When investing in Georgia
, foreign investors will also need to employ the local workforce
, following the regulations applicable under the employment legislation
, which gives a comprehensive image on the obligations of the parties and establishes the legal framework when conducting employment activities
in this country.
Businessmen who want to open a company in Georgia are obliged to follow the applicable legislation in this sense – for example, the minimum conditions an employer should impose when hiring the Georgian workforce, as well as the tax requirements that must be completed for social security purposes. Our team of lawyers in Georgia can offer an in-depth presentation on such regulations.
Labour Code of Georgia
The relations between an employee and an employer
are stated in the Labour Code of Georgia
, which are applicable, as stated by the Article 1, on the national territory of the country. Investors interested in opening a business in Georgia
must know that the legislation states that an employer
in this country can be represented by a legal entity or by a natural person (Article 3.2). The provision stipulates that work relations
have to be concluded through an agreement between the parties and our team of lawyers in Georgia
can offer more details on the requirements of an employment contract
Other laws that provide for employment in Georgia are:
the Civil Code;
the Occupational Safety Act;
the Labor Migration Law;
Decree No. 417 on Employment of Migrant Workers.
Our employment lawyers in Georgia
are at your service with detailed information on the law providing for labor relation between companies and workers. Also, if you are a business owner and want to hire foreign skilled migrants, our immigration lawyers
are at your service with everything that has to do applying for work and residence permits.
Minimum employment age in Georgia
Businessmen can start the procedure of openign a company in Georgia in various fields, but it is necessary to know that, regardless of the field, the legally recognized minimum age when a person can be employed here is of 16 years old. However, according to the Article 4.2, a person with an age under 16 years old may be employed in Georgia only if his or her custodian may provide a legal consent.
The only exemption applicable in Georgia
related to the above mentioned regulations refers to the labour contracts
established for minors under the age of 14 years old who are employed in sports and cultural activities
. Our team of attorneys in Georgia
can offer more details on this aspect.
Hiring employees in Georgia
All work relations must be based on employment contracts that establish the rights of employees and employers. At their end, employers must provide the following details to a potential job candidate upon the interview:
the position and the type of work it implies;
if the job is for a full or part-time project;
details about the salary and other benefits;
the working conditions and where the job will be carried out.
Upon signing the contract, the employer is also required to inform the worker about the principle of equal treatment which is one of the most important provided by the Georgian Employment Code.
If you are a first-time investor in this country and need guidance on the Labor Code
, you can rely on the expertise of our employment lawyers in Georgia
The labor contract and the minimum provisions it must contain
All work relations between an employee and a Georgian company
must be based on a full-time or part-time contract, as they are both recognized under the law, however, each must comply with specific conditions.
While under the Civil Code, contracts can be concluded in oral or written forms, in Georgia, the main practice is for labor contracts to have written forms. Two contracts are signed at the same time – one will be the employer’s and the second one will go to the employee.
An employment contract in Georgia must contain a set of minimum information, among which:
the date the contract enters into effect which will be the same with the day of the actual start of the working period;
the position and the type of work to be performed;
the duration of the work day/week and rest time;
the gross salary, as well as the net amount earned by the employee;
the compensation for overtime (if applicable);
details about paid leave, as well as unpaid leaves, and procedures for obtaining them.
As a general rule, the Labor Code respects the main conditions used in other European countries and that imply the 40-hour week period. This timeframe can be divided into 8-hour shifts that can be planned during the morning, afternoon, and/or night (special rest time is provided for night shifts).
The Employment Law in Georgia also provides for probation periods that must be brough to the attention of the future worker and which cannot exceed 6 months. Moreover, this must be communicated in a written form (usually, the labor contract).
Although contracts have standard forms, if you need guidance in drafting a specific agreement, you can rely on our employment lawyers in Georgia.
Paid and unpaid leave in Georgia
People working in Georgia are entitled to 24 days of paid leave and 15 days of unpaid leave per year (provided that a 2 weeks’ notice is given). However, companies can also decide otherwise, choosing to increase the number of paid leave of absence days.
Special conditions apply to new mothers who are entitled to specific benefits for a limited duration of time. Maternal and paternal leave for raising a child can be of maximum 780 calendar days, out of which 183 are paid.
Our Georgian lawyers can provide more information on the provisions of the Labor Code on the leave of absence and particular situation applicable to parents.
Employment-related taxes in Georgia
Setting up a business and hiring personnel in Georgia implies registering with various authorities and paying certain taxes, or better said, contributions. Registration must be completed at both ends employer and employees.
Here are the main aspects to consider when it comes to the taxation of employees (who can also obtain deductions under Georgia’s double tax treaties
if they are foreigners):
the personal income tax is levied at a flat rate of 20%;
the employer’s payroll contribution which must be paid for pension rights is 2%;
employees will pay the same pension contribution of 2% which will be withheld at source and which is one of the lowest in Europe.