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Hiring in Georgia
Background checks in Georgia
Hiring options in Georgia
Language requirements in Georgia
Corporate presence requirements and payroll setup in Georgia
Easily hire employees in Georgia with our EoR solution
Employer of Record in Georgia
Hiring employees in Georgia usually means setting up a local entity and managing compliance on your own, which can be time-consuming and expensive. Engaging workers through an employer of record (EoR) is a flexible alternative that allows you to hire quickly without needing to establish a corporate presence in Georgia. Read on to learn how EoRs work and what to consider before hiring in the country.
What is an employer of record (EoR)?
An employer of record (EoR) is a third-party organisation that employs workers on your behalf. Legally, the EoR becomes the employer of record for compliance, payroll, and HR purposes — while you retain control over the employee’s daily work and responsibilities.
Using an employer of record in Georgia
When you work with an EoR in Georgia, they handle everything from drafting compliant employment contracts to processing payroll, paying taxes, and meeting reporting obligations. This means you can start hiring quickly, without setting up a local business entity or navigating the country’s employment regulations alone.
Hiring in Georgia with or without an employer of record
Using an EoR is a great option for businesses testing the Georgian market or hiring only a few employees. But if you plan to scale a larger team or establish a long-term presence, setting up your own legal entity may be more cost-effective. Either way, understanding local employment law is key to staying compliant and supporting your workforce effectively.
Read on to learn everything you need to know to hire compliantly in Georgia, including employment laws, contract requirements, taxes, visa rules, background checks, worker classification, and payroll setup. Whether you choose to hire directly or through an EoR, this guide will help you navigate the local landscape with confidence.
Hiring in Georgia
Georgia is a diverse country in Eastern Europe, bordering Russia, Turkey, Armenia, Azerbaijan, and the Black Sea. Its growing economy and increasing number of skilled professionals make it an emerging destination for international business expansion.
However, hiring in Georgia means navigating a web of complex labour laws and collective bargaining agreements covering things like working hours, minimum age, remote work, and more — as well as navigating an unfamiliar labour market. Read on to find out what employers need to know before hiring in Georgia.
Employment laws in Georgia
Working life in Georgia is primarily regulated by employment legislation, including the Labour Code. This legislation defines the rights and obligations of both employers and employees. Various specific aspects of employment are regulated by other laws, including:
- The Law of Georgia on Trade Unions.
- The Law of Georgia on the Labour Inspection Service.
- The Law of Georgia on Mediation.
- The Law of Georgia on Occupational Safety.
Employers in Georgia must ensure they have a strong understanding of the relevant rules and obligations that apply to them (or seek legal advice from an expert).
Collective bargaining in Georgia
Collective bargaining in Georgia is regulated by the Labour Code and the Law of Georgia on Trade Unions. Collective bargaining agreements can be concluded at the enterprise or sectoral level. However, collective bargaining is not a widespread practice in Georgia.
Employment contracts in Georgia
When hiring in Georgia, employers are advised to provide an employment contract for every employee. This contract should be signed by the employer and the employee and should include a description of the employee’s duties and responsibilities, the employee’s compensation and benefits, and details about the employee’s working conditions.
Employment taxes in Georgia
Employers and employees in Georgia must both pay a pension contribution amounting to 2% of the employee’s gross salary. In addition, employees must pay individual income tax at a flat rate of 20%. Non-residents may not have to pay taxes in Georgia, depending on the Double Taxation Agreement (if any) with their home country.
Working hours in Georgia
The standard working week in Georgia is 40 hours. This is usually worked as five eight-hour days each week. In some sectors, employees can work up to 48 hours per week with government approval. Overtime is only possible with the employee’s consent and must be compensated at a higher rate agreed upon in the employment contract.
Work permits and visas in Georgia
Employers hiring foreign workers in Georgia must have a good understanding of the country’s visa and work permit system. For example, they may need to navigate various visa categories, including the D1 Visa for employment and entrepreneurial activities and the D2 visa for educational purposes, scientific research, and internships.
Background checks in Georgia
Conducting a background check in Georgia is a crucial step for employers aiming to verify candidate information and ensure suitability for specific roles. While background checks are permissible and common in Georgia, they must be conducted in compliance with local laws, particularly those concerning data protection and employment practices.
Required background checks in Georgia
Employers must ensure that all employees have the legal right to work in Georgia. This involves verifying appropriate visas or work permits for non-citizens. Criminal records checks may also be mandatory for certain positions, particularly those involving working with vulnerable populations.
Other permissible background checks in Georgia
Here are some other possible types of background checks in Georgia:
- Criminal records checks: Criminal record checks in Georgia are issued by the Agency for Public Services of the Ministry of Internal Affairs of Georgia. These certificates list convictions, ongoing proceedings, and foreign convictions when recorded, and are valid for 15 calendar days after issue.
- Education and employment verifications: Employers in Georgia can verify information provided to them during the recruitment process by contacting applicants’ former employers and educational institutions directly.
- Credit history checks: Credit history checks may be permissible in Georgia for some roles, such as those involving significant financial responsibility. Employers should obtain the consent of the candidate before conducting a credit check.
- Reference checks: Employers can gain insights into candidates’ work ethic and employment history by contacting their previous employers.
- Social media screening: Employers in Georgia can screen potential employees’ social media profiles to assess their suitability for a role. However, they should limit their search to publicly available, job-relevant information to avoid breaching privacy laws.
Limitations on background checks in Georgia
Background checks in Georgia must be conducted in compliance with the Law of Georgia on Personal Data Protection and the earlier Data Protection Act of 2011, which are both modelled on EU standards. Under these laws, employers need a lawful basis for processing personal data, including for employment background checks. This usually means asking job candidates for explicit written consent and informing them of the purpose of each check.Hiring options in Georgia
Before hiring employees in Georgia, employers should ensure that this is the best solution for their business needs. For example, if you only need a worker’s services for a short time or to work on a specific project, it may be a better idea to engage an independent contractor. Alternatively, you could hire a temporary worker through a labour agency.
These different employment structures all come with their own advantages and disadvantages. Above all, it’s important to ensure that every worker you engage is correctly classified according to Georgian employment law — or your company could face consequences including fines, penalties, reputational damage, and payment of back taxes. Read on for what you need to know.
Main hiring options in Georgia
Here are the main hiring options you may come across as an employer in Georgia:
- Employee: Employees are engaged under the Labour Code of Georgia, which recognises both written and verbal contracts. Employers can choose to engage employees on an open-ended (indefinite), fixed-term, full-time, or part-time basis. There are specific terms that apply to fixed-term and part-time workers. Employees in Georgia benefit from statutory protections, including minimum rest periods, paid leave, notice periods, unfair-dismissal safeguards, social contributions, and more under Georgian labour law.
- Independent contractor: Independent contractors in Georgia operate under a contract or work or contract for services. These agreements are regulated by the Civil Code of Georgia. Unlike employees, independent contractors are usually engaged to deliver a specific result or service for an agreed rate of pay. They provide their own tools, set their own schedule and bear commercial risk. Independent contractors are not covered by the Labour Code’s employment protections, which means they do not benefit from things like the minimum wage, paid leave, or protection from unfair dismissal.
- Temporary agency workers: Unlike in many other countries, Georgia’s Labour Code does not establish a separate regime for temporary-agency employment. In practice, staffing agencies may employ individuals on open-ended or fixed-term contracts and second them to user companies under standard employment agreements. These workers are employees of the agency and thus enjoy the same rights as any other Georgian employee when it comes to things like pay, leave, notice periods, and social insurance.
Employee misclassification risk in Georgia
In Georgia, accurately classifying workers is essential to ensure compliance with labour laws and to protect both employers and employees. Misclassifying an employee as an independent contractor can lead to legal and financial consequences. Employment is defined by the Labour Code of Georgia, which distinguishes genuine employment relationships from civil-law contracts (e.g. ‘contract for work’).
Employers found to have misclassified workers face administrative penalties under the Law on Labour Inspection Service, with fines proportionate to the violation. If non-compliance persists, cases may be escalated to the courts, potentially resulting in higher fines or criminal sanctions.
To mitigate these risks, employers should regularly review worker arrangements against the Labour Code criteria, ensure that contracts accurately reflect the autonomy of genuine contractors, and seek specialised legal advice on Georgian labour and civil-law requirements. Proper classification not only ensures compliance but also fosters a fair, transparent workplace.
Language requirements in Georgia
The official and primary language of Georgia is Georgian, which is spoken as a first language by the majority of the population. Georgian is divided into East Georgian and West Georgian. Minority languages in Georgia include Russian and Azerbaijani.
Language requirements for employment documents in Georgia
Under the Labour Code of Georgia, a written labour contract must be concluded in a language understandable to both parties. It may be drafted in more than one language, but it must specify which version prevails in case of conflict. As Georgian is the sole official language of the state, as enshrined in the Constitution of Georgia, any contract not originally in Georgian should be accompanied by a certified Georgian translation to ensure enforceability.
Language requirements for Georgian visas and work permits
Applicants for Georgian visas or residence permits must fill in standard forms in both Georgian and their native language and provide a certified Georgian translation of any supporting documents. However, there is currently no requirement to demonstrate proficiency in the Georgian language to obtain a visa or permit.
Applicants for Georgian naturalisation (citizenship) must demonstrate knowledge of the Georgian language, along with history and basic law, typically via a proficiency test administered by the authorities. Applicants must also have continuously resided in Georgia for at least ten years (or five years for spouses of Georgian citizens) to be granted citizenship.
English language in Georgia
English proficiency is increasing in Georgia, especially in large cities like Tbilisi. According to the EF English Language Proficiency Index, Georgia ranks 24th out of 35 countries in Europe and 34th out of 116 countries worldwide for English proficiency.
Corporate presence requirements and payroll setup in Georgia
If you want to hire employees in Georgia, you need to be able to pay them. Setting up payroll in Georgia isn’t necessarily complicated, but it does involve certain legal, financial, and tax considerations. Read on for what you need to know.
How to set up payroll in Georgia
Here are the steps to follow to set up payroll in Georgia:
- Register a local business: Foreign employers that want to engage employees in Georgia must usually first register a local business entity — most commonly a Limited Liability Company (LLC), Joint Stock Company, or Branch Office.
- Register for a tax ID number: You will then need to register your business with the Revenue Service of Georgia. This allows you to obtain a tax identification number, which will be necessary to withhold and remit employee taxes.
- Implement a payroll system: Ensure your payroll software or provider can calculate gross pay, personal income tax (flat 20 %), and social contributions (including the 2% pension contribution).
- Withhold and remit taxes and pensions: Employers in Georgia must deduct and remit personal income tax (20%), pension contributions (2% employee + 2% employer), and any other mandated levies to the Revenue Service by the 15th of the month following payroll.
- Fulfil statutory reporting obligations: Lastly, employers in Georgia must file monthly payroll reports and tax declarations through the Revenue Service’s e-services portal or in person, as required.
Do you need a local bank account to run payroll in Georgia?
Georgian law does not expressly require employers to open a local bank account for salary payments. Employers may pay wages from foreign accounts, provided the employee can receive funds in Georgian Lari (GEL) or another agreed currency. However, having a Georgian bank account might make things simpler from an administrative perspective.
Using an employer of record as an alternative to payroll setup in Georgia
Companies that want to avoid the hassle of incorporating a business and setting up payroll in Georgia can choose to work with an employer of record (EoR) instead. An EoR acts as the legal employer on behalf of the foreign company, handling employment contracts, payroll, tax filings, and compliance with local labour laws. This arrangement allows foreign companies to hire employees in Georgia without establishing a legal entity in the country.
Easily hire employees in Georgia with our EoR solution
Hiring employees in Georgia usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC.
Through our EoR solution, you can confidently hire employees in Georgia, without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.
Compliantly hire workers anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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