Georgia

Georgia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Georgia to companies willing to enter the Georgian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Georgia.  However our solution allows you to start the operations in Georgia within days hereof economize time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Georgia fast facts

Population, million: 3,989,167
Land area: 153,909 km²
Capital: Tbilisi
Local currency: Georgian lari (GEL)

GDP per capita:$ 4600.00
GDP in currency:$ 14.80 billion

In Georgia, the Labour Code regulates labour issues and related matters. The employment of foreign nationals by local entities is not restricted under Georgian law and is also subject to the regulations under the Labour Code.
Since 2015, local employers of foreign workers are now under an obligation to notify the Social Services Agency of such employment within 30 days.

The relevant labour agreement must also be delivered to the respective authority. There are special requirements applicable to a labour agreement with a foreign national. In particular, it needs to contain:

  • Extensive identification data of the employee and the employer.
  • Definite terms of the employment (and a Georgian translation (if concluded in another language)).

The mandatory rules under the Labour Code mostly relate to the:

  • Social welfare of employees.
  • Prohibition of discriminatory treatment.
  • Very limited grounds for termination of the labour agreement.

The rules on compensation for overtime, severance payments, and vacation rights will apply regardless of any choice of law in the labour contract. This is unless the law chosen by the parties confers higher standards of protection of employees.

Hiring, Negotiating and Doing Business in Georgia

Necessity of written employment contract

A labour agreement must be in writing, if the employment will last for more than three months. The essential terms of a labour agreement must include the following:

  • Date of work commencement and the duration of employment.
  • Hours of work.
  • Details of the workplace.
  • Position and type of work to be performed.
  • Amount of remuneration and the payment procedure.
  • Procedure of compensating for overtime.
  • Duration of paid and unpaid leaves of absence and the procedure for granting leaves of absence.

A collective agreement can be concluded between one or more employers, or one or more employers’ associations and one or more employees’ associations. When one of the parties initiates the conclusion of a collective agreement, the parties are obliged to bargain collectively in good faith.

Georgia Employment Contract

Types of employment agreements

Employment contracts can be for definite or indefinite terms. Contracts should be in Georgian and should spell out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Georgia should always state the salary and any compensation amounts in lari rather than a foreign currency.

Georgia working hours

The standard work week in Georgia is 40 hours.

Overtime

When employees work more than 40 hours during a seven-week timeframe, they are entitled to an overtime pay rate of 1.5 times their regular hourly rate. However, employees who work on commission, administrators, police officers, firefighters, caretakers and baby sitters, film workers, and several other types of employees are not entitled to overtime pay.

Vacation leave in Georgia

Employees are entitled to paid leave of 24 business days per year and unpaid leave of 15 calendar days per year.

Georgia Maternity Leave

Mothers are entitled to 126 calendar days of paid leave, or 140 days in the case of multiple births or complications with childbirth. Leave can be taken during and post pregnancy.

Georgian Severance Laws

The labour agreement cannot be terminated without an objective reason justifying such termination. The grounds for terminating the labour agreement are as follows:

  • Economic, technological, or organisational changes that require downsizing the business. If terminating under this ground, the employer must notify the employee in writing at least 30 calendar days in advance. The employee will be granted a severance payment amounting to at least one month’s salary within 30 calendar days after the termination of the labour agreement.
  • Expiration of a labour agreement.
  • Completion of the work under a labour agreement.
  • Voluntary resignation of an employee in writing.
  • Written agreement between the parties.
  • Incompatibility of an employee’s qualifications or professional skills with the position held or the work to be performed by the employee. If terminating under this ground, the employer must notify the employee in writing at least 30 calendar days in advance. The employee will be granted a severance payment amounting to at least one month’s salary within 30 calendar days after the termination of the labour agreement.
  • Gross violation by an employee of their obligations under an individual labour agreement, a collective agreement and/or under internal labour regulations.
  • Violation by an employee of their obligations under an individual labour agreement, a collective agreement and/or under internal labour regulations. This is on the assumption that the relevant disciplinary actions have already been taken against the employee during the previous year.
  • Long-term disability (unless otherwise provided for by a labour agreement), if a disability period exceeds 40 consecutive calendar days or the total disability period exceeds 60 calendar days within six months, and, at the same time, the employee has already used their leave of absence. If terminating under this ground, the employer must notify the employee in writing at least 30 calendar days in advance. The employee will be granted a severance payment amounting to at least one month’s salary within 30 calendar days after the termination of the labour agreement.
  • Entry into force of a court judgment or decision that prevents the employee performing the relevant work.
  • A legally effective court decision which declares an employee strike action to be illegal.
  • Death of an employee.
  • Initiation of liquidation proceedings.
  • Other objective circumstances justifying the termination of a labour agreement.

Georgia Tax

Social tax does not exist in Georgia, and there is no obligation to pay social security contributions or compulsory healthcare premiums on behalf of the employee. The only obligation of the employer is to withhold personal income tax at a flat rate of 20% from the salary of the employee. VAT – 18%.

Health Insurance Benefits in Georgia

There is no mandatory health insurance in Georgia. The poor and elderly receive healthcare vouchers from the government, but the majority of citizens can opt either to purchase insurance or go without.

Additional Benefits in Georgia

The law does not regulate bonuses and fringe benefits.

Georgia Holidays

13 national public holidays, including

  • New Year’s Day
  • Orthodox Christmas Day
  • Orthodox Epiphany
  • Mother’s Day
  • International Women’s Day
  • National Unity Day
  • Orthodox Easter Sunday
  • Orthodox Easter Monday
  • Victory Day
  • Independence Day
  • Mariamoba (Assumption)
  • Svetitskhovloba (Georgian Orthodox Festival)
  • Giorgoba (St George’s Day)

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Georgia

  • Working hours in Georgia

    The standard work week in Georgia is 40 hours.

  • What are the main holidays in Georgia

    13 national public holidays, including

    • New Year’s Day
    • Orthodox Christmas Day
    • Orthodox Epiphany
    • Mother’s Day
    • International Women’s Day
    • National Unity Day
    • Orthodox Easter Sunday
    • Orthodox Easter Monday
    • Victory Day
    • Independence Day
    • Mariamoba (Assumption)
    • Svetitskhovloba (Georgian Orthodox Festival)
    • Giorgoba (St George’s Day)
  • What are payroll taxes in Georgia

    Social tax does not exist in Georgia, and there is no obligation to pay social security contributions or compulsory healthcare premiums on behalf of the employee. The only obligation of the employer is to withhold personal income tax at a flat rate of 20% from the salary of the employee.

    VAT – 18%.

  • Subscribe to blog post updates