Global HR Compliance in Georgia

If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Georgia Guide below will help you understand the nuances of labor legislation in the country.

When the company is planning to enter a new foreign market of Georgia and has a need to employ a local national there, the first question to answer is how it is going to make local hires.

We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.

This solution helps you employ your global sales force in Georgia as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.

Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.

So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Georgia instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.

Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.

Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Georgia .

We are experts in global workforce employment in Georgia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

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Hiring and Firing Workforce in Georgia Guide

# Employment Agreements

Collective agreements

Collective bargaining is legal in Georgia, though most employees negotiate the specifics of their employment per individual contract.

A collective agreement shall be concluded only in writing, fixed-term or open-ended. A fixed-term collective agreement must specify its effective date and expiry date. An open-ended collective agreement must contain clauses for its revision, modification, and termination.

Permanent employment agreement

The essential conditions of a labor agreement shall be as follows:

• Date of commencement of work
• Time of work and time of rest
• The workplace
• Position and type of the work to be performed
• Amount of remuneration and payment terms
• Rules of compensation for overtime work
• Duration of and rules for granting paid and unpaid leaves

By a request of an employee, the employer shall issue a notice of employment that contains information on the work performed and remuneration.

Fixed-term employment agreement

Except where the term of a labor agreement is or exceeds one year, the labor agreement for a definite period shall be made only when:

• Work of specific volume has to be fulfilled.
• Seasonal work has to be fulfilled.
• The volume of work increases temporarily.
• An employee who is temporarily absent from work is replaced on the basis of a suspension of labor relations.
• There is any other objective circumstance justifying the execution of the agreement for a definite period.

# Employment Termination and Severance Pay (Dismissal)

Employee may terminate labor agreement on the basis of voluntary written application for resigning from a position/work by the employee.

According to the Labor Code of Georgia, the following shall serve as grounds for termination of a labor agreement:

• Economic circumstances, technological, or organizational changes making it necessary to reduce workforce.
• Expiry of the labor agreement
• Completion of the work provided for by a labor agreement
• Incompatibility of the employee’s qualifications or professional skills with the position held/work to be performed by the employee.
• Gross violation by the employee of his/her obligation under an individual labor agreement or a collective agreement and/or rules and regulations
• Violation by the employee of his obligation under an individual labor agreement or a collective agreement and/or rules and regulations, if any of the disciplinary actions under such an individual labor agreement or a collective agreement and/or rules and regulations has already been administered in relation to the employee for the last one year; unless otherwise provided for by the labor agreement, a long-term disability, if the period of disability exceeds 40 calendar days in a row, or the total disability period within six months exceeds 60 calendar days
• Any other objective circumstance justifying termination of the labor agreement

# It is prohibited to dismiss

Labor relations shall in no event be terminated:

• By grounds of discrimination
• During the period from the notice of pregnancy given by a female employee to the employer
• Due to the employee being called to military service or military reserve service and/or during the employee’s fulfillment of compulsory military reserve service or military reserve service
• During the period of being a jury in court

# Notice period

• In case of termination of the employment contract by the employer he / she shall notify the employee at least 30 calendar days in advance by sending a prior written notice. In this case, the employee will be compensated in the amount of at least 1 month’s salary
• Upon termination of the employment contract at the initiative of the employee he / she shall notify the employer at least 30 calendar days in advance by sending a prior written notice.

# Severance payments

In terminating the labor agreement the employer shall give the employee at least 30 calendar days’ prior to written notice. Besides, the employee shall be granted a severance pay of at least one month’s salary within 30 calendar days after the termination of the labor agreement. If the labor agreement is terminated on the initiative of the employee, the employee shall give the employer at least 30 calendar days’ prior written notice.

# Employee Benefits and Contributions

Mandatory benefits required by law to be provided by an employer

Public holidays entitlement paid annual leave, unpaid leave, maternity, and additional unpaid parental leaves, employer pension contributions.

Non-mandatory benefits that are offered by an employer 

• Medical insurance
• Private health care plan
• Paid paternity leave
• Meal and Transportation allowances
• Continuous education, mentoring, and professional development programs
• Corporate parties and prizes
• Organized Events and Outdoor activities
• Annual bonuses
• Performance bonuses.

# Probationary period

By agreement of the parties, an agreement with the employee may be signed only once for a trial period of not more than six months to determine whether a person fits to perform the work required. A labor agreement for a trial period shall be made only in writing.  The work during a trial period shall be payable. The amount of such pay and payment terms shall be determined by agreement of the parties. The employer shall be free at any time during the trial period to sign a labor agreement with the candidate or terminate the labor agreement signed for the trial period.

Overtime

The employee shall perform overtime work:

• Without compensation to prevent a natural disaster and/or eliminate the consequences
• For adequate compensation to prevent an industrial accident and/or eliminate the consequences.

It is prohibited to require a pregnant woman, a woman who has recently given birth, a handicapped person, or a minor to work overtime without their consent.  Overtime work shall be deemed the work performed by an employee under an agreement between the parties in the period of time, the duration for which exceeds 40 hours a week for an adult, 36 hours a week for a minor between the ages of 16 and 18, and 24 hours a week for a minor between the ages of 14 and 16.  Overtime work shall be paid in an increased amount of the hourly rate of pay. Conditions for overtime work shall be determined by agreement of the parties.  The parties may agree to give an additional employee time off in lieu of overtime pay.

# Work hours

The workweek of the employee, determined by the employer, shall not exceed 40 hours a week; whereas, in companies with specific operating conditions that require more than eight hours of a continuous mode of manufacture/work, the employee’s workweek shall not exceed 48 hours a week.

Annual Leave

An employee shall have the right to enjoy paid leave for at least 24 working days per annum. A labor agreement may prescribe terms and conditions different from those provided they do not worsen the condition of an employee.  An employee shall have the right to request leave after working for 11 months. By agreement of the parties, the employee may be granted leave even before the said term elapses.  An employee’s leave pay shall be determined according to the pre-leave three months’ average pay. If the worked time from the beginning of work or after the last leave is less than three months, then an employee’s leave pay shall be defined according to the average pay of worked months, and in case of fixed monthly pay, then according to the last month’s pay.

# Sick Leave

Sick leave is not required by law. However, employees are allowed up to 15 days of unpaid leave to cover any unexpected illnesses or emergencies.   In taking unpaid leave, the employee shall give the employer at least two weeks prior notice of leave, except where such notice cannot be given due to urgent medical or family circumstances.

# Parental Leave

Maternity leave 

At employees’ request, they shall be granted a maternity leave of absence in the amount of 730 calendar days. 183 calendar days of maternity leave of absence shall be paid. 200 calendar days shall be paid in the event of pregnancy complications or multiple births

Paternity leave 

New fathers do not get any additional paid time off under the law.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Georgia by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.