Table of Contents

Georgia

Table of Contents

Currency

Georgian Lari (GEL)

Payroll Frequency

Monthly

Employer Taxes

2%

About Georgia

Located at the strategically important crossroads of Europe and Asia, Georgia has a unique and ancient cultural heritage, and is famous for its traditions of hospitality and cuisine. A former Soviet Republic for most of the 20th century, Georgia is now an independent country, a member of the United Nations and the Council of Europe.

Georgia is mostly situated in the South Caucasus and most of the country is mountainous. Because of its high landscape diversity and low latitude, Georgia is home to about several species of animals such as brown bears, wolves, lynxes and Caucasian Leopards.

Ethnic Georgians form the majority of Georgia’s population of almost 4 million. Other ethnic groups include Abkhazians, Armenians, Assyrians, Azerbaijanis, Greeks, Jews, Kists, Ossetians, Russians, Ukrainians, Yezidis and others. The Georgian Jews are one of the oldest Jewish communities in the world.

Employment Relationship

• Permanent Employment

Employment contracts made for indefinite terms are considered permanent in Georgia. If the duration of the employment relationship exceeds 1 month, it is necessary to conclude the employment contract in writing.

• Fixed-Term or Specific-Purpose Contracts

Fixed-term employment contracts can be concluded in Georgia, provided it is specified in the contract. These contracts can only be concluded for specific reasons, such as a temporary increase in work, absence of permanent employees, seasonal work, extraordinary work, etc.  If the term of the contract is more than 30 months, or if the labor relationship continues as a result of concluding a fixed-term labor contract 2 or more times and its duration exceeds 30 months, it is considered that a permanent labor contract has been concluded.  Employers are obliged to inform fixed-term employees about the available vacancies so that they, like other employees, have an equal opportunity to occupy the positions within the framework of a permanent employment contract. 

• Temporary Employment Contratcs

Probationary Period

It is possible to conclude an employment contract for a trial period of no more than 6 months. An employment contract with a trial period is concluded only in written form. Employees can be subject to probation only once.  The work performed during probation is compensated. The parties' agreement determines the amount of this compensation and the payment method. Employers have the right to conclude a temporary or permanent employment contract with the employee at any time during the probationary period or terminate the probationary employment contract. In case of termination of the labor contract concluded during the trial period, the employee will be paid according to the time worked.

Working Hours

Standard working hours are 40 hours per week in Georgia. Working time does not include break time and rest time. In an enterprise with a specific work mode, where there is a continuous mode of production/work process lasting more than 8 hours, the duration of the normal working time must not exceed 48 hours per week. The duration of the employee's continuous rest between working days/shifts must not be less than 12 hours.  The length of working time of a minor from 16 to 18 years of age must not exceed 36 hours per week and 6 hours per working day. A minor's working time from 14 to 16 years of age must not exceed 24 hours per week and 4 hours per working day.

Holidays / PTO

• Statutory Holidays

• Paid Annual Leave

Employees in Georgia are entitled to 24 days paid and 15 days unpaid annual leave after working for 11 months with the same employer. Employees working in hard, harmful, or dangerous work are given an additional paid leave of 10 calendar days a year.  Employees are paid their average wage during annual leave. When taking an unpaid leave, the employee is obliged to notify the employer 2 weeks in advance about taking the said leave, except when, due to urgent medical needs or family circumstances, the notice is not possible. Employees can use their leave in parts. If giving paid leave to an employee in the current year may harm the normal operation of the work process, it is allowed to transfer the leave to the next year with the employee's consent. It is prohibited to transfer the paid leave of a minor to the following year. Transferring paid leave to the following year for 2 consecutive years is prohibited. Upon termination of the employment contract at the employer's initiative, they are obliged to compensate the employee for unused leave in proportion to the duration of the employment relationship.    

• Sick Leave

In Georgia, employment contracts are suspended in case of temporary incapacity of the employee if its duration does not exceed 40 consecutive calendar days or the total duration within 6 months does not exceed 60 calendar days. These days are unpaid.

• Maternity Leave

In Georgia, maternity leave is not mandatory and is granted at the employee's request. The Labor Code provides 126 days of paid maternity leave and 143 days in case of childbirth complications or multiple births. Employees can decide for themselves how to allocate the leave before and after childbirth. In addition, employees get 604 days of childcare leave that can be taken after maternity leave, out of which 57 days are paid. When taking leave for child care, the employee is obliged to notify the employer 2 weeks in advance about taking the said leave. The childcare leave can be used in whole or in part by the child's mother or father, per their agreement. Based on their request, employees who adopt a child under 1 year of age are given an adoption leave for 550 calendar days after the child's birth. 90 calendar days of this leave are paid. Leave due to pregnancy and childbirth, leave due to child care, and leave due to the adoption of a newborn are compensated by the state budget of Georgia. The employer and the employee may agree on additional compensation for said vacations. The benefit amount is GEL 2,000 (Georgian Lari) in 2023 for the total duration of leave, whether it is shared between parents or only the mother utilizes it. 

• Paternity Leave

There are no provisions for paternity leave in Georgia.

Termination of Employment

• Notice Period

As per the Labor Code of Georgia, if the termination is due to economic circumstances, technological or organizational changes that make it necessary to reduce the workforce, Incompatibility of the employee's qualification or professional skills, long-term incapacity, or other circumstances, the notice must be given at least 30 days in advance. In case of resignation, employees must also provide a notice of 30 days to their employer. Notice must be given in writing. No notice is required in case of termination during probation. Employees are also terminated without notice in case of gross violation, liquidation of the employer’s company, death, court order, etc.   Employers are entitled to notify the employee at least 3 calendar days in advance by sending a written notice. In this case, the employee will be compensated for at least 2 months' wages.

• Severance Benefits

In Georgia, employees are entitled to severance pay if the employer terminates their contract due to economic circumstances, technological or organizational changes that make it necessary to reduce the workforce, incompatibility of the employee's qualification or professional skills, long-term incapacity, or other circumstances. The amount of severance pay is 1 month’s wages. If the employer does not follow the required notice period of 30 days and gives the employee only 3 days’ notice, they must give 2 months’ wages as severance pay.