Hiring guide in Georgia

What should I know about hiring in Georgia?

Legal framework

Types of employment contracts

Employment contracts in Georgia are the primary legal instrument regulating the relationship between employers and employees. These contracts can be classified into a few categories based on their duration and the nature of the employment. 

Indefinite-term contracts are the most common type of employment contract, and they don’t specify the duration or the end date. These contracts provide stability for both parties, as the employment relationship is assumed to continue indefinitely unless terminated by either party.

Fixed-term contracts are set for a specific duration or until a certain task is completed. Georgian labour laws allow the use of these contracts only in situations where there is a legitimate reason to limit the contract’s duration.

Full-time and part-time contracts are structured around the number of working hours. Part-time contracts are used for employees working fewer hours than the full-time equivalent (usually 40 hours per week), while full-time contracts involve the standard working week as defined by the Labour Code.

Content of an employment contract

Under the Georgian Labour Code, employment contracts must include essential elements while also addressing non-compete agreements and dispute resolution mechanisms. The essential elements of contracts include job title and description, remuneration, working hours, leave entitlements, duration of employment, and termination clauses.

Download a free employment contract for Georgia through Native Teams.

Oral, written or electronic employment contracts

Under Georgian labour law, employment contracts can be oral, written, or electronic, each carrying different implications regarding enforceability and legal security. 

Written contracts are considered the most reliable and secure form of agreement, as they clearly document the agreed-upon terms by both the employer and the employee. In case of disputes, they also serve as legal evidence of the parties’ rights and obligations. The Labour Code mandates that any employment contract lasting more than one month must be in writing.

Oral contracts are legally valid in Georgia but are challenging in terms of enforceability. Without written documentation, it becomes difficult to prove the specific terms of an agreement in the event of a dispute. Although oral contracts are permissible, Georgian law strongly encourages using written contracts to ensure transparency between the parties and minimise the risk of misunderstanding.

Finally, electronic contracts are also legally valid and hold the same legal standing as written contracts, provided they comply with specific requirements. The Georgian law allows the use of certified digital signatures to authenticate electronic contracts and ensure their validity.

Working hours

In Georgia, the standard working hours for employees must not exceed 40 hours per week, spread across either five or six days, depending on the industry and specific job roles. However, certain sectors with specific operational needs, such as continuous production or services, may require extended working hours, reaching up to 48 hours per week.

However, despite these extended working hours, the employer must still provide a minimum of 12 hours of uninterrupted rest between shifts or working days.

Breaks and night work

Employees who work more than six hours are entitled to rest breaks, with specific provisions for breastfeeding mothers, night workers, and those performing hazardous work.

The exact duration of the break is determined by agreement between the employer and employee, but if the workday is shorter than 6 hours, the break must still last at least 60 minutes. 

Night work in Georgia is defined as work performed between 10:00 pm and 6:00 am. Employees who work night shifts are entitled to additional protections, including periodic medical examinations paid for by the employer. If a medical examination determines that the night work is affecting the employee’s health, the employer must transfer the employee to day work, if possible.

Annual leave

Employees in Georgia are entitled to a minimum of 24 paid annual leave days and 15 unpaid leave days per year, with provisions for additional paid leave in hazardous jobs and compensation for unused leave upon termination.

The eligibility for annual leave begins after the employee has worked for 11 months, although leave can be granted earlier if both parties agree. Employees can also request that their annual leave be divided into multiple parts instead of taking it all at once, provided that this is agreed upon by both parties.

Public holidays

Public holidays are official days designated by the government during which employees are generally entitled to a day off with full pay. The Labour Code of Georgia outlines nationally recognised public holidays, among which are New Year Holidays, Christmas Day, International Women’s Day, Easter Days, Independence Day of Georgia, and many others.

Salary

Employment contracts in Georgia must specify salary details, which are paid monthly, with compensation for delays and regulated deductions. The salary in Georgia includes the basic wage or any other compensation received by an employee in exchange for work performed.

To calculate the salary and taxes in Georgia, click here.

Sick leave

Employees in Georgia are entitled to sick leave, typically unpaid, unless specified otherwise, with employment potentially terminating after an extended period of incapacity and the right to return under the same terms. 

The duration of sick leave is usually determined by the employment contract. If the employee is unable to work for more than 40 consecutive days, or 60 days within six months, the employer can terminate the employment.

Parental leave

Employees in Georgia are entitled to various forms of parental leave.

According to Article 37, female employees are entitled to 126 days of paid maternity leave. If there are complications during childbirth or the birth of twins, the period is extended to 143 calendar days. Employees may use this leave flexibly, dividing it between the pre-and post-natal periods.

Additionally, parents (either mothers or fathers) may request 604 calendar days of parental leave, which includes 57 calendar days of paid leave. Parental leave can be taken by either parent, even though maternity leave is exclusive for the mother unless she opts not to use the full period.

Methods of employment termination

Employment in Georgia can be terminated through various avenues, including mutual agreement, legal protections against discrimination, and specific conditions like economic reasons or prolonged incapacity.

Firstly, the employment agreement may be terminated by mutual consent between the employer and the employee. Employment contracts can also be terminated if they expire, the task for which the employee was hired is completed, and if the employee voluntarily resigns. 

Some of the other methods are disciplinary reasons for serious misconduct or repeated violation of work obligations, termination due to economic downturns, reorganisation, and technological changes, if the employee’s skills, qualifications, and performance are deemed incompatible with the job requirements, and if the employee is unable to work due to health reasons for a prolonged period.

Ordinary dismissal by employer

Ordinary dismissal in Georgia requires strict adherence to the Labour Code, ensuring justifiable reasons, proper documentation, and timely payments to avoid legal disputes. This ensures that dismissals are not arbitrary and the employer follows due process.

A key aspect of ordinary dismissal by the employer includes having grounds for dismissal, which can be due to incompetence, gross violations, economic or technological changes, and failure to improve performance.

Notice period and challenging the dismissal

In Georgia, the standard notice period for dismissal is generally 30 calendar days, during which the employee continues to work and receives pay. 

If the employer wants to terminate the employment relationship sooner, they must provide severance pay. Employers must also provide a written justification within 7 days upon request. If the employee is dismissed without following the proper notice procedure, they may challenge the dismissal in court.

Rights and obligations of unemployed individuals

Unemployed individuals in Georgia are entitled to several rights and have certain obligations under the country’s Labour Code and employment regulations. Such provisions aim to protect individuals who find themselves without employment and ensure they’re not left without legal support.

If an employee’s contract is terminated due to reasons like economic redundancy, technological changes, or organisational restructuring, the employer is obligated to provide severance pay. However, if an individual is dismissed for employment unlawfully, they have the right to challenge the dismissal in court. 

Unemployed individuals also have the right to appeal decisions they believe to be unjust, especially about dismissals or violation of labour laws. 

Finally, Georgia’s labour laws encourage the reintegration of unemployed individuals into the country’s workforce through vocational retraining programmes, helping them improve their chances of securing new employment.

Severance pay

Georgia’s Labour Code outlines specific requirements for severance pay, including conditions for eligibility, payment amounts, and procedural obligations for employers. Hence, severance pay is typically granted in cases of termination initiated by the employer due to specific circumstances, including economic, technological or organisational grounds, professional incompatibility, and prolonged incapacity.

The amount of severance pay depends on the notice period provided by the employer. If the employer provides the employee with 30 days’ written notice before termination, the employee is entitled to at least one month’s severance pay. If the employer gives less than 30 days’ notice, they must provide severance pay equivalent to two months’ salary to the employee.

Upon termination, the employer must settle all outstanding payments, including severance pay and compensation for any unused vacation time, within seven calendar days.

Probationary period

Probationary period regulations in Georgia allow employers to assess a candidate’s fit for the role within a maximum period of six months, with written contracts and flexible termination conditions. During this time, the employee is required to perform the duties outlined in the contract and receive remuneration for their work.

Prohibition of competition

The Labour Code of Georgia includes provisions regarding the prohibition of competition between an employee and their employer. These clauses are designed to protect employers from unfair competition by former employees who may leverage sensitive knowledge or skills acquired during their former employment to benefit a competing business. This restriction may extend for up to six months after the termination of the employment contract.

If the non-competition agreement is active after the termination of employment, the employer is required to compensate the employee during the period of limitation. This compensation must be at least equal to the salary the employee was earning at the time of termination.

It’s important to note that certain employees are exempt from these restrictions. The non-competition clause can’t be applied to employees in the fields of education, science, or culture. This ensures that professionals in these areas can freely continue their work, even if it overlaps with prior employment.

Intellectual property rights

In Georgia, intellectual property rights are defined and detailed in individual employment contracts, as the legal framework offers broad flexibility but lacks specific guidelines on what constitutes employer-owned work.

Under Georgian law, a “work made for hire” refers to any work created by an employee as part of their job duties or in connection with tasks assigned by the employer. The property rights to such works generally belong to the employer, unless a different agreement is reached between the parties. 

However, the law allows for flexibility between the employer and the employee, which means that many aspects of the intellectual property rights can be negotiated and detailed in a contract.

Employee data privacy

The protection of employee data in Georgia is governed by the Personal Data Protection Law, which outlines the requirements for collecting, processing, and managing personal data in the employment context.

Firstly, it’s necessary to establish a legal basis for collecting and processing employee data. Hence, collecting data can only occur if it meets one of the legal grounds provided by law, including the employee’s consent, fulfiling contractual obligations, complying with legal requirements, or pursuing legitimate interests. 

The collection of employee data should be for specific and legitimate purposes related to employment. Employers are also required to implement appropriate measures to secure the data and protect it from unauthorised access, loss, or destruction.

Employees have the rights to access to their data, ensuring they are informed about how their data is processed, as well as the rights to request corrections to inaccurate of incomplete information. In addition to this, employees can request deleting their data when it’s no longer necessary for the employment, as well as request restrictions of processing.

Remote working policy

With the rise of remote work, Georgia’s Labour Code allows for flexible work arrangements, as long as it is agreed upon by both the employer and the employee. These arrangements can be outlined in the employment contract or negotiated after the commencement of the employment relationship.

However, even for remote workers, employers must ensure compliance with the rules governing working hours and rest period. The standard working week in Georgia is 40 hours, and employees are entitled to daily rest periods of at least 12 hours between shifts. Employers must also ensure that remote workers receive a 24-hour rest period at least once a week.

Health and safety at home

Under the Georgian law, employers must ensure the health and safety of all employees, including those who work remotely. Hence, employers must take proactive steps to guarantee the safety of remote workers. This includes assessing potential risks associated with home working environments, providing the necessary work equipment, providing training, and incident reporting in the event of work-related accidents occuring at home.

What are the advantages of hiring employees from Georgia vs other countries?

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 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.

Why use Native Teams for hiring in Georgia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.