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Employment contracts and policies in Georgia
Contract terms in Georgia
Fixed-term contracts in Georgia
Contract extensions in Georgia
Working hours in Georgia
Remote work in Georgia
Employment contracts in Georgia
Every country has its own approach to employment contracts, shaped by national labour laws and workplace customs. In some jurisdictions, written agreements are required by law, while in others, verbal contracts are valid. Rules around working hours, overtime, and remote work also vary significantly from one country to another.
In Georgia, an employment contract is the cornerstone of the employer-employee relationship. While contracts can be tailored to individual roles, they must still comply with the requirements set out in the Georgian Labour Code. From setting clear expectations to defining working conditions and duration, having a well-drafted employment contract in Georgia helps protect both parties and reduce the risk of disputes.
This section offers an overview of what to consider when creating or reviewing an employment contract in Georgia. It covers the basics of contract structure, fixed-term agreements, and permissible clauses, as well as guidance on working hours, overtime, and remote work responsibilities.
Employment contracts and policies in Georgia
Every county has its own rules and regulations concerning employment contracts. In Georgia, these are primarily regulated by the Georgian Labour Code. Read on for what you need to know about employment contracts in Georgia as an employer.
Written employment contracts in Georgia
Employment contracts in Georgia can be established by written or verbal agreement. If a written agreement is provided, it must be in a language that is understandable to both the employer and the employee. Contracts can also be provided in multiple languages. However, they should always specify the prevailing language in case of divergence between the different versions.
Probationary periods in Georgia
Probationary periods are a common feature of employment contracts in Georgia. They allow both the employer and the employee to test out the employment relationship before committing fully. In Georgia, the statutory maximum for a probationary period is six months. Contracts containing a probationary period must be concluded in writing.
Third-party approval for employment contracts in Georgia
Unlike in some other countries, there is no requirement to file or register individual employment contracts with any government body or registry. The employer retains the original contract and must provide a certificate of employment when requested by the employee.
Mandatory employment policies in Georgia
There is no statutory obligation to adopt specific internal policies under Georgian labour law. However, it’s considered best practice to implement the following policies:
- Whistleblowing policy.
- Anti-discrimination and harassment policy.
- Personal data protection policy.
- Occupational safety policy.
Putting these policies in place helps employers in Georgia to ensure compliance with important legislation like the Georgian Labour Code, the Law on Occupational Safety, and the Law of Georgia on Personal Data Protection.
Contract terms in Georgia
In Georgia, written contracts must contain at least certain key terms and conditions, as per the requirements of the Labour Code. Read on to find out what you need to know as an employer.
Essential contract terms in Georgia
Employment contracts in Georgia should contain at least the essential terms and conditions of the agreement. That means they should include the following details:
- Start date (and end date if applicable).
- Working hours and rest time.
- Location of the workplace.
- Position and type of work.
- Remuneration and payment procedures.
- Overtime and pay.
- Paid and unpaid leave.
Additional contract terms in Georgia
Employers in Georgia are also entitled to include other terms in their employment contracts, such as:
- Confidentiality clauses: These protect business information by requiring employees to keep sensitive data private during and after employment.
- Non-compete clauses: These clauses may restrict an employee from working for a competitor after leaving the company, provided the limitations on time, geography, and scope are reasonable under Georgian law.
- Intellectual property clauses: These assign ownership of work-related creations to the employer and help clarify IP rights beyond what is already granted under Georgian copyright law.
- Remote work clauses: These set out the terms for working outside the employer’s premises, including location, hours, and equipment responsibilities.
Other requirements for employment contracts in Georgia
Employment contracts in Georgia must be in a language understandable to both parties. Employers must also, on employee request, issue a certificate of employment detailing the work performed, compensation and term of the contract. If an operations manual forms part of the agreement, it must be provided to the employee before contract execution and upon any amendment.
Fixed-term contracts in Georgia
Employers that only need the services of an employee for a short period can engage them on a fixed-term basis. For example, an employer might hire a fixed-term employee to temporarily replace another team member or to work on a one-off, short-term project. However, this is subject to certain conditions to protect the rights of workers. Read on for what you need to know about fixed-term contracts in Georgia.
Limitations on fixed-term contracts in Georgia
Fixed-term contracts are permissible in Georgia. However, if the contract is for one year or more, it can only be concluded in the fixed term in the following circumstances:
- Performing a specific amount of work.
- Seasonal work.
- Temporary increase in workload.
- Replacing an employee temporarily suspended from work.
- Other objective circumstances justifying a fixed term.
Fixed-term contracts in Georgia can also only be concluded for a maximum period of 30 months. If a fixed-term contract exceeds 30 months, or if an employee has been engaged under two or more consecutive fixed-term contracts exceeding a total of 30 months, the employment is considered open-ended.
Rights of fixed-term workers in Georgia
Employees on fixed-term contracts are entitled to the same rights and protections as those on open-ended contracts, including working conditions, remuneration, and social benefits.
Contract extensions in Georgia
In Georgia, fixed-term contracts typically terminate on the expiry of their term or on completion of a specific task or project. However, in certain situations, employees may choose to keep the employee engaged after the end of the contract. Read on for what you need to know about extending a fixed-term contract in Georgia.
Terminating a fixed-term contract in Georgia
Fixed-term contracts automatically terminate upon the expiration of the agreed period. However, early termination is permissible under certain conditions outlined in the Labour Code, such as mutual agreement or just cause.
Renewing or extending a fixed-term contract in Georgia
Fixed-term contracts in Georgia can be renewed or extended. However, if renewals result in continuous employment exceeding 30 months, the contract is deemed open-ended. Employers should ensure that the use of fixed-term contracts aligns with the legal requirements to avoid unintended conversion to open-ended contracts.
Working hours in Georgia
According to Article 14 of the Labour Code of Georgia, the standard duration of working time must not exceed 40 hours per week, unless otherwise established by law for specific sectors. In businesses with specific operating conditions requiring more than eight hours of uninterrupted production, standard working hours can be up to 48 hours per week. Read on to learn more about working hours in Georgia.
Overtime in Georgia
Overtime in Georgia is only allowed with the employee’s prior written consent. The Labour Code specifies that overtime must be compensated at a higher rate, which should be outlined in the employee’s contract. Collective bargaining agreements may also stipulate specific overtime rates.
Maximum working hours in Georgia
The Labour Code of Georgia does not impose a specific cap on overtime within a week or averaged over a reference period. However, in practice, an employee’s working hours should not regularly exceed 48 hours per week including overtime. This is commonly interpreted as the upper limit to working hours in line with EU and ILO labour standards.
Minimum breaks and rest periods in Georgia
Employees in Georgia have the right to at least 12 hours of continuous rest between working days. Workers who work more than six hours a day are also entitled to at least one break during the working day, which is generally unpaid unless otherwise agreed. The law in Georgia does not specify how long this break must be.
How many hours can a minor work in Georgia?
There are different maximum working hours in Georgia for workers under the age of 18. Specifically, workers aged between 14 and 16 must not work more than 24 hours per week or four hours per day, and those aged between 16 and 18 must not exceed 36 hours per week or six hours per day.
Remote work in Georgia
As in many places in the world, remote work has become more popular in Georgia over the past decade, particularly in the aftermath of the pandemic. Read on to find out what you need to know if you plan to hire remote workers in Georgia.
Remote work legislation in Georgia
Unlike in many other countries, remote work in Georgia is not specifically regulated by the Labour Code or by other legislation. However, all labour rules apply to remote workers just as they do to in-person employees. That means that employers of remote workers in Georgia have certain responsibilities towards their remote team members, including working hours, compensation, and data protection. Employers are also required to ensure their employees have a safe and healthy working environment under the Law on Occupational Safety.
Georgia remote work visa
In 2020, Georgia launched a programme called ‘Remotely from Georgia’, allowing remote workers to live and work in Georgia for up to one year, subject to certain conditions. It appears that this visa has now been discontinued. Despite this, citizens of over 90 countries, including the US, Australia, and many EU nations, are able to stay in Georgia unrestricted for up to a year. This means that it’s still possible to work as a digital nomad in Georgia. Remote workers considering this should ensure they fully understand the tax implications of their stay in the country.
Tailored employment contracts in 100+ countries
Like all countries, Georgia has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Georgia (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
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