transferred to another country or international organisation, appropriate protection measures must be in place, either through adequate data protection at the destination or binding agreements that safeguard the information.
Violations may result in fines, including GEL 500 to GEL 2,000 for processing data without appropriate legal grounds and GEL 3,000 to GEL 10,000 for violations involving direct marketing.
The Labour Code of Georgia allows employers and employees to agree on flexible working arrangements, including remote work.
Remote working arrangements may be established in the employment contract or agreed upon after the employment relationship has started.
Working hours and rest requirements continue to apply to remote employees. These include:
Employers must ensure that these working time and rest requirements are observed for employees working remotely.
Under the Organic Law of Georgia on Occupational Health and Safety, employers are responsible for maintaining health and safety standards for employees, including those working remotely.
Employers must:
Hiring in Georgia can be a huge strategic advantage for companies seeking high-quality talent at competitive costs. The country’s lower cost of living, compared to many Western countries, allows businesses to hire in the country within budget constraints while still having access to a high level of expertise.
Expertise being mentioned, Georgia boasts a large, well-educated pool of talent in industries like IT, engineering, and finance. Georgian workforce is not only skilled but also multilingual, with English, Russian, and other European languages widely spoken.
Finally, Georgian employees are known for their reliability, strong work ethic, and eagerness to collaborate in diverse global teams. The cultural compatibility, coupled with their commitment to high-quality work, makes Georgian professionals a great choice when expanding your global team.
Native Teams helps you employ and pay your team in Georgia directly through owned entities and infrastructure.
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