Laws and Policies in Georgia

Employment Contracts in Georgia

Employment relationships are mainly governed by the Labour Code of Georgia.

Contract Requirements

• Employment contracts can be written or verbal, but written contracts are strongly recommended for clarity and compliance.
• A written contract should include:
  • Job title and duties
  • Workplace / remote work terms
  • Salary and payment frequency
  • Working hours and schedule
  • Duration (fixed-term or indefinite)
  • Leave entitlements
  • Termination and notice conditions

Types of Contracts

• Indefinite-term contracts – the default form in many cases
• Fixed-term contracts – allowed when justified (e.g., project or temporary role)
• Part-time contracts

Probation Period

• Up to 6 months, if clearly specified in the contract.

A Global EOR ensures that contracts are drafted in line with Georgian law (and translated if needed) and clearly define all key employment terms.

---

Working Hours in Georgia

• Standard working time: typically 40 hours per week, usually 8 hours per day, 5 days a week.
• The Labour Code allows some flexibility if agreed by employer and employee, provided health and safety are respected.

Overtime

• Overtime requires employee consent (except in emergencies).
• Overtime compensation is typically agreed in the contract or internal policies and must comply with minimum standards (often a premium above regular pay or time off in lieu).

Rest & Breaks

• Employees are entitled to daily rest between working days and at least one rest day per week, commonly Sunday.
• Breaks during the workday should be reasonable and agreed as part of internal rules.

---

Employee Leave in Georgia

Annual Leave

• Employees are generally entitled to 24 working days of paid annual leave per year (after completing 11 months of service).
• Many employers allow pro-rated leave after the first few months.

Additional Unpaid Leave

• Employees may also have the right to up to 15 days of unpaid leave per year.

Sick Leave

• Short-term sick leave is allowed; payment is usually regulated by employment contract or company policy.
• Some employers pay all or part of sick leave; the law sets minimum protections, but practice can vary.

Maternity Leave

• 183 calendar days of maternity leave (extended to 200 days in case of complications or multiple births).
• The state provides a maternity allowance up to a statutory cap; many employers top this up by agreement.

Paternity / Parental Leave

• Fathers can access part of the parental leave and benefits, as provided by law and internal policies.

Public Holidays

Georgia has multiple paid public holidays, including:

• New Year holidays
• Orthodox Christmas (7 January)
• Orthodox Easter-related days
• Independence Day (26 May)
• Other national and religious holidays

Employees required to work on public holidays are typically entitled to extra pay or compensatory rest.

---

Employee Benefits in Georgia

Georgia has a relatively light social contribution system compared to many European countries.

Statutory Elements

• Health: Georgia does not operate a heavy employer-based social insurance like many EU states. Health coverage is often a mix of state programs and private health insurance.
• Pension: A mandatory private pension system exists for eligible employees (with employer and employee contributions).
• Minimum Employment Standards: Paid leave, maternity protections, and safe working conditions.

Social Contributions (high-level structure)

• Employers contribute a percentage of salary into the pension scheme for eligible staff.
• Employees also contribute a percentage of salary (deducted at source).
• Income tax is withheld from salary by the employer and remitted to the tax authorities.

Common Additional Benefits Offered by Employers

To stay competitive, especially for IT and professional roles, companies often offer:

• Private medical insurance
• Meal or transportation allowances
• Phone and internet reimbursement
• Flexible/remote work
• Training and education budget
• Bonuses (performance, annual, project-based)

An EOR helps design benefit packages that are both locally compliant and attractive to Georgian talent.

---

Payroll & Tax in Georgia

Payroll Currency

• Salaries are typically paid in Georgian Lari (GEL).

Payroll Frequency

• Most employers pay monthly, usually at month-end.

Personal Income Tax

• Georgia uses a flat personal income tax rate on employment income (a single rate applied to most wages).
• The employer is responsible for withholding tax at source and remitting it to the revenue service.

Employer Responsibilities

• Register as an employer with the tax authorities (handled by the EOR).
• Withhold personal income tax and employee pension contributions.
• Pay employer pension contributions.
• Maintain accurate payroll records and issue pay slips.

Using a Global EOR ensures accurate calculations, on-time payments, and full compliance.

---

Employment Laws & Compliance in Georgia

Key principles under the Labour Code of Georgia include:

• Freedom of contract, with minimum protections for employees
• Limits on working time to prevent overwork
• Protection against unfair dismissal
• Non-discrimination and equal treatment
• Protection for minors, pregnant employees, and employees with family responsibilities
• Requirements regarding workplace safety

Termination Rules

Termination must follow legal requirements and be based on valid grounds, such as:

• Economic redundancy or reorganization
• Poor performance or misconduct (documented)
• Agreement between employer and employee
• Expiry of fixed-term contract

Notice & Severance

• Notice requirements and severance entitlements depend on the reason for termination and the terms of the contract.
• For some dismissals, advance notice or compensation in lieu is required.
• Unlawful termination can lead to compensation or reinstatement.

Non-Discrimination

Employers may not discriminate based on:

Disability or other protected characteristics

Race or ethnicity

Gender

Religion or belief

Political views