COUNTRY

Written Agreements

Employment contracts whose duration exceeds 1 month must be made in writing. A written employment contract is written in a language understandable to the parties. It can be concluded in several languages and must contain a reservation regarding which language employment contract shall take precedence in the event of a discrepancy between the provisions of the employment contracts.

The essential terms of the employment contract are information about both parties, commencement date, duration of employment, working time, workplace, designation, nature of work, remuneration, leave rules, provisions of termination, collective agreements, etc.

The employment relationship is established when the employee starts performing the work unless otherwise determined by the employment contract.

Georgia doesn't have any regulations on post-termination non-compete agreements. It is prohibited for employees to work a part-time job with a competitor of their employer.

Oral Agreements

Employment contracts can be made orally in Georgia. If the duration of the employment relationship exceeds 1 month, it is necessary to conclude the employment contract in writing. The employment relationship is established from the moment the employee actually starts performing the work unless otherwise determined by the employment contract.

Implied Agreements

There are no provisions for implied contracts in Georgia. A contract must be made in the form required by law. As per the Labor Code, employment contracts can be made orally or in writing. The employment relationship is established from the moment the employee actually starts performing the work unless otherwise determined by the employment contract.

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.

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.

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.

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.

There are no provisions for paternity leave in Georgia.

Minimum Wage

The Tripartite Commission of Social Partnership sets Georgia's minimum wage following consultations with the government. The minimum wage was last set in 2006 at GEL 20 (Georgian lari) per month.

The law requires salary to be paid at least once a month. The employer is obliged to pay the employee 0.07% of the delayed amount for each day of delay in any payment or settlement.

Overtime, Holiday & Vacation Pay

Employers are obliged to notify the employee in writing about the overtime work to be performed 1 week in advance, except when, based on the objective needs of the employer, it is impossible to warn them. Employees are obliged to perform overtime work to prevent a natural disaster and/or eliminate its consequences without overtime pay and to prevent an industrial accident and/or eliminate its consequences with overtime pay.

Overtime work is compensated at the increased amount of the hourly wage rate. The agreement of the parties determines the compensation amount. The parties may agree to give the employee proportional additional rest time in return for overtime pay. The employee must be given additional rest time no later than 4 weeks after overtime work unless otherwise agreed upon by the parties. If employees work on public holidays, it is considered to be overtime and is paid accordingly.

The duration of overtime work by a minor must not exceed 2 hours in total during the working day and 4 hours in total during the working week. It is prohibited to employ an employee who is pregnant, a newborn or nursing woman, a disabled person, a minor, a legal representative or supporter of a disabled person, or who has a child under 3 years of age for overtime work without their consent.

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.

Pension

Georgia has a defined contribution pension scheme that is mandatory for all employees. Contributions to the pension scheme are made by employees, employers, and the state. The legal retirement age in Georgia is 65 years. Women have the right to a pension from the age of 60.

Pension contributions are reflected in the participant's individual pension accounts. After reaching the retirement age, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or program withdrawal. They are also entitled to apply to the pension agency and request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account in order to receive a pension. They receive the full amount of the value of pension assets from their individual pension account if they have reached retirement age no later than 5 years after the date of commencement of pension contributions.

Georgia also has a state-funded pension scheme for all citizens who have reached retirement age. The amount of pension depends on the annual state budget.

Dependents/Survivors Benefits

In Georgia, the amount in an individual's pension account is transferred to their survivors after they die. Transfer of pension assets may be made by lump sum payment or by transfer of pension assets to the individual pension account of the heir of the participant, according to the choice of the heir.

The state-funded social assistance scheme provides a social package to families in case of the death of their breadwinner. This package is given in the form of monetary and non-monetary monthly benefits.

Invalidity Benefits

It is mandatory for all employees in Georgia to be registered with the pension agency. It is responsible for paying disability benefits and pensions to its beneficiaries if they become disabled before reaching retirement age. After disability, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account to receive a pension.

Georgia also has a state-funded pension scheme for all disabled citizens. The pension amount depends on the annual state budget, increased in case of severe disability. A person in need of special care may be a recipient of non-monetary social assistance.

In case of work accidents, employers are obliged to fully compensate employees for the damage caused by the deterioration of the health condition and necessary treatment costs related to the performance of the work.