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Notice periods in Georgia
Termination of employment in Georgia
Post-termination restraints in Georgia
Waivers in Georgia
Transfer of undertakings in Georgia
End of employment in Georgia
Every country has specific legal requirements that apply when an employment relationship ends, and Georgia is no exception. Whether you’re dealing with a resignation, dismissal, or the expiry of a fixed-term contract, it’s essential to understand your obligations as an employer.
In this section, we’ll guide you through the key rules for ending employment in Georgia, including notice periods, termination procedures, and severance pay. You’ll also find information on probationary periods, post-termination restraints, employee waivers, and how to handle transfers of undertakings.
Notice periods in Georgia
Both employers and employees in Georgia must give notice to the other party if they want to terminate their employment agreement. Read on for what you need to know as an employer.
Notice periods in Georgia for employers
The notice period in Georgia for employers is 30 calendar days. Employers must also pay severance equivalent to at least one month’s salary when they terminate an employee’s contract for a reason outlined in the Labour Code. This must be paid within 30 calendar days after the termination of the employment relationship. Alternatively, employers can opt to provide just three calendar days of notice and severance pay of at least two months’ salary.
Upon receiving notice, an employee can request a written explanation of the termination grounds within 30 days, which the employer must provide within seven days of receiving the request. If they don’t, the employee may file an appeal with the court against the employer’s decision to terminate, which could result in them being reinstated.
Notice periods in Georgia for employees
The notice period for employees resigning from their posts in Georgia is also 30 calendar days. Employees should provide their notice in writing, specifying their resignation date. They do not have to provide a reason for their resignation.
Probationary periods in Georgia
Probationary periods are permissible in Georgia, up to a maximum of six months. During the probationary period, both employers and employees may terminate their employment agreement without notice and with no need for severance pay.
Termination of employment in Georgia
Employers in Georgia can terminate their employees’ contracts in a number of ways, depending on the exact circumstances that apply. Read on to find out what you need to know about employee termination in Georgia.
Termination with notice in Georgia
Employers in Georgia may terminate an employee’s employment for any of the following reasons:
- Economic circumstances, technological or organisational changes.
- Incompatibility of the employee’s professional qualifications or skills with the position.
- Long-term disability (exceeding 40 calendar days in a row or 60 days within six months).
- Any other objective circumstances justifying the end of the employment relationship.
In these circumstances, the employer must give the employee at least 30 calendar days of written notice and pay severance of at least one month’s wages. Alternatively, they can provide just three days of notice and pay severance amounting to two months’ wages.
Termination without notice in Georgia
In certain limited circumstances, employers in Georgia can terminate their employees’ employment agreements without notice. For example, termination without notice may be possible in the case of a gross violation by the employee of their obligations under either:
- The employment contract.
- A collective bargaining agreement.
- Internal rules and regulations.
Termination by mutual agreement in Georgia
An employer and an employee in Georgia can mutually agree to terminate their employment agreement. In this case, neither party needs to provide notice to the other, and no severance is due. However, the employer may agree to pay severance pay as part of the termination agreement.
Termination of fixed-term employment contracts in Georgia
Fixed-term contracts in Georgia generally conclude upon the expiration of the term or completion of the work outlined in the agreement. Early termination is possible by mutual agreement or under grounds specified in the Labour Code.
Wrongful termination in Georgia
There are certain circumstances that do not justify the termination of an employment contract in Georgia. For example, employers are prohibited from terminating employment based on discriminatory grounds or due to the employee being called to military service. Employers may also not terminate an employee’s contract while they are on maternity leave.
Mass layoffs in Georgia
In Georgia, there are specific terms and conditions for group dismissals. A mass dismissal is defined by the Labour Code as at least 100 employees being laid off within a 15-day period. In this case, employers must provide at least 45 calendar days’ notice to the affected employees and notify the Ministry of Labour, Health, and Social Affairs.
Post-termination restraints in Georgia
Post-termination restraints are restrictions that employers can impose on their former employees after the end of the employment relationship. They are sometimes called restrictive covenants and are designed to protect the legitimate interests of the business.
However, they should not unduly limit the employee’s ability to make a living. For this reason, there are certain restrictions that apply to post-termination restraints in Georgia — read on for what you need to know as an employer.
Types of post-termination restraints in Georgia
Here are the main types of post-termination restraints in Georgia:
- Non-compete agreements: These clauses prohibit an ex‑employee from working in the same market or field as the former employer for a specified period post‑termination. Their purpose is to protect trade secrets, confidential know‑how, and substantial investments in employee training.
- Customer non-solicit agreements: These bar former employees from directly approaching or servicing clients or customers of the former employer. Their purpose is to safeguard client relationships and the employer’s goodwill.
- Employee non-solicit agreements: These clauses prevent ex‑employees from poaching the employer’s staff, often for a set period, thus protecting the employer’s workforce and continuity of operations.
Restrictions on post-termination restraints in Georgia
While restrictive covenants are permissible and enforceable in Georgia, they are subject to certain restrictions. For example, they must generally be:
- Reasonable in duration: Post-termination restrictions are generally limited to a period of no more than 6–12 months.
- Geographically limited: These restrictions must typically be confined to areas where the employer actually operates.
- Activity-specific: Restrictions must also cover only roles and activities that directly compete with the former employer.
- Compensated: Post-termination restraints are more likely to be enforceable if the employee is compensated during the restriction period.
Waivers in Georgia
Under certain circumstances, an employee can agree to waive certain employment rights or claims, typically in exchange for compensation or other benefits. Such an agreement may be used during the termination process to prevent further disputes between the employer and employee. Under Georgian law, waivers are permissible provided they are made voluntarily, with informed consent, and are not contrary to the Labour Code of Georgia.
Employers in Georgia should ensure that any waiver agreements are clearly documented in writing and that the employee fully understands the implications of the waiver. It is advisable for employers to provide employees with the opportunity to seek independent legal advice before signing such agreements. This practice not only upholds the principle of informed consent but also strengthens the enforceability of the waiver should any disputes arise in the future.
Transfer of undertakings in Georgia
A transfer of undertakings is when one company partially or wholly acquires another, for example, through a merger or acquisition. In this situation, the employees of the acquired company are typically transferred to the acquiring company along with their terms and conditions of employment.
Legal rights related to transfers of undertakings in Georgia
In Georgia, the Labour Code does not contain specific provisions addressing the transfer of undertakings. This means that there are no statutory rules governing employee rights after a business transfer.
In the absence of specific regulations, employee rights during a transfer of undertakings in Georgia are typically determined by employment contracts and any relevant collective agreements. Employers considering a transfer of undertaking should carefully review these agreements to understand their obligations and the rights of their employees.
Given the complexities involved in transfers of undertakings and the potential implications for employee rights, employers are advised to seek legal counsel to navigate these situations effectively.
Consulting and information rights during a transfer of undertaking in Georgia
While there is no statutory requirement for employers to consult or inform employees about a transfer of undertaking, it is considered best practice to maintain open communication. Providing employees with information about the transfer can help manage expectations and maintain trust during the transition.
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There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Georgia — or you could end up facing legal issues.
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